Check These 3 Penny Stocks Out in May 2022
Finding the best penny stocks to buy in 2022 is a tough challenge for many investors. While some people have the ability to spot penny stocks that are worth buying, others may have a challenging time.
Right now, there are also a variety of factors that are making trading extremely difficult. This includes high inflation, rising interest rates, and geopolitical tensions. All of this has created a bearish maket that has seen the S&P 500 drop substantially since highs in January. So, if you’re looking for the best penny stocks to buy in 2022, you need to be extra careful.
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In addition, investors need to have a well-thought-out plan and a proper understanding of how to use the news to take advantage of the current state of the stock market. This will help you avoid some a lot of the major losses that can occur when trading penny stocks. When it comes to finding the best penny stocks to buy in 2022, there are a few things that you need to keep in mind. First and foremost, you need to find stocks that have good fundamentals. This means that the company is making money and is growing at a substantial rate.
Second, you need to find stocks that have a catalyst. A catalyst is an event that will cause the stock to move up (or down). This can be anything from an earnings report to an FDA approval. And lastly, make sure that you know what your investing goals are. So, with all of this in mind, let’s take a look at three must-watch penny stocks for your May list.
3 Penny Stocks to Add to Your May Watchlist
- Compass Inc. (NYSE: COMP)
- Gran Tierra Energy Inc. (NYSE: GTE)
- Transocean Ltd. (NYSE: RIG)
Compass Inc. (NYSE: COMP)
One of the larger gainers of the day on Wednesday, May 11th is Compass Inc., which managed to climb by more than 4% at EOD. If you’re not familiar, Compass is a residential real estate brokerage based out of the U.S. The company offers a variety of services that allow it to work with real estate agents and clients alike. Today, the company announced that it would be presenting tea the 17th annual Needham Technology & Media Conference.
While it is unlikely that this is the reason behind its gain today, it is an exciting piece of news to consider. Aside from this, we have seen major bearish sentiment in the stock market as of lately. So, today’s move for Compass could be a slight turnaround from that. But, understanding why COMP stock is moving seems to be anyones guess right now. With that in mind, will it be on your penny stocks watchlist or not?
Gran Tierra Energy Inc. (NYSE: GTE)
Gran Tierra Energy is a penny stock that we have covered numerous times in the past few months. And again during trading today, shares of GTE managed to climb. At EOD on May 11th, GTE stock had shot up by over 3.5% to more than $1.46 per share.
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The most recent news from the company came on May 3rd when it announced its Q1 2022 financial results. In the results, the company announced a YoY achieved actual production increase of 20%. Additionally, it posted net income of $14 million along an adjusted EBITDA of $119 million. This EBITDA number is a 185% YoY growth amount, which is no small feat whatsoever.
“The strong recovery for the energy industry and Gran Tierra, from the challenges of 2020, continued into the first quarter of 2022. Our top tier, low-decline, onshore, conventional asset base continues to prove its high quality, as shown by the Company’s production growth of 20% over the last year.
At the same time, we have significantly strengthened our balance sheet and expect to completely pay off our entire credit facility before the end of the second quarter of 2022, which will be a major milestone for Gran Tierra.”
The CEO of Gran Tierra, Gary Guidry
So, with all of this exciting news in mind, do you think that GTE stock is worth buying in 2022 or not?
Transocean Ltd. (NYSE: RIG)
Keeping on the theme of energy penny stocks that climbed today, we see RIG stock, which managed to shoot up by more than 1.2% at EOD. This bullish sentiment may not be vast, but it is encouraging considering the trajectory of the rest of the market. A few days ago, shares of many major oil companies fell substantially. This came as the top and bottom lines of some companies dropped. In addition, the company reported its first quarter 2022. Looking at the report, we see the company posted total contract revenues of $586 million.
“The Transocean team continued to provide safe, reliable and efficient operations for our customers during the first quarter, resulting in approximately 98% uptime performance across our global fleet.
With this consistently dependable performance, our industry-leading fleet of high-specification, ultra-deepwater and harsh-environment floaters and the continued deployment of new technologies, we are well-positioned to capitalize on the ongoing recovery in the offshore drilling market.”
The CEO of Transocean, Jeremy Thigpen
Whether this makes RIG stock worth adding to your list of penny stocks to buy or not, is up to you.
Are These Penny Stocks Worth Buying Right Now?
Are penny stocks worth buying right now? This is a question that is asked quite often, and unfortunately, there is no surefire answer. However, there are some insights that may help you to make a more informed decision.
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One thing to understand is your own risk tolerance. If you are a more risk averse trader, penny stocks may not be for you. However, if you are looking for a riskier investment with potential to climb (or fall), penny stocks could be worth looking into. But, understanding this is key to knowing whether or not penny stocks are right for you. So, with that in mind, do you think penny stocks are worth buying right now or not?
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