Why These Penny Stocks Are Trending Right Now
Finding trending penny stocks can be a great way to start building a watchlist. It’s important to consider that just because it is a trending penny stock, does not mean that it is worth investing in. However, there is usually an underlying reason why a penny stock is trending. This could be anything from news, announcements, and balance sheets to everything in between.
But, it’s also important to understand what a company does and how that product or service will do in the long term. In tandem with this, investors should understand what their investor style is. This can be broken into two categories. On one hand, we have short-term investors or swing traders. These investors are usually looking for more volatile penny stocks. This is because the chances are higher of seeing large intraday swings.
The second type of trader is those who hold for the long term. In this case, it is extremely important to believe in a company’s longer-term prospects. There is also a combination of both trading styles that can be used depending on a specific penny stock.[Read More] Penny Stocks, Bitcoin, Dogecoin Pop With Reddit Traders Looking To Buy
It’s also important to consider the frequency at which you are going to trade. While some brokerages charge fees for trades, others do not. Yes, you can buy penny stocks on Robinhood or other brokerages, but it’s important to identify your needs as a trader to identify which brokerage is right for you. Considering all of this, let’s take a look at four trending penny stocks to watch right now.
4 Trending Penny Stocks to Watch
- Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
- Torchlight Energy Resources Inc. (NASDAQ: TRCH)
- Toughbuilt Industries Inc. (NASDAQ: TBLT)
- 22nd Century Group Inc. (NYSEAMERICAN: XXII)
1. Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
Tonix Pharmaceuticals Holding Corp. is a pure-play biotech penny stock working on several potentially groundbreaking compounds. While it did announce big news on April 19th, let’s talk about what Tonix does before we go any further. Tonix is a clinical-stage biopharmaceutical company focusing on producing small molecules and biologics to treat everything from pain and neurologic disorders to central nervous system diseases.
Its lead candidate right now is known as TNX-102 SL, which is in a Phase 3 trial to see its efficacy in treating fibromyalgia. The company states that it should have topline data from this study during the fourth quarter of this year. Additionally, Tonix is studying TNX-1800, a vaccine candidate for Covid-19. This is based on a horsepox viral vector platform, which could have indications beyond Covid-19 in the future.
Early on in the day, Tonix announced an exclusive worldwide licensing agreement with OyaGen Inc. for an antiviral inhibitor of SARS-CoV-2, known as TNX-3500. This compound has been heavily studied for its safety in humans however those studies were all regarding its cancer indications.
Seth Lederman, M.D., the President and CEO of Tonix, stated that “we are excited to expand our pipeline and we look forward to developing TNX-3500 as a potential treatment for Covid-19 and emerging variants. TNX-3500 is in the pre-investigational New Drug (IND) phase of development with encouraging early data from cell culture infectivity studies with SARS-CoV-2.”
In early studies, this compound is almost 65 times more effective at preventing Covid-19 reproduction than the popular remdesivir. Considering this exciting news, it makes sense why TNXP is a trending penny stock to watch right now.
2. Torchlight Energy Resources Inc. (NASDAQ: TRCH)
Torchlight Energy Resources is a penny stock that we’ve covered numerous times in the past few months. At the end of last week, the energy exploration and production company announced a complex merger with Canada’s Metamateiral Inc. (OTC:MMAT.F). Now you might hear the word merger, and think what’s so complicated about it? Well, it seems as though this deal is more or less a way for Metamaterial to gain access to a large U.S. stock exchange without having to go through an IPO or initial public offering.
After this deal was announced back in March, there were some speedbumps witnessed by investors including Torchlight announcing that it had to push the deal back by a few weeks. However, this is quite common as these mergers are very large endeavors, and take quite a lot of elbow grease to complete. Because this merger is still up in the air, investors may want to take a backseat until any details are fully fleshed out.[Read More] 3 Top Penny Stocks For Your Clean Energy Watch List In April 2021
Moving past this momentarily, Torchlight is working in the oil and gas industry, where it operates a range of oil-field assets. Because of the skyrocketing price of oil right now, TRCH stock is seeing more momentum than usual. Considering the information above, we see why TRCH is trending right now. But beyond this, is TRCH a penny stock to watch?
3. Toughbuilt Industries Inc. (NASDAQ: TBLT)
Similar to TRCH, we’ve been covering Toughbuilt Industries for several months now. While there isn’t any major reason for TBLT to be trending right now, we’ve seen shares of Toughbuilt push up several times in the past few trading sessions. For some context, Toughbuilt Industries is a provider of home improvement tools and products used in construction.
This includes tool belts and storage solutions to everything in between. One of the potential reasons that TBLT is trending is the recent release of its fiscal 2020 results. In the results, the company announced revenue growth of 106%, bringing the total for the year to $39.4 million. Also, gross profit increased by around 162% to $14.7 million. This is almost three times what it announced in the previous year.
Michael Panosian, the CEO of Toughbuilt, stated that “Toughbuilt has demonstrated strong fundamentals based on execution team, customer relationships, balance sheet, commitment to research and development and continued customer service.” Considering the rise in demand for building materials and tools during the pandemic, it makes sense why Toughbuilt’s numbers have increased so much. Whether or not this demand will continue in the future remains to be seen. However in the short term, TBLT stock could be worth watching.
4. 22nd Century Group Inc. (NYSEAMERICAN: XXII)
22nd Century Group is an interesting penny stock that you may have heard of. It is a biotech company working on altering the amount of nicotine in tobacco plants. In addition, it has earned a spot as a marijuana penny stock for its work on altering the number and make-up of cannabinoids in cannabis/hemp plants. It utilizes genetic engineering to produce desirable results with both tobacco and cannabis/hemp. This includes reduced nicotine cigarettes, which contain roughly 95% less nicotine than traditional versions.
Because it is on the cutting edge of these two industries, investors have continued to pay attention to XXII over the past few years. A few days ago, the company announced that its VP of Regulatory Science will be representing it as a new member of the Food and Drug Law Institute’s Tobacco and Nicotine Products Committee.
James A. Mish, CEO of 22nd Century Group, stated that “we are proud that John has been invited to serve on the highly regarded FDLI Tobacco and Nicotine Product Committee and to represent 22nd Century in this forum. Our organization is fortunate to have a number of experts on our leadership team, and it is important that we play an active role in moving the tobacco industry forward to reduce the harm caused by smoking.”[Read More] 3 Penny Stocks To Buy According To Analysts; 100%-290% Price Targets
Currently, the company’s VLN reduced nicotine cigarettes, are in the final stages of review by the FDA. If it is approved, it would without a doubt be a big deal for the company and investors as well. Considering these exciting updates, is XXII a penny stock to watch?