3 Healthcare Penny Stocks Up Over 200% (Thanks to Biden & COVID-19)

healthcare penny stocks

The panic that’s been gripping markets since COVID-19 hit headlines is far from over. In fact, a UN trade agency projects that a coronavirus-led global economic slowdown will cause $1 trillion in losses. And while most industries are suffering from the current volatility, investors in healthcare penny stocks actually have reason to smile.

Two major factors have been boosting the healthcare sector in general. The first is COVID-19, which has specifically helped biotech stocks defy the market-wide downturn. That’s because several biotech companies are working towards a potential vaccine.

The other (though admittedly less impactful) factor is the performance of former Vice President Joe Biden in the 2020 Democratic Primaries. As Biden opposes a “Medicare for All” plan, his ever-widening lead over Senator Bernie Sanders means the privatized healthcare industry faces no existential threats on the horizon.

At the end of February, healthcare companies experienced their worst week in 20 years. But following Biden’s Super Tuesday win on March 4, healthcare stocks soared. Some of the biggest names in the space—such as United Health, CVS, and Cigna—even experienced double-digit gains.

But this stock surge isn’t just helping large-cap companies. Healthcare penny stocks are also rising as the broader markets plummet. So let’s take a look at three companies you can consider for your portfolio today. These stocks may not be penny stocks currently but were penny stocks when the year started, which just goes to show that there can be gains to be made in this sector, albeit perhaps only temporary gains.

Healthcare Penny Stocks: Co-Diagnostics

Co-Diagnostics Inc (NASDAQ:CODX) entered 2020 at $0.91. By February 25, it had gained a lot of value, growing to a 52-week high of $4.32. That’s 374% growth in less than two months, something any investor would be happy with.

But the growth didn’t stop there. Since then, CODX has shot up to $12.28, meaning its total gains for the year-to-date is 1,250%.

Co-Diagnostics was the first company in America to receive a CE-mark for a COVID-19 diagnostic test. It’s currently scaling up production to meet global demand of its “cost-effective diagnostic tool.”

While 1,000%+ gains would normally indicate that this stock has hit its ceiling, there’s reason to think it will continue going up. Analyst Yi Chen believes that a recent FDA policy change to help expedite coronavirus diagnostics will boost the company’s sales.

As a result, he raised the firm’s price target to an astounding $20. That represents a 62.86% increase from CODX’s current share price!

>> 5 Biotech Penny Stock Gainers to Watch on March 13

Healthcare Penny Stocks: Trillium

Ontario-based Trillium Therapeutics (TSX:TRIL) (NASDAQ:TRIL) conducts stem cell research to help treat cancer and other diseases.

At the start of the year, TRIL was priced at $1.91. Like CODX, it steadily gained value throughout the year, climbing to $4.56 by late February. It then exploded to a high of $9.70 before consolidating back to around $6.00. The stock remains up over 200% for the year-to-date.

The value boost occurred when Gilead Sciences and fellow cancer drugmaker Forty Seven agreed to a buyout deal at $4.9 billion. With so much money changing hands, investors raced to take a position in Trillium, as it operates in much the same area as Forty Seven, which may mean it’s next up for a major buyout.

On March 10, the company reported its fiscal 2019 financial report, wherein it discussed the opening of a new office in Cambridge, Massachusets. This expansion into the US would be imperiled with a major disruption to the sector, like Medicare for All.

But with Biden potentially headed to the White House, Trillium may actually benefit from the presidential candidate’s promise to invest “billions” in search of a cure for cancer.

Healthcare Penny Stocks: Allied Healthcare Products

Allied Healthcare Products Inc (NASDAQ:AHPI) rang in the new year at a modest $1.26. It was nearing 200% gains by February 26, when suddenly the stock shot up to $24.

AHPI now sits at a still-impressive $12.94, putting it up 927% for the year.

The company is a health equipment manufacturer from Saint Louis, Missouri. Its products are used for oxygen therapy or respiration, and notably, it offers a special line of ventilators for use with mass casualties. Though somewhat grim, the idea of mass casualties remains on the public’s mind.

Some analysts are suggesting that the target price for AHPI stock should be $14.74 per share within the year. If this bears out, that means there’s at least a remaining 14% upside for AHPI.

The next time you wash your hands, help while away the time by reciting these three healthcare penny stocks.

>> Read More Penny Stock News

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