Are These Penny Stocks on Your List Right Now?
As we end another week of volatile trading for penny stocks and blue chips, investors continue to search for the best small caps to buy. While it is and can be challenging, there are plenty of ways to make money with penny stocks in 2021. If we consider what’s going on in the stock market, investors can have an easier time locating potential value with either penny stocks or blue chips.
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And right now, this includes the Omicron variant, economic challenges in the U.S., inflation, and more. As a result of all of this, trading penny stocks is not for the faint of heart. But, for those willing to put in the time, it can be a profitable endeavor. Considering all of this, let’s take a look at three penny stocks to watch right now.
Hot Penny Stocks to Watch Before Next Week
- Gaotu Techedu Inc. (NYSE: GOTU)
- ReShape Lifesciences Inc. (NASDAQ: RSLS)
- BEST Inc. (NYSE: BEST)
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu Inc. is a penny stock that has been climbing despite several weeks of less than stellar trading. If you’re not familiar, GOTU is a Chinese education firm that offers after-school tutoring to students in grades K-12. Chinese, English, biology, history, and other topics are among those offered by the company. In addition to regular lessons, it offers foreign language courses.
The corporation issued updated business information on November 15th. Gaotu has indicated that it will discontinue tutoring services for kids in grades K-9 by the conclusion of this year. This is due to the Chinese government adopting new legislation disallowing these types of services. Other areas of the company’s operations will continue to function normally despite this large setback. It expects the discontinuance of these services to have a significant negative impact on the Company’s revenues in the fiscal year 2021 and years to come. A few months ago, the Chinese government imposed a ban on for-profit tutoring. Since then, several companies in the industry such as GOTU, have been working to continue despite these challenges.
The company’s current strategy is to assess potential strategic choices that can successfully use its resources and knowledge from its previous services. It will look into the prospect of offering professional education courses and services, as well as opportunities in digital products and vocational education. In the past few trading days, shares of GOTU stock have been increasing. Whether this is due to the low price of GOTU stock right now or the bullishness of the future of the industry remains to be seen. Noting this recent advancement, will GOTU be on your list of penny stocks to watch?
ReShape Lifesciences Inc. (NASDAQ: RSLS)
ReShape Lifesciences is a health-solutions company that manages and treats obesity and metabolic disorders. If you’re not familiar, ReShape offers an integrated range of proven products and services for these disorders. Its FDA-approved Lap-Band Program is an alternative to more invasive surgical stapling treatments like gastric bypass or sleeve gastrectomy for treating obesity in a less invasive, long-term manner.
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On November 11th, the company reported its third-quarter and nine months 2021 financial and operational results. For the nine months and third quarter of 2021, it achieved revenue growth of 29.2% and 2.9% respectively year over year. It also achieved sequential revenue growth of 5.1% quarter over quarter. ReShape achieved several other advancements as well, such as launching its first and largest multi-platform consumer marketing campaign.
“Subsequent to all the major milestones we completed in the second quarter of this year, our entire organization focused on executing strategic initiatives this past quarter that created awareness and demand for our commercial portfolio of FDA approved and insurance reimbursed products to further develop a financially strengthened foundation for our business.”
The President and CEO of ReShape, Bart Bandy
While RSLS may not be a pure-play biotech penny stock, it is a part of the biotech industry at large. And due to the sizable bullish sentiment with biotech right now, many investors continue to show interest in companies like RSLS. With decent gains in the past week or so, is RSLS worth adding to your penny stocks watchlist before the year ends?
BEST Inc. (NYSE: BEST)
BEST Inc. is a China-based provider of comprehensive smart supply chain solutions and logistics services. The company provides a variety of logistics and value-added services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics, and financial services. It offers these through its own technology platform and broad networks.
On November 16th, the company announced its third-quarter financial results for 2021. During this period, its revenue decreased 14.6% year over year. Its EBITDA fell during the same period as well. This occurred as BEST is attempting to restructure its core competencies and bring new value to its shareholders. COVID-19 has had a sizable negative impact on BEST as it has with many other companies as well. Despite these negative results, there are many trading days that BEST stock is seeing bullish sentiment. If we look beyond the pandemic, we see that BEST Inc. has a potentially valuable business model that could benefit from the hyper-globalization that we are experiencing right now.
“Against a challenging backdrop with COVID-19 flare-ups, we continued to enhance Best Freight’s business capabilities of serving e-commerce customers and leveraging synergies with our Supply Chain Management. Supply Chain Management further strengthened its operations by prioritizing higher-margin customers, expanding the OFCs network, and leveraging our technologies to deliver quality services.”
The Founder, Chairman, and CEO of Best, Johnny Chou
Considering all of this information, does BEST stock deserve a spot on your list of penny stocks to watch right now?
Which Penny Stocks Are You Watching As 2021 Ends?
As we continue to barrel toward the end of the year, there are plenty of penny stocks that could be worth buying. But, understanding where to look and which ones could have value, is where the challenging part comes in.
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Now, with so much going on in the stock market, investing right now is not easy. However, if investors can put in the time to find the right information and a proper trading strategy, making money with penny stocks can be entirely possible. Considering all of this, which penny stocks are you watching as 2021 ends?
