What Are Epicenter Stocks & Should You Watch Them?
Do you know what epicenter penny stocks are? This has become a more popular topic on the site and has a lot to do with a bigger picture idea. Originally debuted by Fundstrat’s Tom Lee, epicenter stocks are those which were beaten down by coronavirus blowback but could see potential in economic reopening. This reopening also considers that there’s likely a “new normal” to take into consideration.
In light of this, investors are searching for the top epicenter stocks to buy right now. But where should you start? Some of the stocks that have gotten beaten down so much are now considered penny stocks. With that in mind, it might be proper to consider some epicenter penny stocks right now. What you’ll have to weigh, however, is that since these are penny stocks, there are still higher risks involved. Price risk, dilution risk, and headline risk are all amplified when it comes to stocks under $5.
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But, if you can handle some higher risk/reward and increased volatility, there could be a few epicenter penny stocks to watch right now.
Epicenter Penny Stocks To Buy [or avoid]:
FuelCell Energy Inc. (FCEL Stock Report) has grown in popularity with the surge of attention in energy stocks, in general. With a rise of interest in alternative energy stocks, the March sell-off has all but become a distant memory at this point. Furthermore, with former penny stocks like Plug Power (PLUG Stock Report) now captivating a larger niche of the market, traders are seeking out “the next PLUG”. While the “next XYZ stock” is always something traders look for, I think the main focus initially is on sympathy trades.
These sympathy ideas have everything to do with companies in similar sectors, industries, or simply with similar share structures. In this case, FuelCell targets a similar model as Plug on a different scale.
Last month the company closed a deal with the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. FuelCell was selected for an $8 million funding award to support designing and manufacturing a SureSource electrolysis platform to produce hydrogen. This is all part of the bigger plan from the US Department of Energy for accelerating advanced nuclear progress in the U.S. These projects are valued at $26.9 million and included industry cost-share contributions, which will allow industry-led teams to advance the state of domestic commercial nuclear capability.
Epicenter Penny Stocks To Buy [or avoid]: Mogo Inc.
Mogo Inc. (MOGO Stock Report) is another one of the epicenter stocks to watch right now. The company focuses on financial technology and, specifically, payment processing. Mogo offers a finance app allowing consumers a solution to give clients access to certain financial products.
This week, MOGO stock began taking off after a recent update on its MogoSpend product. It now supports Apple Pay, Google Pay, and Samsung Pay. The company’s MogoSpend is designed to help with spending control and automatic carbon offsetting.
“MogoSpend helps you achieve a zero debt and zero CO2 lifestyle by automatically offsetting one pound of CO2 for every dollar spent. MogoSpend was built as a mobile-first experience and designed to help users be more mindful of their spending.”
Essentially, each purchase made automatically gives a notification with specifics of the transaction. It also shows how much CO2 they’ve offset. David Feller, President & CEO of Mogo explained, “MogoSpend is already a unique product in the Canadian market, and the addition of Apple Pay, Google Pay and Samsung Pay further enhances the value for our users, giving them more ways to make contactless purchases using MogoSpend while they continue to focus on reducing their consumption, spending more sustainably, and offsetting their carbon footprint.”
Since it has gapped up so much on Friday, will MOGO stock be able to sustain these higher levels? The last time shares jumped, the pullback that ensued took MOGO down over 60% during the weeks to follow.
Epicenter Penny Stocks To Buy [or avoid]: Coty Inc.
Coty Inc. (COTY Stock Report) is one of the consumer discretionary stocks that has been trending lower for the better part of the last few months. However, the recent earnings results from its fiscal Q1. The beauty company has continued making progress with big brand names in its portfolio. This has added to the excitement behind COTY itself. But the constant selling pressure hasn’t helped things on the market side of the equation.
Will these latest earnings mark a tipping point for COTY stock? For the first quarter, the company reported a net income of $200.6 million. This improved from a reported net income of $52.3 million in the prior year. Coty said this was aided by reported tax benefits associated with its relocation of its tax principal. The first quarter adjusted net income totaled $83.6 million. This was compared to an adjusted net income of $50.5 million in the prior year. This contributed to a strong EPS beat of $0.11 compared to estimates of a 5 cent loss. Furthermore, its $1.69 billion in Q1 sales also crushed the $1.08 billion that analysts expected.
With reopening efforts still at the forefront, consumer spending doesn’t seem to have slowed much. Online shopping has also become a big proponent of retail success.
“The success of our recent launches, including Marc Jacobs Perfect, Gucci’s Bloom Profumo di Fiori, Sally Hansen’s good.kind.pure, and CoverGirl’s Clean Fresh, confirm the strength and enduring potential of our brand portfolio. As we have leaned into our digital efforts and activation, we have seen double-to-triple digit e-commerce sell-out growth across most markets, with our e-commerce penetration as a percentage of our overall sales doubling to 13%,” said Sue Y. Nabi, Coty’s CEO.
One of the key highlights recently was the company’s launch of direct-to-consumer flagship websites for Kylie Skin.