Will These Penny Stocks Continue Climbing in December?
November has been quite a month for finding good penny stocks so far. Following news about a potential COVID vaccine, traders are showing more bullish sentiment than in many months prior. In addition, with political turmoil in the U.S. coming to a close, we could see more confidence in the future of the stock market. In the present day, there are a few industries for penny stock investors to pay close attention to.
First of those are biotech penny stocks. This part of the market is quite broad and covers everything from covid penny stocks to general biotech penny stocks. These companies have seen tremendous bullish sentiment due to the correlation with covid.
Next, we have EV penny stocks and renewable energy penny stocks. These two industries tend to go hand in hand as they are both working toward a green future. With the election of Joe Biden, investors believe that the U.S. will make some big moves toward clean energy in the coming years. With this, EV penny stocks and renewable energy penny stocks have continued to climb in value.
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Lastly, we have mining penny stocks. While these companies have not performed extremely well in the past month, the underlying value could be high in the future. Once covid inevitably comes to an end, governments and businesses will undoubtedly begin growing again. This means that demand for resources such as metals could climb dramatically. With all of this in mind, let’s take a look at three penny stocks to watch for the holiday season.
3 Penny Stocks to Watch Before December 2020
- Clean Energy Fuels Corp. (CLNE Stock Report)
- Hecla Mining Company (HL Stock Report)
- Marimed Inc. (MRMD Stock Report)
Penny Stocks to Watch: Clean Energy Fuels Corp.
Clean Energy Fuels Corp. is a penny stock that has seen increased bullish attention in the past several weeks. In the past five days, shares of CLNE stock have shot up by almost 50%. In the past month, that number jumps up to 86%. So why the big momentum for CLNE stock? Well, as a clean energy producer, the company has been working to convert many industries to cleaner energy alternatives. The company states that it is working on switching semi-trucks to utilizing natural gas for fuel.
As stated earlier, the Biden administration has big plans to move the U.S. toward clean energy in the coming decade. For this reason, companies like Clean Energy Fuels have seen increased momentum in the past month or so. While CLNE stock has rallied by over 138% in the past six months, many investors believe that there could be some momentum left in the long term.
In its most recent third quarter, the company reported sales of around $70 million. While its earnings did drop by around 63%, this is of course due to the effects of the covid pandemic. As we continue to barrel toward 2021, CLNE stock looks like it could remain a penny stock to watch moving forward.
Penny Stocks to Watch: Hecla Mining Company
Hecla Mining Company is as the name suggests, a company that mines various ores around the world. On November 25th, shares of HL stock shot up by a decent 2% to a price of $4.80 per share. In the past six months however, shares of HL stock have shot up by over 50%. On November 9th, Hecla Mining released its Q3 2020 financial results. The company posted earnings of $0.05 per share, beating Zacks estimate of $0.04 per share. Over the previous quarter, HL stock’s earnings grew by around 25%. Additionally, the company beat revenue expectations by almost 6% for a total of $199 million for the quarter.
[Learn More] The Beginner’s Handbook For Trading Penny StocksWith mining stocks, investors tend to utilize long term trading strategies as opposed to short term ones. In the beginning of this piece, we touched upon the idea of resource demands potentially shooting up as covid comes to a close. While it is uncertain as to when covid will decline, with vaccine hopes high, it could occur in the near future. With that, Hecla Mining has continued to show solid momentum in the past few months, despite covid related challenges. For this reason, investors could consider it to be a penny stock to watch.
Penny Stocks to Watch: MariMed Inc.
MariMed Inc. is one of the biggest gainers on November 25th, pushing up by 32% during midday trading. For some context, the company works as a consulting service for the various procedures that go along with cannabis cultivation. This includes production as well as dispensary operations. The company also works in the development of facilities that produce various cannabis-infused products.
On November 9th, the company reported its Q3 financial report for the period ending on September 30th. In the report, gross profit came out to $8.7 million. This represents a massive 221% increase over the previous year’s Q3. In addition, the company reported a positive EBITDA of $4.4 million, which is compared to an EBITDA loss of $733,000 in the same period of the previous year.
Bob Fireman, CEO of the company, stated that “these strong quarterly results reflect the tremendous growth of our cannabis business units coupled with the consolidation of our Massachusetts and Illinois business units into our company. Our reported financial results now include the revenue from these two states where we generate revenue from both adult-use and medical cannabis programs.”
One of the main reasons for being bullish amount MRMD stock is president-elect Joe Biden. In his campaign, Biden and running mate Kamala Harris stated that on day one, they will work to decriminalize cannabis nationwide. This would give MRMD stock and other marijuana penny stocks a big chance to grow. Whether or not this occurs remains to be seen. But for now, MRMD looks like it could be a penny stock to watch.
