3 Trending Penny Stocks to Add to Your Watchlist
Right now, there is a long list of trending penny stocks to choose from. As a result of the sheer amount of momentum in the stock market, understanding where to look and which companies are worth it, remains key. If you’re looking for trending penny stocks, there are a few things for all investors to consider. The first and most important metric is volume. Volume is the number of shares that trade hands in a given day.
On the high end, volume can be upwards of 100 million and more. And on the low end, volume could be in the tens of thousands or lower. With penny stocks, finding out if a company is trending is a comparative effort. For example, if a stock has an average daily volume of around 2 million and suddenly it trades 10 million shares, it can be considered trending.
But, the next step is understanding why a stock is trending and how to take advantage. This can be as simple as a Google search, however, social media has become the predominant place to find trending stocks. That includes sites such as Reddit and Twitter to name a few.
While some stocks will trend after an announcement is made, others will purely trend due to speculation and popularity online. So, it is important to distinguish the difference. Considering all of this, let’s take a look at three trending penny stocks to watch in January.
3 Trending Penny Stocks to Watch in January
Dogness Corp. (NASDAQ: DOGZ)
With a respectable 4% or so gain at EOD on January 7th, DOGZ stock is trending right now. In the past five days, shares of DOGZ have dropped by a substantial 59%. Right now, the major reason behind Dogness’ movement is that sizable loss yesterday.
The company announced only a day prior that it was working to expand its product availability via a large pet store, however, this news did not have a material effect. Rather, shares of DOGZ cratered the next day, indicating the sizable volatility surrounding the company. Now, we’ve covered Dogness Corp. as a penny stock numerous times. However, at almost $9 only a few days ago, the company had not been a penny stock since early December.
But, with this massively speculative drop and subsequent small rise, many investors are watching the company once again. By EOD, volume for DOGZ stock hit around 34.6 million, which is much higher than its market average. This indicates that it is trending with a mostly bullish sentiment. So, do you think that DOGZ stock can inch its way back toward the $9 mark or not? Regardless, DOGZ could be worth adding to your list of penny stocks to watch moving forward.
Denison Mines Corp. (NYSE: DNN)
Another penny stock that we have covered numerous times in the past few months and one that is constantly trending is DNN stock. Today, shares of DNN stock jumped by a modest 1.75% at EOD however in the past six months, shares have climbed by over 34%.
One of the reasons that DNN is consistently trending is due to its placement as a Reddit penny stock. These are stocks that are frequently discussed on the social media app. And as a result, they tend to see large and frequent market movement. Only a few weeks ago, the VanEck Uranium and Nuclear Energy ETF announced its purchase of shares in Denison Mines Corp. This is part of a much larger $27 million purchase.
Right now, uranium and the energy sector as a whole are both very popular. Specifically, this includes renewable energy which has jumped significantly in value over the past year or so. While it is hard to say why DNN stock is moving right now outside of the overall market bullishness, it is encouraging. Considering this, do you think that DNN stock is a worthwhile addition to your penny stocks watchlist?
Exela Technologies Inc. (NASDAQ: XELA)
While shares of XELA stock have not had the best performance in the past six months, we have seen a small bullish turnaround as of late. On Thursday, January 6th, the company put out an exciting announcement. It posted its end of year 2021 material update with a full earnings release expected in March of this year.
In the update, the company stated that it raised $407 million in equity in 2021. And, the company managed to reduce its debt by over $450 million during the year. These are both highly positive figures and do not yet seem to be reflected in how XELA stock is trading. In addition to this, the company stated that it is on track to exceed its free cash flow improvement of $50 million per year in 2022.
All of these numbers are very important for any prospective investors to consider. While it will take some time to see the benefit of this, it’s clear that XELA is working hard to continue growing. So, with all of that in mind, do you think that XELA stock is worth buying in 2022?
Which Trending Penny Stocks Are You Watching Right Now?
If you’re looking for the best trending penny stocks to buy, there are hundreds of options to choose from. While it can be difficult to pinpoint the ones with the most value, with the right research it can be much easier than previously imagined. In 2022, there is quite a sizable amount of volatility in the stock market. This volatility has caused many investors to either make money with penny stocks or lose money.
Now to avoid this, all traders should have a well-thought-out and consistent trading strategy. This strategy should also be able to adapt to the current conditions of the stock market. In addition, investors should understand exactly what is going on in the market and how they can benefit. So, with all of this in mind, which trending penny stocks are you watching right now?
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