Since the beginning of 2022, the stock market has been everything but stable.
As a result, investors are split between protecting themselves and taking advantage of the possibilities in the current economic climate.
It’s a great time to invest, and this is true not just despite but also because of the current economic turmoil.
Here are five attractive penny health stock bets that are expected to do well during a period when most equities are under pressure.
When it comes to infectious illnesses, it’s more than simply a pandemic fighter (like Novavax). “Vir Biotechnology is unprofitable, and it will be years before the firm sees any profits,” I said when the company went public in 2019.
Vir boasts 52 percent profit margins and a 62,000 percent sales increase after three years of operation. Sotrovimab, the drug used to treat COVID, is the source of this unexpected cash. Vir made $2 billion in sales last year due to this medicine.
Because Vir hasn’t shown effectiveness against the Omicron strain, the FDA recently revoked its emergency use authorization (EUA) for the company’s COVID therapy. Vir’s medicine is still being sold abroad, but not in the United States.
For investors, this means that revenue for the second quarter will likely be lower than in the first quarter. Even yet, it is still a significant gain over last year. For the Omicron variety, Vir is now studying if greater dosages of sotrovimab work, so the EUA may be reintroduced later this year.
Because Vir has already developed a good therapy for the original COVID strain, I’m certain that it will be able to do the same for any future COVID variations. In addition, Vir’s COVID therapy has given the company a sizable cash reserve, which is currently being used to support more research and development. Therefore, in my perspective, this biotech stock has been de-risked.
Teledoc Health Inc
In mid-January 2020, Teladoc surged over the 86.40 appropriate purchase price. As a result, the stock rose 193 percent in seven months to 253 dollars. Now? TDOC’s stock price remains below its crucial 10-week moving average, indicating a negative development. In addition, Teladoc, which has fallen by 91% from its all-time high of 308, is also attempting to bottom out and establish a new foundation.
Only stocks trading for less than $10 per share are screened by the IBD Stock Screener. Some of the biggest stock market winners also have many fundamental, technical, and fund ownership qualities.
Consider the fact that cash may be scarce. As a result, you may not be able to acquire the best price for your trades. In addition, when fund managers sell all of their shares at once in order to lock in gains, you might face further losses if you decide to sell your investment.
Make sure you know how much investors are prepared to pay and how much they are willing to sell for a cheap stock before you buy it. If the bid-ask price difference is less, there will be less price fluctuation.
Investors have had a wild journey with Novavax, and the stock is still surprising them. The stock was $4 a share a few years ago. Then it climbed to $330 per share. Then a few weeks ago, it fell all the way down to $35. It’s now $70. So what’s going on with Novavax’s share price?
Biotech’s COVID-19 vaccine will soon be available in the United States. COVID-19 seems to be a seasonal virus, with the largest hospitalizations occurring during winter. A yearly immunization program may be necessary if the virus continues to evolve. Before the cold weather sets in, I’ll be administering another dose of the flu vaccine. Novavax’s COVID vaccine, which I believe will be available before then, is my best chance. An FDA panel unanimously approved Novavax’s vaccine candidate, so I anticipate the medicine to be available in the United States within the next several months.
In any event, Novavax has already been granted vaccination approvals in 170 countries across the globe, and that is where the bulk of its earnings will come from. This year, the corporation expects to make more than $4 billion in revenue. Because of production delays last year, the market is wary. However, the supply of this vaccination is now at an all-time low price.
Sensus Healthcare Inc (SRTS)
Since recently making the stock screener, Sensus Healthcare (SRTS) has continued to create a new foundation on the right. As a result, the stock market is on track for a fourth consecutive weekly gain, which is encouraging.
IBD’s medical systems industry group member, SRTS, has a Composite Rating of 99. The Relative Strength Rating matches that great score.
Using radiation treatment, non-melanoma skin cancers and keloids may be effectively treated.
Sensus released its earnings results for the second quarter after the market closed on Thursday. Compared to the year-ago quarter’s net loss of two cents, the company made a significant profit of 21 cents per share this year. In addition, $12.1 million in sales were generated in only a year. Sensus had $34 million in cash and cash equivalents at the end of the third quarter.
The $180 million small cap has recently seen many gains on high-volume days. That’s good news, mainly because SRTS tested the 200-day moving average for purchasing support on July 5.
In the first quarter, sales increased by 237 percent. As a result, earnings were up to 97 cents a share, compared to a net loss of 7 cents in the same period last year.
The right side of Sensus’ design, which is now a cup without a handle, needs further improvement.