Why Are Analysts Putting A Buy On These Penny Stocks?
Iâve discussed penny stocks and analyst ratings in the past. Are they the end-all and your ultimate source of information? In my opinion, no but that doesnât discount the fact that they may be a point of focus while you research. One of the biggest flaws that I feel ratings and targets have is the timing at which they issue their outlook. This is especially true when we talk about cheap stocks.
What may be important ânowâ might not have relevance in the future. One of the things to remember is that many of these companies are in the early stages of growth. This means that it isnât uncommon to see certain businesses evolve. In some cases, they may become different businesses entirely. We saw a lot of that happen last year during the first few months of the pandemic.