3 Retail Penny Stocks to Watch as Covid Cases Decline Rapidly in the U.S.
Penny stock investors anxiously await the rebound of the U.S. economy. In the coming months, there is expected to be large volatility with most penny stocks to watch. But, many are wondering which ones will come out on top.
During unusual times, such as this one, many prefer short-term trading in penny stocks. This is because there are massive price fluctuations mostly caused by social media promoted news. So, with so much news regarding penny stocks out there, how can investors choose the right one?
Well, first, it’s important to trade based on what you know. If you’re hearing about a high-performing stock, odds are it probably already is headed towards a correction. Trust yourself when it comes to looking at penny stocks to buy. Next, consider which stocks will perform in the future. Much of price movement is driven by investor speculation, so if a company is expected to perform in the following quarters it may be worth considering.
When considering what to add to your watchlist for the coming months, look no further than retail penny stocks. As consumers, we all have basic needs met by our local shops. Many retail companies have had to take out massive loans in order to stay afloat during the pandemic and are now looking to make a comeback.
[Read More] Best Penny Stocks to Buy on Robinhood Right Now? 4 To Check OutInstead of buying everything online, lessened restrictions will encourage many to go out for in-person shopping. The retail market includes goods such as electronics, apparel, toys, groceries, pharmaceuticals, and much much more.
Take a look at GameStop Corp. (NYSE: GME), up by over 930% YTD. While much of this is sparked by it being a Reddit penny stock, some believe in its retail potential moving forward.
It may seem like an unpredictable time to invest, but with proper planning and education, buying and selling penny stocks in 2021 can be a lucrative investment. Creating a watchlist and strategy for entry and exit points is crucial to trading in volatile markets.
Taking this all into consideration, as we move further into the month of May and towards the end of the pandemic, it’s important to generate a watchlist. Here are three retail penny stocks that you must keep an eye on.
3 Retail Penny Stocks That Could Have Huge Potential
- Muscle Maker Inc. (NASDAQ: GRIL)
- Nokia Oyj (NYSE: NOK)
- Ambev ADR (NYSE: ABEV)
1. Muscle Maker Inc. (NASDAQ: GRIL)
Known for its “healthier for you” meals, Muscle Maker has been heavily investing in itself for the coming reopening economy. GRIL is the parent company of food companies specializing in the sale of healthy meals. It currently owns Muscle Maker Grill and SuperFit Foods, both known for healthy and tasty food alternatives.
As of today, GRIL announced its acquisition of Pokemoto, a chain of restaurants that serve a healthier modern twist on the traditional Hawaiian poke. It currently has thirteen locations located across four states – Rhode Island, Georgia, Massachusetts, and Connecticut. Its variety of options for patrons includes a unique blend of a base, a protein, and various toppings.
This represents the second acquisition for GRIL in 2021, the first being SuperFit Foods, LLC. The pandemic has done nothing to slow down its voracious competitive spirit in preparation for in-person dining that will soon open back up.
“The Pokemoto acquisition is something we’ve been working on for quite some time and we’re excited to see the deal cross the finish line. In January we launched a partnership with Happy Meal Prep to ship fresh-prepared Muscle Maker Grill meals nationwide. In March we purchased SuperFit Foods, a Jacksonville, FL meal prep company and now we are adding Pokemoto as our newest and largest acquisition to date.”
CEO of GRIL, Mike Roper
Roper goes on to state that “The concept also fits perfectly within our ghost kitchen model. Buying yet another growth-oriented multi-unit concept accelerates our top-line revenue growth and adds another strong brand to the delivery-only side of the business.” So as a more pure-play retail penny stock, will GRIL be on your watchlist?
2. Nokia Oyj (NYSE: NOK)
Nokia is a tech penny stock and a service provider of network infrastructure, technology, and software. It engages through three domains: Nokia Software, Nokia Technologies, Networks, and Group Common.
The Nokia Software segment orients itself with a cloud core software portfolio, whereas the Nokia technologies portion of the company rather focuses on innovations through research and development. Its Network services provide mobile, fixed, and optical networks to its customers.
[Read More] 4 Hot Reopening Penny Stocks That You Need to Know AboutRecently, NOK announced that it plans to supply Digital Operations software, cloud infrastructure software, and AirFrame to the PLDT network in the Philippines. This will go to standardize the Philippines’ services and improve their integrated network efficiency to reduce operating costs.
This new innovative move for NOK is part of its three-phased plan to achieve sustainable and profitable growth. Its end-to-end portfolio is a strong foundation for its ongoing technology cycle given its plans to expand its business into high-growth markets.
This is inclusive of addressing developing markets such as those in the Philippines. It’s no surprise that in the past 6 months, NOK shares have seen a growth of over 25%. Considering this, Nokia could be worth watching in the coming months.
3. Ambev ADR (NYSE: ABEV)
As the comfortability of being out in person begins to settle, more and more people are encouraged to engage in social activities such as bars and restaurants. This year specifically has been a transformative period for the alcohol and industry due to lockdown. This changed consumer habits to mostly rely on at-home drinking which increased the sale of alcohol tremendously.
Ambev ADR is a company that engages specifically in the production and distribution of beverage sales. This includes its staple products such as beer, carbonated soft drinks, and others.
[Read More] 3 Penny Stocks To Watch Amidst Bitcoin & DogeCoin Price VolatilityIt has four different operations based out of Brazil, Central America, the Caribbean, and Canada. Its Caribbean-based segment is however operational worldwide, shipping to the Dominican Repiblic, Saint Vincent, Antigua, Dominica, Cuba, Guatemala, Barbados, and Panama. Meanwhile, its Canadian subsidiary serves the United States.
As of May 6th, ABEV reported revenue of $16.6 billion, which is up more than 30% in comparison to last year. This growth was unprecedented by market analysts and can only go to explain why many investors are looking at ABEV for future growth.
Additionally, it’s worth noting that in both good and bad times, products such as alcohol and cigarettes always tend to do well. With the pandemic hopefully coming to a close, ABEV could continue to see more momentum. With this in mind, is it worth adding to your watchlist?
Retail Penny Stocks Continue to Show Market Strength
Retail penny stocks under $5 have come back into focus for the common investor during this fickle time in the market. The reopening economy shows a great deal of promise when it comes to future consumer behavior. And with such a long list of penny stocks to watch, the options are almost endless.
[Read More] What Are Penny Stocks & Should You Buy Them In 2021?With the in-person retail market reopening, the consolidation we have seen in retail behavior is bound to bounce back once again. This will allow for a variety of companies to start making profits once again. Penny stock investors should prepare by making a penny stocks watchlist of retail-focused companies in order to remain informed and ready to invest.
