These 2 ‘Strong Buy’ Penny Stocks Are Poised for a Massive Rally, Analysts Say

There are two sides to every coin. This is especially true for penny stocks, or tickers that trade for less than $5 per share. These stocks are among the most controversial names on Wall Street, either attracting investors with their high return potential or driving them away. But why?

When we talk about high return potential, we are not exaggerating. The favorable prices allow investors to acquire more shares than possible when investing in other, better-known names. Additionally, even what appears to be an insignificant appreciation in a stock’s price can translate into massive percentage gains.

That said, there is a legitimate reason why some investors are wary of penny stocks. The risk associated with these plays scares the faint of heart, as real problems such as weak fundamentals or crushing headwinds could be masked by weak stock prices.

So how are investors supposed to determine which names have what it takes to make a comeback? Follow the pros.

Using the TipRanks Database, we were able to identify two penny stocks that enjoy “strong buy” consensus ratings from the analyst community. Not to mention, huge upside potential is on the table. We’re talking up to 750% here.

Vigilance Neurosciences (VIGL)

We’ll start with Vigil Neuroscience, a biotechnology company working to develop novel therapeutic agents for the treatment of neurodegenerative diseases. The company adopts an innovative approach, centered on microglia, cells residing in the central nervous system and acting in the defense and repair of neurons. The company’s goal is to create a portfolio of drug candidates capable of targeting genetically defined patient subpopulations, in order to demonstrate their effectiveness before expanding the patient base.

Vigil’s programs are currently designed to target TREM2 activation, through small and large molecule compounds. The company’s lead drug candidate, iluzanebart (also known as VGL101), is currently in a Phase 2 clinical trial for the treatment of ALSP, or adult spheroid leukoencephalopathy axonal and pigmented glial cells. Iluzanebart is a fully human monoclonal antibody and TREM2 agonist.

ALSP, the initial target disease, is a serious degenerative neurological disease with a high unmet medical need; recruitment for the IGNITE phase 2 trial of iluzanebart has been completed and interim data, published in April, showed promise based on the first 6 patients after 6 months of treatment. The next data reading for IGNITE, currently scheduled for 3Q24, remains on track.

Complementing iluzanebart is Vigil’s second active, VGL-3927, a small molecule oral TREM2 agonist in a phase 1 clinical trial for Alzheimer’s disease. Interim data on healthy volunteers from this trial is expected to be released in the coming weeks.

Iluzanebart’s high potential caught the attention of Wedbush analyst Laura Chico, who writes of this program: “The reading of IGNITE creates a critical catalyst for VIGL… We believe that the previous step dignity…

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