Are These On The Top Of Your Penny Stocks List Right Now?
With the end of the year fast approaching, penny stocks are continuing to see newfound investor interest. One of the main reasons that penny stocks are so desirable is their under $5 listing price. This means that both institutional and retail investors have a chance at investing in penny stocks.
While these companies can be quite volatile in their stock price, they often can hold high underlying value. Investors should be aware that prices can swing very quickly, leading to big gains but also the potential for big losses. The best way to avoid this is by doing as much research as one can into a given penny stock to watch.
In addition to all this, there are several factors that are helping to restore confidence in the stock market. The first of those is the potential for a COVID vaccine to arrive within the next few months. While companies are still working on getting emergency use authorization from the FDA, things continue to look promising.
Second, a Joe Biden presidency means that several areas of the stock market could receive a big boost in the future. This includes marijuana penny stocks, biotech penny stocks, renewable energy penny stocks, and more. With all of this information in mind, investors can begin to create a list of penny stocks to watch. All things considered, here are three hot penny stocks to watch right now.
Hot Penny Stocks to Watch
- Tuniu Corp. (TOUR Stock Report)
- Francesca’s Holdings Corp. (FRAN Stock Report)
- Birks Group Inc. (BGI Stock Report)
Hot Penny Stocks to Watch #1: Tuniu Corp.
Tuniu Corp. is one of the biggest gaining penny stocks during the week of the 23rd of November. On Tuesday, November 24th, shares shot up by as much as 21% by EOD. Again on Wednesday, shares shot up by 24% by EOD. So, as investors, we have to wonder why there is so much bullish sentiment surrounding TOUR stock.
Well, one of the reasons that the company shot up is an announcement that the company will be releasing its Q3 2020 financial results on December 1st. While this is not a major announcement, it is something for investors to speculate about. Analysts have stated that the company could post a 50% decline in sales year over year. While this is undoubtedly not a great thing to consider, there are some reasons why this could make TOUR stock go up.
The main reason is that even if it beats estimates by a few percentage points, it would count as an earnings beat. Of course, this is not ideal, but it is something that traders can view as speculation. As a travel and touring company, many believe that the tourism industry could soon begin to bounce back. With hopes for a covid vaccine seeing widespread use soon, investors are starting to once again find travel penny stocks to watch. While it may be too soon to start betting on these companies, it doesn’t hurt to consider TOUR stock as a penny stock to watch. What’s more, is that TOUR stock has quietly mounted a move of 239% this month so far.
Hot Penny Stocks to Watch #2: Francesca’s Holdings Corp.
Francesca’s Holdings Corp. is another big gainer for November 25th, pushing up by almost 24% by EOD. For some context, the company works through its subsidiaries by providing apparel, accessories, jewelry and gifts aimed toward the female demographic.
With Black Friday on the horizon, e-commerce penny stocks have seen a big boost in the past week or so. The company states that it operates in 47 states around the U.S., where it has a long list of products for sale. In addition, its e-commerce store, francescas.com, has seen a great deal of business in recent weeks. The company has been working toward moving its business into the digital sphere in a bigger way.
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In the past six months, shares of FRAN stock have shot up by as much as 52%. On November 16th, the company announced that it plans to close 140 stores by the end of January 2021. Investors should be aware that FRAN stock is currently considering the option of bankruptcy. This would be a strategy to restructure its business and reduce debt. This could be a not so great sign for those holding FRAN stock. But, if it does declare bankruptcy, it could signal a potential new value point for the company. Whether or not this occurs remains to be seen. But, with the gains it has pulled in during recent trading sessions, it could be considered a penny stock to watch.
Hot Penny Stocks to Watch #3: Birks Group Inc.
Birks Group Inc. is another retail penny stock to watch. On November 25th, shares of BGI stock shot up by a modest 4.5%. In the past month however, that number jumps up to almost 50%. Similar to FRAN stock, BGI stock could see some future momentum due to Black Friday being around the corner. The company operates as a major manufacturer and designer of jewelry, watches, silverware and gifts.
With 27 stores throughout Canada, the company has been able to gain a big foothold in the retail market. In addition, the company has its products in stores around North America and in the U.K. Recently, the company announced that the NYSE American has accepted its compliance plan to keep it listed on the exchange. Although it did report net income in the past two quarters, it has reported losses over the past several fiscal years.
While it is not being de-listed, the company has been at risk of doing so due to it having stockholders equity of less than $4 million. In its last financial report released on September 15th, the company announced that sales had decreased any around 30%. This put its net sales at around $75 million for the quarter.
Andrew Clarke, CEO of the company stated that “during the second quarter, we continued to take measures to optimize sales and monetize inventory through our e-commerce channel as well as our reopened boutiques. As we substantially reduced aged inventory in our boutiques as they reopened, we saw a strong response to new merchandise that reflects her current mindset of casual comfort.” With all of this in mind, investors can decide if BGI stock is a penny stock to watch or not.