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The 3 Best Penny Stocks to Watch Under $3 as Overall Market Volatility Increases in June 2020

Penny Stocks and market volatility are synonymous with each other. Volatility within the penny stock market can mean huge gains and or major loss. When trading stocks understanding volatility is key but when trading penny stocks understanding volatility is everything. Volatility is the rate at which the price of a stock increases and decreases. Penny stocks often make a wild swing to the upside and downside this fact is important to remember when you are looking for the best penny stocks to buy.

Covid-19, protests, riots, unemployment numbers and countless other current issues have contributed to the stock market’s current unpredictable behavior. It only makes sense that small-cap stocks and micro-cap stocks are benefiting.

Penny Stocks usually follow their own market trends independent of what the broader markets are doing. Although in June 2020 there has been a lot of penny stocks that are indeed following larger market trends.

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With these emerging trends in mind, let’s take a look at some penny stocks trending higher this week.

Are they penny stocks to buy right now or would they be a better ‘sell’? You be the judge and feel free to comment at the bottom of this article.

Best Penny Stocks To Buy [or sell]: Digital Ally (NASDAQ: DGLY)

Shares of Digital Ally (DGLY) have surged recently. The initial move began late last week as the company actually benefited from the surge in riots across the country. One of the products that Digital Ally supplies are video imaging specifically for law enforcement. Obviously during times like this with tensions high, body cam footage and other means of recording can be vital. After the initial jump to highs of $2.79, (NASDAQ: DGLY) stock pulled back to lows of $1.38 this week. However, trading momentum hasn’t slowed.

While the initial dip came after announcing a public offering, the latest surge could be stemming from its most recent update. Digital Ally announced the launch of two product lines in direct response to the increased safety precautions organizations and individuals are taking due to the Covid-19 pandemic.

[Read More] Penny Stocks To Watch Before Friday; 3 Up Big In June 2020

“We applied our years of experience with the latest cutting-edge sensor technology, real-time embedded electronics, and video AI analytics in vetting and choosing the ThermoVu™ technology as the most powerful combination of fast, accurate, reliable and user friendly,” said Stan Ross, CEO of Digital Ally.

ThermoVu™ is a non-contact temperature-measuring instrument. it measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters. This news seemed to have sparked some re-interest in DGLY stock on June 3. Will that continue this week?

Digital Ally (NASDAQ: DGLY) penny stocks to buy

Best Penny Stocks To Buy [or sell]: Workhorse Group (NASDAQ: WKHS)

Workhorse Group (WKHS) is another one of the penny stocks to watch right now. While there hasn’t been much news from the company, there has been a slew of FORM 4 filings showing insider transactions recently. You can check the latest WKHS corporate filings here. Aside from that, however, there hasn’t been much from the company in June.

In its last update, Workhorse announced that it had joined the Small UAV Coalition as an Associate member. The Coalition is a partnership with board members like Amazon Air, Intel, and Verizon among others. The focus, if you haven’t guessed it is on unmanned aerial systems. What does this do for Workhorse? Essentially it will give the company more insight and ability to rub shoulders with top industry leaders like the ones mentioned above. Aside from that, Workhorse came out with strong earnings for the first quarter of 2020. EPS beat by $0.19 and also reaffirmed previous production and delivery target of 300-400 vehicles in 2020.

What’s more, is that earlier this year, the company partnered with UPS and Virginia’s Center for Innovative Technology. The goal: evaluating the commercial drone industry’s ability to provide and scale small unmanned aerial systems to support various use cases to speed and assist the U.S. healthcare system during the COVID-19 crisis. Considering the recent Coalition news and updates on COVID-19, do you think WKHS stock is one to watch or ignore in June?

Workhorse Group (NASDAQ: WKHS) penny stocks to buy

Best Penny Stocks To Buy [or sell]: XpresSpa Group (NASDAQ: XSPA)

Innovation is obviously one of the shining points of penny stocks. When you discuss “emerging growth potential” you almost expect some “off the wall” ideas from start-ups. XpresSpa Group (XSPA), while not necessarily a start-up, has taken COVID-19 in stride. With less air travel, what would a company with a massive airport footprint do besides shut down in a time like this? The easy answer is to use the situation to its advantage. I don’t know how long you’ve been a reader but for a while, we’ve discussed XSPA stock. It began as just an idea but has become more of a mainstay in recent weeks.

The company decided to start a whole new business directive to address COVID-19. Since we first began looking at the penny stock, the company has been developing a division specifically for coronavirus testing. What’s crazy (or not) is that on May 22, the company reported a contract with JFK International Air Terminal LLC for COVID-19 screening and testing. Where has the recent surge of momentum come into play?

Well, we can look at a few things right now. First, the economy could be set to reopen once again with travel as a possible option. The current model for spa services availabe in airports would likely benefit from higher foot traffic in airports. But now with the XpresTest service and COVID not going anywhere right now, that could be another option. Furthermore, the company recently won approval from its shareholders to effect a reverse stock split.

As was said in a previous article today, reverse splits can be good or bad. They can be good if the company does it to attract quality investors that can give it capital that isn’t increasingly dilutive. It can be bad if the company simply boosts its price via the reverse just to use it as grounds for “cheap paper” or less than ideal debt terms. We’ll have to see what happens next. With XSPA stock back above $1, this is territory that hasn’t been seen since the beginning of 2020.

XpresSpa Group (NASDAQ: XSPA) penny stocks to buy

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