3 Penny Stocks to Add to Your Watchlist This Coming Week
After a volatile week of trading penny stocks and blue chips, there is a lot that investors are looking forward to for next week. Now, to understand how to make money with penny stocks, we have to consider what is going on in the stock market and how to take advantage.
Right now, the largest impacting factor on penny stocks is geopolitical tensions between Russia and Ukraine. This has continued to create cause for concern among all investors and has pushed volatility to higher levels in the past few weeks.
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On February 22nd, we saw the first glimpse of an invasion with Russia pushing into two territories in Ukraine. So while this is the most important aspect to consider about trading right now, we also have to take a look at other factors going on simultaneously. This includes Covid, interest rates, and inflation. The result of all of this is that the stock market is more reactive than we’ve seen in many years. And while that may be a bad thing for those looking for a long-term stable investment, those investing in penny stocks could benefit.
Because many tend to swing trade penny stocks, large and frequent price moves are a desired attribute. But, investors should have a thorough and consistent trading strategy on hand to ensure the greatest chance of profitability. Considering all of this, let’s take a look at three penny stocks to add to your watchlist this coming week.
3 Penny Stocks for Your End of February Watchlist
- Gran Tierra Energy Inc. (NYSE: GTE)
- Gevo Inc. (NASDAQ: GEVO)
- Kosmos Energy Ltd. (NYSE: KOS)
Gran Tierra Energy Inc. (NYSE: GTE)
In the past few trading days, Gran Tierra Energy has been in focus. With over 55% in gains in the past month, it’s clear that there is a lot of bullish sentiment surrounding the energy penny stock. As a result of both company-specific factors and larger industry news, many investors continue to watch GTE stock. The latest news from the company came on February 23rd when it announced its Q4 and full year 2021 results and an operational update.
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In the results, the company managed to increase its production by 17% over 2020. In addition, it brought in a net income of more than $42 million, which is its largest number in several years. And, its adjusted EBITDA came in at $242 million, which represents a YoY gain of 150%. Lastly, the company managed to bring in a free cash flow of over $37 million, which is its highest in almost 10 years.
“After the many challenges in 2020 that the world faced, 2021 was a year of strong recovery for the energy industry and Gran Tierra. Our top tier, low-decline, onshore, conventional asset base continued to prove its high quality as the Company returned to strong growth in 2021 in production, reserves, funds flow from operations, free cash flow, and after tax NAV per share.”
The CEO and President of Gran Tierra, Gary Guidry
This is all exciting news for the company and shows why so many investors are interested in it. With that in mind, will GTE be on your penny stocks watchlist?
Gevo Inc. (NASDAQ: GEVO)
Another penny stock that has been gaining attention recently is GEVO stock. Despite a six month drop of more than 48%, we have begun to see a small bullish turnaround for GEVO in the past few trading days. The most recent update from the company came on January 31st when it announced the start of its renewable gas project in Northern Iowa. It stated that its renewable natural gas or RNG project, is expected to produce around 355,000 MMBtu of RNG per year.
“We’re excited to get NW Iowa RNG online, right on schedule. Our team here has done a terrific job, creating a facility that will become an example of how renewable energy can work for years to come, and we’re excited to bring our partnership with area farmers to the next stage.”
The COO and President of GEVO, Dr. Chris Ryan
If you’re not familiar, Gevo works to build out renewable energy reserves by utilizing energy-dense liquid hydrocarbons. The company states that these can be used in everything from gasoline to jet and diesel fuel. And, when it is burned, it has the potential to produce net-zero greenhouse emissions for the full life cycle. This is exciting and comes at a time when there is major emphasis on renewables. With that considered, is GEVO stock worth adding to your list of penny stocks to watch?
Kosmos Energy Ltd. (NYSE: KOS)
Another energy penny stock and one that we have covered extensively in the past few weeks is Kosmos Energy. With some recent bullish momentum, it appears as though Kosmos Energy is back in the public eye. In the past six months, shares of KOS stock have bumped up by over 90% to its current price of around $4.20 per share.
This is a major uptick and one that reflects the bullish sentiment of the energy industry right now. It’s tough to say why shares of KOS are moving right now aside from larger industry momentum. However, the company did announced that it will post its fourth quarter 2021 results on February 28th after the market opens. As a deepwater oil and gas exploration company, Kosmos is exposed to the ups and downs of the energy sector. Considering this, is it worth adding to your watchlist or not?
Are Penny Stocks Worth Buying Right Now?
If you’re looking for penny stocks to buy right now, there are plenty of options to choose from. While it can be difficult given the large number of factors impacting the stock market, understanding exactly what is going on can help greatly. In addition to this, having a thorough trading strategy will be a major asset for profitability.
[Read More] Are Penny Stocks Worth Buying in 2022?
So, as you can see, there is plenty to consider about trading penny stocks right now. But, with the right information on hand, it can be much easier to buy and sell small caps than previously imagined. With that in mind, do you think penny stocks are worth buying right now or not?
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