Buying Penny Stocks Today? Here’s What You Need to Know
With another day of trading penny stocks and blue chips here, understanding what’s going on in the stock market is crucial. Now, every day with penny stocks is different and as a result, knowing what factors are impacting certain industries or specific stocks, can mean the difference between profits and losses.
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In the past few weeks, we’ve seen major downtrends across the stock market. And while the last few trading days have been more bullish, the overall sentiment in the market right now is fear. So, with all of this in mind, let’s take a look at what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
During premarket trading, Futures for several of the main indexes moved lower. While this is not great news, we have seen stocks close higher for four days in a row following an exceptionally poor-performing January. Much of the momentum yesterday was due to the positivity surrounding earnings from several major tech players.
However, Facebook’s parent company, Meta Platforms Inc. (NASDAQ: FB), dropped by over 23% in premarket trading. This is the result of it missing estimates after the market closed on Wednesday. In its Q1 results, the company estimated revenue to be between $27-$29 billion, which is below expectations of $30.25 billion. And, with Amazon reporting soon and Alphabet’s stellar results and 20 for 1 stock split announcement, there is a lot of volatility abound.
Additionally, ADP reported that private-sector employers in the U.S. reduced the amount of jobs posted by around 301,000. This is the first decline since December of 2020. So, with all of this in mind, let’s take a look at three penny stocks that are climbing in premarket trading.
3 Penny Stocks Climbing During Premarket Right Now
- Soc Telemed Inc. (NASDAQ: TLMD)
- BioCardia Inc. (NASDAQ: BCDA)
- Lightning Emotors Inc. (NYSE: ZEV)
Soc Telemed Inc. (NASDAQ: TLMD)
The largest gainer by far during premarket trading is TLMD stock. By early morning, shares of TLMD stock were up by over 340%. This is a staggering rise and comes on the heels of news announced only a few hours ago.
On February 3rd, the company stated that it will be acquired by Patient Square Capital, which is a leading health care investment firm. For some context, SOC Telemed is one of the largest providers of telemedicine in the country. In the deal, SOC Telemed shareholders will receive $3 in cash per share. With this in mind, will TLMD be on your list of penny stocks to watch?
BioCardia Inc. (NASDAQ: BCDA)
Another major morning mover right now is BCDA stock. On February 3rd during premarket, shares of BCDA stock pushed up by over 33%. While many large gains with penny stocks occur without news, BCDA made an exciting announcement during premarket.
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It stated that it received FDA Breakthrough Device Designation for its CardiAMP Cell Therapy System. This system is used in the treatment of heart failure, and is the first of its kind to receive this status.
“It is exciting for the field of cardiology that the FDA has recognized the potential of a cell therapy to improve the lives of patients struggling with heart failure.”
Carl Pepine, MD, Professor in the Division of Cardiovascular Medicine at the University of Florida
This is great news and could make BCDA stock worth adding to your penny stocks watchlist.
Lightning Emotors Inc. (NYSE: ZEV)
With over 13% in gains during premarket trading today, ZEV stock is on many investors radars right now. The big news with Lightning Emotors comes as the company announced an agreement with General Motors.
In the agreement, it will provide Class 3 and Class 6 Commercial vehicles that are fully electric. And, it will be the first GM Speciality Vehicle Manufacturer, and it will electrify different existing truck platforms as well. This is a huge deal for the company and clearly explains its sizable uptick during trading today.
Are Penny Stocks Worth Buying?
If you’re looking for penny stocks to buy right now, there are hundreds of options to choose from. With such a wide variety, investors have to use as much information as they can to make educated and informed decisions.
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Because there is so much movement in the stock market, traders also would benefit from having a concise and well-thought-out trading strategy on hand. Considering this, do you think that penny stocks are worth buying?
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