3 Penny Stocks to Watch In October 2021
If you’re looking for the best penny stocks to buy in October 2021, there are plenty of options to choose from. As a result of the various factors at play in the stock market, the momentum we are witnessing with penny stocks is palpable.
And while the large number of geopolitical and economic events can seem concerning, the movement that they have caused has created plenty of opportunities to make money with penny stocks. But, to take advantage of this, investors need to understand a few things in particular.
First and foremost is forming your own trading strategy. This is a key part when it comes to investing in penny stocks that many investors fail to recognize and utilize. Not only should your strategy be geared to your investing goals, but it should also align with your risk tolerance.
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After this step is done, the next step is to research various industries and understand where there is value. By considering the events that are going on in the world, investors can identify which areas of the stock market could have potential in the near future.
For example, with Covid, many investors turned to biotech penny stocks and reopening penny stocks. These two industries present a great way to take advantage of the pandemic’s effects on the economy. At the end of the day, investing is a personal endeavor. And your portfolio should be completely aligned with your individual goals. Considering all of this, let’s take a look at three penny stocks to watch in October.
3 Penny Stocks to Add to Your Watchlist Right Now
- Gran Tierra Energy Inc. (NYSE: GTE)
- Kosmos Energy Ltd. (NYSE: KOS)
- VEON Ltd. (NASDAQ: VEON)
Gran Tierra Energy Inc. (NYSE: GTE)
Gran Tierra Energy Inc. is an energy penny stock that is up by around 12% as of midday on October 5th. This is a sizable gain and one that gives GTE investors over 56% in returns in the past month. In the past twelve months, shares of GTE stock have shot up by almost 300%, which is no small feat. If you’re unfamiliar, Gran Tierra is a company that explores for resources at various oil and gas properties in South America. All of its assets are located in Colombia and Ecuador. It has a total proved undeveloped reserves of 26.2 million barrels of oil equivalent in Colombia alone as of December 31st, 2020.
Back in August, the company announced its second-quarter results for 2021. During this quarter the company achieved an average total production of 23,035 barrels of oil per day. This number was a 14% increase year over year. The company has reaffirmed its full-year production guidance of 27,500-28,500 barrels of oil per day.
“Despite the challenges with blockades during the Quarter, we are very pleased that we have now safely and diligently ramped operations back up throughout our Colombia portfolio. Although the blockades temporarily impacted Gran Tierra’s production volumes, the stronger Brent oil price environment more than offset the effect of lower production volumes, as demonstrated by our higher oil sales and EBITDA figures.”
President and CEO of Gran Tierra, Gary Guidry
Considering its sizable recent gains, does GTE stock deserve a spot on your penny stocks watchlist?
Kosmos Energy Ltd. (NYSE: KOS)
Kosmos Energy Ltd. is an oil and gas company that has shot up in value by almost 30% in the past month. This gives it a one-year gain of over 170%, which reflects both the company and the current investing environment in the energy sector. For some context, Kosmos is an energy company with offshore assets in Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico. Its area of focus is deepwater independent oil and gas exploration, as well as production.
In August, this oil and gas company reported its second-quarter results for 2021. The company announced that it produced 51,600 barrels of oil equivalent per day with a net over lift position due to 66,200 boepd in sales. Kosmos’ total revenue for this period was $384 million. The company’s goal is now to continue to reduce its debt and grow its EBITDA.
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“With cash generative assets, a solid financial position and rising production, Kosmos is well-positioned to generate significant shareholder value through the second half of the year and into 2022.” Right now, investors continue to watch energy penny stocks as a global shortage on oil has driven prices up. This means that many energy penny stocks have risen in value over the past few months as a result.
While shares of KOS stock are down today, this is the natural ebb and flow that we see in the stock market. With all of this in mind, will KOS stock be on your list of penny stocks to buy this month?
VEON Ltd. (NASDAQ: VEON)
Moving away from the energy industry, VEON is another penny stock that has been climbing in recent trading sessions. YTD, shares of VEON stock are up by almost 40% and over the past twelve months by more than 70%.
Last month the provider of internet and connectivity services announced the pricing of its 5-year RUB 20 billion, 8.125% senior unsecured notes due 2026. The goal with this is to raise capital in the short term to continue growing its business. Only a few days before this announcement was made, the company stated that it increased its investment in ShopUp, which is Bangladesh’s leading B2B commerce platform.
“We are pleased to see the market’s validation of our investment in ShopUp through the valuation assigned to this latest investment round. We look forward to our continued partnership in e-commerce and mobile financial services, where our combined expertise can help us grow these exciting market opportunities together.”
Hans-Holger Albrecht, the Chair of VEON’s Digital and Innovation Committee
This is great news for the company and shows that it is confident in the future of ShopUp. With VEON gaining traction in several recent trading sessions alongside its heightened volume, do you think that it is worth watching or not?
Which Penny Stocks Are on Your Buy-List Right Now?
Finding the best penny stocks to buy in 2021 can be a challenge with so much going on in the market. But, with proper research and a dedication to finding out all the information you can, making money with penny stocks right now can be easier than previously imagined.
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As always, investors need to put in the time to learn how to trade as well as understanding their own investment strategy. Considering all of this, which penny stocks are on your buy-list right now?
