This $2 Stock Has 273% Upside Potential

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: Inovio Pharmaceuticals, Inc. (NASDAQ: INO)

Today’s penny stock pick is the clinical-stage biotechnology company, Inovio Pharmaceuticals, Inc. (NASDAQ: INO).

Inovio Pharmaceuticals, Inc. focuses on the discovery, development, and commercialization of DNA medicines to treat and protect people from diseases associated with human papillomavirus (HPV), cancer, and infectious diseases. Its DNA medicines platform uses precisely designed SynCon that identify and optimize the DNA sequence of the target antigen, as well as CELLECTRA smart devices technology that facilitates delivery of the DNA plasmids.

Its products in pipeline include VGX-3100 for the treatment of HPV-related cervical high-grade dysplasia; INO-3107 for HPV-related recurrent respiratory papillomatosis and is under Phase 1/2 trial; INO-3112 for the treatment of HPV-related Oropharyngeal Squamous Cell Carcinoma and is under Phase 2 trial; INO-5401 for the treatment of glioblastoma multiforme and is under Phase 2 trial; INO-4201 for Ebola Virus Disease and is under Phase 1b trial; INO-4800 for COVID-19 and is under Phase 3 trial; and INO-6160 for the treatment of human immunodeficiency virus and is under Phase 1 trial.

The company has extensive collaborations: Advaccine Biopharmaceuticals, ApolloBio Corporation, AstraZeneca, Bill & Melinda Gates Foundation, CEPI, DARPA, DoD, HIV Vaccines Trial Network, International Vaccine Institute, Kaneka Eurogentec, NCI, NIH, NIAID, University of Pennsylvania, Plumbline Life Sciences, Regeneron, Richter BioLogics, Walter Reed Army Institute of Research, Wistar Institute.

Website:  https://www.inovio.com/

Latest 10-K report:  https://d18rn0p25nwr6d.cloudfront.net/CIK-0001055726/bd7c1c0e-1dcb-4165-ab64-24d4793f2b67.pdf

Analyst Consensus: As per TipRanks Analytics, based on 3 Wall Street analysts offering 12-month price targets for INO in the last 3 months, the stock has an average price target of $7.33, which is nearly 274% upside from current levels.

Potential Catalysts / Reasons for the Hype:

• The company recently completed rolling Biologics License Application (BLA) submission for INO-3107 under FDA’s Accelerated Approval program, with Orphan Drug and Breakthrough Therapy designations.
• INO raised $25M in a public offering (priced at $1.90/share, closed Nov 12, 2025), bolstering cash position to $50.8M as of Q3 2025.

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

Bullish Indications

#1 Symmetrical Triangle Pattern: The daily chart shows that the stock has currently formed a symmetrical triangle pattern, which is marked as purple color 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 RSI: The RSI is nearing 50 and moving higher, indicating possible bullishness.

#3 Bullish Stoch:  The %K line of the stochastic is above the %D line, and has also moved higher from oversold levels, indicating possible bullishness.

#4 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.

#5 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 INO is above the price of $2.10.

Target Prices: Our first target is $3.90. If it closes above that level, the second target price is $5.00.

Stop Loss: To limit risk, place a stop loss at $1.20. Note that the stop loss is on a closing basis.

Our target potential upside is 86% to 138%.

For a risk of $0.90, our first target reward is $1.80, and the second target reward is $2.90. 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.
   

   INO – Consolidated Statements of Operations

2. The general volatility in biotech space and peer issues like CLSD’s bankruptcy highlight risks. The company has significant competition in HPV/cancer space.
3. The company has a history of past setbacks, like its COVID-19 vaccine candidate, INO-4800. FDA had placed a partial clinical hold on the planned Phase 2/3 trials. The hold was due to questions about the design and use of the company’s proprietary Cellectra 2000 electroporation delivery device, which is required to administer the DNA vaccine. Ultimately, Inovio never received an Emergency Use Authorization (EUA) in the U.S. or approval from the World Health Organization (WHO) for its COVID-19 vaccine.
4. INO has ongoing legal proceedings. In December 2020, GeneOne filed a complaint in the Court of Common Pleas of Montgomery County, Pennsylvania against INO, alleging that the company had breached the CELLECTRA Device License Agreement.
5. Despite being a loss-making company, the executives are being paid significant compensation.
   

   INO – 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.

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