Top Biotech Penny Stocks to Watch Out for in July 2024

Biotech penny stocks are low-priced shares in small pharma and drug development and treatment companies. It’s normal for a biotech penny stock to spike after good study results or drug pipeline news. But this volatility cuts both ways — these sketchy stocks often dilute their float to raise cash, hurting their share value in the process.

5 Biotech Penny Stocks to Watch in July 2024

My top 5 biotech penny stocks to watch for July 2024 are:

• NASDAQ: VRAX — Virax Biolabs Group Ltd — The Bird Flu Vaccine Biotech Penny Stock
• NASDAQ: ONMD — Onemednet Corp — The Daily Double Down Multi-Week Squeezer Biotech Stock
• NASDAQ: NVOS — Novo Integrated Sciences, Inc — The Biotech Stock That Is Doing Share Buybacks
• NYSE: HIMS — Hims & Hers Health, Inc — My Number 1 Swing Trade Idea
• NASDAQ: MGRX — Mangoceuticals Inc — The Breaking News Weight Loss Winner

Don’t get too excited – biotech stocks are NOTORIOUS for diluting immediately after their runs …

There is no such thing as a sure thing. That goes double for the biotech sector.

These aren’t stock “picks.” They’re stocks I’m watching to see if they fit my patterns.

That’s what trading is. Don’t burn yourself out on low-potential plays. Be safe, and wait for the truly Grade-A setups …

There’s no guarantee that any of my watchlist picks will be tradeable. But if something happens, smart traders should be ready.

Here’s some background info on biotech penny stocks:

• What is the most promising biotech penny stock?

A stock with a lot of volatility like Virax Biolabs Group Ltd (NASDAQ: VRAX) is a good bet for the most promising biotech penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 biotech penny stocks to buy now?

My top 3 biotech penny stocks to buy now (as long as their price action is strong) are Virax Biolabs Group Ltd (NASDAQ: VRAX), Onemednet Corp (NASDAQ: ONMD), and Novo Integrated Sciences, Inc (NASDAQ: NVOS).

• Which biotech penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any biotech penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Top Biotech Penny Stock Picks

My top biotech penny stock picks for July — rated on chart pattern, price action history, and news — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: VRAX	Virax Biolabs Group Ltd	+ 24.82%
NASDAQ: ONMD	Onemednet Corp	+ 109.46%
NASDAQ: NVOS	Novo Integrated Sciences, Inc	+ 27.26%
NYSE: HIMS	Hims & Hers Health, Inc	+ 124.69%
NASDAQ: MGRX	Mangoceuticals Inc	+ 36.24%

The biotech penny stocks on this list are some of the wildest movers on the market …

Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.

Now, let’s get to the top biotech penny stocks to watch this month!

Best Biotech Penny Stocks for July 2024

These are the top 5 biotech penny stocks to watch in July 2024…

No, that doesn’t mean that I’ll trade them. Learn the patterns that work best for you — you might see a chance to use them with these stocks!

#1: Virax Biolabs Group Ltd (NASDAQ: VRAX) — The Bird Flu Vaccine Biotech Penny Stock

My first biotech penny stock pick is Virax Biolabs Group Ltd (NASDAQ: VRAX).

The biotech sector is on fire in 2024. Actually, it’s been hot since 2023.

We see +100% biotech spikers every month in this market.

Now, the spikes usually aren’t sustainable. As a result, we have to choose our trades wisely.

That’s why trading with popular patterns is so important. It gives us an idea of what price action to target on a volatile stock — and what other traders are looking for.

Here’s the cheatsheet…

• Recognize key price action.
• Get in.
• Get out.
• Move to the next spiker.

It’s easier said than done, but there is a process for profits. StocksToTrade students know that better than anyone.

VRAX spiked 230%* during premarket on June 6 in relation to the bird-flu scare that’s going around.

(I don’t think there’s anything to worry about … But fear and greed move stocks. As traders, we have to pay attention to those emotions. They can reveal valuable profit opportunities.)

