3 Top Penny Stocks to Watch in the Second Half of November
With November almost halfway done, investors continue to look for the best penny stocks to buy. And while it may seem complicated at first, there are plenty of ways to make money with penny stocks.
First and foremost, investors need to have a thorough understanding of their own investing style. This means considering whether you are more inclined to invest in riskier stocks, or less inclined. Having this in mind will help you to narrow down your list substantially. While all penny stocks are volatile to some degree, some tend to move more frequently than others. This leads into the next concept, which is understanding what makes penny stocks move.
On one hand, we have speculative aspects such as news, press releases, and industry-wide announcements. These are the most likely culprits for a penny stocks movement. This is why it is extremely important to pay attention to all the latest announcements. The next factor to consider is the fundamentals. While this pays less of a role when it comes to price movement, it does have the power to change a stocks longer-term pricing.
Lastly, investors should have a well-thought-out trading strategy to complement the above. This means considering whether you’re looking for make small, short-term wins; or long-term gains. Considering all of these ideas, let’s take a look at three penny stocks to add to your Novemeber watchlist.
3 Penny Stocks to Add to Your November Watchlist
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Gaotu Techedu Inc. (NYSE: GOTU)
- Phunware Inc. (NASDAQ: PHUN)
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a Chinese educational company that has seen heightened popularity in the past few weeks. This company offers private educational services for students K-12. The company actively offers English language training courses, test preparation services, and more. As of November 8th, EDU offered its programs at 122 schools and 1547 learning centers.
Back in August, New Oriental Education & Technology Group Inc. provided an update on its regulatory development. This is after 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 agreement is being shortened to the “Beijing Measures”.
New Oriental Education & Technology Group is no longer able to offer classes that cover material that is either ahead of or beyond the present school curriculum. It also won’t be able to hold classes during vacations, holidays, or weekends. This had and continues to have a major effect on the price of EDU stock and other Chinese education stocks. And while its stock performance right now is nothing to write home about, its market popularity could make EDU worth watching. However, investors should continue to consider the effects that this measure has on EDU stock.
Gaotu Techedu Inc. (NYSE: GOTU)
Another Chinese education stock that has increased in popularity and its trending nature in the past month or so is Gaotu Techedu Inc. Gaotu also offers after-school K-12 tutoring services in China. The company provides its services for a large variety of subjects including English, physics, Chinese, biology, history, and more. Gaotu offers foreign language training courses and test preparation courses as well.
Back in September, the company released its second-quarter financial results for 2021. During this period, its revenue increased by 35.3% year over year to a total of RMB2,232.3 million. Its gross billings went up 12.2% year over year to RMB2,694.7 million as well. Gaotu’s paid course enrollments totaled 4.1% higher year over year. This is exciting news, but, we do have to consider the Beijing Measures mentioned above.
“We say that 2014 is Gaotu’s first attempt as a startup, and 2016 is our second start, then we can also say that 2021 is our third start. We should always keep the goal of education in mind, always firmly believe that education is a noble profession.”CEO, Founder, and Chairman of Gaotu, Larry Xiangdong Chen
YTD, shares of GOTU stock are down by more than 94%. And while this may seem disheartening, some investors look for beaten down penny stocks that could have potential in the future. Although it’s too soon to say if this is the case with GOTU stock, there’s no doubting its trending nature.
Phunware Inc. (NASDAQ: PHUN)
Phunware Inc. is a tech penny stock that has climbed by a staggering 340% in the past month and over 520% in the past year. This company offers an integrated software platform for various companies. The platform offers companies the solutions and services to run their mobile app portfolios. Some of Phunware’s products include software development kits and licenses. The company’s products are used in the retail, healthcare, aviation, real estate, and hospitality sectors among many more.
Recently, Phunware announced the acquisition of 27 Bitcoin to diversify its portfolio. Again on November 5th, Phunware announced that it had purchased an additional 100 bitcoin. It purchased the coins for $6.20 million total, at an average price of $62,030 per Bitcoin. On November 4th, the company announced that it would be presenting at the Roth Capital 10th Annual Technology & Inaugural AgTech Answers Virtual Event on Wednesday, November 17th, 2021.
Just one month ago, PHUN stock was worth less than $1 per share on average. As of early November, shares of PHUN stock sit above $4. At one point, PHUN stock reached over $18 per share back in October indicating the potential bullish sentiment that PHUN stock has seen. Based on its recent market momentum, will PHUN be on your penny stock watchlist moving forward?
Which Penny Stocks Are on Your Buy List?
Finding the best penny stocks to buy is all about understanding what’s going on in the stock market. While it may seem easy to make a penny stocks watchlist at first, it is a time consuming process that should be well thought out.
With research and a trading strategy on hand, finding and making money with penny stocks can be much easier than previously imagined. Considering that, which penny stocks are on your buy list right now?