3 Penny Stocks to Add to Your Watchlist in November 2021
As we come to the end of another week of trading penny stocks, investors continue to be excited about what the future could hold. While we are contending with certain economic issues like inflation, the overwhelming sentiment with penny stocks seems to be bullish. To take advantage of this, investors need to have a thorough understanding of what factors are impacting the stock market and how they can be used as a benefit.
Right now, we’re seeing a high degree of popularity among sectors such as tech penny stocks, mining penny stocks, and a few others. But, there seems to be positivity in several different sectors. With all of that considered, let’s take a look at three penny stocks to add to your November 2021 watchlist.
3 Penny Stocks For Your November 2021 Watchlist
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Ambev S.A. (NYSE: ABEV)
- Globalstar Inc. (NYSE: GSAT)
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that managed to climb by over 5.5% on November 19th. While this may not seem like much, this is a sizable amount considering the less than stellar trading year that EDU stock has had. For some context, New Oriental provides pupils with private educational services in China. It offers students the ability to prepare for entrance exams and language exams through test preparation services. The company offers services throughout 104 schools, 1361 learning centers, and 12 bookstores.
On November 14th, New Oriental released several new business updates. Due to new regulations and restrictions, New Oriental indicated that it intends to discontinue all tutoring services linked to K-9 AST at all of its learning facilities by the end of 2021. It has stated that this will have a significant impact on company revenues for the fiscal year ending May 31, 2022. K-9 academic AST services accounted for 50 percent to 60 percent of revenue in fiscal years ending May 31, 2020, and 2021.
Chinese education stocks have been hit very hard recently due to strict legislative measures placed on them by the Chinese government. The Beijing Measures that were imposed a few months ago have prevented many of these corporations from operating via their previous business models.
Unfortunately, it does not look like this is going to change any time soon. While Chinese education companies can provide some of their services, they cannot provide certain cornerstone services that they had offered previously. Despite this, EDU stock has experienced some upwards spikes in the market in the past few weeks. Now, the company has to work to find a way to succeed despite these stringent regulations. Considering all of this, will EDU be on your penny stock watchlist moving forward?
Ambev S.A. (NYSE: ABEV)
Because of its momentum, Ambev S.A is a penny stock that we have talked about frequently in the past few weeks due to its over 12% gain in the last month or so. For some context, Ambev is a business that offers beer, soft drinks, and other beverages. Aside from beverages, the company distributes and sells culinary products. Budweiser, Bud Light, Stella Artois, and Corona are just a few of the brands that fall under the Ambev umbrella.
At the end of October, Ambev reported its financial results for the most recent quarter. In the report, the company recorded a 57.4% increase in quarterly net profit to $660.89 million. With the reopening of pubs and restaurants, demand for several of Ambev’s goods has increased dramatically. Ambev’s third-quarter volumes were the highest in the company’s history, growing 7.7% year over year. This is a very positive sign as ABEV stock was hit quite hard throughout the pandemic. Although Covid is not over, the company is seeing a resurgence in demand for its alcoholic products.
Moving forward, it will be interesting to see if ABEV stock can pass its YTD high of nearly $4 per share. While these quarterly results are exciting, they are only one part of the overall picture. Based on ABEV’s 30-day performance, it seems like investors are showing more bullish interest in the company right now. With all of that in mind, will ABEV stock make your watchlist moving forward?
Globalstar Inc. (NYSE: GSAT)
Globalstar Inc. is a tech penny stock that saw a decent bullish move during today’s trading. If you’re not familiar with Globalstar, it is a tech company that sells two-way voice and data devices, such as mobile voice and data satellite communication products. These items are used for a variety of purposes, including recreation, safety, and disaster preparedness. In addition to this, it offers devices for use in personal tracking, emergency location, and messaging solutions.
On November 4th, Globalstar released its third-quarter results for 2021. During this period, its revenue slightly decreased year over year due to the timing of its engineering services revenue. Despite this, its lower service revenue was offset by an increase in revenue from subscriber equipment sales. The company’s SPOT service revenue went up 4% quarter over quarter as a result of its higher subscriber count. Now the SPOT subscriber base totals about 275,000 as of September 30th, 2021.
“We are pleased with the continued positive momentum in SPOT and Commercial IoT as the associated service and equipment revenue are each up from the third quarter 2020. The significant increase in equipment sales following the COVID-related headwinds that impacted demand in 2020 is a clear indicator of a rebound in these areas of the business.”The CEO of Globalstar, Dave Kagan
In 2021, GSAT stock has increased by over $1 per share. This represents a YTD gain of over 350%. Amid all of this progress, will GSAT be on your list of penny stocks to watch?
Can Penny Stocks Continue to Be Bullish This Month?
Although November has been quite a volatile month, investors have high hopes for the next two weeks of trading penny stocks. Considering that there is so much momentum in the stock market right now, it’s up to us as investors to understand how to take advantage. With all of this in mind, do you think that penny stocks can continue to be bullish this month?