Cruz Control, a trader in our StocksToTrade community, played the premarket move that day. See his post on X below:

(2) wins to start the trading day! (1) overnight hold of $VRAX & the other $FRGT during premarket. The singles are stacking up! Screen shot of my $FRGT trade! LFG! 🧠🔥🤓💯📈📚 @timothysykes @tbohen @Jackaroo_Trades @mono_trader @traderkylec @StocksToTrade @profitly pic.twitter.com/iNJPgvkJY2

— Cruz Control (@CCdayTrader13) June 6, 2024

VRAX sank after the spike on June 6.

But StocksToTrade shows that the float is only 1.3 million shares …

A float below 10 million shares is considered a low supply of shares. The low supply helps prices spike higher when demand increases.

VRAX is primed for the next spike. All it needs is another catalyst to move the price.

#2: Onemednet Corp (NASDAQ: ONMD) — The Daily Double Down Multi-Week Squeezer Biotech Stock

My second biotech penny stock pick is Onemednet Corp (NASDAQ: ONMD).

On May 23 during premarket hours the company announced more than a five-fold growth of its iRWD network.

As a result of the news, ONMD spiked 550%* in May.

iRWD is a service that aims to connect and utilize real-world repositories (RWD) of existing healthcare clinics. The system also “de-identifies” the data, making it accessible for medical studies while preserving the privacy of patients.

And AI is at the heart of the network.

The chart shows a lot of good support under the current price action. And there’s a breakout level around $3.

Take a look below, every candle represents two trading minutes:

Now, shares COULD bounce off of support and push higher.

Here’s how a trader should approach this setup: Set an alert on StocksToTrade around the $3 level. If prices can push toward that resistance with a high trading volume, we should start to plan a multi-day breakout trade.

If the price continues lower, it’s best to ignore it until another catalyst causes the price to spike.

#3: Novo Integrated Sciences, Inc (NASDAQ: NVOS) — The Biotech Stock That Is Doing Share Buybacks

My third biotech penny stock pick is Novo Integrated Sciences, Inc (NASDAQ: NVOS).

On May 30 during after hours, NVOS announced its intent to acquire Ophir Collection.

The next morning during premarket, on May 31, NVOS announced it was considering a larger stock repurchase than the $5 million allowed within its current program.

NVOS is still waiting for incoming funds from the pending acquisition. Along with the company, a lump sum of $57 million is expected as the result of an acquired promissory note. The company mentioned it could explore using some of these funds for the stock repurchase.

Share buybacks are usually bullish catalysts for two reasons:

• It decreases the overall number of shares. Remember that a low supply of shares can contribute to bullish volatility.
• It shows the company has confidence in its future market prospects.

On the chart below you can see when the news was announced, every candle represents 2 trading minutes:

This is another example of a multi-day chart that bases above support. Similar to the second stock on this watchlist, ONMD.

On the NVOS chart, the breakout level is around $1.30.

If the price pushes above that level, we could be off to the races.

#4: Hims & Hers Health, Inc (NYSE: HIMS) — My Number 1 Swing Trade Idea

My fourth biotech penny stock pick is Hims & Hers Health, Inc (NYSE: HIMS).

On Monday, May 20, my students and I got a Breaking News alert: Hims & Hers Health Inc. (NYSE: HIMS) announced consumer access to GLP-1 injections.

The injections help consumers self-administer medications for diabetes and weight loss. And the move reportedly decreases the overall cost for consumers as well.

As a direct result, prices spiked 35% that day. And StocksToTrade users were alerted right when the news came out!

Take a look at the chart below. Every candle represents one trading minute:

The price pushed higher in the next few days. The whole move measures 50% thus far.

I’ve seen advertisements for this company all-over social media. It’s a big name in the at-home-health-care sector.

It’s important for a trader to understand: This is a real company, as opposed to some of the penny stocks on this watchlist.

The share price is a little higher, but the movements are also less volatile. As a result, this is a perfect swing-trade setup for StocksToTrade traders. We can even use AI to build positions that minimize risk.

Take a look at the full move thus far, every candle on the chart below represents 2 minutes:

Pay attention to key support and resistance levels on this popular at-home health care stock.

#5: Mangoceuticals Inc (NASDAQ: MGRX) — The Breaking News Weight Loss Winner

My fifth biotech penny stock pick is Mangoceuticals Inc (NASDAQ: MGRX).

