Why Energy Penny Stocks Are Up Today and 3 Small-Caps to Watch

3 Energy Penny Stocks to Watch in June 2021

Finding penny stocks in 2021 is all about understanding where movement may come from. With penny stocks, it’s all about speculation. And, given that we are in one of the most speculative periods of the past decade, volatility is higher than ever. 

Factor in the effects of social media like Reddit penny stocks and more, and we get a market that fluctuates greatly. Because of this, the best course of action is to thoroughly research every company on your list of penny stocks to watch. This is the best way to know exactly what you’re getting into.

Now, with energy penny stocks, there are a few things specific to look out for. In June, energy companies are on the rise as the U.S. sees lower case numbers for Covid than in many months prior. This means that more people are comfortable with traveling, and thus, consuming more energy. Because of this, there is a great deal of bullish sentiment in the energy industry right now. 

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But, we also have to factor in common things to look out for outside of energy-related aspects. For this reason, investors need to understand current market trends. As stated before, this includes social media, the pandemic, long-term fears of inflation, and blockchain/cryptocurrency. Because there are so many things at play, the opportunities to see profits, as a result, can be large. However, this means that the chances of seeing losses can also be high. 

The best way to avoid this is by having a solid understanding of the companies you’re interested in, as well as how to predict certain trends and patterns. This will help you to stay ahead when it comes time to make decisions about entering or exiting a position. Considering all of this, let’s take a look at three hot penny stocks that have investors excited right now. 

3 Penny Stocks to Watch in 2021 

1. ENGlobal Corp. (NASDAQ: ENG)
2. Tellurian Inc. (NASDAQ: TELL) 
3. Orbital Energy Group Inc. (NASDAQ: OEG)

ENGlobal Corp. (NASDAQ: ENG)

ENGlobal Corp. is a provider of project solutions for both traditional and renewable energy companies in the U.S. and abroad. It operates through two segments which include commercial and government. With these, it can provide advanced solutions for a variety of energy needs. 

On Tuesday, June 1st, shares of ENG stock were up by as much as 36% during midday trading. This is a staggering gain and is indicative of the overall bullish sentiment in the energy industry today.

While no news came out of ENG stock today, we can look at its Q1 2021 results announced at the beginning of May. In the quarter, ENG brought in revenue of around $12.45 million, with a net income of $46,000. This is compared to a net income of $1.1 million in the same quarter of the previous year. 

CEO of the company, Mark A. Hess, attributed this to the fact that “our company, like most others in the energy industry, has been materially affected by the reaction to the Covid-19 epidemic. We were fortunate that we were able to work through the backlog in place last year when the pandemic started.” 

Hess goes on to state that this year should see some major improvement as vaccines are distributed and case numbers decline. And, given that it also works in renewable energy, such as green fuels and solar, the growth potential for ENGlobal Corp. could be in the long term. Considering all of this, will it be on your list of penny stocks to watch?

Tellurian Inc. (NASDAQ: TELL)

Tellurian Inc. is a penny stock we’ve covered numerous times in the past few months. And, while its gain today of 3.4% or so is not as much as ENG or OEG stock, it is still worth noticing. And, last week, Tellurian Inc. made headlines after announcing some big news. Before we get into it, let’s talk about what TELL does.

Tellurian is a provider of natural gas and liquefied natural gas products. It owns several facilities around the country, including an LNG terminal property in southwest Louisiana as well as 72 producing wells and over 9,300 acres in north Louisiana. 

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Very recently, big news dropped when Tellurian signed into a long-term agreement to supply liquid natural gas or LNG from its Driftwood production facility to Gunvor Singapore. Over 10 years, this agreement will supply 3 million tonnes per annum, covering more than 10% of its total capacity. This should bring in around $12 million in revenue, at current market prices. 

The Driftwood development is one with a major capacity, but to make it profitable, large orders like these need to continue coming through. While this is only one part of the plan moving forward, this deal should help to put TELL on the right track for the development of this property. Considering this, TELL stock could be worth keeping an eye on. 

Orbital Energy Group Inc. (NASDAQ: OEG) 

One of the largest gainers of the day is OEG stock, bringing in roughly 58% gains by midday. Shares of OEG pushed up by over $2, making it technically, no longer a penny stock at over $5.50 per share. Over the last year or so, OEG stock has skyrocketed in the triple-digit percentage points. This is due to a variety of reasons. 

For one, OEG is one of the most diversified energy companies in the industry. It operates several subsidiaries, including Orbital Power Services, Orbital Solar Services, Orbital Telecom Services, and Orbital Gas Systems. These all allow it to cover many unique, and potentially profitable markets in the U.S. Today, OEG announced that its subsidiary, Gibson Technical Services, was awarded a nearly 700-mile long engineering and construction project in Central Mississippi. 

“The award of this project from such a well-respected telecommunication service provider as TEC confirms GTS’s ability to deliver the highest quality engineering and construction services. I am proud of the entire GTS group for the teamwork.”

CEO of GTS, Mike McCracken

So considering its big gains today and the large momentum around this deal, OEG stock should be on your penny stocks watchlist for 2021.  

Energy Penny Stocks Continue to See Momentum 

With energy penny stocks, it’s important to consider a few things. For one, what is the overall industry doing? With another industry, it may be better to stick to company-specific events. However, with energy, big factors can often have a large effect on most companies within it.

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Consider that Covid cases are also decreasing at a major rate, and we see that the energy demand could continue to rise shortly. With all of this in mind, hopefully, we can continue to see major momentum with energy penny stocks in the coming months.