Penny stocks refer to the stock market quotations of companies trading below $5 per share. Most are issued by small and emerging stage companies that can be very profitable if you know how to buy them and sell them for maximum profit.
However, keep in mind that trading penny stocks is high-risk and speculative, which is why there can be so much volatility daily. But that doesn’t scare you, does it? Right now, you’re looking for the best penny stocks to buy. Today we’ve got a list of 5 trading for under $5. Whether they’re worth the risk or should be avoided entirely is something I’ll let you decide.
Penny Stocks To Buy [or avoid]
- Wheels Up Experience Inc. (NYSE: UP)
- Best Inc. (NYSE: BEST)
- Sphere 3D Corp. (NASDAQ: ANY)
- American Resources Corporation (NASDAQ: AREC)
1. Wheels Up Experience Inc. (NYSE: UP)
Private aviation company, Wheels Up saw its shares rise in mid-day trading on Tuesday. After its recent Air Partner PLC acquisition, the trading sentiment was muted for the last few weeks. Last month Wheels Up bought the company bringing on 18 operating locations on four continents. Air Partner is a. air charter service provider offering private jet, freight, and safety solutions across multiple sectors. Furthermore, the deal is expected to close later this quarter.
CEO Kenny Dichter explained, “This acquisition will allow us to offer existing and future customers even more compelling and seamless options for private travel, expand the reach of our marketplace in key markets around the world, and add important operational capabilities to our network.”
This could come as welcome news in advance of Wheels Up’s next round of earnings. This week, the company announced that Q4 and full-year results would be released on March 10th. Keeping this in mind, it will be another opportunity for the company to discuss any further progress made on membership growth and active user growth. Both of these were key highlights in Wheels Up’s Q3 results.
2. Best Inc. (NYSE: BEST)
Supply chain solutions company Best Inc. has enjoyed a significant move over the last few weeks. Since reaching 52-week lows of $0.6211, BEST stock has bounced more than 75%. Thanks to a rise of interest in tech stocks lately, the company’s Software-as-a-Service platform came back into focus.
Furthermore, reopening efforts continue as the year rolls on, albeit slower due to supply chain bottlenecks. Even with this, BEST Inc. and its positioning in the Chinese market have become a point of interest for some traders. That’s also in consideration of the strong revenue growth that the company has experienced.
In its last quarterly report, Best reported meaningful figures, including 78.7% year-over-year parcel volume growth in addition to entering into a strategic transaction to offload its Express and Freight business at a roughly $1.1 billion enterprise value. Since this sale is expected to formally close in the current quarter, the timing could be something to factor in if BEST is on your list of penny stocks.
3. Sphere 3D Corp. (NASDAQ: ANY)
Cryptocurrency stocks have been flip-flopping over the last several sessions thanks to Bitcoin doing the same. With this has come a wave of volatility across most crypto-related stocks. Sphere 3D caught a surge of trading momentum on Tuesday as the price of major cryptos, including Bitcoin & Ethereum, attempted to reclaim some of their early February losses.
The company’s built its model around digital asset mining. Earlier this month, Sphere 3D announced the purchase of an additional 60,000 Bitcoin mining rigs from NuMiner Global. These NM440 miners. Based on the company’s deployment schedule, it will have 1,000 miners in June with 10,0000 NM440’s per month from September of this year through February of next year.
One of the focal points of this deal was the NM440’s ability to increase the EH/s capacity and increase efficiency. Peter Tassiopoulos, Chief Executive Officer of Sphere 3D, also explained, “The reduction in energy consumption per TH/s further exemplifies our shared commitment to ESG leadership in the industry.”
One of the things to remember with cryptocurrency-related penny stocks is that they can be tightly tied to the overall moves in the digital currency market.
4. American Resources Corporation (NASDAQ: AREC)
Energy stocks have also been a hot topic this quarter. In American Resources’ case, the company is gaining appeal for something other than oil and gas prices. It specializes in supplying carbon and rare/critical elements for the emerging electrification marketplace. American Resources also has a place in infrastructure with the supply of metallurgical carbon in steelmaking.
Thanks to widespread attention stemming from new government initiatives, American Resources stock has been one to watch for both economic reopening and green energy initiatives. In particular, the recently proposed Restoring Essential Energy and Security Holdings Onshort for Rare Earths Act brought a bit of attention to raw materials providers, including American Resources. In response to the proposed act, CEO Mark Jensen explained in a January release that “There is an estimated $3 billion of rare earth metals that go to landfills yearly in the United States, but there is currently limited domestic permanent magnet manufacturing. Having the U.S. government put in place a strategic reserve to stockpile rare earth elements is imperative for national security, but will also assist in building the market for rare earth elements and rare earth magnet production capabilities domestically.”
Meanwhile, its recent alignment with the VC arm of The Heritage Group, HG Ventures, could speed up efforts for becoming a key participant in the electric energy industry. Specifically, the company explained that this tie-up would take it down the path of being the United States’ “first and lowest cost producer” of domestically sourced, purified, and sustainable battery and magnet metals.
Penny Stocks To Buy Right Now
If you’re new to trading penny stocks, it’s important to have a plan in place. You can put together the best list of names to watch but knowing how to actually trade is the important step in this equation. Here are a few articles on penny stock basics to check out if you’re just getting into trading low-priced stocks: