If you’re looking for the best penny stocks to buy this week, you’ve got your work cut out for you. Unlike years past, the stock market is a much more volatile place to “play” with your money. Building your portfolio takes much more than just a Reddit account and some cash in Robinhood.
The early days of the pandemic and into 2021 saw the rise of the retail trader, and it seemed as though stocks only went up. Choose most three- and four-letter combinations to identify stocks to buy. Chances were, you had more winning trades than losers back then. Fast-forward to the end of 2022 and into 2023, and the landscape has changed.
If you look at some of the most popular penny stocks during the pandemic, meme stocks, the vast majority are trading significantly lower and with greater daily volatility. AMC Entertainment (NYSE: AMC) is in the spotlight recently after a legal settlement was reached this week. AMC stock traded as low as $3.64 during Tuesday’s premarket session.
This is the lowest the meme stock has traded since the pandemic. This isn’t to say that all penny stocks are bad or that you should avoid them entirely. But it is worth mentioning that the trends are changing, and adjusting your strategy, as a result, will be important. In this article, we look at a few penny stocks to watch after recent developments prompted momentum in the stock market this week. Whether or not they’re the best penny stocks to buy is up to you. The first step in deciding what to add to your watch list is researching potential catalysts.
Penny Stocks To Watch
NFT Gaming Inc. (NFTG)
Cryptocurrency and Bitcoin price-related stocks have been in focus recently. That’s partly due to the rebound in crypto prices in general. Since the mid-March rally in the price of Bitcoin, Ethereum, and others, companies within this sector have gotten plenty of attention. Although more prominent names, including Coinbase (NASDAQ: COIN) and MicroStrategy (NASDAQ: MSTR) are trading lower in the stock market today, there are pockets of bullishness with some of the cheaper names.
NFT Gaming, for example, has traded higher and on its highest volume days since making the public debut in February. Shares have been severely depressed over the last few months as the IPO shake-out trend continues. NFTG stock reached a high of $5.15 during the first week after its IPO. The company’s non-fungible token-based digital gaming platform failed to attract the interest that some had hoped.
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This week, however, that sentiment has changed. NFT Gaming released a shareholder update. The company touched on several core initiatives it had already executed and plans to execute throughout the year. Vadim Mats, Chief Executive Officer of NFTG, explained, “The Company is actively developing games and a community that will offer content that will appeal to all types of gamers. By combining games and genres that people love to play with the power of the blockchain, AI, and other state-of-the-art technology, we are paving the way for the new generation of digital gaming.”
NFT is also evaluating the use of artificial intelligence platforms like ChatGPT and Midjourney. The acquisition of Voxpow allows the company to integrate AI features into its games. With this as a backdrop, optimism from several niches, including AI and cryptocurrencies, may have added to the momentum for NFTG stock this week.
Microvast Holdings Inc. (MVST)
Electric vehicle stocks and lithium energy-related companies have been in the news recently. Although industry bellwethers like Tesla (NASDAQ: TSLA) are underperforming, the space has pockets of bullishness. Microvast is one recent example. As shares of TSLA stock have slipped this week, MVST stock continues climbing higher toward its 50-day moving average.
The company designs, develops, and manufactures lithium-ion battery solutions. With multiple headlines over the last few days, there are several potential catalysts to point at. First, Microvast announced the location of its first polyaramid separator plant in Kentucky with a $504 million investment. The plan is to invest the capital to build operations on a 100-acre site expected to begin construction this year. Collaborations will also be a focus of the endeavor. According to Microvast, the campus will include a collaboration with General Motors (NYSE: GM) and partially funded ($200 million) by the US Department of Energy intended to develop a North Ameican-0focused EV supply chain.
This week HC Wainwright initiated coverage on Microvast with a Buy rating. The firm also included a price target of $8. Based on current levels, the target is more than 450% higher as of this article.
Hycroft Mining Holding Corp. (HYMC)
There’s no question that precious metals tend to thrive in a high-rate environment. One of the companies that actually has some ties to the meme stock trend, Hycroft Mining, is in focus this week. We outlined the details of this relationship in our article “AMC Entertainment (AMC) Sees Golden Opportunity In Penny Stocks,” when the initial deal came to light. At the time, AMC Entertainment bought a stake in the small-cap mining penny stock. The deal saw AMC and metals investor Eric Sprott investing a total of roughly $56 million into Hycroft. Sprott & AMC will purchase their shares at $1.193 per unit.
While plenty has changed since then, it doesn’t negate that HYMC stock could be a focus for some. Hycroft recently announced 2022 operating and financial results. Diane R. Garrett, President and CEO, explained, “The majority of our drill results returned grades exceeding the average resource grade at Hycroft. In addition, we added over 425,000 ounces of gold to the measured and indicated resource, which confirms our belief that the breadth and extent of the Hycroft system remains unknown and there is significant untapped potential at Hycroft to enhance our future mine plan and operations. We look forward to unlocking this potential during 2023.”
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Thanks to the rising price of gold recently, even junior gold mining stocks are coming back into focus. As of this article, gold prices were sitting above $2040.
List Of Penny Stocks To Watch
- NFT Gaming Inc. (NASDAQ: NFTG)
- Microvast Holdings Inc. (NASDAQ: MVST)
- Hycroft Mining Holding Corp. (NASDAQ: HYMC)