The weight loss catalyst doesn’t stop with HIMS’ GLP-1 injections … 

If you weren’t convinced of the bullish momentum in this sector … A day after HIMS made their announcement, MGRX announced new oral options for Semaglutide (“Slim”) and Tirzepatide (“Trim”) that help with weight loss.

The announcement specifically mentioned an increase in demand for GLP-1 injections and cited it as a reason for the company’s new oral treatments.

The stock spiked 340%* that day.

Take a look at the move below. Every candle represents 1 minute.

I’m watching for the next big weight loss spike!

It could mean a resurgence from MGRX. StocksToTrade shows that the float is only 13 million shares. That’s close enough to our goal of 10 million … 

Wait for the next catalyst to move this stock.

 

*Past performance does not indicate future results

Biotech Stocks Under $5

The allure of hot sector stocks, especially when they’re also penny stocks, is undeniable. These stocks present a unique blend of opportunity and volatility. The biotech industry is booming, with advancements and applications spreading across various sectors, from drug development to gene editing, making biotech stocks a magnet for investors looking for the next big breakthrough. The gains here can be proportionately greater than those from more established stocks, mainly because even minor positive developments or clinical trial results can send their prices soaring.

However, it’s crucial to approach these opportunities with a clear strategy and an understanding of the risks involved. The volatility of penny stocks, combined with the speculative nature of biotech ventures, means that while the potential for rapid gains is significant, the risk of losses is equally high. Conduct thorough research, looking beyond the hype. And never invest in these stocks — only trade them.

Remember, the key to success in trading biotech stocks under $5 is not just about jumping on every opportunity but being selective and strategic. It’s about leveraging the explosive potential of the biotech sector while managing risk meticulously. By focusing on companies with the potential to lead in their niche, traders can capitalize on the disproportionate gains that these penny stocks offer, all while keeping their investment strategy tight and cutting losses quickly.

Upcoming Biotech Companies

Keep an eye on the news for upcoming biotech companies. These are often the ones that have the most potential for high returns. But be cautious; not every new biotech company will be a winner. Always do your due diligence before adding any stock to your watchlist.

It’s also a good idea to keep tabs on the overall market. Monitoring the market isn’t just about checking prices; it’s about understanding trends and identifying potential breakout stocks. This proactive approach can give you a leg up in making profitable trades. If you’re looking for a curated list to help you get started, check out these stocks to watch.

What Are Biotech Penny Stocks?

Biotech penny stocks are shares of small biotechnology companies that trade at relatively low prices, typically under $5 per share. These companies are often in the early stages of development, focusing on innovative medical treatments and technologies. The low price point makes these stocks accessible to many traders, but it also means they come with significant risks.

These companies are heavily involved in the discovery and development of new medicines and therapies for diseases and disorders. For example, they may be working on groundbreaking treatments for conditions like Alzheimer’s disease or cancer. Due to the speculative nature of these ventures, biotech penny stocks can exhibit high volatility, offering both substantial upside potential and considerable downside risk.

The allure of biotech penny stocks lies in their growth potential. A successful product candidate can lead to massive gains if it reaches commercialization. However, the path to success is fraught with challenges, including rigorous testing and regulatory approvals. Understanding the inherent risks and rewards is crucial for anyone considering trading in this sector.

Biotech stocks can be highly rewarding, but they’re not the only option in the healthcare sector. Diversifying your investments can help you manage risk better. Healthcare stocks offer a broader range of opportunities and can be a great addition to your portfolio. For a deeper look into the potential of healthcare stocks, check out my watchlist on Healthcare Stocks.

How Do Biotech Penny Stocks Work?

Biotech penny stocks operate in the high-stakes arena of medical research and development. These stocks represent companies that are often in the process of testing new drugs or medical devices. The success or failure of these tests can dramatically affect the stock price. Positive results in clinical trials can lead to significant price spikes, while negative outcomes can cause sharp declines.

Risks of Investing in Biotech Penny Stocks

First of all — never invest in any penny stock. You only want to be trading these stocks… here’s why…

You’ll need to understand the ins and outs of penny stocks if you’re gonna survive in this niche. Penny stocks can offer significant growth potential at a lower cost — but you NEED to know the warning signs that tell you when things are about to go sideways.

