Hot Penny Stocks To Watch Before Next Week
Penny stocks are red hot right now, so why wouldn’t you be looking for the top ones to buy right now? You could search for them by looking at trending sectors and industries. Different economic data could also direct you to some of the top penny stocks today. But I’ll cut right to the chase. Most of the time, even if the S&P or Dow are getting taken down by the bears, you’re likely to find at least a handful of cheap stocks experiencing triple-digit gains.
Why is this? The fact of the matter is that we’re talking about an entirely different ecosystem in this world of penny stocks. Also, instead of being long-winded, there are limitations in picking up stocks under $5. Many of the major Wall Street firms can’t direct as much (or any) capital to lower-priced stocks. They have sets of rules that require them to manage their clients’ money ethically. One of the codes of ethics involves limiting risk. Since price alone poses a significant risk, stocks under $5 get pushed aside by these larger organizations.
Does that mean all penny stocks are ignored by Wall Street firms and investing heavyweights? Absolutely not, and, in fact, many of these firms & investors implicitly focus on them. If you recall, “The Big Short” investor Michael Burry was one of the first to identify the opportunities that GameStop “could pose” in the right light. That was in 2019, and we reported on this event as the Big Short investor bought shares of the penny stock (at the time).
So what’s going to be the “next GME”? I’m sure plenty of newbie traders are wondering about this. While they read the tea leaves of the market gurus, the rest of the traders are going to look for more opportunities in the meantime.
Hot Penny Stocks To Watch
- Zosano Pharma Corp. (NASDAQ: ZSAN)
- Trivago (NASDAQ: TRVG)
- Torchlight Energy Resources Inc. (NASDAQ: TRCH)
- ATIF Holdings (NASDAQ: ATIF)
- Globalstar Inc. (NYSE: GSAT)
Zosano Pharma Corp.
Biotech penny stocks have been some of the hottest in the stock market today. Known for cutting edge advancements in life sciences, these companies can be the epitome of risk/reward. One of the main reasons is that during the trial stages, companies either make big leaps forward or fall flat. This can make for a volatile series of headline-fueled catalysts.
Zosano has shown both sides of this coin. Since the beginning of the year, ZSAN stock is up more than 100%. But, since reaching 52-week highs earlier this week, ZSAN is actually down over 40%. So let’s look at the catalyst behind both moves, up & down. At a higher-level overview of the company, ZSAN shares rallied as the company continued reaching new milestones in its Qtrypta™ microneedle system development.
Zosano requested a Type A meeting with the FDA relating to its resubmission of a New Drug Application. About a month after the news, the company learned the requirements for resubmission and set forth an action plan. Ultimately, an additional pharmacokinetic study will be necessary for resubmission.
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As far as the pull-back from earlier in the week, this may have been due to just profit-taking. In general, a pullback like that tends to have some kind of news or filing associated. However, neither has come up (so far). Needless to say, it looks like ZSAN has started turning heads on Friday, once again.
Hotel-booking site Trivago has been in and out of the spotlight as virus case numbers have increased and decreased. However, with stimulus on the horizon and vaccines in circulation the travel industry has gotten a booster shot of its own. TRVG stock has climbed for the last few months as speculative momentum built in travel and reopening stocks.
This week, analysts from Morgan Stanely weighed in on the company. Is it a signal to the broader hospitality industry? That is something we’ll have to watch closely. However, Morgan Stanley kept its Equal-Weight rating on TRVG but increased its price target on the stock to $2.40. This came just one day after Susquehanna analysts raised their target from $1.25 to $3 on the penny stock.
In Trivago’s recently filed earnings report, the company posted lower year-over-year sales and posted a loss for the quarter. However, Trivago CFO Matthias Tillmann said in an interview with Barron’s said that the second half of the year could see a major return of activity.
“We have seen it last year in Europe when the weather gets better, numbers tend to be lower. In Germany, the government announced last week that with the current plan everybody will be vaccinated by the end of September,” he said. “So that means going into July, a vast majority should be vaccinated.”
This has brought a bit more upbeat sentiment in the stock, in addition to recently target increases by analysts this week.
Torchlight Energy Resources Inc.
Torchlight Energy has become somewhat of a turnaround story in recent months. The traditional oil and gas company has made a drastic change. This includes entering into a merger deal with Metamaterial Inc. This deal would effectively turn Torchlight into a company that focuses on clean technologies, including solar energy.
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“We believe this transaction provides our shareholders with the best opportunity moving forward. Metamaterial offers proven disruptive technology with strong environmental, social, and governance priorities,” is what John Brda, CEO of Torchlight, said at the time of the initial reveal of this combination.
This week, Torchlight announced a $5 million raise where net proceeds are to provide additional bridge financing to Metamaterial Inc. This is in connection with the Arrangement Agreement between the two companies. Though the raise was done at a discount ($1.20 per share), the market continues to react favorably.
Shares of ATIF Holdings continue to rise, though volatile, to new highs this week. If you look at the bigger picture of this chart, there is a clear uptrend. But on a day-to-day basis, ATIF stock generally sees intra-day swings of 10% or more at times. Furthermore, if you’re looking at different technical set-ups, ATIF stock has finally made it back to a level that shares gapped down from back in November. A “gap-fill” is usually seen as a sign of strength and has come after a series of catalysts helped propel shares.
The company provides business and financial consulting services in Asia and North America. In a recent letter to shareholders, CEO Pishan Chi discussed several key updates for the market to focus on. Some of the more notable include $7.8 million in consulting service agreements from February to November were signed with companies anticipating their entry into the U.S. Capital Markets.
The company also relocated its headquarters to California and launched a new asset management business model. This has become the main focus of ATIF, and this month the company completed the filing of its private ATIF-1 fund. While this could be one of the hot penny stocks to watch, it’s worth recognizing the increased volatility levels in the market. So if it is on your list, keep that in mind as share prices can fluctuate 10% or more on any given day.
Another one of the companies gaining a lot of attention this year is Globalstar Inc. We initially discussed this among the growing list of 5G penny stocks to watch. But its business is much more than that. The company focuses specifically on the Internet of Things – IoT. This can be anything from communications (i.e. 5G) to data management and applications.
The initial spark for its bigger 2021 move came after Globalstar announced that its partner, none other than Nokia (NYSE: NOK), entered into an agreement to deploy Globalstar’s Band 52 spectrum at the port of Seattle, Terminal 5. This was the 2nd deployment between the two companies at a U.S. port. Moving forward, Globalstar continued reaching new milestone deals with the likes of Ceres Tag, and Battlbox via its SPOT LLC company. The company’s Band n53 was included in Qualcomm’s new 5G X65 modem.
Similar to TRCH, GSAT stock popped big this month and came back down swiftly fro new 52-week highs. There weren’t any negative headlines to suggest a mass-exodus from the stock. However, it may have been another instance of profit-taking. Friday, GSAT stock has continued reversing its trend and may be a trend to monitor.