Penny stocks are some of the most actively traded stocks in the market right now. Billions of shares of these cheap stocks change hands daily with hopes of capitalizing on the massive volatility present. Recently a stronger trend in energy and oil has certain penny stocks on the radar right now. This trend has helped boost many stocks under $5, which have otherwise struggled to achieve gains over the last few months.
Look no further than Indonesia Energy (NYSE: INDO) for a relevant example of how active oil penny stocks are right now. At the end of January, shares of the energy company were trading below $3. This week, INDO stock surged to new highs of $82 – yes, you read that correctly. What’s more, daily trading trends in INDO stock have also resulted in significant short-term gains for the company made popular by retail traders.
Most Active Penny Stocks To Watch
- Polar Power Inc. (NASDAQ: POLA)
- Ocean Power Technologies (NYSE: OPTT)
- VivoPower International (NASDAQ: VVPR)
- PEDEVCO Corp. (NYSE: PED)
Best Penny Stocks To Buy [or avoid]
The thing to remember with penny stocks (especially ones moving based on speculative trends) is that the tides can shift quickly in either direction. When the headlines start becoming less frequent or the narrative changes, that can significantly impact the way certain penny stocks are trading, no matter how popular they are.
This year, we saw something similar with the cryptocurrency space and countless other secular trends. However, energy and oil penny stocks are growing in popularity. So it may not hurt to have a few on your watch list. Whether they end up becoming the best penny stocks to buy or if they should be avoided entirely is something that I’ll leave up to you to decide.
1. Polar Power Inc. (NASDAQ: POLA)
Polar Power was a monster of a penny stock last year. While momentum had built up during the second half of 2020, the real move came when POLA stock skyrocketed from around $5 to highs of over $30 within a matter of a few weeks. Like I had explained, speculation can become a significant catalyst on the way up, but when things change, that can mean a much different reaction in the market. Polar Power was on the receiving end of this, as you can see.
Regardless of the move back to earth, the company is back on some traders’ radars following the excitement in the energy industry right now. Polar Power focuses on solar hybrid power solutions for numerous industries. These industries range from military and telecommunications to marine and even electric vehicles.
While not much has been released from the company lately, sympathy sentiment is giving a boost to renewable energy stocks in the face of higher oil prices. It’s also the thick of earnings season, and the market may be looking for more progress from Polar Power. In its last quarterly update, the company reported a 65% increase in net sales for Q3 compared to the previous year’s quarter. Net sales for the nine months ending in September also revealed considerable growth coming in 89% higher, year-over-year.
2. Ocean Power Technologies (NYSE: OPTT)
Clean energy stocks have begun taking center stage, and Ocean Power was a fan-favorite/ The company joins the list of penny stocks thanks to its focus on power generation solutions using ocean waves, believe it or not. Its PowerBuoy platform offers clean electric power and real-time data communicators for maritime and subsea applications. These mainly include customers in the defense, oil & gas, and offshore wind markets.
There are a few things to consider when looking at OPTT stock. First, its sympathy momentum thanks to the energy stock trend right now. Furthermore, the company has upcoming earnings next Monday, setting the tone for the rest of the year. These will reveal highlights from the company’s fiscal 2022 third quarter. In its previous quarter’s results, Ocean Power recorded a better EPS than its previous year’s Q2. It also saw higher year-over-year sales figures of $247,000 compared to $118,000 during the previous year’s second quarter.
Earlier this month, Ocean Power gained attention thanks to a new patent grant from the European Patent Office. Titled “Power Take Off System For Wave Energy Converter Buoy,” this helped expand Ocean Power’s IP portfolio even more. With the clean energy trend helping stocks today, OPTT has come back into focus.
3. VivoPower International (NASDAQ: VVPR)
Sustainable energy company, VivoPower focuses on battery storage for fleet applications. These include solar and “critical power” technology. Vivo provides decarbonization solutions allowing them to gain a net-zero carbon status.
For example, VivoPower’s Dutch subsidiary, Tembo, is expanding its electric light vehicle development facility this year. Its conversion kits are designed to change diesel-powered vehicles into electric light vehicles used in the mining, infrastructure, and even the defense sectors. The company has other clean energy subsidiaries, including its Australian Kenshaw Electrical company focusing on generator design and servicing and customized motor modifications.
Despite mixed earnings for the second half of 2021, the recent surge of speculation in energy stocks seems to have helped VVPR stock today. So far, it has made a move from lows of $1.67 to more than $2.40 to start the week.
4. PEDEVCO Corp. (NYSE: PED)
Oil and gas company PEDEVCO has also turned some heads in the stock market today, and it hasn’t all been based on speculation. The company announced that it would present at the upcoming Roth Conference next week. The news comes shortly after its latest D-J Basin asset acquisition was closed in February.
The company’s new assets include acreage in Weld County, Colorado. According to PEDEVCO, it increased its average working interest across these two drilling space units from 2.50% up to 7.37% and 3.68%, respectively. What’s more, the analyst community has also rallied behind the company. Roth Capital and EF Hutton initiated coverage on PEDEVCO this year with Buy ratings and targets of $1.95 and $2, respectively.
Can You Get Rich off Penny Stocks?
The short answer is Yes, but you have to start with the basics. Learning how to trade, what to search for, and how to make a watch list are a few of the things to begin with. It would help if you also weighed some of the pros and cons of trading penny stocks. With such a significant upside, there are plenty of risks you’ll likely encounter along the way.
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