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: Achieve Life Sciences, Inc. (NASDAQ: ACHV)

Today’s penny stock pick is the clinical-stage pharmaceutical company, Achieve Life Sciences, Inc. (NASDAQ: ACHV).

Achieve Life Sciences, Inc. develops and commercializes cytisinicline for nicotine independence in Canada, the United States, and the United Kingdom. The company offers cytisinicline, a plant-based alkaloid that interacts with nicotine receptors in the brain that reduce the severity of nicotine withdrawal symptoms. It has a license and supply agreement with Sopharma AD and University of Bristol.

Website:  https://www.achievelifesciences.com/

Latest 10-K report:  https://ir.achievelifesciences.com/sec-filings/all-sec-filings/content/0000950170-25-036831/achv-20241231.htm

Analyst Consensus: As per TipRanks Analytics, based on 5 Wall Street analysts offering 12-month price targets for ACHV in the last 3 months, the stock has an average price target of $14.60, which is nearly 192% upside from current levels.

Analysts | Source: TipRanks.com

Potential Catalysts / Reasons for the Hype:

  • The recent FDA acceptance of the New Drug Application (NDA) for cytisinicline in smoking cessation, with a PDUFA target date of June 20, 2026. This marks progress toward potential approval as the first new smoking cessation treatment in nearly 20 years.
  • The company recently reported positive clinical data. The Phase 2 ORCA-V1 trial showed participants 2.6 times more likely to quit vaping with cytisinicline vs. placebo. The company also published new data in Thorax demonstrating that cytisinicline significantly improved smoking quit rates compared to placebo in adults with and without chronic obstructive pulmonary disease (COPD).
  • There is an unmet need in the market, as there is no current FDA-approved treatments for vaping cessation, despite 17 million U.S. adult users, and tobacco-related deaths exceeding 480,000 annually in the U.S.
  • The company’s recent $45M capital raise strengthens the balance sheet to ~$55M in cash, supporting commercialization preparations.
  • Rumors of accelerated approval for vaping in November 2025 due to CNPV.

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 a symmetrical triangle pattern with high volume, 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.

ACHV – Daily Chart

#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 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.

ACHV – Weekly Chart

#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.

#7 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 ACHV is above the price of $5.10.

Target Prices: Our first target is $7.50. If it closes above that level, the second target price is $9.50.

Stop Loss: To limit risk, place a stop loss at $3.70. Note that the stop loss is on a closing basis.

Our target potential upside is 47% to 86%.

For a risk of $1.40, our first target reward is $2.40, and the second target reward is $4.40. 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. As of December 31, 2024, ACHV had an accumulated deficit of $205.6 million.

    ACHV – Consolidated Statements of Operations

  2. The company faces competition from the likes of existing smoking aids like Chantix, nicotine replacement therapies. There are also market adoption risks, and the need for partnerships or sales infrastructure.
  3. The company has pipeline concentration risk. There is a heavy reliance on cytisinicline, with limited diversification, increasing risk if setbacks occur.
  4. Regulatory uncertainties remain, particularly for the vaping indication where a Phase 3 ORCA-V2 trial is needed before supplemental NDA submission. Even with CNPV, approval is not guaranteed.
  5. Despite being a loss-making company, the executives are being paid significant compensation.

    ACHV – Executive Compensation

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.

NEW THIS WEEK: Huge Energy Discovery In Utah [sponsor]
The Department of Energy say it could power America for millions of years. And both grizzled oilmen and clean energy supporters love it: Energy Secretary Chris Wright called it "an awesome resource," while Warren Buffett, Jeff Bezos, Mark Zuckerberg, and Bill Gates are all directly invested. Here's the name of the company at the heart of it all.