Are These Penny Stocks Headed Higher Or Set To Sell Off?
Looking for some penny stocks to buy right now? With Friday being a half-day in observance of the Thanksgiving holiday, time is a big factor today. The New York Stock Exchange and Nasdaq will close at 1 p.m. ET. Meanwhile, the Securities Industry and Financial Markets Association suggests the bond markets stop trading at 2 p.m.
Regardless of the short session, stocks remain on pace to open strongly. S&P Futures started the Black Friday session green, up around 0.25% during early morning trade. Furthermore, NASDAQ futures were up just under 0.5%. Vaccine optimism remains a key point of focus for traders right now.
Canada could approve Pfizer’s (PFE Stock Report) COVID-19 vaccine ‘around December’, according to details from Reuters.
Additionally, we’ve seen upbeat sentiment revolving around Moderna’s (MRNA Stock Report) and even Novavax’s (NVAX Stock Report) potential COVID-19 treatments. As of the Thanksgiving holiday, more than 180,000 new cases were recorded by Johns Hopkins. This brings the global total to more than 61 million. Spikes were recently seen in New Mexico, Nevada, and Arizona.
Economic Recovery Stocks To Watch
This begs the question of what should traders be watching right now? This month and the past few months we’ve discussed epicenter stocks to watch. These are traditionally those names that’ve gotten the brunt of the coronavirus selling. However, as Tom Lee of Fundstrat, who initially coined the phrase explains, these could experience some of the strongest rebounds in light of a proven vaccine.
Now Barclays is weighing in on the “economic recovery stocks” discussion. The firm recently stated that more news of COVID-19 vaccine candidates has helped fuel another leg of the reopening rally. While things won’t likely be immediately back to normal with a vaccine, the market likes more certainty than not. In light of this, it makes sense that reopening stocks might be a spotlight item for traders and investors right now.
Barclays went further to explain that these beaten-down names “could outperform in an economic recovery as things normalize”. Those who’ve read our articles about epicenter penny stocks may find this familiar. It’s the same sentiment that Lee has had since earlier this year.
What we also are seeing is continued optimism in the energy sector. Some of this could be a result of the economic recovery momentum. It could also have to do with a focus on alternative fuels thanks to a potentially imminent incoming Administration. Needless to say, there are many different tailwinds helping push markets right now. Penny stocks are among some of the most popular to watch but will any of these be on the top of the buy list today?
Penny Stocks To Buy [or avoid]: AMC Entertainment Holdings Inc.
Shares of AMC Entertainment Holdings Inc. (AMC Stock Report) have received a lot of the brunt of coronavirus selling pressure this year. With a strong brick and mortar model, social distancing measures all but shut down the movie theater company. However, the recent trend in reopening stocks has helped give a boost to AMC. New optimism on a vaccine bringing back some normalcy has helped justify greater potential among traders.
This month alone, AMC stock has managed to climb 95% so far. During Friday’s premarket session, that extended further and shares reached early highs of more than $4.70. These are levels not seen since late September/early October.
Aside from vaccine optimism, traders still should keep a few things in mind. Earlier this month, AMC announced plans to raise fresh money. The entertainment company is looking to sell up to 20 million shares of common stock “from time to time” for corporate purposes. While we’re seeing market exuberance right now, this may be something you’ll want to keep in mind if AMC stock is on your list right now.
Penny Stocks To Buy [or avoid]: Gevo Inc.
Shares of Gevo Inc. (GEVO Stock Report) have also taken off this month. Since the start of November, the GEVO stock price has jumped over 100% at times and closed Thursday, up 99% to date. Heading into the weekend and half day on Black Friday, GEVO stock is once again on the move, premarket. The energy penny stock hit a high of $2.19 as the optimism remained in place on energy penny stocks.
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Gevo, specifically, focuses on renewable and carbon-neutral energy. The company uses low-carbon renewable resource-based carbohydrates as raw materials to do so. In Gevo’s case, there has been more sentiment and speculative momentum driving the latest move in shares this month. However, in general, the company has focused efforts on setting up for a strong 2021 and beyond. In Gevo’s most recent earnings update, CEO Dr. Patrick R. Gruber put a focus on the company’s cash position and its ability to finance project development well-into next year.
“This past quarter marked a turning point for Gevo. We secured the blockbuster deal with Trafigura, a major energy player. This off-take agreement brought our total off-take tally to about 48MGPY, collectively representing about $1.5 billion of revenue across the life of the contracts,” Gruber explained. So with momentum in renewables right now, will GEVO be one of the top energy penny stocks to watch right now?
Penny Stocks To Buy [or avoid]: Clean Energy Fuels Corporation
Similar to Gevo, Clean Energy Fuels Corporation (CLNE Stock Report), has rallied hugely in the last few weeks. It’s also climbed by over 130% in the past six months, many investors believe that there could be some momentum. The company’s target markets include heavy-duty trucking, airports, public transit, institutional energy users, and government fleets. With that, even during a stay-at-home order, commercial transit remains important.
In a report released recently, CEO of Clean Energy Fuels Corp. Andrew Littlefair stated that “we continue to leverage our strong position as the leader in alternative fueling, working with our customers to support their operations, which are vital in keeping the country running smoothly. We delivered almost 98 million gallons in the third quarter of this year versus 103 million in the same quarter last year.”
With new interest in renewables and alternatives, CLNE stock has gained much more attention in November. At one point, shares were up 110%, month-to-date. During the premarket session on Friday, CLNE stock further extended that to new highs of $5.30.