Are These Penny Stocks on Your List Right Now?
If you’re making a list of penny stocks to buy, there are hundreds of options to choose from. And as we finish another week of volatile trading sentiment with both penny stocks and blue chips, now is the time to find the best small caps to watch. To understand which companies fit this notion, the best course of action will always be research.
With penny stocks, research means looking up the companies you’re interested in and finding out everything you can about the business, financial standing, and any upcoming news and events of importance. In addition, it’s crucial to have a thorough understanding of what the sector as a whole is doing.
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And lastly, knowing how to trade and using a consistent trading strategy, will be a major benefit to your potential to make money with penny stocks. If we consider the sheer amount of movement with penny stocks right now, we see that having information is the best way to stay ahead of the curve. With all of that in mind, let’s take a look at three hot penny stocks to watch before next week.
Hot Penny Stocks to Watch Before Next Week
- Lloyds Banking Group plc (NYSE: LYG)
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Ardelyx Inc. (NASDAQ: ARDX)
Lloyds Banking Group plc (NYSE: LYG)
Lloyds Banking Group plc is a penny stock that has increased in value by around 30% in the past YTD period and over 23% in the past twelve months. If you’re not familiar, this company offers financial services and banking to its customers. Lloyds is split into three sections, retail, commercial banking, and insurance and wealth. The retail section offers financial services such as credit cards, mortgages, financing, and more. Its commercial banking section offers lending, working capital management, and more. And lastly, its insurance and wealth section offers all types of insurance including home, life, and car as well as wealth management.
On November 22nd, the company announced its results for a tender offer of outstanding preference shares announced on the 10th. For the GBP198.1 million total of 6.475% non-cumulative preference shares, the company decided to purchase GBP 3.7 million. In the GBP 300 million 9.25% non-cumulative irredeemable preference share back, it will buy back 7.2 million in shares. This is the latest update from Lloyds Banking Group. It will be interesting to see what the company announces next.
It’s also worth noting that as a bank, shares of LYG stock tend to move less than other penny stocks. This means that investors should ensure volume is high enough to be able to enter and exit positions in a timely manner. Considering this, will LYG stock be on your penny stocks watchlist moving forward?
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that has recently received a lot of attention due to its high volume and sharp price movements. For some context, New Oriental is a private educational services firm that provides test preparation, K-12 teaching, and other services. Its activities, services, and goods were available in over 1300 learning centers, over 100 schools, and 12 bookstores as of May 2020.
On November 14th, New Oriental announced new change initiatives. Because of the new laws and limitations regarding for-profit tutoring in China, New Oriental has said that it intends to discontinue all K-9 AST tutoring services at all of its learning facilities by the end of this year. This will have a significant impact on revenues for the fiscal year ending May 31, 2022, according to the company.
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As a result of the regulation, most Chinese education institutions are no longer able to provide all of the programs they once did. While they can still provide some services, a significant portion has been eliminated. Because of this, New Oriental’s sales, as well as those of other similar companies, will be impacted. It will be interesting to see how Chinese education stocks perform in both the short and long term. With that in mind, will EDU be on your penny stock watchlist this month?
Ardelyx Inc. (NASDAQ: ARDX)
Ardelyx Inc. is a biotech penny stock that has increased significantly in value in the past few days. From November 29th to December 2nd, shares of ARDX stock shot up by over 97% before correcting slightly. Ardelyx is a company that develops kidney and cardiorenal disease therapies. The company is involved in the development and marketing of drugs that are used to treat a variety of illnesses in this sector. Tenapanor, the company’s flagship candidate, recently completed Phase 3 clinical trials for the treatment of constipation in individuals with irritable bowel syndrome. Ardelyx also develops RDX013 for the treatment of hyperkalemia patients, which is currently in Phase 2 clinical trials.
After an update that came out at the end of November, shares of ARDX saw major attention, as is the case with any large biotech announcement. The company announced its plans to introduce IBSRELA, which is its licensed medication for IBS with constipation in adults. This approved treatment will be available in the second quarter of 2022, according to the business. Currently, the company is pursuing approval of tenapanor for hyperphosphatemia through the FDA’s formal dispute resolution process.
“Over the last five years, the IBS-C market has grown to be sizable and concentrated, with 9,000 high-writing physicians accounting for approximately 50% of the almost five million prescriptions written annually for drugs indicated for the treatment of IBS-C.”
President and CEO of Ardelyx, Mike Raab
Despite its recent corrections, many investors see potential in the future of Ardelyx. With this in mind, will ARDX stock make your watchlist before next year?
Are Penny Stocks Worth Buying or Not?
If you’re looking for the best penny stocks to buy, the options are limitless. But, knowing what type of investor you are and what your tolerance for risk is, will both work to give you the best chance of profitability.
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In addition, understanding what is going on in the stock market and how to take advantage will aid in your strategy in both the short and long term. With all of that in mind, do you think that penny stocks are worth buying or not?
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