4 Penny Stocks To Watch If You're Playing "The Stock Market Game" (2024)

Penny Stocks, The “Game,” & How To Win It

Are you trying to play “the stock market game” with penny stocks this week? If you’ve said “yes,” you’re not alone. Week in and week out, retail traders take aim at cheap stocks hoping to leverage small sums of capital in exchange for more significant returns.

There are plenty of risks when it comes to trading and investing. That gets amplified when we look at some of the lowest-priced names. But in the stock market today, so many well-known companies have come under pressure, so much so that they’re trading below the $5 penny stock threshold.

This has made the selection pool much more significant compared to years past. If you’re playing the “stock market game,” so to speak, the key is knowing how to find the best stocks to buy, and that begins with putting together a watch list. This article looks at a handful of penny stocks to watch this week. They’ve already started turning heads in November, but recent momentum has sparked new interest.

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4 Penny Stocks To Watch This Week

• Ardelyx Inc. (NASDAQ: ARDX)
• Opendoor Technologies Inc. (NASDAQ: OPEN)
• Ensysce Biosciences (NASDAQ: ENSC)
• Nokia (NYSE: NOK)

Ardelyx Inc. (NASDAQ: ARDX)

Shares of Ardelyx have been on our list of penny stocks to watch for months, and this week ARDX reached a new 2022 high. Last month we discussed Ardelyx on a list of penny stocks with unusual options activity, with the bulk of the action being seen in the January 2023 $1.50 Calls.

Some of the speculative momentum could be linked to a meeting scheduled for this week. Ardelyx’s IBSRELA is its first approved product in the U.S. to treat IBS-C in adults. It has additional pipeline candidates that could garner attention this year, including its XPHOZAH for hyperphosphatemia.

A meeting of the Cardiovascular and Renal Drugs Advisory Committee is tentatively scheduled forthis week on November 16th.

Ardelyx is also a favorite name among some Wall Street funds. In our article “4 Hot Penny Stocks To Buy Now According To Top Hedge Funds,” we discussed some notable names holding positions in ARDX stock. Steven Cohen’s Point72 Asset Management, Millennium Management, Citadel Advisors, BlackRock, Jim Simons’s Renaissance Technologies, and Vanguard Group are among the top names.

Opendoor Technologies Inc. (NASDAQ: OPEN)

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Another one of the names that were on the watch list recently is Opendoor Technologies. Like ARDX, OPEN stock was on watch thanks to unusual options activity. There’s something to be said about analyzing alternative data for ideas, and the options market is one of the ways to do that. In particular, we pointed out December 9th’s $2.50 strike Calls as the options of interest with unusual activity.

In its recent third-quarter earnings update, CEO Eric Wu discussed the outlook for the eCommerce real estate company. Wu explained, “In the third quarter, we accelerated the resale velocity of our existing inventory and have significantly increased spreads on new acquisitions…These actions ensure we are prioritizing sell-through to improve the health of our inventory on a resale basis and that our post-Q2 acquisition cohorts are positioned to perform inline with our contribution margin targets.”

There weren’t any significant options trades at the time of this article. However, momentum has remained in the penny stock since last week. The incoming real estate data could be something to keep in mind if OPEN stock is on your watch list right now. We’ll see October building permits and housing starting between 8 and 8:30 AM ET on Thursday. We’ll also get initial & continuing jobless claims and the Philidelphia Fed manufacturing data for November. However, they may not play as important a role as housing data regarding OPEN stock.

Ensysce Biosciences (NASDAQ: ENSC)

Biotech penny stocks have been a hot topic of discussion. Learning how to trade them is also something growing in popularity recently. We broke down some strategies in our article “Buying Biotech Penny Stocks? 3 Things to Look For.” Give it a look if you’re getting your feet wet with stocks in this industry.

As far as Ensysce Biosciences is concerned, the company specializes in prescription drug safety for reducing abuse and overdose. This week ENSC stock turned heads after its latest headlines regarding FDA guidance. Its lead candidate, a Trypsin Activated Abuse Protection (TAAP) product, PF614, is designed for addressing acute pain indications.

The latest FDA guidance stated that Ensysce’s proposed clinical development for clinical trials in differing pain models “appears reasonable” in supporting a new drug application for PF614. “As a result of the FDA guidance, we now intend to initially pursue clinical development of PF614 for an acute pain indication while continuing with our chronic pain development pathway. We believe that the longer half-life of PF614 compared to OxyContin may ultimately prevent acute pain from becoming chronic pain by better controlling severe pain on a day-to-day basis,” said Dr. Lynn Kirkpatrick, CEO of Ensysce.

Nokia (NYSE: NOK)

You might not believe that Nokia, one of the world’s most notable names in communications, is a penny stock. Sitting below $5 as of this article, NOK stock has been one to watch for the last month. Shares have rallied from around $4 to highs of over $4.70 during the period as earnings momentum continues pushing shares higher.

Nokia registered growth in net sales for Q3 even though margins sunk. CEO Pekka Lundmark discussed performance in more detail in the latest October update. Our third-quarter performance demonstrates we are delivering on our ambition to accelerate growth. “Net sales grew 6% in constant currency as supply constraints started to ease, and we maintained good profitability with comparable operating margin of 10.5%. This was slightly down year-on-year, as improving profitability in Mobile Networks and Network Infrastructure was offset by timing effects of contract renewals in Nokia Technologies.”

– End of Year Penny Stocks Trading Recommendations

The company also recently completed the first phase of its share buyback program. Nokia repurchased nearly 64 million NOK shares and maintained a target buyback of up to EUR 600 million.

How To Play “The Stock Market Game” With Penny Stocks

On PennyStocks.com, we provide free educational material to help those looking to get started trading. For those looking for something more experiential, there are alsochatrooms led by professional traders with hedgefund experiencethat you can try out. How you want to play the “game” is up to you. If education isn’t your “thing,” then make sure you’re at least doing a bit of research to make informed decisions.