Discussions surrounding penny stocks generally involve the potential for significant gains and wild volatility. The high-risk nature of these low-priced companies gives way to the opportunities of high-rewards for those who know how to trade them. As some will look for stocks to “go vertical” to capture profit, others are looking at this topic for different reasons, and it has everything to do with air travel. Let me explain.
Penny Stocks To Buy [or avoid]
- Astra Space Inc. (NASDAQ: ASTR)
- Joby Aviation Inc. (NYSE: JOBY)
- Archer Aviation Inc. (NYSE: ACHR)
- Planet Labs (NYSE: PL)
- Lilium N.V. (NASDAQ: LILM)
Best Penny Stocks To Buy
One of the exciting things about penny stocks is innovation from emerging growth companies. Today, when we talk about “going vertical,” we’re referencing several aerospace companies quite literally setting their sites on the sky. Some have even gone as far as leaving the earth’s atmosphere to achieve their goals. Are they the best penny stocks to buy now? That is something to be seen, and much of the recent momentum has a lot more to do with speculation than anything else. With “innovation” as the name of the game right now, here’s a list of penny stocks with companies zeroing in on new ways of travel, surveillance, and more:
Astra Space Inc. (NASDAQ: ASTR)
A company literally sending its services into orbit is Astra Space. Unfortunately, ASTR stock hasn’t followed suit. In fact, shares continued slumping as the company’s latest launch attempt went live on Tuesday.
Astra Space is a launch services provider, and this latest launch came after signing a multi-launch contract with Spaceflight this week. Curt Blake, CEO, and president of Spaceflight Inc., explained in a press release, “By expanding our launch partner portfolio to include Astra, we can increase the launch opportunities available to our customers. Astra’s willingness to explore creative launch solutions and shared dedication to customer success makes them a great partner.”
Despite an initial move lower as Tuesday’s launch commenced, shares of ASTR stock aggressively bounced back higher as more details of the mission circulated. In particular, as CNBC Space Reporter Michael Sheetz Tweeted out: “Astra $ASTR CEO Chris Kemp says the satellites onboard LV0009 “successfully deployed” and “the flight was nominal.” This seems to have positively resonated with the market as ASTR stock took flight during the early afternoon session on Tuesday.
Joby Aviation Inc. (NYSE: JOBY)
Shares of this company have been on our list of Cathie Wood penny stocks to watch this year. According to Ark’s most updated data, Joby Aviation currently accounts for 1.63% of the Ark Space Exploration & Innovation ETF (NYSE: ARKX), which is around 1.416 million shares. Joby is developing a fully electric aircraft for commercial passenger service. Also known as eVTOL (electric vertical take-off and landing), this trend is becoming increasingly popular. Joby, in particular, has a goal of becoming a mainstream air taxi service beginning in 2024, Joby has set the bar high.
This week the company announced that it has officially begun the fourth of a five-stage plan to receive its Part 135 Air Carrier Certificate from the FAA. Though it wasn’t as lofty an announcement as AMC investing in a gold mine, the news helped propel JOBY stock.
“Our aspiration is to not just build and certify a revolutionary aircraft, but to operate a commercial passenger service that saves people time with minimal impact on the environment,” said Bonny Simi, Head of Air Operations and People at Joby. “Achieving a Part 135 certification unlocks the ability to do that, and we’re moving through the process ahead of schedule.”
This news comes shortly after the company partnered with an aviation training company, CAE, to develop flight simulation training devices for Joby.
Archer Aviation Inc. (NYSE: ACHR)
Another eVTOL stock, Archer Aviation, has worked its way out of hot water over the last 18 months or so. The company came under fire in court proceedings involving patent infringement and trade secret accusations by Wisk (another eVTOL company). Archer denied the allegations, and earlier this year, the U.S. Attorney’s Office decided not to bring charges against its employee or continue its investigation. What’s more, other than also finding itself on the list of Cathie Wood penny stocks, other large investors are boosting their stake in the company.
As discussed earlier this month, high profile investor, founder of Jet.com, and former president & CEO of Walmart eCommerce U.S. Marc Lore has become the lead investor in the flying car company. This month Lore added to his growing position in ACHR stock. He added more than $3 million worth of stock to his already sizeable position in Archer this month.
In its last corporate update, Archer management explained how 2022 could be a pivotal year for the company. FAA Certification was received last year, allowing for test flights. Now it looks to finalize its G-2 Issue Paper to set up a means for compliance. Archer also explained that following the conceptual design review last year, it’s moving toward Preliminary Design Review milestones.
Planet Labs (NYSE: PL)
Unlike ACHR and JOBY stock, Planet Labs is taking to the skies in a different way. The company specializes in satellite imagery and geospatial solutions. NASA scientists founded the company to operate as an observation business. The company’s satellites capture data from “over 3 million images” each day and provide critical data and insights to hundreds of customers. These customers are in several industries, including agriculture, forestry, education, finance, and intelligence.
Given the global unrest thanks to the Russia-Ukraine conflict, satellite companies have come back into focus. Since last Tuesday, shares of PL stock have jumped 14% from their lows. Meanwhile, the market remains focused on upcoming events for Planet Labs. In particular, The company reports its latest round of financial results after the closing bell on March 31st.
What do analysts think about Planet Labs? So far, multiple firms have a bullish outlook on PL stock. Wedbush, Piper Sandler, Goldman Sachs, and Needham have Buy or equivalent ratings on the company. Price targets range from $10-$11 right now.
Lilium N.V. (NASDAQ: LILM)
Lilium was on the receiving end of a bearish short report this week. But it doesn’t negate that the company is looking to capitalize on the new excitement in eVTOL stocks. Lilium’s model is based on making eVTOL jets. Its focus is on speeding up the decarbonization of air travel, and with rising fuel prices, this may come as a timely trend in the stock market.
Lilium inked a memorandum of understanding with private aviation company NetJets earlier this month. The MOU calls for an arrangement for Lilium to provide NetJets with a right to buy up to 150 Lilium aircraft. There were also plans reported for NetJets to support a private sales campaign for individuals to buy Lilium aircraft.
However, some market participants didn’t feel that the hype met up with the potential of Lilium. This week Iceberg Research issued a short report pointing out the company could face an “estimated $652 million overhang” as its 180-day lockup period comes to an end. This was among a laundry list of issues Iceberg posed as glaring risks for investors. LILM stock dropped to fresh lows as a result. However, on Tuesday, the eVTOL stock managed to bounce back slightly from $2.16 to back above $2.60.
What Are The Best Penny Stocks To Buy Right Now?
Given the volatility in the stock market today, there’s no shortage of “should I do” questions. Should you buy shares of Tesla right now? Should you buy penny stocks in a down market? If so, what are the best penny stocks to buy right now? All of these are great questions, and to begin, you’ve got to have a strategy in mind first. Are you a day trader, swing trader, long-term investor, etc.? The answer to that will help you determine the names to add to your list of penny stocks.