3 Hot Small Caps to Add to Your Penny Stocks Watchlist
After another day of highly volatile trading for penny stocks and blue chips, there is a lot for investors to consider right now. Of course, the most pressing factor is the conflict between Russia and Ukraine. This has resulted in major market volatility for the entire stock market. The biggest catalyst that we witnessed today was the blockade of Russian oil from the U.S.
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This came during a speech from President Biden and resulted in some upticks in the market. Now, while volatility is and can be a great way lose money with stocks, it can also be a great way to profit. This involves having a well-thought-out trading strategy and understanding exactly how to trade. With this in mind, let’s take a look at three hot penny stocks to watch right now.
3 Penny Stocks to Watch in March 2022
- Gaotu Techedu Inc. (NYSE: GOTU)
- DSS Inc. (NYSE: DSS)
- Clover Health Investments Corp. (NASDAQ: CLOV)
Gaotu Techedu Inc. (NYSE: GOTU)
During trading on March 8th, shares of GOTU stock shot up by over 8.5%. This is a sizable increase and comes after a six month decline of nearly 46%. So, why are shares of GOTU stock climbing right now?
Well, during premarket, the company announced its Q4 2021 and full year results. In the results, it posted RMB1,274.3 million in net revenue, which is slightly more than half of what it posted in the previous years same period. In addition, the company stated that it brought in net income of around RMB285 million. This is compared to a net loss of RMB627 million in the same period of the previous year.
“In the fourth quarter, we achieved considerable profitability in both GAAP and non-GAAP terms, as well as positive net operating cash flow, after we restructured our business in the third quarter.
Our net profit was RMB285.9 million and our non-GAAP net profit was RMB324.4 million, which gave us a record-high non-GAAP net profit margin of 25.5%. All of these indicate that the business restructuring and organizational adjustments we performed in the third quarter of 2021 delivered significant results.”
The CEO of Gaotu Techedu, Larry Xiangdong Chen
Now, the past year or so has been extremely tough for GOTU as bans on for-profit tutoring have halted growth. However, as the company works to overcome these challenges, it could be worth adding to your penny stocks watchlist.
DSS Inc. (NYSE: DSS)
Another major gainer of the day on March 8th is DSS Inc. By EOD, shares of DSS stock had pushed up by more than 15%. This gain shows just why so many investors are watching DSS stock right now. In the past five day and one month period, shares of DSS have shot up by over 19% and 35% respectively.
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And to understand this, we have to take a closer look at the company. The most recent news from the company came on March 3rd. On the 3rd, it announced that it had received a positive report for the international patentability of its compound, Equivir. This is a compound used in treating viral infections that could cause outbreaks. It states that this drug could reduce both the risk and severity of these infections.
“It is Equivir’s potential against a wide variety of infectious diseases, coupled with a relatively straightforward manufacturing process which makes Equivir of potential value around the world. While the threat of viral infections remains significant, it is Equivir’s ability to be quickly deployed as a working solution wherein such a treatment can be significant.”
Dr. Roscoe M. Moore Jr., the United States Assistant Surgeon General (Retired)
This is a big deal for the company and the medical industry as a whole, and should help toggle DSS more popularity in the coming weeks. Considering this, do you think DSS is a worthwhile addition to your list of penny stocks to watch?
Clover Health Investments Corp. (NASDAQ: CLOV)
Another sizable gainer of the day today is Clover Health Investments. By EOD, CLOV stock had shot up by more than 15%. While this may not seem like a lot, it is significant considering a six month drop of more than 65%. So, whether CLOV stock is seeing a bullish turnaround or not right now is definitely worth exploring.
It’s worth noting that we’ve talked about CLOV stock numerous times in the past few weeks due to its market popularity and recent momentum. The biggest announcement to come from Clover Health recently is its Q4 2021 financial results. Clover Health released these on February 23rd, and the numbers were highly encouraging.
In the results, the company posted fourth quarter revenue of more than $432 million. This represents a 160% increase YoY. The company also stated that it expects revenue in 2022 to be over $3 billion. This would occur as a result of a 90% YoY growth in its lives under management.
“We are really excited about where Clover sits today and our prospects in the future. We are enabling physicians to provide great healthcare to all, especially those in underserved communities, and are pleased to see increasing focus from CMS on health equity.”
The CEO of Clover Health Vivek Garipalli
With all of this in mind, is CLOV stock worth buying or not?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy can be challenging. But, with a proper trading strategy and a consistent understanding of how to trade penny stocks, making money with small caps can be much easier.
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Now, knowing where to look and what is going on in the stock market will also be a major benefit. So, with all of that in mind, which penny stocks are you watching right now?
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