The stock market’s largest players – companies like Nvidia and its trillion-dollar peers – often dominate the headlines and attract most of the capital. Yet, some of the most compelling opportunities can be found at the smaller end of the market. While mega-cap shares trade at valuations that leave limited room for outsized gains, penny stocks carry the kind of growth potential that many investors find especially appealing.
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The ‘pennies’ are stocks priced down in the bargain basement, below $5 per share, and that ultra-low starting point means that even a small gain in absolute value will quickly translate into triple-digit percentage gains.
That doesn’t mean, however, that investors should just uncritically buy into the pennies. These shares are usually priced low for a reason, and if that reason comes down to fundamental unsoundness, then it’s time to steer clear. But for the penny stocks with strong potential, the rewards can be impressive.
The real challenge is knowing how to identify them. That’s where Wall Street analysts come in, using their research and experience to sift through the noise and highlight the penny stocks with the potential to grow into far more valuable investments.
With this in mind, we used TipRanks’ database to spot two penny stocks earning top marks from analysts right now. Both carry ‘Strong Buy’ consensus ratings and offer triple-digit upside potential – including one that could jump 840%. Let’s break down the bullish case and see what makes these picks stand out.
Protara Therapeutics (TARA)
The first penny stock we’ll look at is Protara Therapeutics, a clinical-stage biotech company focused on developing treatments for cancer and rare, life-threatening diseases. The company’s pipeline currently features two drug candidates: TARA-002, its lead program, which is being evaluated for non-muscle invasive bladder cancer (NMIBC) and lymphatic malformations (LMs), and IV Choline Chloride, designed to support patients who require parenteral nutrition.
What sets TARA-002 apart is its novel approach. This cell therapy is derived from a cell bank of genetically distinct Streptococcus pyogenes, already approved in Japan as the broad immunopotentiator OK-432. The therapy works through a dual mechanism – directly killing tumor cells while also stimulating an immune response known as immunogenic cell death, thereby amplifying antitumor activity.
