3 Penny Stocks to Add to Your 2022 Watchlist
If you’re making a penny stocks watchlist for 2022, there is no better time than right now. With the new year here and in full effect, there are plenty of factors to keep track of for investors of all types. Now at the top we have the Omicron variant.
This has been a major issue for the past month or two and has resulted in a major bearish pullback for both penny stocks and blue chips. Now, in the past few days, we have seen a slight bullish turnaround which could be the result of softening fears surrounding the variant.
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However, it could also be the result of the Santa Claus rally. If you’re not familiar, this is a phenomenon where in the last five days of the year, the stock market tends to rally. While this is more of a psychological phenomenon than dealing with any fundamentals, it is still important for all investors to consider.
The pandemic as a whole has contributed and caused the majority of the market volatility we’ve seen over the last two years. And while some believe that it could be almost over, there is no way to know with certainty. So, as we move deeper into 2022, let’s take a look at three penny stocks that could be worth watching.
3 Penny Stocks to Watch in 2022
- Transocean Ltd. (NYSE: RIG)
- Kosmos Energy Ltd. (NYSE: KOS)
- Galera Therapeutics Inc. (NASDAQ: GRTX)
Transocean Ltd. (NYSE: RIG)
If you’re not familiar with Transocean, it is a provider of contracted offshore drilling services. It offers these services for use in oil and gas wells in various locations around the country. The company states that its focus is on providing the highest quality tech for ultra-deepwater and harsh environment drilling.
And because of this niche market, Transocean stands out in the energy industry. Currently, the company has a fleet of 37 offshore drilling units. This fleet consists of 27 ultra-deepwater floaters and 10 harsh environment floaters. Right now, the company is also working on the construction of two additional deepwater drillships.
In its Q3 2021 financial results, Transocean reported contract drilling revenue of $626 million compared to $656 million in the previous quarter. Additionally, it managed to increase its revenue efficiency by 0.1% to 98.1%. With the price and demand for oil continuing to rise over the past few months, it looks like RIG is in an advantageous position right now. Whether it deserves a spot on your penny stocks watchlist or not is up to you.
Kosmos Energy Ltd. (NYSE: KOS)
Another energy penny stock that investors are watching right now is KOS stock. Kosmos operates as an independent oil and gas exploration company with a focus on the Atlantic Margins. The company’s Tates that its main assets are located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico among others.
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Recently, the company announced that it has received notice from Tullow Oil plc and PetroSA that the pair will be exercising their rights for pre-emption. This relates to the sale of Occidental Petroleum’s interest in the Jubilee and TEN fields in Ghana. In the deal, Kosmos would potentially receive roughly $150 million, however, there are certain adjustments that could be made. Around the same time, Kosmos announced its Q3 2021 financial results where it generated a net loss of roughly $43 million or $0.11 per share.
“With the recently executed transactions, Kosmos has significantly enhanced the outlook for the Company. The Oxy Ghana transaction accelerates our strategic delivery with increased near-term production and cash flow driving down leverage. The cash flow from the acquired assets also supports our portfolio transition to LNG at a time of increasing global gas demand.”
The CEO of Kosmos, Andrew G. Inglis
While these financial results are not the most ideal, the company was working hard to grow during the pandemic. And now, investors are waiting on the next results to be released from the company to move forward. With that in mind, will KOS be on your list of penny stocks to buy?
Galera Therapeutics Inc. (NASDAQ: GRTX)
GRTX is one of the biggest gaining penny stocks we’ve seen in the past few weeks. Over the last month, shares of GRTX stock have shot up by over 230%, which is no small feat. And while we are seeing a small correction for GRTX stock right now, this is only natural considering its major gain during that time.
The main catalyst behind its gain comes as the company announced corrected study results for the late-stage testing of its drug, avasopasem. The company announced that the new results showed statistical significance in relation to the primary endpoint of the study. That endpoint being severe oral mucositis, which is a small market, but one that Galera could capitalize heavily on.
Prior to the announcement, the company stated that the Phase 3 clinical trials did not meet statistical significance, which resulted in a more than 70% drop in shares of GRTX stock. However, with the good news in mind, shares of Galera have continued to rise. Whether this makes GRTX worth buying or not is up to you.
Which Penny Stocks Are You Buying This Year?
If you’re looking for the best penny stocks to buy in 2022, there are hundreds of options to choose from. As a result of the sheer number of factors that are impacting the stock market, investors need two stay as up to date as possible with what is going on in the world.
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Right now, the most pressing factor continues to be the Omicron variant of the coronavirus. While fears are subsiding due to more information known about the variant, they are still very much in play. With all of this in mind, which penny stocks are on your watchlist in 2022?
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