Trade This $5 Stock for a 46%-88% Potential Return

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: CuriosityStream Inc. (NASDAQ: CURI)

Today’s penny stock pick is the media and entertainment company, CuriosityStream Inc. (NASDAQ: CURI).

CuriosityStream Inc. provides factual content through multiple channels. The company provides video and audio programming services in various categories of factual entertainment, including science, history, society, nature, lifestyle, and technology through direct subscription video on-demand (SVoD) platforms accessible by internet connected devices, or indirectly through distribution partners who deliver CuriosityStream content via distributor’s platform or system, as well as through bundled content licenses for SVoD and linear offerings, talks and courses, and partner bulk sales. It offers streaming content through a host of screen and devices, including televisions, set-top boxes, computers, streaming media players, game consoles, and mobile devices.

Website:  https://www.curiositystream.com/

Latest 10-k report:  https://d18rn0p25nwr6d.cloudfront.net/CIK-0001776909/bd5c54cb-b179-49af-9e55-2bcb50fc645a.pdf

Analyst Consensus: As per TipRanks Analytics, based on 2 Wall Street analysts offering 12-month price targets for CURI in the last 3 months, the stock has an average price target of $5.40, which is nearly 17% upside from current levels.

Potential Catalysts / Reasons for the Hype:

• The company reported positive financial results for the quarter ended March 31, 2025. This included revenue of $15.1 million, compared to $12.0 million in the first quarter of 2024, and gross profit of $8.0 million or 53.1%, compared to $5.3 million or 43.8% in the first quarter of 2024.
• Corporate Insiders placed Informative Buys of Shares Worth $34.9K in the Last 3 Months.
  

  Insiders | Source: TipRanks.com

On analyzing the company’s stock charts, there seem to be multiple bullish indications…

Bullish Indications

#1 Uptrend Channel Breakout: The daily chart shows that the stock has broken out of an uptrend channel with high volume. This is shown as purple color lines. This is a possible bullish indication.

#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 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30. This indicates bullishness.

#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 firm control.

#6 MACD above Signal Line: In the weekly chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, the ideal buy level for CURI is above the price of $4.80.

Target Prices: Our first target is $7.00. If it closes above that level, the second target price is $9.00.

Stop Loss: To limit risk, place a stop loss at $3.50. Note that the stop loss is on a closing basis.

Our target potential upside is 46% to 88%.

For a risk of $1.30, our first target reward is $2.20, and the second target reward is $4.20. 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:

1. The company has a history of net losses. For the year ended December 31, 2024, CURI reported a net loss of $12.9 million.
   

   CURI – Consolidated Statements of Operations

2. On September 19, 2023, CURI received written notice from the Nasdaq Stock Market, LLC, indicating non-compliance with the $1.00 minimum bid price requirement for the continued listing on the Nasdaq Capital Market.
3. The company faces significant competition from Netflix, Amazon.com, Hulu, Paramount, Comcast, BBC, PBS, Fox Networks, Warner Bros. Discovery, Disney and others. If unable to compete successfully against current and future competitors, competitive pressures could harm CURI’s business and prospects.
4. Despite being a loss-making company, the executives are being paid significant compensation.
   

   CURI – Summary Compensation Table

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.

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