Why Retail Traders Have These Penny Stocks on Their Watchlists
If you’re looking for the best stocks to buy, penny stocks may be a good option. Penny stocks are stocks that trade for less than $5 per share and can be found on a variety of exchanges. While these stocks may be riskier than their blue-chip counterparts, they can also offer a higher potential return.
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To find the best penny stocks to buy, start by doing some research on a stock screener. A stock screener allows you to filter stocks by certain criteria, such as price, market capitalization, and sector. Once you’ve found a few stocks that meet your criteria, take a closer look at each one to see if it’s a good fit for your investment portfolio. This is called building a penny stocks watchlist, and should always be done prior to investing.
Why Retail Traders Trade Penny Stocks
A retail stock trader is someone who buys and sells stocks for their own account, as opposed to buying and selling stocks on behalf of a larger institution. They may use a variety of strategies to try and make profits from the stock market, such as buying stocks that they believe are undervalued and selling them when they believe the price is too high.
This is common, however, with retail traders, it is more often than not, based on speculation or social sentiment rather than fundamentals. Right now, some popular choices include Gevo Inc. (NASDAQ: GEVO) and Clearside Biomedical Inc. (NASDAQ: CLSD) among others.
Many retail stock traders use online brokers to buy and sell stocks, and there are a number of different brokerages to choose from. It’s important to do your research before choosing a brokerage, as each one has different fees and features. Considering this, let’s take a look at three penny stocks that retail traders are watching right now.
3 Penny Stocks That Retail Traders Are Watching Right Now
- New Oriental Education & Tech Group (NYSE: EDU)
- Vinco Ventures Inc. (NASDAQ: BBIG)
- Butterfly Network Inc. (NYSE: BFLY)
New Oriental Education & Tech Group (NYSE: EDU)
One of the biggest gainers of the day during trading on March 15th was EDU stock. By EOD, shares had shot up by over 22%, bringing it to over $1.06 per share. This is a sizable uptick and comes after a week where EDU stock shot down by over 13%.
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And, in the past month, shares of EDU stock have dropped in value by around 40%, which is quite disappointing. So, is this recent move a bullish turnaround or not? Well, one of the main reasons behind it comes as the Chinese stock market dropped substantially on Monday, March 14th. This was the largest drop since 2008, and prompted many major concerns around the financial industry.
During trading today however, many of these companies began to bounce back with higher prices. So, while it is tough to say if EDU stock is worth it or not, there’s no doubting that this gain is short term and highly speculative. With that in mind, will EDU be on your penny stocks watchlist or not?
Vinco Ventures Inc. (NASDAQ: BBIG)
Another big gainer during trading on March 15th was BBIG stock. By EOD, shares of BBIG had shot up by almost 5%, bringing it to over 4.9%. While shares of BBIG stock have dropped by over 74% in the past six months, it has seen several periods of bullish momentum during that time. The most recent news from the company comes as Vinco continues to make new acquisitions.
As a trending meme stock, Vinco Ventures has attracted attention from all around the stock market in the past year or so. And with its acquisition of Lomotif and its merger with ZASH Global, the company is making big waves. In addition, BBIG has been working on a buyout of AdRizer, which will come out to almost $40 million. Although BBIG stock is highly volatile, there’s no doubting that the company has a lot in the works. Considering this, does it deserve a spot on your list of penny stocks to buy?
Butterfly Network Inc. (NYSE: BFLY)
By EOD on March 15th, shares of BFLY stock had shot up by over 20%. This is a sizable gain and comes only a few days after the company made some exciting announcements. On March 9th, it stated that it will be providing 1,000 healthcare workers in Sub-Saharan Africa with groundbreaking ultrasound technology. This comes after receiving a $5 million grant from the Bill & Melinda Gates Foundation.
“Many places in the world, especially low- and middle-income countries, are diagnostic deserts, leaving practitioners with virtually no imaging modalities to aid in the diagnosis and subsequent treatment of patients. At Butterfly, we’ve long envisioned and innovated for the next generation of point-of-care.”
The CEO of Butterfly Network, Dr. Todd Fruchterman
This is exciting news for the company and should help to bring it more attention in the near future. Considering all of that, do you think that BFLY stock should be on your watchlist or not?
Should Penny Stocks Be on Your Watchlist?
There’s no easy answer when it comes to penny stocks and whether or not they’re worth investing in. It depends on a number of factors, including your financial goals and how much risk you’re willing to take on.
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That being said, stocks can be a good way to grow your portfolio over time. In addition, the stock market as a whole tends to outperform other investments, such as bonds and cash, in the long run. While penny stocks are more volatile, and therefore more likely to fluctuate, the potential remains high. With this in mind, will penny stocks be on your watchlist or not?
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