What Are The Top 10 Penny Stocks On Robinhood For January?
We made it to another year and a whole slew of new possibilities when it comes to making money with penny stocks. One of the most popular articles we publish each month is the most popular penny stocks on Robinhood. Now, you may be wondering, “Why Robinhood Penny Stocks?”
That’s as opposed to penny stocks on ETrade or penny stocks on TD Ameritrade. The Robinhood app has become one of the popular apps used by younger traders over the last few years. But it isn’t the age that sets it apart.
What we’ve found is that people trading penny stocks on Robinhood look for trends. I, for one, like to do the same. As far as this application goes, I’m not 100% for or against it, but you can’t argue with some of the metrics it gives.
One of these is a figure that shows how many portfolios hold a certain penny stock on Robinhood. There are many different lists that include top tech stocks, top biotech stocks, etc. But we’re after the most popular penny stocks on Robinhood to see where the flow of money is going.
Top 10 Penny Stocks On Robinhood For January
Over the last few months, the Top 10 list has shifted. Sometimes there are the same names on the list of penny stocks for months. Other times we see a given stock come and go. Typically, the ones that are fleeting, usually just had a big day before we published the article. But looking at this month’s top 10 list of penny stocks on Robinhood, I can say that these stocks have been popular for a while.
When you look for penny stocks to buy, obviously the more information, the better. I and other contributors on PennyStocks.com emphasize this all the time. Don’t just look at a company’s newsfeed and make that your only source of information.
Previous List Of Popular Penny Stocks On Robinhood:
- 10 Most Popular Penny Stocks on Robinhood [June 2019 Edition]
- The Top 10 Penny Stocks On Robinhood To Watch For August
- Top 10 Penny Stocks On Robinhood To Watch For September
- Top 10 Penny Stocks On Robinhood To Watch For October 2019
- Top 10 Penny Stocks On Robinhood To Watch For November 2019
- Top 10 Penny Stocks On Robinhood To Watch For December 2019
Though reading penny stock news is important, there are many more things to be aware of. Take, for instance, corporate filings. Familiarize yourself with what to look for. Some basic filing types and what they mean can help you better understand the moving parts of a company and how to best trade the stock:
What Is A 10-K Filing?
The definition of a 10-K filing is a comprehensive annual report about a company’s financial performance. This is a once-a-year filing for a public company that is required by the Securities and Exchange Commission (SEC). It’s a very long filing but gives a full report on a company’s history, organizational structure, executive structure, and compensation. It also reports the full-year financial statements and earnings. You’ll also see management’s discussion on performance and risk related to the business.
What Is A 10-Q Filing?
The definition of a 10-Q filing is a comprehensive quarterly report about a company’s financial performance. Typically, a company will file 3 “Qs” and then its “K”. It provides investors with the ongoing performance of a company. Similar to a 10-K, the Qs reports similar information but are based on individual quarters.
They can become catalysts themselves as companies will release the statements before the formal press release. That’s another reason to look at filings, often. A company needs to file its Q 40-45 days after the end of its quarter depending on the company’s size.
What is An 8-K Filing?
The definition of an 8-K filing or “Form 8K” is a statement filed with the SEC regarding material events or corporate changes. These are focused on events that may be important to shareholders or the SEC itself. This report essentially updates the public on certain events like buyouts, financial changes, management/director changes, fiscal changes, or anything relevant to shareholders’ interests.
Sometimes companies will just file a Form 8K instead of making a formal announcement. This is usually where we see penny stock run “out of nowhere” because the event isn’t in the newsfeed.
What Is Are Schedule 13D and Schedule 13G Filings?
These Schedules involve parties reporting ownership of stock that is over 5% of a certain equity class in a company. That 5% threshold is considered “significant ownership” of a company. Because of this, it must be declared. There are much longer format definitions of these forms. But the main difference involves the size of the investor. A Schedule 13D is filed by an “active investor” and ones owning more than 20% of a company’s outstanding shares.
A 13G is intended for “passive investors” owning less than 20% of a company’s outstanding shares. Once a “passive investor” reaches more than 20% of the OS, they need to start filing 13D statements. These are important because we’ll see which large funds or investors are taking a larger position in a company. These typically lift sentiment for a given company.
