3 Penny Stocks to Add to Your List As the Market Turns Bullish
If you’re making a list of the best penny stocks to buy in February, there are hundreds of options to choose from. But, right now, the stock market is almost like a wild west in that it is highly volatile and unpredictable.
Because there are so many factors to consider, investors need to do the proper research. This means knowing what is affecting the penny stocks both on your list and not on your list. Right now, the main concern is inflation.
And in the past week or so, we’ve seen the stock market shoot down substantially on low confidence surrounding the future. However, with the Fed meeting today, we will see what type of monetary policy will come into play thin the next few hours. And ahead of this, the Dow is up by around 1.1%, with the S&P 500 and NASDAQ Composite up 1.6% and 2.4% respectively.
All of this is showing that we may be seeing renewed confidence in the stock market. And while it’s tough to say what the long-term effects will be for penny stocks, we do know that is a good sign right now. So, with all of that in mind, let’s take a look at three penny stocks to watch in February 2022.
3 Penny Stocks to Watch in February 2022
- Exela Technologies Inc. (NASDAQ: XELA)
- ContextLogic Inc. (NASDAQ: WISH)
- Ebang International Holdings Inc. (NASDAQ: EBON)
Exela Technologies Inc. (NASDAQ: XELA)
One of the largest gainers of the day so far is XELA stock. By midday, shares of XELA had shot up by over 28% to north of $0.70 per share. This is a substantial gain and reflects big news that came out during premarket trading. On January 26th, the company announced a new share buyback program for up to 100 million shares of common stock at $1 per share. The company intends to reduce its share count by around 29% by retiring shares tendered.
“After deploying more than $400 million of capital in 2021 to substantially reduce debt and extend maturities, we are now deploying capital to unlock shareholder value for our large and growing shareholder base.”The Executive Chairman of Exela Technologies, Par Chadha
This is big news for the company and should bring in plenty of new capital to continue engaging in its future goals. If you’re not familiar, Exela Technologies is a leader in business process automation. The company has over 4,000 customers in more than 50 countries around the world. And, in the past few years, it has worked to rapidly expand its reach. While the long term impacts of today’s announcement are yet to be seen, there’s no doubt that this is exciting. With that in mind, will XELA be on your penny stocks watchlist?
ContextLogic Inc. (NASDAQ: WISH)
Another big gainer of the day so far is WISH stock. By midday, shares of WISH stock had shot up by over 9% to $2.54 per share. This is a sizable gain and especially so considering WISH’s 90% drop in the past twelve months. So, why are shares of WISH stock shooting up right now? Well, to understand this, we have to take a closer look at what ContextLogic does and its recent news.
One of the reasons that WISH stock has been moving is due to its mentions online, specifically on Reddit. We’ve seen this occur numerous times over the past year or so, and because there is no news with ContextLogic, this is the next choice. But, right now, there are also a few issues to consider with ContextLogic.
For one, the company has seen its monthly active users of MAU decline, alongside a deceleration with its revenue. This is not the best news, and has been a major part of the sell-off witnessed in the last few months. But, the company still has over $1 billion in cash. This means that it has the potential to impart change and fix its business. So, with that considered, will WISH be on your list of penny stocks to watch or not?
Ebang International Holdings Inc. (NASDAQ: EBON)
One of the largest gainers of the day is EBON stock, which climbed by over 30% at midday on January 26th. This is a major gain and one that reflects a sizable bullish turnaround following EBON’s less than stellar one year performance.
While it’s obvious that information technology stocks bounced today, there are a few more reasons that EBON stock is moving right now. Ebang International is heavily involved in the production of crypto mining machines and the mining of Bitcoin. And because of this, its price is often heavily correlated to how cryptocurrency is moving. In the past few days, we’ve witnessed a major crash with most cryptocurrencies, Bitcoin included.
However, today, we are seeing Bitcoin and many other cryptocurrencies move back up. While it is difficult to say how long this will continue or whether it is purely speculative, it is an interesting move that is worth keeping track of. And, because EBON stock is highly volatile, investors should fully understand the company before investing. With that in mind, do you think EBON is worth buying or not?
Can Penny Stocks Continue to Climb Next Month?
In the past month or so, we’ve seen an incredibly high rate of volatility in the stock market. Because of this, it is a tough time to invest without the right information and strategy by your side. So, always try to stay up to date with what is occurring in the stock market. This means following the news, understanding how to shift your trading strategy, and knowing what industries are on the rise.
[Read More] Trending Penny Stocks to Watch in February 2022
While making money with penny stocks can seem complicated, there are plenty of ways to ease this process. And, if we consider everything that is going on, we can begin to use these factors as an advantage. So, with all of that in mind, do you think that penny stocks can continue to climb next month?
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