Just What the Doctor Ordered
Health care is considered a defensive sector, and large-cap health-care stocks tend to outperform in times of economic uncertainty and stock market turmoil. That’s all well and good, but in a market as oversold as the one we’re currently in, I think it will be much more profitable (and fun) to aim for the fences with some biotech penny stocks.
Now, when I say “penny stocks,” I’m not talking about micro-cap pink sheet or OTC stocks that cost only a few cents per share. True penny stocks are much too risky to make good investments. Rather, the penny stocks I’m recommending are a little bigger (read: safer), yet still have the ability to deliver outsized gains as the market recovers.
Here are six top biotech penny stocks to buy now:
Penny Stock to Buy #1 – Aastrom Biosciences (ASTM)
Development-stage Aastrom Biosciences (NASDAQ: ASTM) is a regenerative medicine company focused on the development of cell therapies to repair or regenerate damaged or diseased tissues. The company’s autologous expanded cellular therapy technology uses single-pass perfusion to produce human cell products for clinical use.
In the past 12 months, shares of ASTM have jumped 79%, compared to a 19% gain for the Nasdaq. More recently, this biotech penny stock has gained 19% in the past three months.
Penny Stock to Buy #2 – PharmAthene (PIP)
Biodefense company PharmAthene (AMEX: PIP) develops and commercializes medical countermeasures against biological and chemical weapons. Based in Annapolis, Md., its products are used in the defense of Anthrax, nerve gases and other chemical weapons.
In the last calendar year, PIP stock has gained 94%. Potential buyers should also make note of PIP’s last income statement, in which the penny stock posted a quarterly revenue growth of 103%. PIP also has the ability to grow your portfolio quickly, as it jumped more than 30% in a three-day span in October.
Penny Stock to Buy #3 – Pluristem Therapeutics (PSTI)
Pluristem Therapeutics (NASDAQ: PSTI) is a biotherapeutics company that commercializes treatments for several severe degenerative, ischemic and autoimmune disorders. Based in Israel, Pluristem develops its products from adult stromal cell sources, rather than stem cells.
In the last 12 months, PSTI stock has gained an impressive 148%, compared to a gain of 19% for the Nasdaq itself. This penny stock is also up nearly 31% since the middle of March. Trading near $2.93 currently, PSTI stock has nearly tripled its 52-week low of 98 cents.
Penny Stock to Buy #4 – SuperGen (SUPG)
Pharmaceutical company SuperGen (NASDAQ: SUPG) is involved in the discovery and development of therapies to treat cancer patients. The company takes products already developed by other companies and applies additional developmental effort to expand sales and advance the products clinically toward approval for marketing.
SUPG stock has climbed 19% since last June. In its latest income statement, the company reported a net profit margin of 31%. Earnings wise, SuperGen reported a quarterly earnings growth of 18%, year-over-year, in its last income statement.
Penny Stock to Buy #5 – AEterna Zentaris (AEZS)
Drug-development company AEterna Zentaris (NASDAQ: AEZS) specializes in oncology and endocrine therapy. AEZS is involved with every stage of product development from discovering drugs to eventually marketing them.
Since last June, this penny stock has gained 86%. More recently, AEZS is up 29% since the start of January. Looking at its last income statement, the company recently reported a quarterly revenue growth of 15%. Buy this penny stock just below its 52-week high of $2.68.
Penny Stock to Buy #6 – Opko Health (OPK)
Specialty health-care company Opko Health (AMEX: OPK) is engaged in the discovery, development and commercialization of pharmaceutical products, vaccines, diagnostic technologies and imaging systems. Based in Miami, OPK markets its products in Chile and Mexico.
In the last 12 months, OPK has gained 54%. The penny stock also posted a quarterly revenue growth of 9% in its last income statement. With a 52-week range of $2.01 to $5.03, OPK is an inexpensive stock that could provide your portfolio with strong gains.