3 Penny Stocks That Investors Are Eyeing Right Now
With 2021 moving faster than ever, investors continue to look for the best penny stocks to buy. Although it can be challenging given the current market conditions, there are plenty of ways to find value with penny stocks.
The most impactful factor on all stocks right now and in the past year and a half has been the pandemic. As a result of the Delta variant, case numbers have skyrocketed nationwide. This has served to incite fear and a movement toward potentially more stable penny stocks and blue chips.
But, as we all know, large movements in the stock market created by external events, can be profitable for those who know how to take advantage. And because penny stocks don’t like to play by the traditional market rules, there are plenty of intraday movers that investors can look into. But of course, traders need to understand that the market is moving differently now than it did in the pre-pandemic era.
In August 2021, speculation is extremely high, and prices are moving very fast. This means that investors need to stay up to date in order to stay on top of all price movements. If we combine the effects of social media into all of this, we see that the stock market is more volatile than it has been in many months. So, with all of this in mind, here are three penny stocks to watch in August 2021.
3 Penny Stocks to Watch in August 2021
Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
Aerpio Pharmaceuticals Inc. is a biotech penny stock that has been making some serious gains in the past few weeks. Over the past five days alone, shares of ARPO stock have shot up by around 11%, and in the past month by over 16%. This also follows a YTD gain of over 119%.
For some context, Aerpio creates compounds for treating ocular disease and vascular stabilization. It is involved in both the development and commercialization of these products. One of these products is razuprotafib, which has completed Phase 2b clinical trial to treat non-proliferative diabetic retinopathy.
On August 11th, the company reported its second-quarter financial results for 2021. It stated that it ended this quarter with $36.8 million in cash and cash equivalents. The company also entered an agreement and merger with Aadi Bioscience Inc. in only the last few months. This merger is subject to being approved by Aerpio shareholders based on several closing conditions.
In the report, the company’s managed to push its operating expenses down by around 16.9% during this period compared to one year ago. Since this announcement was made, ARPO stock has increased significantly in the market. With biotech penny stocks in focus right now, Aerpio looks like an interesting candidate to take a close look at. Keeping this in mind, is ARPO a contender for your list of penny stocks to watch?
Ambev S.A. (NYSE: ABEV)
Ambev S.A. is a penny stock that we have repeatedly covered throughout the pandemic. This is the result of its business model, the growth of its financials, the underlying products that Ambev produces. If you’re unfamiliar, Ambev creates, distributes, and sells various beverage products.
These products include beer, carbonated drinks, and non-alcoholic beverages. Its products include some of the most popular brands in the world such as Bud Light, Corona, Modelo Especial, and much more. On July 29th, the company provided an update on its business and its earnings.
“This quarter, we completed one year since the negative impact of the first wave of COVID-19 pandemic. And I’m happy to see that the choices we made in the past 12 months continue to deliver results. We achieved the highest consolidated volumes in a second quarter on record, which led to an all-time high rolling 12 months volumes, 5 million hectoliters above the peak back in 2015.”CEO of Ambev, Jean Jereissati
In the second quarter of 2021, the company’s net revenue grew by more than 36%. In addition, the company’s normalized profit also grew 116% alongside an operating cash flow growth of 2%. During both times of economic hardship and prosperity, we tend to see the sale of alcohol increase. And as a result, Ambev has continued to make headway in the pandemic-stricken economy. Considering this, will ABEV be on your penny stocks watchlist?
Phunware Inc. (NASDAQ: PHUN)
Phunware Inc. is a tech penny stock that has become a trending company in the past year. Despite some less than stellar performance during that time, Phunware has a lot to offer prospective investors.
This company creates software to allow companies to manage their mobile app portfolios. It’s software and products include cloud-based mobile software for licensing as well as software development kits. These products are sold to healthcare, retail, real estate, education, and many other types of companies.
On August 17th, the company announced a collaboration with Cox Communications to deliver a mobile smart hospital solution. This deal will bring Phunware’s Digital Front Door products to Cox’s healthcare customers.
“We are thrilled to collaborate with Cox because their leadership intimately understands the importance of data, connectivity, and scalability in tech-enabling the entire continuum of care.”The COO of Phunware, Randall Crowder
On the same day of the announcement, PHUN stock increased by around 1% in the market. While this may not seem like a big deal, it shows that Phunware’s products could have uses in the healthcare sector more broadly. And with the pandemic rearing its ugly face, investors are looking for penny stocks that could benefit. So, whether this makes PHUN stock worth adding to your watchlist or not is up to you.
Are Penny Stocks Worth It Right Now?
Finding the best penny stocks to buy in 2021 is all about understanding where the market is headed. While making money with penny stocks can be challenging, with the right trading education, it is more than possible.
But as always, investors need to go deeper than surface-level news to have a true understanding of where the value is hiding right now. And with the power of the internet, informing yourself of the latest trends can be the difference between profits and losses. With all of this in mind, do you think that penny stocks are worth it right now?