3 Reopening Penny Stocks to Watch Right Now
Reopening penny stocks are some of the most popular penny stocks we’ve seen this year. If you’re unfamiliar, let’s go over exactly what this term means. When the pandemic began last year, the entire stock market dropped substantially in value. This occurred over the course of a few weeks. However, as the world became used to the new normal, many companies on the list of penny stocks began to rise up in value.
This includes those that benefitted from economic reopening. On that list are companies working in everything from education and work from home-related tech to marijuana stocks and more.
Now, a year and a half later, this list now includes hospitality and entertainment stocks among others, as businesses begin to fully reopen. So, in short, the companies benefitting from the reopening of the economy are known as you guessed it, reopening penny stocks.[Read More] Penny Stock Trading Strategies You Need to Know About
And because case numbers have only started to significantly drop in the U.S. over the past month or so, many new companies are added to this list daily. Additionally, we are still in the early stages of the pandemic coming to an end. This means that there could be a lot of potential left to be had. With all of this in mind, here are three reopening penny stocks to watch as the economy opens its doors.
3 Reopening Penny Stocks For Your Watchlist
- Vertex Energy Inc. (NASDAQ: VTNR)
- Zomedica Corp. (NYSE: ZOM)
- Ashford Hospitality Trust Inc. (NYSE: AHT)
1. Vertex Energy Inc. (NASDAQ: VTNR)
Up by over a staggering 50% by early morning, shares of VTNR stock climbed from around $1.76 on Wednesday, May 26th, to a morning high of over $6.60 per share. This is a solid gain, while albeit not unheard of with penny stocks. But, an over 230% gain in three days is definitely something to take note of. While there is reason behind this large move, let’s first go into what Vertex does, and what makes it a reopening penny stock.
Based in Texas, Vertex Energy is a refiner of alternative feedstocks and high-purity petroleum products. It is considered to be one f the largest manufactures of Group II+ and Group III Base Oils in the country. If you’re unfamiliar, these are oils used in manufacturing for a wide variety of purposes.
Vertex also owns a hydro-processing plant as well as a nine million gallon storage facility based in Belle Chasse, LA. any company participating in the energy industry, is seeing a major benefit from the pandemic.
On one hand, increased travel now that vaccine rates are higher than ever, means that the demand for oil and gas is extremely high. As it relates to Vertex, industrial manufacturing is increasing in the the U.S., meaning that the need for its products is also shooting up.
Today, big news dropped as Vertex announced it would acquire 100% of the Mobile Chemical LP Refinery. This turns Vertex into a leader in the independent refining of renewable and conventional products. By the end of 2023, Vertex expects to see $3 billion in revenue and over $400 million in gross profit.
“The acquisition of the Mobile refinery will be the largest, most significant transaction ever completed by Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products.”Benjamin Cowart, CEO of Vertex
This is a major deal for both Vertex and the industry that it operate within. While the gain today is likely a short term speculative one, the potential for VTNR is palpable. Considering this, will it be on your list of reopening penny stocks to watch?
2. Zomedica Corp. (NYSE: ZOM)
Zomedica Corp. is a biotech penny stock that we’ve discussed frequently in the past few months. For some context, ZOM is a provider of veterinary diagnostic products. This includes its flagship Truforma platform, which can diagnose both adrenal and thyroid health in domestic animals.
Not only is this system effective at diagnosing conditions, but it is also extremely fast when compared to previous technology. Because stay-at-home orders have resulted in a massive pet-adopting boom, veterinarians are busier than ever. This means that the need for new and better tech could continue to increase as a result of reopening.
It’s worth noting that Truforma is still in the very early stages of commercialization. However, the potential for this technology to be in use by veterinarians globally, is very large. And, not only does the company sell the Truforma platform, but, this platform works with cartridges that need to be continuously purchased from Zomedica.[Read More] 4 Crypto Penny Stocks to Watch With Bitcoin Below $40k
Because of this, any sale of a Truforma product could be a longer term deal. Zomedica is just now testing the waters with only one sale behind it at this point. But, the company is undergoing a massive sales effort to try and get Truforma in the hands of as many vets as it can. Because of this, profitability for the company could still be a ways away.
The real bet on ZOM stock is if Truforma can take off and become a widely regarded product in the veterinary field. When it reported its financials on May 12th for the first quarter of 2021, sales only came in at $14,000. But, this is common when a company, especially a biotech company, is in the early stages of commercialization. So, while ZOM could be a penny stock to watch, investors should stay up to date on all of its happenings.
Ashford Hospitality Trust Inc. (NYSE: AHT)
Shares of AHT stock have been on the up and up recently. However, despite being down on the day, Ashford Hospitality presents investors with a lot of opportunity. AHT stock is a REIT, working in the hospitality industry, specifically with upscale hotels. Only recently, it announced a presentation to investors, detailing how it could continue to grow with the hospitality industry recovering slowly.
In 2020, AHT brought in an EBITDA of $29 million, however, it states that by 2025, this number could grow to $54 million on the low end and $84 million on the high end. Obviously, any company involved in the hospitality industry was massively affected by the pandemic. But, people are extremely eager to travel and vaccine rates in the U.S. have hit a major milestone. This includes over 50% of the public receiving at least one dose.
In the past month, shares of AHT stock are up by over 60%. If we look a little further back, in October shares were trading under $1.50. As of May 28th, AHT stock sits comfortably right below the $4 mark. So, will AHT make it out of penny stock territory? It’s hard to say. However, with economic reopening still on the horizon, there is a lot of potential with hospitality-focused businesses.
Additionally, as a REIT, Ashford is required to pay out a majority of its profits back to investors. This comes in the form of dividends. While this added value may not be enough to justify an investment into AHT stock, Ashford does have a lot going for it right now. Considering this, will Ashford Hospitality be on your list of penny stocks?
Reopening Penny Stocks Have a Lot of Potential
As the U.S. continues to hit vaccination records, reopening penny stocks are showing more potential than ever. While at times in the past year, it looked like reopening was on the horizon, now, we can say that it definitely is.[Read More] 5 Penny Stocks on Reddit For Your June 2021 Watchlist
With more people traveling than in many months prior, and airlines reporting similar numbers to pre-pandemic levels, the time to find reopening penny stocks to buy is now. As always, investors should do proper due diligence to see if a penny stock is worth investing in outside of its relation to the pandemic. But, with opportunities abound, reopening penny stocks could be market winners.