We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.
Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.
Penny Stock of the Day: Protalix BioTherapeutics, Inc. (NYSE: PLX)
Today’s penny stock pick is the biopharmaceutical company, Protalix BioTherapeutics, Inc. (NYSE:PLX).
Protalix BioTherapeutics, Inc. engages in the development, production, and commercialization of recombinant therapeutic proteins based on the ProCellEx plant cell-based protein expression
system. The company offers Elelyso for the treatment of Gaucher disease; and Elfabrio for the
treatment of adult patients with a confirmed diagnosis of Fabry disease.
It is also developing PRX- 115, a plant cell expressed recombinant PEGylated Uricase, which is in Phase 2 trial for the treatment of gout; and PRX-119, a plant cell expressed PEGylated recombinant human DNase I product candidate for the treatment of neutrophil extracellular traps diseases.
Website: https://www.protalix.com/
Latest 10-K report: https://ir.protalix.com/static-files/b0575977-8ef6-4fe8-ba96-afce405d9141
Analyst Consensus: As per TipRanks Analytics, based on 1 Wall Street analyst offering 12-month price targets for PLX in the last 3 months, the stock has an average price target of $12.00, which is nearly 314% upside from current levels.
- Potential Catalysts / Reasons for the Hype:On Jan 30, 2026, the EMA’s CHMP issued a positive opinion (after re-examination/appeal of a prior negative) for an additional every-4-weeks (E4W) dosing regimen (2mg/kg) for Elfabrio in stable adult Fabry patients. Elfabrio also shows solid U.S./EU/other market traction via Chiesi partnership.
- Corporate Insiders placed Informative Buys of Shares Worth $101.0K in the Last 3 Months.
The company is expected to deliver a late-breaking oral presentation at the 22nd Annual
WORLDSymposium on February 6, 2026. This data focuses on their lead drug, PLX-200, for Krabbe disease. PLX-200 uses an optimized version of an already FDA-approved compound (gemfibrozil). This allows for a 505(b)(2) regulatory pathway, which is significantly faster and cheaper than developing a brand-new molecule from scratch.
On analyzing the company’s stock charts, there seem to be multiple bullish indications…
Bullish Indications
#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out of a symmetrical triangle pattern, which is marked as purple lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.
#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.
#3 Price above MAs: The stock is currently above its 50-day as well as 200-day SMA, indicating that the bulls have currently gained control.
#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.
#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink color dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week and 200-week SMA, indicating that the bulls are gaining control.
#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart as well, indicating possible bullishness.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for PLX is above the price of $2.96.
Target Prices: Our first target is $4.20. If it closes above that level, the second target price is $5.50.
Stop Loss: To limit risk, place a stop loss at $2.20. Note that the stop loss is on a closing basis.
Our target potential upside is 43% to 90%.
For a risk of $0.76, our first target reward is $1.24, and the second target reward is $2.54. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x more potential upside than downside.
Potential Risks / Red Flags:
- The company has a history of net losses.
Market acceptance and sales of Elfabrio, Elelyso, or any other future products, if any, will depend on coverage and reimbursement policies in the countries in which they are approved for sale. If coverage and reimbursement are not available, it could impact the sales of products or adversely affect the profitability of such sales.- The company has significant competition. PLX compete against fully integrated pharmaceutical companies and smaller companies that are collaborating with larger pharmaceutical companies, academic institutions, government agencies, and other public and private research organizations.
- The company has a dependency on partners (Chiesi for Elfabrio, Pfizer for Elelyso). Partners control commercialization (marketing, distribution, pricing). Protalix has limited influence over their strategies.
- Significant parts of the company’s operations are located in Israel and, therefore, the company’s results may be adversely affected by political, economic, and military conditions in Israel.
As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!
Happy Trading!
Trades of the Day Research Team
READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.
Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.