Check out my overall Penny Stocks Watchist for a better idea of what I look for — and the dangers I guard against…

Higher Failure Rates

Biotech companies often have higher failure rates, especially when it comes to clinical trials. If a drug doesn’t get the approval or shows poor trial results, share prices can tank.

Regulatory Uncertainties

The biotech sector is heavily regulated. Companies need to go through multiple phases of clinical trials before they can bring a product to market. Any hiccup in this process can be disastrous for the stock price.

Limited Financial Resources

Many biotech penny stocks have limited financial resources. They’re often dependent on investor funding, and if the money dries up, the company will dilute its shares.

Top Tips for Buying Biotech Penny Stocks

When it comes to biotech penny stocks, you’ve got to be on your A-game. You need to analyze everything from clinical trial results to market cap.

Here are my top tips beyond the numbers and data!

• People make a company go. Understand the management team behind the company and their track record.
• You need a reliable trading platform that gives you quick access to the market. Your account should offer robust securities to protect your investment. And speaking of investments, always consider the value of the stock against its potential growth and revenue. Don’t just listen to brokers who might be pushing their own picks.
• Patients are the end-users of biotech products, so pay attention to patient response during clinical trials. This could be a good indicator of the stock’s future value. But remember, you’re not a medical expert. Always read the disclaimer before making any moves.
• In the biotech world, every “cell” counts, literally. Sales growth can be a good indicator, but it’s not everything. Look at the overall revenue and how it’s trending.
• Just like in any penny stock, don’t underestimate the power of a ticker symbol. Traders
• And of course — do your due diligence and make informed decisions!

Research the Company

Before you invest in biotech penny stocks, research the pharmaceutical companies behind the stocks. Look at their pipeline, check their financials, and read up on their management team. The more information you have, the better your chances of making a profitable trade.

Understand How You Are Going to Trade

Are you looking for quick gains, or are you in it for the long haul? Understanding your trading strategy will help you pick the right stocks.

Look into the Biotech Industry

Understanding the biotech industry as a whole will give you a better perspective on individual stocks. Keep an eye on growth trends, breakthrough therapies on “big-name” diseases like Alzheimer’s disease, and upcoming IPOs.

Never Believe in OTC/Pink Sheet-Listed Penny Stocks

Over-the-counter (OTC) and pink sheet stocks are not subject to the same regulatory oversight as stocks listed on major exchanges. They’re riskier and more susceptible to manipulation.

Trade Promotional Pumps Carefully

Be wary of stocks that are being heavily promoted in the media or online forums. These are often pump-and-dump schemes designed to inflate the stock price.

Only Trade Penny Stocks with Volume

Look for stocks with high trading volume. Low volume stocks are more susceptible to price manipulation.

Understand the Hit and Run Approach

In the world of biotech penny stocks, it’s often better to be a trader than an investor. Take your profits and move on to the next opportunity.

How To Make Money in Biotech Stocks

The key to making money in biotech stocks is research, timing, and a solid trading plan. I’ve been trading these stocks for years, and while they’re risky, they offer some of the best opportunities for high returns. But remember, always trade with money you can afford to lose.

Once you’ve gained some experience, you might start thinking about day trading as more than just a hobby. It’s a significant step, requiring a different level of commitment and strategy. If you’re considering this path, you’ll need to understand the nuances that come with making day trading your primary income source. For a comprehensive guide on how to make this transition, here’s how to day trade for a living.

Have you traded biotech penny stocks? Write “I always trade with a plan” in the comments!

FAQs

How Do I Invest in Biotech Stocks?

Investing in biotech stocks starts with research. Look for companies with promising pipelines, strong financials, and experienced management teams.

Why Do Investors Buy Penny Stocks?

Investors buy penny stocks for the potential of high returns. These low-priced stocks offer an opportunity for significant profits, but they come with higher risks.

How To Avoid Penny Stock Risk?

The best way to avoid penny stock risk is through research and due diligence. Understand the company you’re investing in, the risks involved, and have a clear trading strategy.