Penny Stocks & Trading Basics
Now, there are plenty of other types of filings to have an idea about. But these are some of the most frequently referenced in terms of potential catalysts. When it comes to finding penny stocks to buy, it’s vital to know why a stock may be moving. So heading into the new year and this new month, you’ve got some homework to do.
On that note, let’s take a look at this month’s Top 10 Robinhood Penny Stocks list. Keep in mind that these may not necessarily be the best penny stocks to buy on Robinhood. But it’s a list based on the number of portfolios that hold these cheap stocks heading into January.
Robinhood Penny Stocks #10: J.C. Penney (JCP)
The first on this list of popular penny stocks on Robinhood is J.C. Penney (JCP Stock Report). It was #9 on December’s list and slipped to #10 this month. In last month’s #10 was one of the top gold penny stocks, Yamana Gold (AUY Stock Report). It could see itself growing in popularity throughout the month due to certain geopolitical events we’ll discuss. But for now, it didn’t make the list this month.
As for JCP, shares of the brick and mortar department store have been on the move since mid-August. After spiking to highs of $1.26, JCP stock intermittently pulled back in September. Since then, it’s steadily climbed back from the depths of the sub-$1 level.
Late last week, shares of Target (TGT Stock Report) managed to spark interest in the brick and mortar retail sector. Though it didn’t trigger an all-out move in retail stocks, it didn’t hurt either. However, it’s important to know that JC Penney hasn’t had the best rapport with the public, including its lenders.
Earlier in December, the company reported that it had scrapped it loan auction when bids fell short of their mark. H/2 Capital intended to offload almost $800 million from its $1.7 billion loan made to the company. But could this be a curse and a blessing for the company? H/2 hasn’t sold any discounted debt to anyone because of the deal falling through. But obviously there’s still a considerable load on J.C. Penney’s shoulders right now.
In an interview with Yahoo Finance, former Saks CEO Stephen Sadove commented on the company’s current model. He said, “They have now got to figure out how to generate some growth. Jill Soltau, I think, is doing a very fine job of going in and trying to remake the merchandise, get back to basics and focus on apparel. But they have got to generate top-line growth, and it will be very hard given the amount of debt they have, the amount of depreciation and the requirement to keep a fresh store base.”
Robinhood Penny Stocks #9: FuelCell Energy (FCEL)
A newcomer to this list of penny stocks on Robinhood, FuelCell Energy (FCEL Stock Report) has performed well recently. Ever since mid-November, FCEL stock has been on fire. The company has gone through a restructuring phase that has breathed new life back into the energy stock.
During November, the company announced an expanded 2-year JV deal with ExxonMobil (XOM Stock Report) to enhance carbon capture technology. It also obtained an 8-year, $200 million loan to build on the current project in its $2 billion project backlog.
Then, in December, FuelCell hit the ground running. It saw significant progress for its Naval submarine base project. Furthermore, the company announced that it began commercial operation of its Tulare California wastewater treatment facility project. The 2.8-megawatt fuel cell project is designed to shrink the carbon footprint for the city.
[More On FCEL] 3 Penny Stocks To Buy Or Sell in January 2020?
Though it wasn’t announced in the most recent PR, the company previously stated it will host a corporate update on January 14th to review financial performance. So, this may be an important date to keep in mind amid all of this progress.
Robinhood Penny Stocks #8: Nokia (NOK)
Holding the #8 spot once again this month was Nokia (NOK Stock Report). To say the least, NOK stock hasn’t had the best time in the market over the last year. Furthermore, the previous few months weren’t much different. However, since the start of December, the penny stock has actually climbed a bit.
During that period, shares of Nokia rose by about 13%. The company appointed a new Chairman, Sari Baldauf to succeed Risto Siilasmaa. Baldauf joined the company’s board in 2018. Further to this, Nokia had also partnered with Telia Finland to offer solutions for 5G customers. This added to its growing list of 50 commercial 5G deals.
Also, regarding 5G deals that followed, Nokia was chosen by Telefonica Deutschland as well as TeraGo which will partner with Nokia for 5G fixed wireless trials. On top of this, in late December, Vodafone Hutchison Australia decided to roll out its 5G network in partnership with Nokia. This will trigger during the first half of this year.
