3 Penny Stocks to Buy With $500

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Are you interested in investing in penny stocks ? Though doing so does come with risk, making the right investment decisions in the penny stock category can produce eye-opening returns. While the profits you can generate in the penny stock category can be sizable, it’s also important that you don’t invest money in penny stocks that you can’t afford to lose. After all, they typically represent young, unprofitable companies that have yet to prove themselves. As such, these companies often fail, leading to losses for those who invest in them.

But what if you have $500 of disposable income and you want to try your hand at penny stock investing? What stocks should you buy? Here are a few to consider:

Key Points :

• Penny stocks can produce meaningful gains, but they’re also very risky .
• Xeris Biopharma has several catalysts ahead.
• Lyell Immunotherapy could be a big winner in the oncology space.
• Precigen is another oncology play that could pay off.
• Are you looking for stocks to buy low and sell high? Look no further. Download our brand new Discover “The Next NVIDIA” report here to learn about two stocks that we believe will climb by 10X or more ahead.

Xeris Biopharma Has Several Catalysts Ahead

Xeris Biopharma (Nasdaq: XERS) is a commercial-stage biotechnology company. That means the company has made it through the development stages and has products approved by regulatory agencies on the market. Xeris Biopharma currently markets four commercially available treatments.

Three of those treatments are designed for endocrinology-related diseases like diabetes; the fourth is a neurological medication designed to treat primary periodic paralysis.

It’s also worth mentioning that the company hasn’t stopped innovating new therapies. It has a therapeutic called levothyroxine in Phase 2 clinical trials for the treatment of hypothyroidism.

That leads us to the potential catalysts ahead.

Any positive data out of the company’s Phase 2 clinical program could lead to significant gains ahead. Beyond that, sales growth in the company’s commercially-available products could do more of the same. Perhaps that’s why analysts have such a positive view of the stock.

Six analysts have shared opinions of Xeris Biopharma, four who rate it a Buy and two who rate it an Outperform. And the median price target of $5 suggests that the stock has plenty of room to run ahead.

Lyell Immunopharma Could Climb On Clinical Data

Lyell Immunopharma (Nasdaq: LYEL) is a clinical-stage biotechnology company. That means that while the company doesn’t have any approved medications on the market yet, it has therapeutics involved in ongoing clinical trials.

Lyell Immunopharma has an impressively robust pipeline for a company of such a small size. The company has four ongoing research programs in its pipeline. One of those programs is a preclinical-stage research program, while the other three involve products in clinical testing.

So what is the company developing therapeutics for?

The company’s core focus is in the field of oncology. In particular, it’s targeting difficult-to-treat solid tumor cancers that typically are known for poor clinical outcomes.

It’s worth noting that all of the company’s clinical programs are in Phase 1 clinical trials. Each one of these programs could generate a large number of catalysts ahead, making this stock well worth watching.

However, analysts are relatively mixed on the stock. While there is one Buy rating and no Sell ratings, three of the four analysts weighing in on the stock rate it a Hold. However, there’s no cause for concern in the company’s price target. With a median price target of $4 per share, LYEL stock could see gains in multiples ahead.

Precigen May Profit From Cell and Gene Therapies

Precigen (Nasdaq: PGEN) is another clinical-stage biotechnology company that focuses on the treatment of debilitating cancers. The company’s core science surrounds gene and cell therapies under the idea that treating mutations and the tumor microenvironment will lead to better outcomes for cancer patients.

The company is highly active in the clinic as well. It currently has seven clinical programs. Six of those programs are centered around cancer treatments, while one of them is focused on a potential treatment option for diabetes. Of the seven clinical programs, four of them are in Phase 2 clinical trials; the other three are currently in Phase 1.

That’s important because clinical trials typically produce catalysts. Any positive data or other updates from these trials could cause the stock to make a run for the top, making it a strong option to consider right now.

For the most part, analysts agree. There are currently four analysts weighing in on the stock. One rates it a Buy, and two rate it an Outperform. However, it’s worth mentioning that one analyst has rated the stock an Underperform. Nonetheless, the $7 median price target suggests that there’s plenty of room for growth ahead.

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