3 Penny Stocks For Your September Watchlist
With September around the corner, many investors are looking for penny stocks to buy right now. And, to understand which ones could have value, traders need to gain a thorough understanding of what the market is doing and how they can benefit.
Right now, one of the biggest impacting factors on penny stocks and the economy as a whole is Covid. With cases rising in the U.S. and around the world, many investors are looking for penny stocks that could benefit. And to do so involves thinking outside of the box and considering which industries could play a role either in increasing Covid cases or reopening.
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The other side effect of the pandemic right now is the heightened volatility in the stock market. As a result of cases decreasing and then increasing due to the Delta variant, many investors are unsure about the future. This has led to prices fluctuating greatly in a given trading day. So, while investing in penny stocks may seem complicated in 2021, understanding what is going on in the market and the world will help to put your portfolio on the right path.
In addition, considering what your investing goals are in tandem with your risk tolerance, will help to make sure that the penny stocks you choose, will be right for you. With all of this in mind, let’s take a look at three penny stocks to watch with September around the corner.
3 Penny Stocks For Your Watchlist Next Month
- IAMGOLD Corp. (NYSE: IAG)
- Kosmos Energy Ltd. (NYSE: KOS)
- Ebang International Holdings Inc. (NASDAQ: EBON)
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is mining penny stock that has been making headway in the market over the past few weeks. If you’re unfamiliar, IAG explores for, develops, and operates various gold mining properties. IAMGOLD actively owns an interest in the Rosebel mine, Essakane mine, Westwood mine, and more. These properties are all located in South America, West Africa, Canada, Senegal, Mali, Guinea, Brazil, and Ecuador.
On August 4th, IAMGOLD reported its second-quarter results for 2021. The company’s revenue, gross profit and EBITDA did decline during the quarter, which makes sense given the overall gold industry during that time. And while that may be disheartening, the gold industry has had a rather volatile year. Many gold stocks have reported similar results, however, investors are showing faith in the future of the gold mining industry.
As fears of increased COVID-19 restrictions caused by the Delta variant continue, gold bulls believe that the metal could increase in price amid another stock market crash or more government stimulus. Gold is often considered a safeguard asset. This means that in times of economic or political turmoil, investors will turn to it to avoid currency inflation and general stock market ups and downs.
In regards to IAMGOLD’s financial results, President and CEO Gordon Stothart said, “The second quarter of 2021 was challenging primarily because production from our Rosebel mine was unexpectedly adversely affected by unusually heavy rains and an increase in COVID-19 cases in Suriname, in addition to difficult industrial relations.” Considering both the state of the gold industry and IAG’s business, will it make your list of penny stocks to watch?
Kosmos Energy Ltd. (NYSE: KOS)
Kosmos Energy Ltd. is a penny stock that we have discussed frequently over the past few months due to its consistent momentum. In the past five trading days, shares of KOS stock have shot up by over 7%, which is quite substantial for an energy penny stock.
And, in the past year, shares of KOS have climbed by almost 40% which is worth considering. This company’s primary focus is on oil and gas exploration and production. Its activities take place around the Atlantic Margins, specifically offshore Ghana, Equatorial Guinea, Senegal, offshore Mauritania, and the U.S. Gulf of Mexico.
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On August 8th, Kosmos Energy released its second-quarter results for 2021. Kosmos Energy’s revenue was $384 million for the quarter, and its net production was 51,600 barrels of oil equivalent per day. The company’s free cash flow was also very strong during the second quarter.
While this is indicative of positivity for KOS, it is also a great sign for the energy industry. Many investors believe that as the pandemic lessens in severity, the demand for energy will continue to rise. Of course, there is a lot that is dependent on the near future, however, the sentiment remains.
“Kosmos delivered strong free cash flow in the second quarter. Through further debt reduction and EBITDA growth, we expect leverage to continue to reduce through year-end 2021 and into 2022.”
CEO of Kosmos Energy, Andrew G. Inglis
In the last 5 days, KOS stock has gone from $2.05 per share to $2.16 per share as of August 23rd. Keeping this in mind, is KOS going to make your penny stock watchlist?
Ebang International Holdings Inc. (NASDAQ: EBON)
Ebang International Holdings Inc. is a penny stock that has been climbing substantially in the past few trading days. In the past five days, shares of EBON stock have shot up by over 12%. The majority of this positive sentiment is based on the price of Bitcoin and its recent bullish momentum.
For some added context, Ebang International primarily focuses on creating Bitcoin mining machines. Its Bitcoin mining machines are sold under the Ebit brand and are offered to blockchain and telecommunications companies. Ebang also provides mining machine hosting services and routine maintenance services.
Often when cryptocurrency is performing well, EBON stock will too. When there is hype for crypto, stocks in the blockchain or cryptocurrency industry can see a complementary rise in value. And when it comes to a pure-play blockchain penny stock like EBON, this correlation is very high. In the last 5 days, EBON stock has gone from $2.25 per share to $2.42 per share on average.
If you’re interested in EBON stock, it’s worth watching the crypto industry to see if EBON could see a similar value spike. But, keep in mind that both are highly volatile and can change quickly and with little notice. Considering all of this, will EBON be on your list of penny stocks to watch?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy is all about understanding where the market is headed. With so much going on with both penny stocks and blue chips, it can be difficult to stay ahead.
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However, if investors work hard to research as much as they can, it can be much easier than previously imagined. Considering all of this, which penny stocks are you watching right now?
