3 Penny Stocks to Watch With Rising Interest Rates
Investing in penny stocks in 2022 is challenging. But, with the right information on hand, it can be much easier than previously imagined. If we consider the current events that are impacting the stock market, making money with penny stocks can be completely doable.
Right now, one of the largest challenges is inflation and rising interest rates. Yesterday, the CPI data came out for the month of January showing the largest rise in almost four decades. And as a result, markets reacted poorly, and we saw a sizable midday dip.
But, inflation is not the only factor right now as rising interest rates to combat it, are also at play. Fed Chair Jerome Powell has stated that the Fed may raise interest rates as soon as March, which has inspired fear among some investors. And while nothing is concrete, these are all items to consider. So, with that in mind, let’s take a look at three penny stocks to watch as interest rates rise.
3 Penny Stocks For Your Watchlist With Interest Rates Rising
- Velodyne Lidar Inc. (NASDAQ: VLDR)
- Luokung Technology Corp. (NASDAQ: LKCO)
- Harmony Gold Mining Co. (NYSE: HMY)
Velodyne Lidar Inc. (NASDAQ: VLDR)
In the past few trading days, we’ve covered VLDR stock numerous times due to its consistent gains and movement. And, in the last five, we’ve seen shares of VLDR stock shoot up by over 6.2%. While VLDR stock has declined by over 45% in the past six months, we have seen a small bullish rise in the last month or so.
Since January 27th, shares of VLDR stock have climbed by more than 20%, which is no small feat. The big news for Velodyne came a few days ago on February 9th. This is when it announced that it had won a patent challenge brought up by one of its leading competitors, Quanergy.
“Velodyne is pleased with the Federal Circuit’s decision, which confirms the validity of our groundbreaking patent for surround view lidar technology. We were confident we would prevail because our company invented real-time surround view lidar and holds a number of foundational patents relative to this technology.”The CEO of Velodyne Lidar, Dr. Ted Tewksbury
If you’re not sure what Velodyne Lidar does, it is a producer of technology used in a variety of sensors. This includes those put in autonomous vehicles, UAV’s, smart cities and much more. As a result, it has become a major part of the autonomous tech market in the past few years. So, while VLDR stock can be highly volatile, it also has a lot going for it right now. Considering that, will it be on your list of penny stocks to watch?
Luokung Technology Corp. (NASDAQ: LKCO)
One of the bigger gainers of the day during trading is LKCO stock. By midday, shares of LKCO stock had jumped by over 5.3% to north of $0.85 per share. If that seems like a lot, we’ve seen shares of LKCO climb by almost 70% in the past five days. This is a surprising turnaround from its one year decline of over 29%, and shows that the company is working to grow.
The most recent news from Luokung came on January 7th when it announced the receipt of notification from the NASDAQ regarding it not meeting the minimum bid price requirement. Before we get into other news, we have to take a look at what Luokung Technology does.
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Luokung provides spatial-temporal big data services to a variety of companies. Its services include LBS and HD maps for several industries in China. In addition, it offers smart transport, natural resource asset management, LBS industry applications, smart logistics and much more. Because of the broadness of its offerings, Luokung has become a leader in the Chinese tech market.
In the beginning of December 2020, Luokung announced record revenue for the nine months ended on September 30th. In this time, it post $74.9 million in revenue compared to $13.1 million in the year prior. This is all exciting and helps to show that LKCO stock is growing right now. So, with this in mind, does LKCO stock deserve a spot on your penny stocks watchlist?
Harmony Gold Mining Co. (NYSE: HMY)
Today, shares of HMY stock shot up by over 4.9% to north of $3.82 per share as of EOD. This brings its five day gain to over 5%, which shows solid bullish sentiment in the company. Outside of the gold industry as a whole, we have not seen any company-specific news driving the price of Harmony Gold Mining. So for that reason, let’s take a look at what is going on with gold right now. Recently, the price of gold has been on the rise alongside silver.
In the past few weeks, gold and silver have both hit around two month highs. And, with inflation also rising to historic levels, many investors have turned to precious metals stocks as a way to avoid the rampant volatility of the greater stock market. With the CPI report coming out yesterday showing the greatest rise in inflation in almost four decades, many investors are fearful right now. And, in times of fear, we see a major turn to safeguard investments like gold and silver.
So, while it is difficult to look at this outside of HMY stock’s own balance sheet, we are seeing broader market moves right now. And, it looks like this momentum could continue as long as there are economic issues on a widespread basis. Considering this, is HMY stock right for your penny stocks watchlist or not?
Which Penny Stocks Are You Buying Right Now?
If you’re looking to buy penny stocks right now, there are plenty of options to choose from. As a result of the sheer amount of momentum in the stock market, picking the best penny stocks for your list can be challenging. But, with the right research by your side and a consistent trading strategy, it can be much easier than previously imagined.
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Now, when it comes to investing in penny stocks, understanding exactly what is going on in the market will be a major benefit. So, keeping up to date with the news is paramount. Considering all of this, which penny stocks are on your buy list right now?