3 Hot Penny Stocks to Watch As Russia Invades Ukraine
With another tense day of trading for penny stocks and blue chips, conflict between Russia and Ukraine is the main factor at play. To understand how this will affect both penny stocks and blue chips, we need to understand exactly what is going on.
While many governments have yet to call Russia’s move into Ukraine an invasion, it looks like that may be imminent. Several sources state that Russia has all of the necessary forces in play to begin moving into the country.
Only a day ago, Russia recognized two regions in Ukraine as independent. This was the first move that the country had made toward entering Ukraine. And since, tensions have continued to rise with over two dozen warships set in the Black Sea.
From the West, major sanctions have been put on Russia including freezing Russian billionaires bank accounts and stopping the Nord Stream pipeline from operating. All of this has put the stock market in an incredibly tense situation.
While today got off to a good start, stocks tumbled substantially with the S&P 500 moving deeper into a correction. This shows a four day decline for the S&P 500 which is not encouraging whatsoever. So, with all of that in mind, let’s take a look at three penny stocks to watch that are rising right now despite this conflict.
3 Penny Stocks to Watch With Geopolitical Tensions Rising
- Hims & Hers Health Inc. (NYSE: HIMS)
- Fortuna Silver Mines Inc. (NYSE: FSM)
- Harmony Gold Mining Co. (NYSE: HMY)
Hims & Hers Health Inc. (NYSE: HIMS)
Up by around 13% today are shares of HIMS stock. At $4.75 per share, HIMS is almost out of penny stocks territory. With a 29% loss YTD, it looks as though this recent move is the first bullish sign investors are seeing with the company in several weeks.
And while many large moves with penny stocks occur without news, Hims & Hers announced its Q4 and full year 2021 results as well as its Q1 and 2022 full year outlook in the results, its full year 2021 revenue grew by over 80% to $271 million YoY. Additionally, its revenue in the fourth quarter grew by 104% YoY, which is no small feat. All of these results are very exciting and show just why HIMS stock is growing right now.
“We finished our first year as a public company with our best quarter yet, once again surpassing revenue and Adjusted EBITDA expectations that we set entering the year, while maintaining an efficient capital allocation philosophy. We believe these results showcase that our mission to offer high quality, convenient, and affordable care.”The CEO and Co-Founder of Hims & Hers, Andrew Dudum
Considering this encouraging news, the choice is yours whether HIMS stock is worth adding to your penny stocks watchlist or not.
Fortuna Silver Mines Inc. (NYSE: FSM)
Another big gainer of the day so far is FSM stock. By EOD on February 23rd, shares of FSM stock had shot up by over 6%. This is quite a sizable gain, especially for a mining stock. With over 50% in losses in the past twelve months, it’s clear that FSM has not had the easiest time trading.
But, as many investors turn toward precious metals to avoid market volatility, FSM is heavily in focus. To understand Fortuna Silver Mines better, we have to take a look at its recent announcements. On February 4th, the company announced that it was pursuing clarification from Mexican authorities for its Environmental Impact Authorization for the San Jose Mine in Oaxaca, Mexico.
For some context, Fortuna Silver Mines is a Canadian precious metals mining company. It operates through four mines based in Argentina, Burkina Faso, Mexico, and Peru. Additionally, the company is working on the construction of a fifth mine in Cote d’Ivoire. It states that the core of its operations is sustainability, which it displays through efficiency and environmental protection. So, while FSM stock has not had the best twelve months, it’s clear that it is moving in the right direction. With that considered, will it be on your list of penny stocks to watch this month?
Harmony Gold Mining Co. (NYSE: HMY)
Another mining stock that is seeing heightened attention right now is Harmony Gold Mining. Today, shares of HMY stock shot up by around 5%, which is no small feat. And in the past five days, we’ve seen shares climb by more than 13%. All of this indicated sizable bullish sentiment with both HMY stock and the gold mining industry.
Similar to Fortuna Silver, Harmony Gold has seen increased popularity in the past few weeks. This is presumably due to the emphasis on mining stocks as investors work to avoid volatility from geopolitical events. Right now, it is tough to say why HMY stock is gaining outside of this, but we can take a closer look. Often when markets are awry, investors will find safeguard stocks and investments. This includes precious metals, and more often than not, gold.
While the value of gold can and does change, it is usually less frequent than other securities. And as a result, many turn toward it as a potentially stable investment option. In addition, during times of economic and political turmoil, gold tends to increase in value as more investors put faith in it. So, while HMY stock is not necessarily an investment in physical gold, it is heavily exposed to the gold industry. With that in mind, the choice is yours whether HMY stock is worth buying or not.
Can Penny Stocks Continue to Climb?
The answer to whether penny stocks can continue to climb or not is difficult to say with certainty. On any given trading day, we often see many penny stocks that are exploding in value and many that are doing the opposite.
So as investors, it is up to us to find the ones that may increase in value. While this can be difficult, it is entirely possible. With that in mind, do you think penny stocks can continue to climb in value moving forward?