The stock market traded lower yet again on Wednesday as traders continued digesting news out of Russia & Ukraine. This has weighed heavily on some higher-risk asset classes like small-cap stocks. This month, the Russell 2000 Small Cap Index (NYSE: IWM) has taken the brunt of heavy selling. Though the ETF has bounced back from 2022 lows, it still hovers around some of its lowest levels since the start of 2021. Does this mean penny stocks are dead?
That depends on what you’re looking at and how you find penny stocks to buy. On a broader scale, you could look at the IWM and see massive selling pressure taking it lower this year. You’ll also likely notice that trading volumes have tailored off a bit since January. Then again, if you’re looking at day-to-day trends, you might have a different outlook on things.
Specifically, the stock market crash could be alive and well, but there’s a good chance you’ll find at least a small list of penny stocks making new highs. Today we look at 3 bucking the trend and clearly show that penny stocks are alive and well in February. You need to know how to identify trends worth following.
Penny Stocks To Watch
- Camber Energy (NYSE: CEI)
- Evolve Transition Infrastructure (NYSE: SNMP)
- Kosmos Energy (NYSE: KOS)
Camber Energy (NYSE: CEI)
One of the things to search for even when the stock market is down is sector trends. This isn’t always the case, especially with penny stocks. But when you want to find strength in the stock market, start “big” and work your way down. Energy has become a considerable focus thanks to the overwhelming concerns stemming from the Russia-Ukrain conflict today. Everything from oil and gas to alternative energy resources is in the spotlight.
We’re not just talking about mainstream companies like Exxon or Chevron. Smaller energy penny stocks are gaining momentum as well. Camber Energy is one of the most popular meme stocks to watch over the last year. It had its time in the sun during last year’s late second and early third quarters. At some points, nearly 1 billion shares would trade hands within a single day as retail traders flocked to the volatility in CEI stock. It would all come crashing down following a short report citing potential risks stemming from the epic move in the market.
This hasn’t taken it off of watch lists, however. Thanks to new attention in small-cap energy stocks, shares have jumped on Wednesday to some of the highest levels this week. Camber specializes in custom energy and power services for North American clients and holds interests in oil and gas assets in the U.S.
What To Watch With CEI Stock
This year, not much has been discussed as the company battles to stay listed on the NYSE. Aside from this, the market appears to have become interested in Camber’s latest acquisition. Through its Viking Energy subsidiary, the company acquired a controlling interest in two companies with IP rights to proprietary Electric Transmission and Distribution Open Conductor Detection Systems.
James Doris, President and Chief Executive Officer of Camber and Viking, explained in a February release, “This technology is extremely important. It truly is difficult to put a monetary value on a solution that can sense a broken power line and cut the electricity flowing through the line before the wire hits the ground. Arcing and sparking energized power lines are hazardous, and difficult to detect using traditional concepts.”
In light of new interest in small-cap energy stocks and CEI specifically, it could be one that traders add to their watch lists right now. The penny stock also has a history of volatility so keep this in mind if it’s on yours right now.
Evolve Transition Infrastructure (NYSE: SNMP)
We discussed Evolve as attention began focusing on energy names earlier this week. Instead of traditional oil and gas, the company specializes in energy infrastructure development, including energy that will lower carbon exposure to the environment.
Late last year, Evolve completed a senior leadership transition and established a joint-venture initiative with Nuvve, Levo Mobility. The companies signed a non-binding deal to roll out electric buses and charging stations.
What To Watch With SNMP Stock
Green energy isn’t the highlight of the stock market today. However, infrastructure companies have remained a focus during the global reopening efforts following the pandemic. Concerning the recent JV, it will be interesting to see what comes next. This week, it was reported that Levo strengthened its leadership team with new key hires. These included new Chief Commercial and Operating Officers for the company.
Kosmos Energy (NYSE: KOS)
Holding with the traditional energy sector trend, Kosmos Energy saw another day of bullish action. The company focuses on deepwater oil and gas production and exploration projects. With assets in offshore Ghana, Equatorial Guinea, and the U.S. Gulf, Kosmos’ operations are far-reaching.
Earlier this year, Kosmos completed drilling at its Winterfell-2 appraisal well in the Gulf. In a January PR, CEO Andrew G. Inglis explained that “The positive result from Winterfell-2 appraisal well demonstrates the greater potential in the Winterfell area. The well results are encouraging and provide the support needed to advance a low-cost, lower-carbon development scheme that could be brought online in around two years.”
With this update, analysts, including Goldman Sachs and Berenberg Bank, boosted their price targets. Barenberg increased its $5.20 target to $5.40. Meanwhile, Goldman raised its $5 target to $7.50. Both maintain a Buy rating on KOS stock.
What To Watch With KOS Stock
What is there to watch with KOS stock now that energy is in the limelight? IN 5 days, the company reports its fourth quarter, 2021 results, and hosts a conference call later the same day. Kosmos saw a year-over-year increase in earnings per share in its previous quarter’s results but missed on sales estimates. Even with this as the case, Kosmos management remained upbeat on the company’s future based on de-risking initiatives taken and the state of current oil prices.
Are Penny Stocks Worth It?
This question: “Are penny stocks worth it” is a constant unknown. A lot will depend on your strategy and outlook on stocks. Ultimately, no matter the opinions you might have, the fact remains that even when the stock market is down, you’re sure to find certain penny stocks on the move. It’s all about identifying the opportunities early.
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