Penny stocks are stocks valued under $5.00 and can be a risky bet for investors. They usually consist of fallen angels or stocks that haven’t yet lived up to their full potential and may never do so. The prospect of turning a pretty small investment into a more than sizeable return can be too hard for some to resist.
It’s been a pretty volatile week for equity markets, which have been paralyzed by indecision as the outbreak of the coronavirus sends the pendulum swinging one way, only for Joe Biden’s Super Tuesday sweep and the Fed’s rate cut to have the opposite effect. Let’s take a look at two penny stocks that could help your portfolio ride out the storm:
OPKO Health (NASDAQ:OPK)
While the coronavirus may be causing unprecedented volatility for the majority of stocks, several healthcare stocks have actually seen some impressive gains. Medical test company OPKO Health announced today that it will begin testing for COVID-19 from next week as the US ramps up efforts to increase diagnostic capabilities. The FDA said last week it would allow some laboratories, including OPKO, to immediately use the tests they have developed and validated. This penny stock is up 20% today to currently trade at $1.97.
>> PLUG Stock Falls After Reporting Mixed Q4 Earnings
Can-Fite Biopharma (NYSE:CANF)
Can-Fite is another pharma penny stock that has seen impressive gains lately, albeit for a slightly different reason than many of its competitors. At the end of February, the company reported that it had expanded its collaboration with Univo Pharmaceuticals for testing the effects of CBD against liver cancer. Under the expanded deal, Can-Fite Biopharma said it will support the research and development operations for the two new therapies with a $400,000 investment.
“These novel findings of anti-cancer cell effects found with minute dosages of CBD may open up new avenues of utilizing cannabinoids to treat cancer patients while minimizing adverse effects,” said Can-Fite’s medical director Dr. Michael Silverman. This penny stock is up 21% today to $1.89.
Featured Image: DepositPhotos © aremafoto
