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: enCore Energy Corp. (NASDAQ: EU)
Today’s penny stock pick is the yranium energy company, enCore Energy Corp. (NASDAQ: EU).
enCore Energy Corp. engages in the acquisition, exploration, development, and extraction of uranium resource properties in the United States. It holds interest in the Alta Mesa project located in Brooks County, Texas; the Gas Hills project located in the Riverton, Wyoming; the Juniper Ridge project located in the southwest portion of Wyoming; the Dewey Burdock project located in the Edgemont, South Dakota; the Crownpoint and Hosta Butte located in McKinley County, New Mexico; and the Mesteña Grande Uranium project located in Brooks and Jim Hogg Counties, Texas.
The company also holds interests in the South Texas Integrated ISR project located in Duval County; and the Alta Mesa Uranium project located in the Brooks County, Texas, as well as other non-material properties covers approximately 360,000 acres of mineral claims, mineral leases, and fee minerals.
Website: https://www.encoreuranium.com/
Latest 10-K report: https://www.sec.gov/Archives/edgar/data/1500881/000150088125000002/0001500881-25-000002-index.htm
Analyst Consensus: As per TipRanks Analytics, based on 3 Wall Street analyst offering 12-month price targets for EU in the last 3 months, the stock has an average price target of $3.83, which is nearly 55% upside from current levels.
Analysts | Source: TipRanks.com
Potential Catalysts / Reasons for the Hype:
- The company’s Alta Mesa (Texas) facility hit a production rate of over 2,600 lbs/day in late 2025. They are targeting full operational capacity by early 2026, which should show up in the Q1 data.
- The U.S. government is aggressively reshoring the nuclear fuel chain. EU’s Dewey Burdock project was recently added to the FAST-41 federal program, which accelerates permitting.
- Upcoming triggers include official announcement of “Full Capacity” at the Alta Mesa Wellfield 3 Extension (Expected Jan/Feb 2026), and permitting progress on the Dewey Burdock (South Dakota) project.
- Long-term uranium contract prices hit $86/lb in December 2025. Analysts expect spot prices to potentially breach $100/lb in 2026 as AI data centers demand 24/7 carbon-free power.
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.
EU – Daily Chart
#2 Price above MA: The stock is currently above its 200-day SMA, indicating that the bulls have currently gained control.
#3 Bullish RSI: The RSI is above 50 and moving higher, indicating possible bullishness.
#4 Bullish Stoch: The %K line of the stochastic is above the %D line, and has also moved higher from oversold levels, indicating possible 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 SMA, indicating that the bulls are gaining control.
EU – Weekly Chart
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for EU is above the price of $2.55.
Target Prices: Our first target is $3.30. If it closes above that level, the second target price is $4.00.
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 29% to 57%.
For a risk of $0.45, our first target reward is $0.75, and the second target reward is $1.45. 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.
EU – Consolidated Statements of Operations
- The national and international uranium industry is highly competitive. Any failure in the expected level of demand for EU’s uranium to materialize as a result of competition could have a material adverse effect on the Company’s business, results of operations, financial condition, cash flow and liquidity.
- Corporate Insiders placed Informative Sells of Shares Worth C$729.8K in the Last 3 Months.
Insiders | Source: TipRanks.com
- Projects like Dewey Burdock in South Dakota have seen progress with EPA clearances in 2025, but ongoing environmental reviews or local opposition could slow advancement.
- Any operational hiccup at Alta Mesa (wellfield issues, processing delays) would be punished severely by the market since the current valuation assumes a flawless ramp.
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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