3 Hot Penny Stocks For Your Watchlist Right Now
With August already off to a swift start, investors continue to look for the best penny stocks to buy. While it may seem, easy at first, there are a few nuances that investors should consider. First and foremost, traders need to have a thorough understanding of what is going on in the market.
This includes considering current events, factors that could impact the near future, and long-term market catalysts. In addition, investors need to understand what type of trader they are and how to use that to their advantage. For example, if you are more risk-averse, it may be best to avoid certain, more volatile penny stocks. On the other hand, if you are more inclined to invest in riskier companies, there is a wide range of penny stocks to buy.
With any stocks under $5, traders should also know that volatility is something that comes with the territory. This is the amount at which a stock will fluctuate in a given trading day. While volatility can lead to quick losses, it can also be a great factor to use in your trading strategy. So, with 2021 already past the halfway point, there are plenty of things that investors can use to their advantage. With all of this in mind, let’s take a look at three hot penny stocks that investors should know about in 2021.
3 Penny Stocks For Your August Watchlist
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- BEST Inc. (NYSE: BEST)
- Meten EdtechX Education Group Ltd. (NASDAQ: METX)
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a China-based education stock that provides private educational services. These services are offered by the company under the New Oriental brand. It has test preparation services, K-12 AST, language training courses, and much more. Currently, New Oriental Education & Technology Group serves 104 schools, 1,361 learning centers, and 12 bookstores.
Chinese education stocks were recently hit hard in the market. This is because the Chinese government placed a ban on for-profit tutoring services in the country. This ban may have a short-term effect on EDU stock, however, we often see corrections that can result in better long-term trends.
Regardless of this recent information, EDU stock is experiencing a lot of momentum right now. The company’s volume is lower than its average but is still very high comparatively. With a lot to analyze with New Oriental, will EDU make your penny stock watchlist in August?
BEST Inc. (NYSE: BEST)
BEST Inc. is a smart supply chain service provider in China. Its technology is used in network optimization, smart warehouses, and store management among other things. Its technologies apply to a lot of various markets, such as sorting line automation, order fulfillment, network optimization, store management, and much more.
With the world becoming more e-commerce based than ever before, the need for companies like BEST Inc. is higher than ever. Additionally, we have to consider that China is one of the largest suppliers of products of all types globally. And for that reason, BEST Inc. looks like it could be in an advantageous position to take advantage. On August 1st the company announced a partnership with Cainiao to launch cross-border logistics services from China to Thailand, and Vietnam, and Cambodia.
“Southeast Asia has been a key focus area of BEST’s global strategy, and we plan to invest more in the business and the region. We have developed express delivery networks into five markets in the region, providing customers with speedy, reliable, and cost-efficient services, while facilitating the growth of cross-border e-commerce.”The Chairman and CEO of BEST Inc., Johnny Chou
This is a big deal for the company and shows that it could have potential in several other markets as well as its domestic consumer base. A few days after this announcement, BEST stock is up 10.4% in the market. The company now plans on releasing its second-quarter financial results on August 17th. This is the next big date to look out for if you plan to invest in BEST stock in the near future. For now, is this a company that will make your list of penny stocks to watch?
Meten EdtechX Education Group Ltd. (NASDAQ: METX)
Meten EdtechX Education Group Ltd. is a Chinese education penny stock that provides English language training services in China. The company provides its services via four different training programs. These programs are; general adult English training, overseas training services, online English training, and junior English training.
As of the end of 2020, it operated 105 learnings centers in 28 cities and 15 provinces. Similar to EDU stock, METX could have a lot to benefit from as China narrows down its ban on for-profit tutoring. Additionally, following the correction that resulted from this ban, many companies, including METX, pushed up in value.
On July 21st, the company announced a 316% increase in its gross billing year over year. The company also announced that the amount of student enrollment in its Junior ELT business in the first half of 2021 went up 240.9% year over year. This is great news for this Chinese education stock, as it is expanding its Junior ELT business.
Now Meten plans on launching a higher education service for adults in the fall of 2021. This is another potential value added product that investors may want to look into. With all of this information in mind, is this company a contender for your penny stocks watchlist right now?
Are These Penny Stocks Worth it Right Now?
Finding the best penny stocks to buy in 2021 takes a great commitment to understanding how to trade and what is going on in the market. And with so many factors occurring simultaneously, it can be difficult to keep up with everything at once.
Considering that these factors can be used to your advantage, the best course of action is to use the cause and effect method of trading. With all of this in mind, are these penny stocks worth it right now or not?