3 Penny Stocks to Watch to Get an Early Start on Next Month
With September right around the corner, investors are looking for the best penny stocks to buy. Although it can be challenging, there are a few things to consider that could make it easier to make money with penny stocks.
If you’re creating a watchlist, the best thing to consider is what is going on in the world and how to use that to your advantage. Right now, the most prominent factor affecting the stock market is Covid and the advent of the Delta variant. In the U.S., cases are continuing to rise although some states are showing signs of slowed spread.
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If we look at the U.K., we see a swift peak, and then a steady and stable number of cases. While no one can predict the trajectory in the U.S., if this does become the case, it could be time to start looking for reopening penny stocks to buy. This includes biotech penny stocks, energy penny stocks, tech penny stocks, and a few others.
Now, it may also be too soon to do so, which means that investors may want to find more stable, long term penny stocks that could pay off as the pandemic slows in severity. Regardless, understand what is going on as it relates to the pandemic, and how to take advantage. With all of this in mind, let’s take a look at three penny stocks to get a head start on next month.
Penny Stocks To Watch
- Gaotu Techedu Inc. (NYSE: GOTU)
- Phunware Inc. (NASDAQ: PHUN)
- 1847 Goedeker Inc. (NYSE: GOED)
Gaotu Techedu Inc. (NYSE: GOTU)
If you haven’t heard of Gaotu Techedu, you’re probably not alone. However, the company has been making some big waves in the past few months. For some context, Gaotu is an ed-tech company that provides online after-school tutoring services in China.
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It provides these services for K-12 students and offers a large-format scalable business model for high-quality teaching. In addition, it utilizes big-data in its business to ensure that teaching is done in the most effective and efficient way. On August 17th, the company announced a management change that could be worth looking into.
“On behalf of Gaotu, I would like to express my sincere gratitude to Wei for his dedication and valuable contribution to the Company through these past years. We respect his decision and sincerely wish Wei continued success in the future.”
The CEO of Gaotu, Mr. Larry Xiangdong Chen
While changes like this can lead to uncertainty, they can also be a benefit for a company looking to evolve its business. And this is especially true considering the large crackdown from the Chinese government on for-profit education services. In the past few weeks, shares of GOTU stock have increased by around 20% following a more than 90% slide YTD. So, is this is a turnaround point for GOTU stock, or short term speculation? The choice is yours.
Phunware Inc. (NASDAQ: PHUN)
PHUN is a tech penny stock that has continued to see sizable momentum in the past few months. It is also a stock that we have covered numerous times in that time, due to its continued updates and constant momentum. Despite some less than stellar trading in the past few months, PHUN has some interesting prospects that could be worth paying attention to.
First, Phunware offers enterprise cloud platform software and solutions to a variety of businesses. This includes more recently, healthcare businesses among others. On August 17th, the company announced that it would be collaborating with Cox Business to offer its Digital Front Door services to Cox’s healthcare clientele.
“As the healthcare industry pursues a path of digital transformation, Cox will continue to create and deliver solutions that make this journey easier. By collaborating with Phunware and leveraging their proven mobile software, we will be able to better support excellent patient experiences and outcomes, drive cost savings and more efficiently coordinate facility resources.”
George Valentine, the Executive Director of New Growth and Development at Cox Communications
With the healthcare sector highly in focus right now, it’s no wonder that PHUN is gaining traction right now. Whether it’s worth adding to your penny stocks watchlist however, is up to you.
1847 Goedeker Inc. (NYSE: GOED)
Another penny stock that we have covered frequently in the past few months is GOED stock. Since late May, shares of GOED stock have increased by around 32%. And only a few days ago, it announced its second quarter 2021 financial results. Before we get into it, let’s go over what the company does. 1847 Goedeker is a provider of appliances, furniture, and home goods across its e-commerce site.
It is also one of the largest retailers of household appliances in the country. It offers popular brands such as LG, Whirlpool, Samsung, and much more. In its Q2 results, the company reported a pro forma revenue amount of $140 million, representing more than 50% in YoY growth. In addition, its pro forma net income came in at roughly $17.3 million with a combined EBITDA of $15.2 million.
“We believe our strong second quarter pro forma results reinforce the many operational benefits and synergies presented by the Appliances Connection acquisition. Now that the transaction is closed, we are well-positioned to scale and aggressively pursue our immediate-term goal of achieving $1 billion in annual revenue.”
The CEO of 1847 Goedeker, Doug Moore
These numbers are exciting for both the company and investors alike. And while they are not yet reflected in the company’s share price, they do show that 1847 Goedeker is growing substantially.
Which Penny Stocks Are on Your Watchlist Right Now?
If you’re looking for penny stocks to watch, there are plenty of options to choose from. But, to understand which could have potential value, investors need to do the proper research and understand each and every detail about a specific company.
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Considering the current geopolitical situation and Covid, there are a lot of moving parts to think about. But, with this, there is also substantial opportunity. With that in mind, which penny stocks are on your watchlist right now?