Granted, Nokia stock has been beaten up for quite some time. But given the opportunities that the 5G arena currently holds, it might not be time to write off NOK quite yet. However, it should be noted that the stock continues to excite and then disappoint investors quite frequently. So make sure you keep this in mind if you’re looking at Nokia right now.
Robinhood Penny Stocks #7: Groupon (GRPN)
Coming in at #7 for another month in a row, Groupon (GRPN Stock Report) has more than 83,000 portfolios on Robinhood holding its stock heading into January. That 3,000 more than it had at the start of December so things might have changed in the eyes of investors over the last 4 weeks. Groupon was another beaten-down name in 2019 and unfortunately, not much has changed. So why have more investors put it into their portfolios?
That’s a good question and one that likely doesn’t have an immediate answer. To start the new year, GRPN stock stumbled after climbing for about 1-week straight to close out 2019. At the end of the year, it was revealed in a filing (remember above?) that MIG Master fund held a 5% active stake in Groupon. It has also disclosed that it wants to seek representation on the company’s board.
Even so, the stock has been mangled by a slew of analyst downgrades lately. The likes of Barclays, Cowen, Goldman Sachs, and Ascendiant Capital all cut Groupon price targets. However, Ascendiant was one of the only to reiterate a Buy rating on the stock. Considering that revenues and traffic declined in the last quarter, it’s no wonder why analysts took a bearish stance on the company recently. With some slight glimmers of hope from Ascendiant and MIG Capital, can Groupon turn things around this year?
Robinhood Penny Stocks #6: Aphria Inc. (APHA)
Aphria (APHA Stock Report) still sits in the #6 spot on this list of penny stocks on Robinhood this month. Last month showed the marijuana penny stock with 86,829 portfolios holding shares. This month begins with just over 89,000. So what has changed? As far as the cannabis industry’s concerned, not a whole lot.
But it’s important to note that for Canada, this month could be one to pay attention to. The Cannabis 2.0 movement for the country will now see edibles and other cannabis derivatives for sale on store shelves. This technically became available last month but several provinces are beginning retail sales this quarter.
As far as Aphria’s concerned, the company has focused on low-cost production for high-quality cannabis. The company secured an $80 million financing to finish its Aphria Diamond facility in Ontario, Canada. According to the company, “Aphria Diamond is set to have among the most affordable cost structures in the industry, and the subsidiary’s first dried flower products are expected to be ready for distribution in March.”
Robinhood Penny Stocks #5: Nio Inc. (NIO)
One of the most popular penny stocks to watch recently has been Nio Inc. (NIO Stock Report). It has also held the #5 spot for another month this month. Shares of the Chinese electric car company went into rally mode during the 4th quarter of 2019 after several key updates we released. It began with better-than-expected delivery figures for October.
The company delivered 2,526 vehicles, which was up 25.1% from September. In November, the company saw yet another increase in delivery figures. Though it was only by 2 vehicles in total, it still continued the trend.
On top of this, the company has been making friends in the industry. Nio partnered with Mobileye for a self-driving consumer passenger car in China. It also inked a partnership with rival company, Xpeng to help boost Chinese EV demand.
What’s also notable to mention is that the company managed to boost revenues in its last quarter while also beating analyst estimates. Nio is expecting record deliveries for its fourth quarter. Given the positives, will Nio finally become a penny stock to watch in 2020? Last year shares traded as high as $10.64.
Robinhood Penny Stocks #4: Chesapeake Energy (CHK)
It’s interesting to see which penny stocks have upheld their positions on the top 10 list of penny stocks on Robinhood each month. January has obviously seen several do just that. Chesapeake Energy (CHK Stock Report) is one of these. Last month CHK stock showed 114,991 portfolios holding shares on Robinhood. This month, the popular mobile app cites 119,227 portfolios holding this stock.
Surely the excitement surrounding energy stocks, in general, has helped oil and gas stocks like CHK. Moreover, the company has worked over the last few months to address its mounting debt situation, similar to JC Penney. Regardless of this, if the oil and gas industry continues to flourish after the bombing in Baghdad, CHK could be one of the energy penny stocks to watch in the near term.
