Best Penny Stocks to Buy? Check These 3 Out
Penny stocks are back. Not to say that they ever left, however, the past few months have been filled with lower than average volume. Now, with the rise of DogeCoin to new highs and investors searching for the best penny stocks to buy, we are seeing more momentum.
We have all heard of the hype that comes from growth stocks and small-cap companies. In May 2021, it seems as though the opportunity to make money with penny stocks is more tangible than ever. With access to penny stocks on Robinhood and other democratized brokerages, buying and selling cheap stocks has never been easier.[Read More] Reddit Penny Stocks Soar as DogeCoin Hits New All-Time Highs
While it may seem simple to make money with penny stocks, unfortunately, there is a lot of work involved. However, with proper research and educated trades, investors can turn a substantial profit especially in the bullish market we are in right now.
Trading penny stocks under $5 is not a sure bet. Because of their volatility and tendency to spike or plummet at any whiff of news, they are to be treated with a certain degree of respect. Creating a penny stock watchlist should be one strategy in your portfolio, as diversification is key.
Generating a list of penny stocks has its perks. You can follow chart movement, understand which companies are under or overvalued, and get a feel for the market as a whole. This will help you decided on which penny stocks to buy. Like anything, you can never go wrong with extra preparation.
The confidence that comes from making a good investment is unmatched. However, it’s always best to trade with little to no emotion. It’s not a sport for everyone. But those committed to education and doing their due diligence, have the best chance at seeing profitability. With all of this in mind, here are three penny stocks for your May 2021 watchlist.
3 Penny Stocks Under $5 You Should Check Out
- Zomedica Corp. (NYSE: ZOM)
- Castor Maritime Inc. (NASDAQ: CTRM)
- Ashford Hospitality Trust Inc. (NYSE: AHT)
Zomedica Corp. (NYSEAMERICAN: ZOM)
As a penny stock we’ve covered before, Zomedica Corp. continues to be an interesting company to watch. Specializing in veterinary health, ZOM is a developer and marketer of pet pharmaceuticals and diagnostic products. Its mission is to provide veterinarians with lower-cost care options while still growing revenue. This wholesale mentality increases productivity while continuing to meet the care needs of animals.
Finding ourselves in quarantine this past year, it comes as no surprise that a large number of companion animals were adopted. Whether people were lonely, or just simply had more time on their hands, this increased interest in animals is palpable amongst the veterinary care industry.
Since early January, ZOM increased by over 280%, while reaching a high of over $2.70 in February. The price per share then remained above $2 until early April, when it began to reconsolidate around $1. Now, we are once again seeing solid momentum with Zomedica Corp.[Read More] 3 Penny Stocks To Watch Under $3 Right Now
Investors everywhere are comforted by consolidation. For them, it means that people consider the penny stock to be at a fair value. When shares of ZOM dropped below $1, investors feared a possible de-listing. Trading under this level, investors in ZOM were concerned that it may be placed on the NYSE American noncompliance list once again.
However, ZOM has managed to get back on its feet, pushing its price up to around $0.90 as of May 4th. While this is not yet above the $1 requirement, the company is working hard to get there.
With a new TRUFORMA biosensor released in mid-March, ZOM is continuously updating its product pipeline. Considering this along with plans to increase its direct sales organization, is a direct reflection of ZOM’s future plans for growth. With all of this in mind, could Zomedica benefit as a reopening penny stock for your May watchlist?
Castor Maritime Inc. (NASDAQ: CTRM)
Another penny stock we have looked at before is Castor Maritime. As a penny stock under $5, CTRM has seen interesting price movement over the past year. Increasing from a share price of $0.12 to nearly $2, CTRM’s past chart offers insight into where Castor Maritime could be headed.
As a global shipping company, CTRM saw a direct negative result from the effects of the pandemic. This impacted the ability for it to import and export goods, a cornerstone component of its business. Yet, with international trade concerns subsiding, CTRM is preparing for the best-case scenario. With a recent announcement of its plan to acquire a 2013 Japanese-built Kamsarmax dry bulk carrier for nearly $21 million, we can tell that it is readying itself for the future.
Petros Panagiotidis, CEO Castor Maritime, publicly stated: “We continue to steadily execute our expansion plan with the addition of another Kamsarmax dry bulk vessel, to Castor’s fleet. Upon completion of all our announced acquisitions, our fleet will consist of 24 vessels across the dry bulk and tanker segments.”
This is following its two recent vessel acquisitions on April 16th and April 19th. Panagiotidis is following his promise of expanding the Castor fleet with its “significant capital on hand.” Having consolidated in the past month, CTRM is another penny stock that could be worth watching as it continues to grow.
Ashford Hospitality Trust Inc. (NYSE: AHT)
Ashford Hospitality Trust Inc. is a real estate investment trust (REIT) that invests specifically in upscale hotels. With a growing online presence through its Ashford APP, AHT is committed to maintaining a modern competitive advantage. Due to COVID-related revenue decrease, AHT stock has not seen as much growth as expected in the past year. However, as the economy reopens, investor interest is increasing.
With solid growth in the past few months, AHT has recently seen more than 50% in share price growth since mid-April. This is due to a recent financing deal with Oaktree Capital Management L.P. The deal includes the signing of a $200 million deal, with an option for an additional $250 million in funding. Considering this, AHT could finally have the capital it needs to continue expanding.
“We’re excited to announce the closing of this strategic financing with Oaktree and believe this partnership will be beneficial for Company going forward. With this important financing now closed and vaccine distribution ramping up, we look forward to getting our hotels back to profitability and focusing on growth.”J. Robison Hayes, CEO of Ashford Hospitality
With all of this in mind, it’s up to you if AHT stock is worth keeping an eye on.
Are Penny Stocks Worth It?
As the economy reopens and business gets back to usual, investors are looking for the best penny stocks to buy. While the companies above are just a few of hundreds of choices, they show just how diverse the market is.
As investors, we are excited about the prospect of what a reopening market brings, however, research should always be the cornerstone of your investment strategy. While the pandemic may have a lasting impact, it’s important to consider both the short and long-term effects of it overall.[Read More] Penny Stocks To Buy According To Analysts With Price Targets Up to 341%
So, when looking at penny stocks to buy; diversity, research, and a strong understanding of the company will always be crucial to making a profit. Considering all of this, are penny stocks worth it?