3 Penny Stocks to Add to Your Watchlist This Coming Week
As we enter into the first full week of February, there is a lot to keep track of with penny stocks and blue chips. Now, understanding what all those factors are and how they will play into the stock market can be tricky. But, with a proper trading strategy and some out of the box thinking, it can be much easier than previously imagined.
Right now, there are three factors at play. First, we have the pandemic. This has been ongoing for two years, and most investors are used to trading under these conditions. Second, we have inflation and interest rates. These change often and can have a swift and large impact on how both penny stocks and blue chips trade. And third, we have rising geopolitical tensions with Russia. This is a more recent event and one that we have yet to see play out fully.
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In the short term, it has impacted the price of oil globally, however, investors should keep a close eye on this event. So, while this may seem overwhelming, by considering how these factors will individually impact the stock market, it can be much easier than previously imagined. With that in mind, let’s take a look at three penny stocks to watch in the first full week of February.
3 Penny Stocks to Watch in the First Full Week of February
- ContextLogic Inc. (NASDAQ: WISH)
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
- TAL Education Group (NYSE: TAL)
ContextLogic Inc. (NASDAQ: WISH)
WISH stock is one of the largest movers of the past week or so, pushing up by over 20% since the end of January. The most recent news from WISH stock came on February 1st, when the company announced the appointment of Vijay Talwar as its new CEO. Talwar is the former EMEA Chief of Foot Locker and should be a valuable asset to the team.
“I am eager to apply my own experience within the retail and eCommerce space to further refine our focus and put the business back onto a path of growth. I firmly believe the best years for Wish are right ahead of us.”
Vijay Talwar, the new CEO of ContextLogic
It’s important to consider that ContextLogic has been struggling. Despite its promising products, the company has seen its shares fall substantially in the last year. If you’re not familiar, ContextLogic operates one of the largest global e-commerce platforms in the world.
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It holds millions of consumers on its platforms and offers the WISH shopping app as well as the website with the same name. So, while it is hard to say what the long term trajectory of ContextLogic will be, it is exciting considering the news that has come recently.
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
In the past few trading days, we’ve seen shares of SHIP stock climb by over 20%. This is a sizable indication of bullish sentiment and shows that investors are excited about the future of the company. The biggest news for SHIP came on February 1st when it announced the receipt of a notification from the NASDAQ. The NASDAQ stated that because SHIP stock was unable to stay above $1 for thirty consecutive trading days, it is at risk of being delisted from the exchange.
“For the reasons discussed in recent press releases, including what we believe to be strong signs of recovery in the freight market, we reiterate our firm belief that our shares are currently significantly undervalued. Therefore, we are optimistic that this will be cured organically within the prescribed grace period, without the need to effect a reverse stock split.”
The CEO of Seanergy Maritime, Stamatis Tsantanis
While it’s hard to say if a reverse stock split is completely off the table, we do know that it is not the ideal choice for the company. Considering that the shipping industry is continuing to heat up right now, SHIP stock looks like it could be in an ideal position to take advantage moving forward. With that in mind, will SHIP be on your list of penny stocks to watch?
TAL Education Group (NYSE: TAL)
TAL Education Group is another penny stock that investors have been watching in the past few trading days. Despite a one year drop of more than 96%, we have seen a small bullish turnaround with TAL stock recently. It’s important to understand that TAL Education is a part of the formerly $100 billion Chinese education market. In the past year, China has upended this space, with all players similar to TAL seeing massive downtrends in share price, revenue, and almost every other metric.
So, while other Chinese education stocks have stated interest in moving toward other markets such as cryptocurrency, not much has been mentioned from TAL Education. Rather, the recent moves made with TAL stock seem to be a reflection of what many investors call, bottom fishing. This is when investors make money off of small moves as a company nears a price bottom.
And, when it comes to penny stocks, most traders tend to utilize a swing trading method. This greatly lends itself to volatility and stocks that are moving in general. So, while the short term outlook for TAL is not great, it’s tough to say whether or not the company can turn its business around. Considering that, do you think TAL stock is worth buying or not?
Which Penny Stocks Are You Watching Right Now?
As February gets underway, investors need to stay as up to date as possible on everything that is going on in the world. Because penny stocks are so reactive, any and all news will have a sizable impact on how they trade. This means not only having a consistent trading strategy, but also being able to adapt that strategy to the shifting conditions of the stock market.
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In addition, knowing how to trade penny stocks will always be a major benefit when it comes to making money with small caps. So, while buying and selling penny stocks in 2022 is not easy, there are plenty of opportunities to do so. With that in mind, which penny stocks are you watching right now?
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