Top Penny Stocks To Watch This Week?
This week starts a new month and penny stocks will continue to be a focus for many investors. The reason being has a lot to do with concerns over the spread of the coronavirus across the world. Over the weekend, new cases were confirmed in new U.S. states while the country also recorded its first death due to COVID-19. Given the circumstances, the mad dash to cash in on this unfortunate situation hasn’t slowed whatsoever.
While some of the large companies like Gilead (GILD – Free Report) or Johnson & Johnson (JNJ – Free Report) have attracted attention, the bigger focus may be on certain penny stocks. Believe it or not, coronavirus penny stocks have become a very real thing. Several of these have not only produced 100% gains, but they’ve also seen some stocks break above the 10,000% mark. We aren’t talking about a few trades either. These coronavirus stocks are being actively traded to the tune of millions of dollars a day.
But we’ve also got to keep in mind that hype has helped drive these massive moves. We’ve seen it plenty of times in the past. Industries like cryptocurrency, cannabis, and even certain biotech names benefited greatly from speculative hype. On top of this, a healthy retail trading environment has brought fresh cash into the market.
I would assume many who are reading this could be getting their feet wet in these volatile markets. So I will tell you that it’s vital to do your research. If a stock is making a move, it’s important to understand why before spending one cent even if its a penny stock. Investigate filings, news, rumors, etc. This will help you when it comes time for putting your list of penny stocks together. On that note, here are a few that have started making moves after extended periods of downtrends in the market.
Best Penny Stocks To Buy [or avoid] This Week: Plug Power
Plug Power (PLUG – Free Report) perked up on Friday. This came after a multi-week slide in the hybrid energy penny stock. Plug Power stock actually declined by as much as 37% during the sessions after it had hit its 52-week high. However, the stock finished the week strongly as it rose by as much as 12% on Friday.
The company aims to boost its revenues to $1 billion by 2024. While that is an ambitious target, the recent focus has been achieving the necessary milestones to build on its current strategy. This week Plug Power reports fourth quarter and full-year results for 2019. Late last month, the company expanded on its current partnership model.
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This time, along with Lighting Systems, the team will build zero-emission “middle mile” delivery solutions. This includes applications for logistics vehicles shipping products between warehouses and distribution centers. However, this week it’s likely that earnings will be a main focus for investors. If Plug Power stock is on your penny stocks watch list, March 5 will be an important date to keep in mind.
Best Penny Stocks To Buy [or avoid] This Week: MoneyGram
MoneyGram (MGI – Free Report) is another notable penny stock that managed to recover on Friday. MGI stock had tanked earlier in the week, but on Friday, it soared by as much as 16%. The money transfer giant has been in the news ever since blockchain company Ripple made an investment in it. MoneyGram is also looking to make a significant digital push.
Last month the company reported its quarterly and annual results. Not only that but it showed it was able to beat analyst estimates. MoneyGram reported earnings per share of $0.01. Wall Street analysts estimated the company would report an EPS loss of $0.02. Online transactions also grew year over year by 39%. Furthermore, sales came in at $323.7 million.
While this missed the $329.15 million estimate, the company did report other highlights that could bode well for it in 2020. One of which was amending its current extension of an agreement with the US Department of Justice. The deadline where it agreed to pay $55 million to the government was pushed to November 8, 2020.
Best Penny Stocks To Buy [or avoid] This Week: Verastem Oncology
Lastly, it is Verastem Oncology (VSTM – Free Report) that has emerged as one of the top-performing penny stocks this year. The stock has gained as much as 110% in 2020 so far. It soared further on Friday after it made an important announcement.
The company revealed that it is going to take a new strategic direction in order to speed up its clinical development programs. Verastem raised some $100 million to advance its clinical developments.
[Read More] Penny Stocks To Watch If You’re Worried About Coronavirus
“With our newly expanded development pipeline and strengthened balance sheet, we believe this new strategic direction will be transformative for Verastem Oncology as we will have the opportunity to rapidly advance the development of the clinical programs that we believe will yield the greatest results for patients, physicians, and shareholders,” said Brian Stuglik, Chief Executive Officer of Verastem Oncology. Further to this, the company also plans to cut 40% of its costs.
