3 Penny Stocks to Watch as Summer Approaches
Penny stocks remain some of the most popular choices for investors of all types. Because there are thousands to choose from, making a penny stocks watchlist for June can be a difficult task. But, with the right research at hand, and a commitment to understanding how penny stocks move, it can be much easier than previously imagined.
Considering the current events going on in the world, some industries are showing more potential right now than others. This includes biotech stocks, reopening penny stocks, retail stocks, and more. While this is not a finite list, it should serve to illustrate why it is always important to consider cause and effect.
For example, the pandemic has resulted in many biotech penny stocks pushing up in value. These could be companies that either do or don’t have a role in treating Covid-related issues. However, the coronavirus has placed a major emphasis on the industry as a whole. This is the same for other areas like tech, and retail.[Read More] 3 Hot Penny Stocks To Buy With Analysts Expecting Up To 383%
Both of these industries have been bolstered by the pandemic and could continue to grow as case numbers hit new lows. While it’s difficult to fully predict where we are headed, investors seem hopeful about the future.
We do have to consider other factors such as potential long-term inflation, and how long full economic recovery will take. Considering all of this, let’s look at three penny stocks to watch as Summer approaches.
3 Penny Stocks to Watch in Summer 2021
- OrganiGram Holdings Inc. (NASDAQ: OGI)
- Chico’s FAS Inc. (NYSE: CHS)
- Surgalign Holdings Inc. (NASDAQ: SRGA)
1. OrganiGram Holdings Inc. (NASDAQ: OGI)
OrganiGram Holdings Inc. is a marijuana penny stock that produces and sells cannabis products in Canada. Some of its offerings include cannabis flowers, extracts, edibles, and oils. It offers these products under the Edison Reserve, ANKR Organics, Edison Cannabis Co., and Trailblazer brands.
OGI was one of the early players in the cannabis industry in Canada. And because of that, it has managed to gain a sizable foothold in the industry. As a producer of high quality, high margin, cannabis products, OrganiGram works in many different facets of the industry. This includes the production of products for both recreational and medicinal cannabis markets.
On Friday, May 28th, shares of OGI stock shot up by a solid 10%. While no company-specific news is causing this, we can look at some external factors that may be in play. For one, marijuana sales have been extremely high in the last year and a half. This is due to the pandemic and the widespread stay-at-home orders.
Because of this, more people were at home, consuming cannabis products. And, as a result, marijuana demand in places where it is legal, was higher than ever. Now as the economy reopens more, people may have more money to spend on OrganiGram’s products. In addition to this, more people may need marijuana products as the stresses and anxieties of everyday life return with reopening across the nation.
The company itself has not released much recent news apart from launching several new products. But, it will be interesting to see how the company progresses and whether this increased demand can continue to affect OGI stock positively. So with all of this in mind, will you add OGI to your penny stocks watchlist?
2. Chico’s FAS Inc. (NYSE: CHS)
Chico’s FAS Inc. is a retail penny stock that we have discussed numerous times throughout the pandemic. Chico’s may be familiar to some, as it is a major player in the branded women’s clothing market.
In addition, it sells women’s private casual to dressy clothing and intimates. Under the Chico name, it holds several wholly-owned brands. This includes White House Black Market, Soma, TellTale and more.
While the early stages of the pandemic had a major effect on the retail industry, now, we are seeing numbers return to pre-pandemic levels. While in-person shopping may be stifled for a few months as people get used to returning to daily life, there’s no doubting that the industry has a great deal of potential.[Read More] 4 Cheap Penny Stocks To Buy For Under $1 On Robinhood & Webull
Recently, the company announced that it will release its first-quarter sales and earnings on June 8th, 2021. Ahead of these earnings, CHS stock is seeing solid bullish performance right now.
On May 28th alone, shares of CHS stock shot up by around 6%. In the last month, its stock price has increased by about 55%. At just shy of $4.70 per share, it looks like CHS is working to move out of penny stocks territory. And with its upcoming earnings next week, CHS should remain at top of mind. Considering this, will it be on your watchlist?
Surgalign Holdings Inc. (NASDAQ: SRGA)
Surgalign Holdings Inc. is a biotech penny stock that develops, manufactures, distributes, and markets spine implants worldwide. Some of the products it offers are in use for thoracolumbar procedures. This includes its Streamline TL Spinal Fixation system which can be in use for degenerative and complex spine procedures.
It has a variety of other products as well in this field. While spinal procedures have been going on for some time, the need for new and innovative products is always increasing. With the technology we have today, any company working to revolutionize this field could have a high chance of seeing commercialization with its products.
The latest significant update from Surgalign came on May 10th. This is when the company released its first-quarter 2021 results. While its revenue did drop compared to the period prior, this makes sense given the effects of Covid on all medical-procedure-based companies.
Given that elective procedures were put on hold throughout the pandemic, many companies reporting their numbers for that period, are showing less revenue compared to the non-Covid period. But, with Surgalign’s major progress in this industry, investors remain hopeful about the future.
“We are very excited about the recent progress we have made as we continue the transition from a traditional spine company focused on surgical approaches and procedures to a company that will redefine and leads digital surgery.”President and CEO of Surgalign, Terry Rich
Now the company will participate in the Craig-Hallum Institutional Investor Conference on June 2nd. This could be when we receive the next update for the company. Considering that shares of SRGA shot up by over 18% on May 28th, it looks like there is a lot of bullish sentiment surrounding it. Whether this makes SRGA stock worth buying, however, is up to you.
Which Penny Stocks Are You Watching?
As we inch closer toward Summer, penny stocks are heating up. Because of this, using your research skills and a commitment to educating yourself on how to trade penny stocks, will always be key.[Read More] Investing in Penny Stocks in June 2021? 3 Things Investors Should Know
While there is no secret formula for making money with penny stocks, there are some ways to up your chances. This includes getting a trading education and having a thorough understanding of each company you plan to invest in. With all of this in mind, which penny stocks are you watching?