3 Penny Stocks That Could Be Worth Watching in 2021
While trading penny stocks and blue chips has been rather tumultuous in the past few days, overall, September seems to be leaning in a bullish direction. To understand what’s going on in the market right now and how to take advantage of it, we have to take a closer look at what events are occurring in 2021. The first and most impacting factor in the past year and a half has been Covid.
With the surge in Delta variant-related cases reigniting fears that the pandemic won’t end soon, many investors have turned to conservative penny stocks. This is common as, in times of economic ups and downs, traders will often find low-volatility stocks to hedge bets against market swings. And, while it is difficult to predict when and if Covid will end, cases do seem to be declining in certain parts of the world.
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The next factor to consider is the rise and subsequent effects of meme stocks. These are stocks that are pushed up by social media sentiment, and as a result, can rise by double, triple, or even quadruple-digit percentage points in only a few days.
While these stocks are extremely volatile, they can present opportunities to those who find them early enough. So, as we continue to traverse 2021, keeping everything that is going on in mind will help you to adapt your trading strategy to the present. With all of that in mind, here are three penny stocks that could be worth watching in 2021.
3 Penny Stocks to Watch Right Now
- Yamana Gold Inc. (NYSE: AUY)
- BEST Inc. (NYSE: BEST)
- Ault Global Holdings Inc. (NYSE: DPW)
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a penny stock that has seen relatively stable price movement in the past few weeks. If you’re unfamiliar, Yamana is a producer of precious metals and actively explores for and produces gold and silver ores. It holds interest in the Cerro Moro Mine, Malartic mine, Minera Florida mine, and others.
Its mines are located in Canada, Chile, Brazil, and Argentina. Because of its wide breadth of mining locations, Yamana is considered to be a mid-sized gold producer. And, with the market as volatile as it is, many investors are turning toward mining stocks as a way to hedge bets against fluctuations.
Recently, Yamana Gold reported positive exploration results at its producing mines on September 6th. The company’s new zones and targets had the potential to significantly expand its mineral resource base and increase mine life at all operations. Two days after this announcement on the 8th, AUY stock increased in the market. Its stock price is now at $4.32 per share on average. Whether this is a direct result of these updates or the mining industry, in general, remains to be seen. But, keeping this in mind, will AUY be on your penny stocks watchlist this month?
BEST Inc. (NYSE: BEST)
BEST Inc. is a penny stock that just went up over 9% on September 9th. This brings its five-day gain to over 16% and one-month gain to over 35%. So, why the major bullish sentiment for BEST stock right now? Well, to understand it, let’s take a look at what the company does. BEST Inc. offers integrated services and solutions for supply chains. These services include warehouse management, store management, and network optimization. It also offers route optimization and sorting line automation.
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On August 17th, the company reported its financial results for 2021. The company’s revenue was reported at RMB 7.4 billion, a slight decline year over year. This was due to a lower average selling price in the express and freight markets. Its net loss did fall quarter over quarter in this time period.
“In the second quarter we continued to press forward with our strategic refocusing plan and build on the encouraging signs we are seeing in network stability, service quality, and cost reduction while adapting to the competitive industry landscape.”
Johnny Chou, Founder, Chairman, and CEO of BEST Inc.
BEST stock has gone up more than $0.50 per share since this report was released. This is all exciting news for the company and shows that it is working hard to stay on track with its plan. With all of this considered, will BEST stock make your list of penny stocks this month?
Ault Global Holdings Inc. (NYSE: DPW)
Ault Global Holdings Inc. is another decent gainer this week, pushing up by around 8% in the past five days. DPW is a company that designs, develops, and manufactures power system solutions. These products are used in the industrial-telecom and military industries in multiple places around the world. The company creates power supply products, power system solutions, and much more.
On August 16th, the company reported its second-quarter 2021 results. Its revenue grew by a massive 1050% year over year to $62.1 million. The company’s net income was at $42.2 million, which was major compared to a $1.4 million net loss the previous year. Now the company has total assets of more than a quarter of a billion dollars at $259.1 million. These numbers are very positive and could explain the bullish price movement were seeing with DPW stock right now. However, it seems as though they have not been fully reflected in its share price.
“We saw tremendous growth from our lending and trading activities with the infusion of capital and growth in all of our business segments. Our balance sheet remains strong, ending the second quarter of 2021 with positive working capital of $127.9 million.”
CEO of Ault Global, Kenneth S. Cragun
Following this announcement, DPW stock has gone up in price. Keeping this in mind, will the company enter your list of penny stocks to watch?
Are Penny Stocks Worth it or Not?
Buying and selling penny stocks in 2021 can be a profitable endeavor if done correctly. But, there are a few things that all traders should keep in mind. First and foremost is understanding what type of trader you are and how to use that to your advantage.
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With so much movement in the stock market, understanding your portfolio goals and your threshold for risk will help you to avoid unnecessary swings in your portfolio. And, having a thorough understanding of the current economic conditions will also be a major benefit. So, considering all of this, are penny stocks worth it or not?
