Today we look at a handful of penny stocks gaining a lot of attention on social media. One of the most significant driving forces since the start of the 2020 pandemic has been droves of new retail traders pumping liquidity into the market. There are a few different schools of thought about the lasting impact it could have on the market. However, the last two years have been nothing quite like we’ve ever seen.

These underlying trends have stemmed from the active retail trading community, whether it’s short squeezes, speculative breakouts, fear-driven buying, or somewhat of a mix. Thanks to the explosive rallies in meme stocks like AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME), these millions of new traders are finding a home on social media sites like Reddit.

Reddit Penny Stocks To Buy [or avoid]

It has become the new “investor round table” for traders to share ideas. Outlets like Reddit have also become heavily scrutinized for the unregulated and, at times, completely false claims made by individual online profiles. Social sentiment is a prevailing catalyst daily. You can either fight the trend or figure out a way to make money from it. According to some of the traders on Reddit this week, here are a few penny stocks to buy.

SmileDirectClub Inc. (NASDAQ:SDC)

As one of the household name penny stocks, you might assume that SmileDirectClub has good standings in the stock market today. The company is well-known for its at-home dental solutions, including invisible braces and teeth whitening. There’s also a good chance that you’ve seen at least one advertisement on TV or social media in the last few days. Regardless, SDC stock has been hard-hit over the previous year, with the final quarter of 2021 being one of the worst. Shares ripped lower following worse than expected earnings results with a mixed response from the company:

“We are disappointed with our third-quarter results driven by the macroeconomic headwinds that are influencing the spending of our core demographic…While we could not have anticipated the rapidly evolving nature of this impact on our consumer, we have responded quickly to focus our marketing on helping support them during this time, while we also move upstream with higher income demographics through the Challenger Campaign and investments in our Dental Partner Network.”

The company has taken up strategic actions to right the ship in response. This week, a wild twist of events highlights the latest move to curb expenses. SmileDirectClub suspended operations in 8 markets while also cutting back staff.

Areas impacted included Mexico, Spain, Germany, the Netherlands, Austria, Singapore, Hong Kong, and New Zealand. The main focus appears to be on the U.S., Canada, the U.K, Ireland, France, and Australia right now. Ultimately this could save $120 million in 2022, according to the company.

reddit penny stocks to buy SmileDirectClub SDC stock chart

Kosmos Energy Ltd. (NYSE:KOS)

Even with the stock market sell-off this week, some sectors have gained bullish momentum. One of these is energy, and companies like Kosmos have climbed higher as a result. In fact, following a few days of selling this month, KOS stock has bounced back in a big way this week. Shares jumped over 15% from Monday’s low of $3.89 to Tuesday’s morning high of $4.54.

Read: 5 Hot Penny Stocks To Watch After Big News Today

Aside from the sector trends, news from Kosmos this month put it back in a brighter spotlight. The company announced that it completed drilling of its Winterfell-2 appraisal well in the Green Canyon area of the U.S Gulf. This helped the company define further the resource potential of the site, with current gross estimates sitting around 100 million barrels. With encouraging results, Kosmos Energy’s CEO Andrew Inglis expects to advance a development scheme for bringing things online in “around” two years.

In-kind with this bullish outlook, analysts at Goldman Sachs raised their $5 price target to $7.50 while maintaining their Buy on the penny stock.

reddit penny stocks to buy Kosmos Energy KOS stock chart

Transocean Limited (NYSE:RIG)

Similarly, shares of Transocean ticked higher on Tuesday, supported by strength in energy stocks. The contract drilling services provider pulled an about-face at the top of the week. A 2-day bounce in RIG stock propelled shares from lows of $2.85 to highs of over $3.30.

Much of the excitement also comes shortly after the company’s Transocean Enabler will drill a carbon injection well and sidetrack for another well drilled early in 2020 to support Equinor’s Norther Lights Carbon Capture Storage Project. This is a JV created by Equinor, Shell, and TotalEnergies.

“Beyond our core business of drilling ultra-deepwater and harsh environment wells, this is an excellent example of how we can further leverage our rigs and core competencies in support of renewable and alternative energy projects in offshore markets across the globe.”

Janelle Daniel, Transocean’s Vice President of Human Resources, Sustainability and Communications.

Sustainable investing is a big focus for the market right now. The ESG movement continues growing strong, which could further the company’s stake in this budding niche.

reddit penny stocks to buy Transocean RIG stock chart

Progenity Inc. (NASDAQ:PROG)

A darling of Q4 2021 was Progenity Inc. Shares of the biotech company exploded from under $1 to highs of over $6 within a few short months. Company milestones and stock market technicals came together, helping to add to the excitement.

Progenity is advancing its pipeline designed for women’s health, gastrointestinal health, and oral biotherapeutics. In particular, the company offers a range of ingestible devices that provide diagnostic sampling and drug delivery solutions. Its current plans are being pushed ahead for commercially launching its Preecludia test designed to rule out preeclampsia in pregnant patients. According to the company, this space has an addressable market of up to $3 billion.

In addition, February could be set for some excitement as Progenity will make presentations at multiple industry events. These include the Belgian Week of Gastroenterology on February 9th and the European Crohn’s and Colitis Organisation on February 18th.

Read: These Hot Penny Stocks Are Climbing While the Stock Market is Down

If this weren’t enough, PROG stock has joined the list of potential “short squeeze penny stocks” to watch right now. According to data from Fintel.IO, the current short float percentage on PROG sits around 11.5%. It was a hot topic of discussion late last year and seems to be back in the mentions among traders on social media right now.

reddit penny stocks to buy Progenity PROG stock chart

Reliance Global Group (NASDAQ:RELI)

It’s been a while since Reliance Global traded near the penny stock range. If you’re an active reader of, you may recall it as a hot stock late last year. The insurance stock skyrocketed from under $2 to highs of more than $10 following a flurry of attention on social media.

The first time we discussed the company in December, Reliance had just come off of a big launch of its 5MinuteInsure platform in new territories. However, the bigger story was similar to PROG stock as a potential short-squeeze candidate. At the time, the short float percentage on RELI sat above 30%. With a lower float, it wasn’t surprising to see additional volatility.

Fast-forward to this week, and RELI is still on that “short squeeze” radar right now. According to Fintel data, the current short float percentage is around 25.5% as of this article. Meanwhile, Reliance announced the completion of its latest acquisition of Medigap Health Insurance Company. Medigap specializes in Medicare supplement insurance and recorded roughly $7 million in revenue for the 12 months ending September 30, 2021.

“Medigap is one of the nation’s fastest-growing providers of Medicare supplemental insurance coverage with licenses and doing business in 47 states.  Our goal is to aggressively expand their operations, as well as capitalize on cross-selling opportunities across our existing portfolio companies,” explained Ezra Beyman, CEO of Reliance Global Group.

Tuesday afternoon, RELI stock firmly stepped back out of the penny stock range after reaching highs of over $7.

reddit penny stocks to buy Reliance Global RELI stock chart

Penny Stocks To Watch Right Now

According to social media users on Reddit, these are just a handful of penny stocks to buy. If any of the companies are on your list right now, the next step is doing a deeper dive. Social media is an interesting place, but you are the only person responsible for making the final investment decision. You can check out more details on penny stocks by using our stock profile tool, which gives access to news, filings, and more for free.

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