Robinhood Penny Stocks To Watch Right Now
One of the most popular platforms for trading penny stocks is Robinhood. There’s really no getting around it. Even in light of the technical issues, the lack of access to things like OTC penny stocks, and the questionable events that’ve come about recently, it’s still the top dog among retail trading apps.
If you look at some of the penny stock brokerage growth statistics from last year, you’ll also see this trend. Among most mainstream platforms, Robinhood reigned supreme. Millions of new traders wanting access to stocks flocked to the app for its simple interface. Though things like execution times on trades take longer than Fidelity or Etrade, for instance, it’s still one of the most-used platforms out there.
What About Penny Stocks On Robinhood?
I alluded to it briefly above. When it comes to buying penny stocks on Robinhood, your choices are limited. For the most part, only NASDAQ and NYSE companies are available to trade. The vast majority of OTC penny stocks aren’t allowed on the platform. Have there been some exceptions? Yes, but most of these were based on companies that were listed internationally and domestically, like Rolls Royce Holdings (OTC: RYCEY), for instance. Needless to say, there are still hundreds of stocks under $5 to choose from on Robinhood.
Something else to keep in mind is the exposure of these stocks is much broader than OTCs. Let me explain what I mean. When it comes to Wall Street firms and things like hedge funds, many are restricted from trading any stock not listed on a major exchange. This means that when it comes to Robinhood penny stocks, the pool of traders is usually much larger than that of their OTC cohorts. This can lead to higher liquidity and more volatility. Since execution times are generally slower on Robinhood, users need to understand that “the best price” may not be attainable. But for the average user, this might not even be a factor.
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Another thing that has attracted users is access to more than stocks. Options and even cryptocurrencies are made available. Yes, this includes Dogecoin, which saw an unfortunate sell-off over the weekend after comments from Elon Musk on Saturday Night Live. But, whether you’re trading penny stocks or cryptocurrencies, if Robinhood is your platform of choice, it’s good to know some of the basics of trading in general. This includes understanding how to manage risk.
Trading Penny Stocks This Week
The rise of cryptocurrencies like Dogecoin has brought about a new sentiment in the stock market this year. That sentiment tends to lean toward a more “risk-on” approach. This could be another reason why things like penny stocks have taken a front seat among retail traders. While it’s great to bring in a gain of 13% for the year from a stock like Microsoft (NASDAQ: MSFT), it doesn’t compare to the daily breakouts we’ve seen from penny stocks. Is it a higher risk? Definitely, but if you know how to trade stocks, managing risk and volatility are second nature. Here are a few trending names that could be on the radar this week in light of continued interest in reopening stocks.
- Southwestern Energy Company (NYSE: SWN)
- Crescent Point Energy Corporation (NYSE: CPG)
- Tetra Technologies Inc. (NYSE: TTI)
- Kosmos Energy Ltd. (NYSE: KOS)
- Ur-Energy Inc. (NYSE: URG)
Robinhood Penny Stocks To Buy [or avoid] #1: Southwestern Energy Company (NYSE: SWN)
You’ll see in this article that the trend is focused on energy stocks. Southwestern Energy has seen a great year so far in 2021. In January, SWN stock opened for trade at $3.03. As of May 7th, shares reached highs of $4.75. Keep in mind that its 52 week high sits around $4.88. But all the same, as it stands right now, the penny stock is up over 50% year-to-date.
The recent surge came in tandem with the bullish momentum in oil and gas stocks this quarter. The company also reported stronger than expected earnings in Q1. Southwestern’s earnings per share of $0.29 beat analyst estimates of $0.23. Furthermore, the company’s quarterly sales of $1.07 billion far surpassed Wall Street’s expectations of just $850.51 million.
“The Company’s returns-driven strategy is underpinned by a lower cost structure, improving operational performance, a strong balance sheet, the generation of free cash flow and capturing the benefits of scale, all while operating safely and responsibly. In the first quarter, we delivered on each of these aspects of our strategy. Our teams continue to innovate and create opportunities to further improve results.”
Bill Way, Southwestern Energy President and Chief Executive Officer.
Given the fact that reopening is on the rise, energy consumption could become a major focus. Keep in mind that this isn’t just from oil and gas but from alternative & renewable energy as well. This is something I’ll discuss later in the article.
2. Crescent Point Energy Corporation (NYSE: CPG)
Shares of CPG stock is another energy penny stock that has surged in 2021. In fact, shortly after the 2020 U.S. Presidential election, shares were on the move. In December, after outlining its 2021 production plan, Crescent Point’s focus began to target a streamlined business. The company set out to have capital expenditures of between $475 million and $525 million in 2021 to generate as much as 112,000 barrels of oil equivalent per day. The company also earmarked funds for ESG efforts.
