3 Analyst Recommended Penny Stocks to Buy [Or Sell] Finding penny stocks via analyst recommendations can be a good strategy for some. However, when making a list of penny stocks to buy, the best scenario is to use a combination of analyst recommendations and your due diligence. So if youâre looking for a few cheap stocks to put on your watchlist, letâs first talk about some tips and tricks to avoid taking in losses. When starting to trade penny stocks, itâs easy to watch your account become red very quickly. And, if you donât have a trading education to back your strategy, these losses can add up even faster. So before you even start making a watchlist, there are a few things to consider. The most important of these is what industry does it work in and where is that industry headed.Â