Biotech penny stocks are some of the most volatile plays in the market. A single positive drug trial or FDA approval can send a stock soaring, while dilution or failed studies can tank it just as fast. These stocks move on hype, news, and momentum—which means traders need to have a plan before jumping in.
Here are the top biotech penny stocks to watch this month, based on chart patterns, price action history, and recent catalysts.
Top 3 Biotech Penny Stocks to Watch in February 2025
The top biotech stocks I’m watching in February are:
- NASDAQ: ACB — Aurora Cannabis Inc — The Medical Cannabis Penny Stock That Nailed Earnings
- NASDAQ: CDT — Conduit Pharmaceuticals Inc. — The Lupus Biotech Stock Pumping Out the PR
- NYSE: HIMS — Hims & Hers Health Inc — The Men’s Health Stock That Even Jim Cramer Knows Is a Squeeze
These aren’t stock picks—they’re stocks we’re watching to see if they fit our setups.
The biotech sector is notorious for dilution. Companies often sell shares after big moves to raise cash, which can crush a stock’s momentum. That’s why traders, not investors, tend to find the best opportunities here.
Get my complete Biotech Penny Stock Watchlist here!
Aurora Cannabis Inc (NASDAQ: ACB) — The Medical Cannabis Penny Stock That Nailed Earnings
Aurora Cannabis has a history of explosive moves.
In September 2023, the stock spiked 140%. Between March and April 2024, it ran another 220%.
Now, it’s making waves again. On February 5, 2025, Aurora reported 37% revenue growth, fueling a big move in the stock price.
The chart shows strong momentum, and it’s holding onto its gains. That’s a good sign—it means traders are sticking around instead of selling off the spike.
Key levels to watch:
- Support areas for potential dip buys
- Breakout zones that could send it even higher
Smart traders use tools like Oracle on StocksToTrade to identify key price action areas. That’s where you want to plan your entries.
Conduit Pharmaceuticals Inc. (NASDAQ: CDT) — The luLupus Biotech Stock Pumping Out the PR
CDT has been a press release machine, pushing out news about AI-driven drug development. That kind of news flow fuels momentum traders—and it’s working.
The stock spiked 130% on recent AI drug development news. Past spikers tend to spike again, especially when they keep issuing press releases.
Traders should watch for:
- Key intraday levels where momentum could pick back up
- Potential resistance zones where profit-taking could hit
This stock is running on hype and speculation, but that doesn’t mean there aren’t opportunities. The key is riding the momentum while it lasts and not overstaying your welcome.
More Breaking News
- UAMY: Is the Stock Set for a Bull Run?
- ResMed’s Earnings Boost: Is It Time to Stay in the Game?
- Hertz’s Surging Shares: What Lies Ahead?
Hims & Hers Health Inc (NYSE: HIMS) — The Men’s Health Stock That Even Jim Cramer Knows Is a Squeeze
HIMS made headlines with its Super Bowl ad promoting at-home delivery for GLP-1 weight-loss injections. This sector has been on fire—just look at Eli Lilly (NYSE: LLY), which ran 200% from 2023 to 2024 on its weight-loss drugs.
HIMS wants in on that market.
The stock is at all-time highs. It already spiked 160% in 2025. It’s getting tons of attention from retail traders and analysts.
Even Jim Cramer pointed out that this stock looks like a short squeeze.
Traders should be watching:
- Volume trends—if more shorts pile in, the squeeze could keep going
- Key resistance levels—momentum stocks like this can go higher than you’d expect
Short squeezes create wild trading opportunities, but they don’t last forever. The key is being on the right side of the move before it fades.
Final Thoughts
Biotech penny stocks offer huge opportunities, but they come with risk. These stocks spike fast, and they crash just as fast.
Traders need to:
- Wait for the right setup—don’t chase blindly
- Be ready to cut losses fast—momentum can shift in an instant
- Take gains along the way—nothing goes up forever
The best time to start trading was 20 years ago. The second-best time is today.
If any of these stocks fit your strategy, trade what’s in front of you—not what you wish had happened. Stay disciplined, manage risk, and let the chart guide your next move.
If you want to improve your trading, join my free daily live trading sessions. I break down real-time trade plans and help traders navigate the market with confidence every day!
What biotech stocks are on your watchlist? Leave a comment below!