Finding trending penny stocks to buy is a great place to begin making a watchlist. However, just because certain penny stocks are trending, does not mean that they are worth adding to your portfolio.

In May 2021, one of the most trending topics right now is cryptocurrency. This includes cryptos like Bitcoin, DogeCoin, and many others that have come into the public eye in the past year or so. 

While volatility is rampant with both the Bitcoin price and the DogeCoin price right now, both of these coins have shed a light on certain penny stocks to buy. When one industry is volatile, it often leads to investors looking for similar fluctuations in other markets. And in the past few months, investors have been able to draw many comparisons between cryptocurrency and penny stocks

[Read More] Blockchain Penny Stocks to Buy? 4 To Check Out on Robinhood

But as with anything, investors need to understand their threshold for volatility. Are you looking for penny stocks to watch that move in value frequently? Or are you looking for those that will make slow movements over a longer time frame? Either way, there are plenty of trending penny stocks to watch that are ready to explode. 

In May, investors who buy and sell penny stocks have turned their attention toward cryptocurrency. Both these markets offer similar value points and large opportunities. While they don’t necessarily trade in tandem with one another, there is plenty of opportunity in both. Considering all of this, here are three penny stocks to watch amidst Bitcoin & DogeCoin price volatility. 

3 Penny Stocks to Watch As DogeCoin and Bitcoin Rise and Fall

  1. Nokia Oyj (NYSE: NOK
  2. Zomedica Corp. (NYSE: ZOM
  3. Centennial Resource Development Inc. (NASDAQ: CDEV

1. Nokia Oyj (NYSE: NOK) 

Nokia Oyj is a well-known tech stock that has seen a great deal of bullish interest this year. Since the beginning of the year, shares of NOK have jumped by over 30%, which is quite good compared to the S&P 500 in that same period.

There are plenty of reasons for the big price move with NOK stock. Part of this is due to the tech boom we’ve witnessed this year. And the other part is due to Nokia’s role as a 5G penny stock as well as its other business ventures. 

It’s also worth noting that Nokia is considered a Reddit penny stock as it is frequently discussed on the social media site. Many believe that Nokia is also undervalued at its current price, and considering how quickly it has become a leader in the installation of 5G infrastructure around the world. Its diverse product portfolio and large profit margin mean that NOK stock is trading at around eight times its free cash amount. 

Additionally, it’s worth noting that the company has major footholds in both the U.S. and China, which represent two of the largest 5G markets in the world. And because it is a producer of this state-of-the-art technology, many believe that NOK is well-positioned for the long term.

While we are seeing a correction in the tech market right now, Nokia has largely managed to avoid this. And, hovering at just under $5 per share, NOK looks like it is teetering on non-penny stock status. Considering all of this, will it be on your list of penny stocks to buy?

Penny_Stocks_to_Watch_Nokia Oyj (NOK Stock Chart)

2. Zomedica Corp. (NYSE: ZOM) 

Another top trending penny stock is Zomedica Corp. We’ve covered ZOM stock plenty of times over the past few months and again on May 17th, shares are up by around 7% at midday. To be honest, it’s hard to tell why shares of ZOM stock have risen so much in the past year.

While its Truforma veterinary diagnostic platform is encouraging, it is still far away from being the standard-of-care product for veterinarians. Additionally, it hasn’t shown too much in the way of positive financial results. And with a loss of $16.9 million at the end of 2020, it doesn’t look like ZOM is in a great financial position either. 

[Read More] 4 Penny Stocks On Robinhood To Buy Under $1; 50%-270% Price Targets

So, why is it on a list of penny stocks to watch? Well, often, investors will search for penny stocks that make large intraday movements. Regardless of the underlying business model, volatility will always equal opportunity. And while it is difficult to try and predict when ZOM will make these large moves, it does happen to do it quite frequently. It’s also worth noting that ZOM can shoot down in value in the double-digit percentage points regularly as well. 

And, the company states that the animal diagnostics market could be worth $5 billion within the next five or so years. But, given that it has only sold one of these products to date, it will need to work day and night to get its sales up to speed. So while investors should keep an eye on Zomedica Corp., it may be worth just watching for now. 

Penny_Stocks_to_Watch_Zomedica Corp. (ZOM Stock Chart)

3. Centennial Resource Development Inc. (NASDAQ: CDEV) 

Shares of CDEV stock pushed up by around 5% by midday trading. And, this is only one of several days in which shares of the energy penny stock have moved up recently. Much of this is due to its large earnings beat.

In the report for its Q1 2021 results, the company posted a crushing revenue amount of $192 million, vastly beating expectations. While shares of CDEV are subject to the price movements of the oil and gas industry, there is more to consider when looking at Centennial. 

Back in the early days of the pandemic, the company struggled as the demand for fossil fuels took a steep dive. However, now that vaccines are widespread, the company looks like it is making a small comeback.

The company also recently issued debt at a rate of 3.25%, which it will use to pay off its existing debt which sits at an 8% interest rate. So considering its massive growth this quarter over the previous one, investors need to also understand the trajectory of the oil and gas industry. 

While CDEV does have a lot of potential, it is also highly subject to the demand for fuel globally. Additionally and as mentioned above, investors also need to understand that the pandemic will continue to have an effect on CDEV as well as similar companies. But, with all of these pointing in the right direction, CDEV stock could be worth giving a first or second look. 

Penny_Stocks_to_Watch_Centennial Resource Development Inc. (CDEV Stock Chart)

Penny Stocks Continue to Push Up, Aided by Cryptocurrency and Altcoins 

While we don’t like to think that cryptocurrency affects penny stocks, it undoubtedly does. And, this is a good thing. If crypto goes up, the attention on cheap and fast-moving assets such as penny stocks will also rise.

[Read More] Penny Stocks On Robinhood For You, May 2021 Watch List

But, it’s also worth considering that both penny stocks and cryptocurrencies like Bitcoin and DogeCoin are highly volatile no matter how much they cost. So, if you’re able to stomach large intraday moves, penny stocks may be worth looking into right now. 

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