Are These 3 Penny Stocks Worth Buying After Recent Bullish Price Action?
Despite the broader market being down today, there are plenty of penny stocks that are pushing up during the trading session. However, it is worth considering what exactly is making the market move right now, as this can affect both penny stocks and blue chips. The most overwhelming factor currently is Covid, and specifically the Delta variant.
What’s Going on in The Stock Market Right Now?
With the U.S. passing the grim milestone of 40 million cases of Covid overall, fear continues to be reignited as to what the future of a post-pandemic world will look like. And with other variants circulating, traders are taking a more risk-averse course of action to avoid any market upsets. However, in all times of large news events, penny stocks tend to move in both directions.
And this means that investors can take advantage of this price action if they have the right strategy on hand. One of the strategies that investors utilize is finding penny stocks with the most volume. This can be a great indicator of popularity, and therefore whether a penny stock has the potential to move. And while volume can work in both directions, it can be a helpful tool in your search.
In tandem with this, investors should understand their own risk profile. Are you looking for short-term gains? Or, are you looking for a penny stock that could have potential in the long term? Both of these questions should be asked, and both can help to determine your strategy. Considering all of this, let’s take a look at three penny stocks with sizable bullish sentiment right now.
3 Penny Stocks to Watch That Exploded Last Week
- Camber Energy Inc. (NYSE: CEI)
- Gaotu Techedu Inc. (NYSE: GOTU)
- New Oriental Education & Tech Group (NYSE: EDU)
Camber Energy Inc. (NYSE: CEI)
Up by around 16% at midday is CEI stock. In the past five days, shares of CEI have climbed by a very impressive 75% to just under $1. This brings its one-month gain to over 100% as of September 7th. So, why the major bullish sentiment for CEI stock? While, before we get into its fundamentals, investors should understand that CEI is one of the latest ‘meme stocks’ on the scene. And, it’s worth noting that we have been covering CEI stock for quite some time.
These are stocks that are popularized via Reddit, Twitter, and other social media outlets. As a result of their trending nature, they tend to skyrocket in value. This is the case with other meme stocks such as GME stock, AMC stock, and more. But, keep in mind that these companies tend to be some of the most volatile stocks out there.
Primarily, Camber Energy is a U.s. based energy company working in natural gas and oil-related assets. However, two weeks ago the company secured an exclusive IP license for a patented carbon-capture system. This system, known as the ESG Clean Energy System comes with exclusive licenses for all of Canada and a non-exclusive license for twenty-five locations in the U.S.
“In my view, this transaction positions us as an industry leader in terms of being able to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint.”The CEO of Camber, James Doris
So, considering this exciting prospect, it looks like CEI is committed to remaining relevant as industries move away from fossil fuels. With all of this in mind, will CEI stock be on your list of penny stocks to watch?
Gaotu Techedu Inc. (NYSE: GOTU)
In the past five days, shares of GOTU stock have climbed by over 20% to just over $3.16 per share. And with its for-profit education model in China, we can draw stark comparisons between it and EDU stock. Both of these Chinese education stocks have seen major losses in value in 2021 so far.
However, both have begun to climb once again in the past two weeks or so. And as a result, many investors are paying attention. To understand GOTU stock, we have to take a closer look at the regulatory setting in China. Today, on September 7th, news dropped that China is banning for-profit tutoring companies from collecting fees and enrolling new students until they’ve registered as non-profits officially.
[Read More] 3 Hot Penny Stocks To Watch For September 2021
This is another aspect of the regulatory measures made earlier in the Summer that hindered profitability in a completely competitive space. And with a death grip on the for-profit education sector in China, many companies are working to stay afloat. But, with battered prices, there could be value in companies that were once flying high in the stock market. However, it may be worth waiting to see what the full effects of these regulatory measures are.
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that has increased in value substantially in the past few weeks. Despite some less than stellar trading in the last year, shares of EDU stock have climbed by around 12% in the past five days.
Early on in 2021, things were looking up for EDU, however, after some regulatory issues regarding for-profit tutoring in China, shares quickly descended. For some context, this company provides private educational services in China. It offers test preparation services for students that are taking entrance exams and language exams. Its services are offered in 104 schools, 1361 learning centers, and 12 bookstores.
On August 18th, like several other Chinese education companies, New Oriental provided an update on regulatory development. The statement came following the Beijing Municipality Government and the Beijing Municipal Committee of the Communist Party of China jointly issuing the “Beijing Municipality’s Measures to Further Reduce the Burden of Homework and After-School Tutoring on Students in Compulsory Education in Beijing”.
New Oriental can no longer provide its services during national holidays, weekends, break periods, and more. The company also must follow pricing guidelines from the government for its services. There will additionally be an enhanced oversight of AST advertising. While all of this may have a short-term effect on EDU, it could work to reshape its business model to grow in the coming months. Keeping this information in mind, is EDU worth adding to your penny stocks watchlist?
Are Penny Stocks Worth Buying Right Now?
With so much going on in the stock market, it can be hard to tell which way is up at times. However, investors with a penchant for risk may have an easy time making money with penny stocks if their strategy aligns with the current economic condition.
But in the end, it all comes down to understanding how to read market trends and how to use them to your advantage. If you can do this, penny stocks could be worth it. And if not, there are less risky penny stocks that could be better suited to you. With all of this in mind, do you think that penny stocks are worth buying right now or not?