Why Penny Stocks Investors Are Watching These Industries Next Year
As 2021 comes to an end for trading penny stocks, there is plenty to look forward to in the next year. While 2021 has not been a banner year for stability whatsoever, it has presented investors with many opportunities to make money with penny stocks.
Now, research is always the most important step when making any penny stocks or blue chips watchlist. However, a broad understanding of what markets could be impacted is equally important. Although it is difficult to say with certainty what will happen in the next few months, we can look at the past year as a way to present a potential guide for the future.
Right now, the most obvious choice for penny stocks to buy is biotech penny stocks. These have become commonplace gainers throughout the pandemic for obvious reasons. And although there is a large mix of both companies that work with Covid-related products and those that don’t, both have seen heightened investor interest in the past few months.
Next, we have tech penny stocks, which have seen a high amount of interest as well. This is true as, during the pandemic, consumers and businesses alike have relied on technology to keep operations flowing smoothly.
Lastly, we have entertainment and travel penny stocks. This is an obvious choice if case numbers decline as these stocks tend to move in the inverse of increasing Covid cases. So, with all of this in mind, let’s take a look at three industries to find penny stocks to buy in 2022.
3 Industries to Find Penny Stocks in During 2022
- Biotech Penny Stocks
- Tech Penny Stocks
- Entertainment/Travel Penny Stocks
- 3 Penny Stocks to Watch Next Year
Biotech Penny Stocks
In the past two years, biotech penny stocks have been one of the most obvious choices for investors to turn to. With biotech penny stocks, we have to separate them into two distinct categories as mentioned above.
On one hand, we have pure-play Covid related biotech stocks. These are companies that have a direct role in treating, curing, or diagnosing Covid. While these stocks are very volatile, they also present a sizable amount of opportunity for any news related to Covid. On the other hand, we have all the biotech stocks that don’t have a role in anything relating to Covid.
While both of these categories can be valuable, both depend on a consistent and thorough understanding of ones own investing style. For example, if you are a long-term investor, Covid-related biotech stocks may be worth avoiding. But, if volatility is what you’re looking for, those stocks could be worth buying. In addition, it’s important to consider what the company does outside of Covid and whether its business model can remain relevant in the future. So, with all of that in mind, which biotech penny stocks are you watching right now?
Tech Penny Stocks
With tech penny stocks, we can break them down into similar categories to the ones mentioned above. Over the past two years, there have been numerous tech penny stocks that have begun to focus on Covid-related needs. This includes education and work-from-home as well as those that allow businesses to operate smoothly. In addition, many companies have manufactured tech products and software to help track Covid, increase work-from-home productivity, and so on.
And, with more people at home than ever before, the demand for work-related tech and entertainment tech is extremely high. Lastly, the massive shortage of microprocessors has also led to a heightened demand for almost all tech products. So, in the past year, it makes sense that tech penny stocks have increased so heavily in value. And moving forward, it’s hard to see a world where this trend begins to shift fully in the opposite direction.
With tech, there are also a few categories to consider. We have ones that work with physical tech products, ones that work in software, and ones that work in both. As a result, there are differing levels of volatility for investors to contend with. Whether this makes tech penny stocks worth adding to your watchlist or not however, is up to you.
Entertainment/Travel Penny Stocks
The last and arguably most impacted industry to find penny stocks to watch next year are entertainment and travel penny stock. These two are lumped together as they both have a similar correlation with anything relating to increasing or decreasing Covid cases. Now, it’s extremely important if you’re interested in stocks in these industries, to keep a close eye on the news.
This means knowing what is going on with Covid cases, what the projections look like, and what the status of vaccines are globally. If case numbers go down, we tend to see entertainment and travel penny stocks go up; and vice versa. But, it’s just as easy to see bad news result in double-digit percentage losses in a matter of hours or days as it is to see these stocks go up.
With entertainment penny stocks, we have to look for those with in-person services. This includes movie theaters, and leisure activities. As far as travel goes, almost all stocks in this area are equally affected. So, while these stocks can be profitable, they also move extremely quickly. With that in mind, which entertainment and or travel penny stocks are you watching?
3 Penny Stocks to Watch in 2022
- Petros Pharmaceuticals Inc. (NASDAQ: PTPI)
- Phunware Inc. (NASDAQ: PHUN)
- Remark Holdings Inc. (NASDAQ: MARK)
Are Penny Stocks Worth Buying in 2022?
If you’re looking for penny stocks to buy next year, there are hundreds of options to choose from. But, investors need to have a thorough and consistent understanding of which penny stocks are worth it. This means knowing which industries could have value moving forward and how to take advantage.
As a result of the sheer number of factors that are impacting the stock market right now, there is a lot to keep track of. But, with the right research and a commitment to knowing how to trade penny stocks, making money with small caps can be much easier than previously imagined. Considering that, do you think that penny stocks are worth buying in 2022?
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