Will These Cheap Penny Stocks Make Your List This Month?
The changing state of the world has resulted in many reopening penny stocks jumping in value. Global economies are starting to open up more as COVID-19 cases decrease. Part of the reason that cases are dropping is a result of vaccine distribution. As of April 6th, ¼ of America has received the coronavirus vaccination. This accounts for 32.4% of the population or 107.5 million Americans with at least the first of two vaccinations.
Even with this news, people like Dr. Fauci believe that masks could be recommended as far out as 2022. There is still a lot the world does not know about this virus, like mutations and variants. This places many stocks in a state of volatility, as we’ve seen for the last year. The difference now is reopening has begun to escalate.
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Texas has fully reopened the state, California is quickly lifting restrictions, and the same goes for many other states. As this occurs, there will be a large increase in the number of people contributing to the economy. This means getting fuel, eating, shopping, traveling, and more could begin to see an uptick.
Reopening Penny Stocks To Watch In April
Many refer to these companies as epicenter stocks, a term originally coined by Fundstrat’s Tom Lee. This involves companies that experienced mass selloff between the end of February and April of 2020. This article will focus on the companies that could or already benefit from the reopening of global economies.
Nobody knows what truly will happen with reopening at the moment. In some places, COVID cases are still rising, so we are talking about a lot of volatility. Regardless let’s take a look at 3 reopening penny stocks that can be bought for under $5. But just because they’re “cheap,” will they be worth putting on your list heading into Q2?
- Express Inc. (NYSE: EXPR)
- Centennial Resource Development Inc. (NASDAQ: CDEV)
- Ashford Hospitality Trust (NYSE: AHT)
Penny Stocks To Buy For Under $5: Express Inc.
One of the types of epicenter penny stocks that were impacted a lot were those related to retail. So it is no surprise that when March 2020 came around, EXPR stock took a nosedive. The apparel and accessory company sells products in its Express brand retail stores and online. Now in 2021, EXPR stock is rebounding strongly. This reopening stock started the year under $1. At one point in January, EXPR reached upwards of $9.55 per share.
This isn’t January anymore, so where is EXPR stock at, and what is affecting it? The retail stock seems to be receiving a boost after its fourth-quarter earnings. The company posted big gains in its results, which has caused retail traders to see potential in the company. This week, EXPR stock is up 14% so far after reaching a high of $4.56 on Tuesday.
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Furthermore, the online retail focus of the company could be something to pay close attention to. Thanks to the pandemic, many retailers had to readjust to the market demand, which focused more on digital retail channels. Specifically, Express outlined a strategy that will grow its digital channel to $1.0 billion in 2024. it expects to unveil the details of the strategy in this quarter.
Centennial Resource Development Inc.
Next up on this list of reopening penny stocks is Centennial Resource Development Inc. It is an oil and gas company that primarily develops oil and gas projects in North America. The company’s charts are looking pretty good in 2021 so far. While CDEV stock is down from recent highs, it is still much higher than it started in 2021. The rally that this company is experiencing is a result of oil and natural gas prices climbing in 2021.
Now that reopening has begun, energy supply and demand are growing. More fuel will be used as people get back on the road, are in the air, and commercial commerce comes back online. But as oil prices rise, it is causing stocks like CDEV to rise kind. The oil market was also recently affected by the Suez Canal mess in which a large ship blocked it.
Since many oil tankers use this canal, it affected the oil market as well. In other recent news, Centennial also announced its intention to offer a $150,000,000 aggregate principal amount of senior notes due 2028. The proceeds will be used to fund the cost of entering capped call transactions and redeem all of its outstanding 8% second lien senior notes due 2025.
Ashford Hospitality Trust (NYSE: AHT)
Hospitality and leisure are, of course, part of the reopening trade. With hotels could be a focal point for the market. Ashford Hospitality Trust invests in upscale and upper-upscale hotel properties in the U.S. These properties operate under Marriott, Hilton, Hyatt, Crowne Plaza, and Sheraton flags. Everything from room revenue to food and beverage are revenue streams for the company.
With numerous states reopening right now, people are starting to venture out. Furthermore, In updated recommendations, the C.D.C. said domestic and international travel was low risk for fully vaccinated Americans. Does this mean travel is 100% back to pre-covid levels? Not by a long stretch. However, with locations in more than half of the states in the continental U.S., the chances are that business could be set to pick up. This is especially a focus in places like Texas, which fully lifted restrictions earlier this year.
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Within Texas alone, Ashford has 13 properties, including Ashton, Embassy Suites, Hilton, Marriott, and Lakeway locations. Furthermore, Pennsylvania and New Jersey, where Ashford also has locations, have begun lifting certain restrictions. In light of this, AHT could be one of the reopening penny stocks to watch right now.
Are Reopening Penny Stocks A “Buy” Right Now?
It’s important to remember that this “reopening trade” has been heavily pushed by speculative momentum. There are still many other states that’ve not lifted restrictions, and many countries are still figuring out the right course of action to reopen. Needless to say, as vaccines continue distribution and case numbers decrease, this could be an interesting trend to follow in the market right now.