Robinhood Penny Stocks To Watch As Reopening Continues In 2021
It doesn’t matter if you’re talking about penny stocks or higher-priced ones, when March 2020 came around, pretty much all stocks tanked in value. The companies that lost the most value are now being called epicenter stocks. Originally coined by Tom Lee of Fundstrat, these epicenter stocks were seen as the top names at the center of the market sell-off and those that could benefit the most from an economic reopening. Now in 2021, the world is changing and global economies are beginning to come back online.
Global economies are reopening as COVID cases rapidly decline in America. One reason for this rapid decline has to do with vaccine distribution. More than 107.5 million Americans have received at least one dose of the COVID-19 vaccine. This also seems to be ramping up as the year continues.
In the U.S., many states are starting to lift COVID restrictions, such as Texas, which is fully open with no mask mandate or any other barrier in place. In most other states, the reopening of restaurants, gyms, salons, and more have taken place with masks still required.
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Retail traders are clearly taking notice. Not only are broader markets heading higher, but many growth stocks have also turned around. With this, the millions of new traders that flooded the market via apps like Robinhood last year are on the hunt for momentum. While there’s no category called “epicenter penny stocks on Robinhood,” we can look at some of the consumer discretionary and cyclical stocks to gauge demand.
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As the rapid reopening in America continues, this means the economy has a much larger opportunity to recover quicker. People will now likely be traveling again, eating out, shopping, and doing in-person activities. This could lead to a surge of interest in certain epicenter stocks. When it comes to reopening penny stocks, they’re still volatile at the moment. However, some of them have begun establishing a stronger trend in April.
- Ambev S.A. (NYSE: ABEV)
- Target Hospitality Corp. (NASDAQ: TH)
- Reed’s Inc. (NASDAQ: REED)
1. Ambev S.A.
When it comes to reopening stocks, many are related to restaurants, food, and beverage. This includes Ambev S.A., which could see some resurgence soon as reopening continues in America. Ambev is a company that produces, distributed, and sells beer, soft drinks, and more. It operates in the Americas, Brazil, Central America, and the Caribbean. It sells products under popular brands like Budweiser, Bud Light, Lipton, Pepsi, Seven Up, and many more. Many believe that this reopening stock has a lot of potential in the market.
One of the things that Ambev has done to weather some of the COVID storms is to think outside of the box when it comes to using its current assets. For example, late last month, Ambev converted part of a brewery in Brazil into an oxygen-producing and bottling facility to help local hospitals.
More on-brand is the company’s directive in utilizing technology to increase its reach. In a previous update, Ambev explained that “Ambev’s technology platforms were exponentially adopted [Chuí] in 2020. Digital businesses are here to stay, and platforms like Ze Delivery and BEES, our super app, were at the right place in the right time. As for the fourth quarter, we build on the commercial momentum from Q3 to deliver a good finish to the year. More importantly, the success of our commercial strategy in the quarter also positioned us well for 2021.”
With alcohol not likely to go anywhere, no matter the economic state, ABEV could be on the list of Robinhood penny stocks to watch right now.
2 .Target Hospitality Corp.
If you want to talk about epicenter stocks, you can’t avoid mentioning hospitality companies. Target offers rental and hospitality services in the United States. It owns a network of rental units with more than 13,800 beds across 26 communities. These rental properties target oil and gas companies, energy infrastructure companies, and government contractors. It is no surprise that when COVID-19 took over, this company’s stock price was crushed.
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Things could finally be turning around in 2021 for Target Hospitality. One week ago, the company released its fourth-quarter and full-year results. It was no surprise that it had a net loss and declining revenue. This is obviously a result of the coronavirus pandemic.
In regards to the future of the company, CEO and President Brad Archer stated, “We have continued to see improvement in customer demand and anticipate gradual increases in end-market customer activity throughout 2021, as the market continues to normalize.”
With hopefulness around reopening, it looks like the market has come around even after the drab earnings. Management’s commentary may have struck a chord as TH stock has climbed over 80% since earnings were released.
3. Reed’s Inc.
As mentioned before in this article, beverage companies were hit hard during the pandemic. For huge corporations, it was much easier to cope with the losses caused by COVID-19. For smaller companies, this was tougher and drove many out of business. Reed’s has been able to survive the pandemic and could be on the up in 2021.
Reed’s is a company that develops, sells, and manufactures hand-crafted beverages. Some of its brands include Virgil’s craft sodas, Ginger Canda, and more. Most of its products are sold to grocery stores and mass merchants. Obviously, fewer people are going out and buying during a pandemic.
But now that things have turned around in the world it could be great for Reed’s. Recently the company announced its fourth quarter and full year 2020 results. Its net sales went up 49% in the fourth quarter of 2020 because of lifting restrictions and volume growth. Its core brand gross sales went up 38% year over year.
In addition to this great news, Reed’s gross profit went up 490% year over year. Clearly, these results were strong for the company. REED stock price has slowly risen since the beginning of 2021. Furthermore, compared to its 2020 low of $0.3612, REED stock has mounted a clear recovery so far.