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It seems as though the market, for now, has forgotten about the more than $9 billion in debt that needs to be addressed. Just make sure to keep this in the back of your head when it comes to Chesapeake, specifically.
Robinhood Penny Stocks #3: Plug Power (PLUG)
Gaining over 12,000 new portfolios on Robinhood, this penny stocks continues to hold the #3 spot. Plug Power (PLUG Stock Report) has been one of the most consistently bullish penny stocks over the last 12 months. Have there been intermittent pullbacks, of course. However, since the start of 2019 to current, PLUG stock has managed to withstand a move of 160% to date. It has focused on turning the company around in 2019 while streamlining operations.
Thanks to these moves, its CEO, Andrew March was named Executive of the Year at the 2019 Fuel Seminar & Energy Exposition. The hydrogen fuel cell company has built on its idea to reduce carbon footprints by creating efficient, alternative energy production methods. Numerous partnerships and increased demand for fuel cell projects in places like Germany have helped boost attention on PLUG stock.
If you remember, earlier last year, there were lofty statements made by Plug Power that initially set off alarms (in a good way). The company rolled out a 5-year plan to position itself to deliver $1 billion of revenue on an annual basis by 2024. It also targets $170 million in operating income and $200 million in adjusted EBITDA.
Andy Marsh, CEO of Plug Power explained, “We believe we have the team, technology and platform in place to execute on this five-year plan. Furthermore, this $1 billion B in sales target represents less than one percent of our long-term addressable market and believe we have substantial runway for growth beyond this target.”
Robinhood Penny Stocks #2: GoPro (GPRO)
Believe it or not, GoPro (GPRO Stock Report) is still a penny stock right now. In November it had a brief stint out of this cheap stock territory. But it hasn’t managed to withstand those levels. Though it’s at the higher end of the definition of a penny stock, GPRO managed to climb its way back from 52-week lows of $3.25 in the 4th quarter of last year.
After finally beginning shipments of its HERO8 Black camera, the stock started to move. It attracted more interest from a current hedge fund invested in the company. Prentice Capital increased its stake in GoPro to 9.96%. That was up from a previously disclosed 6.5% stake.
The progress continued as the company beat Q3 earnings estimates despite reporting a loss for the quarter. However, at the start of December, reports came out that GoPro registered record HERO8 Black sales during the holidays. In fact, the same reports suggest it was the best-selling GoPro ever. Something to keep in mind, however, is that GoPro has leaned heavily on hardware.
In a tech-centric economy, will it be able to keep up in 2020? I’m not trying to deter anyone from GPRO because it has obviously attracted more attention. Given the hard focus on tech and the cloud from the likes of Apple, for instance, can GoPro keep pace?
Robinhood Penny Stocks #1: Aurora Cannabis (ACB)
For yet another straight month in a row, Aurora Cannabis (ACB Stock Report) holds the crown as the most popular penny stock on Robinhood. Last month, just under 569,000 portfolios had a piece of the company. This month, over 596,000 have staked claim to this pot penny stock. So, now what? As I said when referencing Aphria, the cannabis industry was smashed in 2019. So what could be the big draw to this $2 marijuana stock?
That’s a good question right now. Aurora has been plagued with insider selling, leadership departures, and general detriments of pot stocks. But thanks to speculation and foreshadowing, Aurora has maintained the interests of investors to the tune of over 12k new portfolios on Robinhood, alone.
Late last month the company reported its corporate update and roll out plans for Cannabis 2.0. In it, the company highlighted its efforts to be ready to take the next step with Canada’s new initiatives to offer cannabis derivatives to the retail public. More importantly, in my opinion, are the company’s international plans. For instance, Aurora expects to receive approval this quarter for its EU GMP certification of its Odense, Denmark facility.
Production capacity there is expected to be around 8,000kg per year of medical cannabis. It also expects its Hempco processing facility in Alberta to be completed this quarter. Its new equipment will allow for the dehulling of some 450 kg/hour of hemp hearts. It also allows for decortication of 1.5 tons per hour of hemp fiber. Decortication removes the hard, outer-layer of hemp and leaves the fibrous layer exposed. The company has made numerous acquisitions and partnerships over the years and now has a footprint in 25 countries across 5 continents. But will this be enough to move the needle forward for shareholders in 2020?