Stocks are heating up for the holidays, and so are penny stocks. The bulls are running the market right now and it seems headed for a nice close to the year. When sentiment is this high, it’s a good time to start looking at the best penny stocks. Investors are on the hunt for returns and that’s creating more demand for higher-risk assets, like penny stocks.
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Latest Stock Market News
The major stock averages ended last week on a high note, closing in on new record highs. US-China trade talks continue to progress and the good vibes are lifting the markets. The S&P 500 was up by 0.25% last Friday, and healthcare stocks and tech stocks were some of the leading performers.
The Dow Jones Industrial Average was also up on Friday, with Disney leading the way. The NASDAQ Composite was the day’s biggest winner, notching 0.5% gains to end the week at 8,475.31 points.
President Trump will give a speech at the Economic Club of New York on Tuesday, and the market will be listening for any trade talk tidbits. Meanwhile, Fed Chair Jerome Powell is scheduled to address the Congress this week and he could offer insights into short-term Fed policy.
Top Penny Stocks to Watch This Week
As the rally continues, some penny stocks are attracting a lot of attention. These are our best penny stocks picks for this week.
Urban Tea (MYT)
Urban Tea had a wonderful week. It closed Friday’s session at $0.78 per share, marking a 14.71% gain in 24 hours. The stock has been running hot as of late, rising by roughly 50% since the start of November.
Last week, Urban Tea announced that it completed its acquisition of a 51% equity stake in Hunan 39 Pu Tea Co., Ltd. The merger has the potential to increase the efficiency of tea production, distribution, and R&D for Urban Tea. It could help the company cut costs and capture more market share. Investors applauded the acquisition.
Urban Tea gained 115% in October and it’s expected to perform excellently this month.
Milestone Scientific (MLSS)
Milestone Scientific has been one of the best penny stocks this year. Over the past six months, the stock has surged by roughly 200%. Despite losing 1.79% of its value during Friday’s trading session, the stock still trades above the $1.10 mark.
In August, Milestone Scientific entered a distribution agreement with Paragon Care Limited. Paragon Care, which is a leading manufacturer of healthcare equipment and devices in Australia, will handle the distribution of CompuFlo Epidural System in the country. The device is used in roughly 300,000 births in Australia annually.
The stock has enjoyed a sustained rally over the past few months and the trend looks favorable for the month ahead.
Aclaris Therapeutics Inc. (ACRS)
Aclaris is another penny stock starting November on a positive note. The stock surged by 15.38% on Friday’s trading session but gave back 2.56% in after-hours trading. Despite the pull-back, it remains one of the best penny stocks on the market.
This biotech stock performed well despite missing consensus estimates in its last quarterly earnings report. The firm reported an EPS of $1.34 for the previous quarter, which is below analysts’ expectations. Revenues of $0.98 million also fell well short of consensus estimates, which expected $5.87 million in the quarter.
Despite the weak earnings report by Aclaris, the stock has been performing excellently in recent weeks and is expected to follow that trend in the coming week. This price action around earnings indicates that traders aren’t giving up on this stock and it supports the bull case for this stock.
More on The Best Penny Stocks
Cheap stocks could be a great way to capitalize on a market rally and enjoy the massive gains attained by penny stocks.
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