If you’ve read some of our other articles recently, ESG stocks are becoming a hot topic. This idea focuses on companies strategizing for environmental, social, and governance enhancements. In Crescent Point’s case, the company is dedicating funds to environmental stewardship programs. It said that it’s on track to meet or exceed emissions intensity reduction targets of 30% by 2025. This included a 50% reduction in methane emissions and plans for more environmental targets.
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Fast-forward to this month, and we are on the verge of seeing how the first quarter of 2021 has unfolded. This week, Crescent Point will deliver its first-quarter figures. If CPG stock is on your watch list, make sure to have May 12th on your calendar. The company will also discuss its outlook for the year on a mid-morning conference call.
Robinhood Penny Stocks To Buy [or avoid] #3: Tetra Technologies Inc. (NYSE: TTI)
Tetra is another one of the energy penny stocks surging in 2021. While the end of 2020 was bullish, things began really taking off for the stock and company this year in January. The initial move came after the company announced the divestment of its interest in CSI Compressco LP. This deal saw Tetra sell the assets and interests for a total price of $30.7 million. The company aimed to refocus efforts on operations that generated significant cash flow, including its completion fluids business.
Following the divestment, the analyst community rallied behind Tetra. Evercore ISI boosted its rating to Outperform and set a $3 price target. Stifel analysts also upgraded TTI stock. The firm boosted its rating to a Buy and raised its target from $1 to $3.
Since the energy sector has benefited greatly from reopening efforts, the rising tide has helped lift most stocks, including TTI. However, recent developments from the company haven’t hurt either. In its Q1 earnings results last week, Tetra gave a very bullish outlook for Q2. In particular, CEO Brady Murphy said the company is experiencing stronger activity levels in Q2 that are “well above” the March run rate. He discussed his optimism for “delivering a very solid second quarter that will be representative of what we can achieve in the current market environment,” as well.
4. Kosmos Energy Ltd. (NYSE: KOS)
When talking about energy penny stocks or reopening stocks, Kosmos Energy has also been part of the conversation. The company focuses on deepwater oil and gas exploration with assets in Ghana, Equatorial Guinea, and The Gulf of Mexico. Kosmos also has gas development offshore in Mauritania and Senegal.
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This year the company hasn’t released many updates. However, as I’m sure you’ve come to realize, the rise in energy consumption and prices has placed a bright spotlight on related companies. In the case of Kosmos, the company has continued focusing on expansion and enhancing operations. In March, it closed a $450 million offering focusing on paying down debt and commercial facilities.
This week could be an important one to have KOS stock on the watch list. Why? Monday marks the date of the company’s next earnings release for Q1 2021. There will also be a conference call mid-morning to discuss the results.
5. Ur-Energy Inc. (NYSE: URG)
While oil and gas are some of the more obvious reopening trends, you can’t ignore alternative energy stocks. Thanks to the U.S. President’s energy initiative, things like solar, wind, and even nuclear energy are in the spotlight. As a result, uranium mining stocks are a focus for some traders.
Ur-Energy focuses on its mining operations in Wyoming. The company has utilized a recovery method that allows for efficient mining that is less invasive, called in-situ recovery. The company has obtained all major permits and authorization to start construction at the Shirley Basin for a second in-situ recovery uranium facility.
Last week, Ur-Energy announced this development in a formal press release related to the Shirley Basin. Not only does this expand its operating footprint, but it also marked a major milestone. The company effectively doubled its licensed and permitted production capacity. Ur-Energy explained that the Shirley Basin Project hosts 8.8M pounds of Measured and Indicated Uranium Resources. There’s also a 3 unit mining plan for the Project.
On top of this, the company also released its Q1 2021 results last week. Of note were comments from CEO Jeff Klenda. “The growing bipartisan support for nuclear energy in the U.S. creates a strong foundation for our industry…Broad support for nuclear is evident when comparing the recommendations of the U.S. Nuclear Fuel Working Group report from April 2020 with the current priorities of this Administration. The striking similarity between the two signifies strong support for the reinvigoration of our industry and the long-term stability of the nuclear fuel cycle for decades to come.”
Reopening Penny Stocks In Focus
When it comes to reopening penny stocks or epicenter penny stocks, the options are vast. You can consider travel and leisure, or you can focus on things like energy and infrastructure. Regardless of your focus, understanding how to navigate this trend and identify key drivers are important. The “cause and effect” of each step of reopening can translate to new opportunities in the stock market in 2021.
