Which Penny Stocks Are on Your 2021 Watchlist?
Finding the best penny stocks to buy is all about understanding the market. What factors will make it move up and vise versa? In 2021, there is plenty to think about for both long-term and swing traders. But, understanding your investing strategy will always be key. For some, finding penny stocks to buy in the short term can be a great way to see gains (or losses) in your portfolio. And with penny stocks, rapid fluctuations make this a reality.
On the other hand, some investors hope to find the next penny stocks to break out of the $5 mark, thus moving out of penny stock territory. And while this happens, it is not often that it is the case. But, with the right information on hand and a commitment to a given company, finding a penny stock that traverses the penny stock threshold is entirely possible.
[Read More] 4 Meme Penny Stocks To Watch As DogeCoin Rises
For both of these strategies, considering what events are occurring right now and what could occur in the long term, can be a massive advantage. This helps prepare for both time frames. In addition, getting a trading education is a benefit that is unmatched by any strategy alone. And lastly, understanding how to enter and exit positions will help to meet your personal financial goals. With all of this in mind, let’s take a look at four penny stocks that could be winners in 2021.
3 Penny Stocks to Watch in 2021
1. 1847 Goedeker Inc. (NYSE: GOED)
When it comes to home improvement, penny stocks like 1847 Goedeker Inc. have seen a lot of solid momentum over the past year. When the pandemic struck, many people decided to start working on their homes considering all the free time they now had. This meant that sales numbers for everything from home improvement tools to furniture shot up dramatically. To understand GOED stocks’ role in this, let’s take a closer look at what it does.
1847 Goedeker is an e-commerce platform that sells appliances and furniture in the United States. In addition to this, the company also sells fitness equipment which has been in huge demand throughout the pandemic. Some of its other product offerings include televisions, plumbing fixtures, outdoor appliances, and patio furniture. It provides installation services and old appliance removal services for its customers as well.
The company recently released a report on June 3rd, resulting in vastly increased investor interest. In the report, the company reported a strong start to its second quarter. 1847 Goedeker stated that its combined April orders grew 100% to $82.9 million.
This penny stock also announced that its revenues grew 140% to $45.2 million during the period. The result of this is GOED stock moving up more than 43% in the past five days. Shares now sit at a comfortable $2.68 as of EOD on June 4th. With this positive momentum in mind, is GOED making your list of penny stocks to watch?
2. Senseonics Holdings Inc. (NYSE: SENS)
One of the largest gainers of the day is a company that we’ve covered numerous times in the past few months. Today, shares of SENS stock shot up by a staggering 44% by EOD. This is due to a report that came out early on Friday morning.
The report states that the study results for its glucose sensor showed incredibly promising preliminary numbers in both primary and secondary endpoints. This study, concerning the Eversense CGM System in those with Diabetes, comes as the base for its application submissions to both the U.S. FDA and the BSI for a CE mark in Europe. As you may have guessed, Senseonics is a biotechnology company working in the field of medical devices.
Despite posting a solid loss of around $0.68 per share totaling almost $250 million, this is a major breakthrough for the company. And it’s worth noting that in that same first-quarter report posted last month, revenue rose to almost $500 million, up from $31 million in the same quarter of the previous year. Senseonics’ focus is on producing systems to monitor the needs of diabetic patients. Given that this illness affects millions in the U.S. alone, the market for its products is incredibly broad.
While the aforementioned loss is concerning, SENS stock still has a lot going for it in the long run. If it can get the Eversense product approved widely, it could result in increased revenue for the company. Whether this makes it an addition to your biotech penny stocks watchlist however is up to you.Meme Penny Stocks, What Are They, and 3 to Watch Right Now But in the meantime, SENS remains the main focus of many penny stock investors.
Fuel Tech Inc. (NASDAQ: FTEK)
Another major gainer of the day is Fuel Tech Inc. By EOD, shares of FTEK stock pushed up by nearly 47%. So why did FTEK stock go up today? While there’s no company-specific news, however, we can look at some broader industry factors that could be at play. For starters, shares of FTEK traded over 300% of its average volume over the past few weeks. A few weeks ago, Fuel Tech reported its Q1 2021 financial results which were very positive.
“Our first quarter 2021 results reflected a nearly 60% increase in net sales at our FUEL CHEM business segment, driven primarily by the installation of our Targeted-in-Furnace Injection technology on new domestic coal-fired unit accounts, higher demand for power, and early recovery from the Covid-19 pandemic.”CEO of FTEK, Vincent J. Arnone
Financially, FTEK ended the quarter with a 33% increase in revenue alongside an almost 7% increase in gross margins. It also managed to more than halve its operating loss over the same period of the previous year.
As a provider of state-of-the-art proprietary technologies for air pollution control and water treatment, FTEK has a major role in the energy industry. And, given that the pandemic is lessening in severity globally, it appears as though this could affect FTEK moving forward. While this doesn’t fully explain today’s gain, it could make FTEK stock worth watching in the coming months.
Are Penny Stocks Heating Up Right Now?
As we turn the corner in 2021, investors are waiting for a signal that penny stocks are heating back up. Although the past two months or so have been extremely volatile, many traders are hopeful about Summer 2021 and beyond.
Considering the solid gains we’ve seen with many penny stocks today, hopefully, this bullish momentum can continue. But for now, what do you think? Are penny stocks heating up or not?