This $2.80 Stock Offers Big Upside Potential

The following idea is 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: Repare Therapeutics Inc. (RPTX)

Today’s penny stock pick is the clinical-stage precision oncology company, Repare Therapeutics Inc. (RPTX).

Repare Therapeutics Inc. engages in the discovery and development of therapeutics in Switzerland and the United States. The company uses its proprietary, genome-wide and CRISPR-enabled SNIPRx platform to discover and develop cancer therapies that treat cancers due to mechanisms of genomic instability, including DNA damage repair.

It also develops camonsertib (RP-3500), a potent and selective oral small molecule inhibitor of Ataxia-Telangiectasia and Rad3-related protein kinase that is in Phase 1/2 clinical trial for the treatment of solid tumors; and lunresertib (RP-6306), a selective and potent oral small molecule inhibitor of Protein Kinase Membrane-associated tyrosine-and threonine-specific cdc-2 inhibitory kinase that is in Phase 1/2 clinical trial.

In addition, the company is developing RP-1664, an oral PLK4 inhibitor in Phase 1 clinical trial to harness the synthetic lethal relationship with TRIM37 amplification or overexpression in solid tumors; and RP-3467, an inhibitor of adenosinetriphosphatase activity on the helicase domain of DNA polymerase theta that is in Phase 1 clinical trial. The company has strategic collaborations with Hoffmann-La Roche Inc., F. HoffmannLa Roche Ltd, Debiopharm International S.A., Bristol-Myers Squibb Company, Ono Pharmaceutical Company Ltd., and New York University.

Website:  https://www.reparerx.com/

Latest 10-K report:  https://ir.reparerx.com/static-files/f7e957d2-dd6a-49b5-a650-806efd0812c1

Analyst Consensus: As per TipRanks Analytics, based on 2 Wall Street analysts offering 12-month price targets for RPTX in the last 3 months, the stock has an average price target of $3.00, which is nearly 18% upside from current levels.

Potential Catalysts / Reasons for the Hype:

• Gilead’s $30M acquisition of Repare’s polymerase theta (Polθ) ATPase inhibitor, RP-3467, announced December 24, 2025.
• The company entered a definitive agreement with XenoTherapeutics in November 2025; shareholder vote set for January 16, 2026.
• Upcoming triggers include topline data from the POLAR trial (lunresertib in monotherapy and combo with olaparib) on safety, tolerability, and early efficacy and updates from Phase 1/2 trials (e.g., camonsertib, RP-1664).

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, which 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 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 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, indicating possible bullishness.

#8 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 RPTX is above the price of $2.80.

Target Prices: Our first target is $4.00. If it closes above that level, the second target price is $5.00.

Stop Loss: To limit risk, place a stop loss at $2.10. Note that the stop loss is on a closing basis.

Our target potential upside is 43% to 79%.

For a risk of $0.70, our first target reward is $1.20, and the second target reward is $2.20. 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. RPTX’s net loss was $84.7 million, and $93.8 million for the years ended December 31, 2024, and 2023, respectively. As of December 31, 2024, the company had an accumulated deficit of $417.8 million.
   

   RPTX – Consolidated Statements of Operations

2. The company’s dependence on clinical trial success, regulatory approvals, and partnerships exposes RPTX to failures or delays. As a small-cap biotech, any broader sector pressures, like funding constraints or competition in oncology, could also impact stock price.
3. The pending buyout by XenoTherapeutics adds complexity as any delays or failures could pressure the stock.
4. RPTX is expected to finance its cash needs through public or private equity or debt financings, third-party funding, marketing, and distribution arrangements, as well as other collaborations, strategic alliances and licensing arrangements, or any combination of these approaches.
5. Despite being a loss-making company, the executives are being paid significant compensation.
   

   RPTX – 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.