Biotechnology company VistaGen Therapeutics Inc. (NASDAQ:VTGN) was an investor’s dream in 2017. This penny stock did what so few can; it soared from $0.92 to $2.55 in a 24-hour period.
However, less than two weeks later, it plummeted back to $1.05, losing 58% of its worth. For investors who bought at the peak, they would’ve lost over half their investment in a matter of days; an example of the nightmare that can be penny stocks sometimes.
But looking to the future, it looks like the VTGN penny stock might be set to skyrocket again.
Penny Stocks to Watch: VistaGen Therapeutics Inc.
Analysts are turning bullish on this biotechnology company once again in anticipation of its upcoming earnings report (coming Monday, February 11th). What’s expected are earnings of $0.30 per share for the current quarter. This quarter last year brought in $0.24 per share. These figures indicate the company is showing a growth rate of 25% and, simply put, is doing all the right things.
Adding fuel to this bullish fire, Fair Field Current states that “the stock has a consensus rating of ‘Buy’ and an average target price of $8.30.”
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Stock Movement This Week
This week has seen the penny stock climb, most likely in reaction to next week’s earnings report. VTGN stock soared to $1.69 from $1.52 overnight on January 30th. The week that has followed has been a rollercoaster of ups and downs, but all in all, the stock remains in the green, currently selling for $1.63 USD.
NonClinical Study Data
One very positive potential that biotechnology investors have going for them is that one positive trial or study can cause stocks to surge. Companies like VistaGen can be literally one positive result away from the next big drug or technology. When moments like this happen (and they do), investors win big time. This is why the risk in biotechnology penny stocks is sometimes worth taking.
Most recently, the company announced data from a nonclinical study which “shows that their AV-101 CNS drug candidate has the capability of stimulating hippocampal neurogenesis.”
While still early days, investors should keep an eye out for this type of news—a sign of the next Eureka moment to come perhaps?
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