3 Top Penny Stocks to Watch For Under $5 Right Now
Penny stocks continue to be a popular investment in 2022. Despite the volatility of the markets in recent months, penny stocks remain an extremely popular way for investors to make money. In fact, because of their under $5 price tag, penny stocks are a great choice for those starting with less capital. However, it’s also worth noting that the volatility of penny stocks means that investors can lose money just as quickly as they gained it.
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To understand why penny stocks can be a good investment, we have to take a closer look. There are several reasons for this. First, penny stocks tend to be much more volatile than stocks in larger companies or blue chips as they’re commonly called. This means that they can offer much higher percentage moves if they rise in value, but they can also fall substantially as mentioned previously.
For example, two big movers we’ve seen today include CTI Biopharma Corp. (NASDAQ: CTIC) and Smart for Life Inc. (NASDAQ: SMFL) to name a few. And while they climbed by large percentages during trading, it’s complicated to say if they will continue to do so or not. So, with all of this in mind, let’s take a look at three penny stocks to watch for under $5 right now.
3 Under $5 Penny Stocks to Watch Right Now
- Energy Services of America Corp. (NASDAQ: ESOA)
- Zosano Pharma Corp. (NASDAQ: ZSAN)
- Sos Ltd. (NYSE: SOS)
Energy Services of America Corp. (NASDAQ: ESOA)
One of the bigger gainers of the day so far is ESOA stock. By midday, shares of ESOA had shot up by over 17% to more than $3.89 per share. This is a substantial gain and comes alongside some big news for the company. On March 22nd, Energy Services of America began trading on the NASDAQ under the symbol, ESOA.
“We are very pleased that the Company’s stock has been approved to trade on Nasdaq. By uplisting our common stock, we expect shares will have a broader appeal and increased liquidity. This is the first of several initiatives the Company is looking to undertake in 2022 to drive shareholder value.”
The President of Energy Services, Douglas Reynolds
If you’re not familiar, Energy Services is a U.S.-based contractor and service company that works in several areas of the energy industry. This includes natural gas, petroleum, automotive, chemical, and power. It states that it has more than 700 employees and operates out of the mid-Atlantic and Central regions of the U.S.
With this new listing, it’s clear that ESOA should be working hard to grow in the near future. And, with the major emphasis on energy stocks we’ve seen during the last few weeks, the hopes are that ESOA could be a popular player. Considering this, will it be on your list of penny stocks to watch?
Zosano Pharma Corp. (NASDAQ: ZSAN)
ZSAN is a penny stock that we have discussed numerous times in the past few months. And today, shares of ZSAN stock climbed by over 11% to more than $0.26. It’s worth noting that in the past five day and one-month periods, shares of ZSAN stock have shot up by over 40% and 99% respectively.
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These are major gains that reflect a bullish turnaround from how shares of ZSAN have been trading in the last six month period. So, why is Zosano seeing its shares move up so quickly? Well, the most recent news from the company came on March 17th. On the 17th, it announced its financial results for Q4 2021 and the full year. The biggest issue that the company has faced recently is the FDA’s response to its submission of M207.
“We are in discussions with the FDA to determine if there is a viable option to pursue approval of M207 using the currently available clinical data.
In addition, we are actively evaluating financial and strategic alternatives in collaboration with external advisors, with a goal of maximizing value. We believe our proprietary transdermal microneedle patch technology offers potential therapeutic and practical benefits to patients.”
CEO of Zosano Pharma, Steven Lo
Fiscally, the company managed to raise over $15 million in gross proceeds during a February offering. And, it also reduced its workforce by around 30% during the fourth quarter. So, it’s clear that Zosano Pharma is relatively beaten down at the moment. However, if it can get a new response regarding M207, it would be a game changer. Whether this makes ZSAN worth adding to your penny stocks watchlist however, is up to you.
Sos Ltd. (NYSE: SOS)
Another penny stock that we have discussed extensively in the past few months is SOS stock. And today, shares of SOS managed to climb by over 4% to more than $0.82 per share. It’s tough to say why SOS stock is moving right now, however, it could be due to the recent bearish action that it has seen.
And with the price of Bitcoin up by over 14% in the past month, SOS is likely moving alongside it. If you’re not familiar, SOS Ltd. operates in several industries, with crypto being its main business right now. It offers blockchain based products such as cryptocurrency security and insurance. And, the company works in big-data, cloud computing, AI, satellite, and much more.
Because of this, it is an extremely broad company and one that investors have been trading heavily over the last few months. And due to its large Bitcoin holding and big ties to the industry, we tend to see SOS stock move in tandem with cryptocurrency. So, with this in mind, do you think SOS stock is worth buying or not?
Will Penny Stocks be Profitable Throughout 2022?
The short answer to this is that it is extremely tough to say. Because there is so much going on with both penny stocks and blue chips, understanding exactly where the stock market will go is next to impossible.
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However, by considering what is going on in the market and how to take advantage, investors can have a much easier time making potentially profitable trading decisions. Considering all of this, do you think that penny stocks will the profitable throughout the rest of 2022 or not?
