Are These Top Penny Stocks on Your Watchlist Right Now?
Finding the best penny stocks for your watchlist can be a difficult task without the proper tools on hand. However, with a little research and a well-developed trading strategy, making money with penny stocks can be much easier than previously imagined. With September getting off to a bullish start for both penny stocks and blue chips, many traders are excited about what the future could hold.
Of course, we have to consider the effects of the pandemic and the Delta variant specifically. As case numbers drop slightly in many areas around the nation, some investors are feeling more comfortable with the trajectory of the future. In the past two months, we’ve witnessed mostly flat trading with some days of bullish activity. This was clearly the result of major uncertainty regarding the future.
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So now, a new month presents a symbolic clean slate for trading to take a bullish turn. And while we won’t know for certain until a few more days go by, it does look promising as of the first of the month. Considering this, let’s take a look at three hot penny stocks to watch right now.
3 Hot Penny Stocks to Watch Right Now
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Centennial Resource Development Inc. (NASDAQ: CDEV)
- Gaotu Techedu Inc. (NYSE: GOTU)
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that has climbed by over 17% in the past five days. Despite a major drop earlier in the year among all Chinese edu-tech stocks, the industry seems to be making a comeback. If you’re not familiar with New Oriental Education, it is a private educational services company that offers test preparation, K-12 teaching, and more. As of May 2020, its programs, services, and products were offered in over 1300 learning centers, over 100 schools, and 12 bookstores.
On August 18th, the company provided an update on its regulatory development. The Beijing Municipality Government and the Beijing Municipal Committee of the Communist Party of China jointly issued the “Beijing Municipality’s Measures to Further Reduce the Burden of Homework and After-School Tutoring on Students in Compulsory Education in Beijing” on the 14th of August.
This agreement announced that no new provider of after-school tutoring services on academic subjects in China will be approved. In addition, after-school tutoring providers cannot provide academic AST during any national holiday, weekend, or break period.
Since this announcement was made, EDU stock has gone from under $2 per share to more than $2.45 per share on September 1st. With any education stock in China, it’s important to stay as up-to-date as possible with any regulatory happenings. With this in mind, will EDU stock be on your penny stocks watchlist in September?
Centennial Resource Development Inc. (NASDAQ: CDEV)
Oil and gas stocks have been trending upwards recently. With high demand and low supply, the price per unit for fossil fuels has increased tremendously in the past six months. This has resulted in some major spikes among some energy penny stocks during that time frame.
Centennial Resource Development is one example as seen through its massive growth of over 245% YTD. If you are not familiar with CDEV, it is an independent oil producer. Currently, Centennial holds the majority of its operations in the Delaware Basin in West Texas, as well as others in Southwest New Mexico.
In total CDEV owns around 80,000 net acres and has plans to expand down the road. Currently, CDEV is focused on building a strong team comprised of technical leaders. Additionally, it aims to produce strong oil well results and heightened returns on investments. Since it is an independent company, its assets are focused on specific locations rather than others that cover larger landmasses.
And, it’s worth noting that as case numbers for Covid drop somewhat, many investors are bullish on the near term of energy. This could help to explain the recent uptick in value with many oil and gas penny stocks. Considering all of this, what do you think of CDEV? Should you add it to your penny stocks watchlist in September?
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu Inc. is another education penny stock and one that has climbed by over 24% in the past five days. The bullish momentum with GOTU stock seems to be following a similar trajectory to that of EDU stock. And if we look at its business model, we see many similarities across the board.
Gaotu provides after-school tutoring services in China for students K-12. It offers a large variety of subjects such as math, English, Chinese, chemistry, and more. It also provides business consulting courses for principals and other officers of private education schools.
On August 18th, Gaotu Techedu provided an update on its regulatory development. On this date, The Beijing Municipality Government and the Beijing Municipal Committee of the Communist Party of China jointly issued the “Beijing Municipality’s Measures to Further Reduce the Burden of Homework and After-School Tutoring on Students in Compulsory Education in Beijing”.
This announcement stated a variety of rules, such as prices for academic AST must-follow guidelines from the government. Academic AST providers are also prohibited from offering classes with contents outside or in advance of the school curriculum.
To gain compliance with the Beijing Measures, Gaotu will have to change its operations which could impact its business model in the short term. Since this announcement was made, GOTU stock has gone up in the market and that makes sense for the same reasons that EDU stock had climbed during that period.
YTD, shares of GOTU stock have shed around 93% of their value. But with higher volume than average and recent value spikes, GOTU could be worth keeping an eye on. With this in mind, will it make your list of penny stocks this month?
Will Penny Stocks Stay Bullish In September?
The short answer to this question is that no one knows with certainty. However, we can use the information we have on hand to see which direction penny stocks could take. And with case numbers for Covid dropping slightly as mentioned earlier, hopefully, we can see bullish trading action resume.
But for now, it may take some time before investors feel fully comfortable with the trajectory of the pandemic. Considering all of this, do you think that penny stocks will stay bullish in September?