Many companies started out at penny stock prices and others had rough patches where they fell to cheap levels. Many define a penny stock as any stock that is trading below the $5 price mark. You can find penny stocks to watch on the OTC markets and even major exchanges like the NYSE or NASDAQ.
Investors who look for penny stocks to buy typically look for stocks that are putting in strong trends with nice volume. Penny stock trading can be tough due to these cheap stocks tending to be extremely volatile. However, as companies grow out of that $5 range, they tend to become less volatile and much safer investments. Here are a few companies that were able to get past being penny stocks and made it big in 2019 (so far):
Gaming Penny Stocks: Zynga Inc. (ZNGA)
Tech stocks in the 2000’s and 2010’s became instant success stories thanks to the sudden rapid innovation in technology. As 2020 approaches, a lot of tech giants have established themselves making it harder for new competitors to thrive. However, some technology penny stocks like Zynga Inc. (ZNGA Stock Report) are starting to blossom.
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Zynga Inc. is a technology company that creates social video games played by millions worldwide. The company aims to connect the world through video games which is why they primarily focus on social video games. Zynga is the mastermind company behind the Words with Friends 2 and Solitaire apps as well as other games.
The company started off above $10 after its IPO but quickly tanked below $5 making it a penny stock. For almost 6 years, the tech penny stock traded sideways never getting above that $5 mark until February 14th, 2019. Since crossing the penny stock threshold, the stock has grown over 20% and is currently trading at $6.16.
Social Media Penny Stocks: Snap Inc. (SNAP)
Social media has become the primary way many people interact with others in today’s society. Companies in this space include Twitter and Facebook. Given how they have produced, Snapchat could be up next. The company is proving that it can substantially grow in a single year even in the presence of heavy competition.
The mind behind the Snapchat app is none other than Snap Inc. (SNAP Stock Report). Snapchat is a media platform that allows messaging as well as photo messaging. This is a distinctly unique feature. It’s one of the most popular (previous) penny stocks on Robinhood and one of the most popular media platforms people use.
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Like Zynga Inc., Snap Inc. had a high IPO opening near $30 in 2017 but things quickly changed. By the end of 2018, the company’s stock price flirted with cheap stock prices falling below $5 on December 20th. After this happened, the stock grew substantially, to say the least. On Snap Inc’s year-to-date chart, it has increased over 212% and has only trended upwards during the last 12 months.
Biotechnology Penny Stocks: Zynerba Pharmaceuticals Inc. (ZYNE)
Biotechnology penny stocks are some of the most explosive commodities on the market. They are very volatile due to the rapid rate at which they produce good and bad news. Furthermore, if it’s a biotech penny stock, one piece of positive news regarding clinical trials can send the stock flying.
The next company on this list focuses on providing cannabinoid therapeutics to treat rare neuropsychiatric conditions. Zynerba Pharmaceuticals Inc. (ZYNE Stock Report) is currently targeting Fragile X syndrome, Autism Spectrum Disorder, 22q and encephalopathies. In order to treat those diseases, Zynerba created its lead treatment, Zygel, a CBD gel. Currently, Zygel just completed a Phase 2 study.
At the end of 2018, Zynerba’s stock got hammered all the way to $2.81. This was a significant drop because it had been trading at $14.50 in the beginning of 2018. The company’s stock traded below $5 for 2 months. However, this biotech penny stock has bounced back impressively since then crossing the $15 mark twice.
