Penny stocks are some of the highest-risk types of stocks to buy, and for a good reason. They’re called “penny” stocks because they trade at a fraction of the prices of some of the most popular names in the stock market today. Then again, they are also the stocks that end up far outpacing the broader FANG, S&P, and Nasdaq by large multiples daily.
Since they’re so volatile, it’s important to have a game plan before you trade them, and looking at current events can help you formulate one. Today, two significant events could sway the tides for public exchanges. Both President Joe Bident and Federal Reserve Chair Jerome Powell give their comments today. Based on what is said, it could give rise to new trends that could drive certain penny stocks in one direction or another, and we’ll discuss this in today’s article.
Hot Penny Stocks To Watch
- AgEagle Aerial Systems (NYSE: UAVS)
- Vislink Technologies Inc. (NASDAQ: VISL)
- Globalstar Inc. (NYSE: GSAT)
- Draganfly Inc. (NASDAQ: DPRO)
Best Penny Stocks To Buy After Biden & Federal Reserve Meeting
The interesting part about the broader commentary from the US President and Fed Chair is that they can spark excitement in multiple industries. For example, the market is looking for confirmation of the number and frequency of rate hikes. Investors also continue looking for clarity on the state of Russia & Ukraine and how other countries will respond.
As far as the Fed Meeting goes, here are some of the highlights:
- The Fed raised Key Interest Rates To 0.25-0.50%
- Fed Members also voted 8-1 For 0.25-0.50% rate with St. Louis Fed President Bullard voting for a 50 basis point rate increase.
- Fed also said that it sees 2022 US GDP 2.8% and 2023 GDP 2.2%.
- As far as inflation goes, the Federal Reserve expects 2022 inflation of 4.3% and 2023 inflation 2.7%.
- The Fed Fund Rates is expected to be at a Median 1.9% by the end of 2022, a Median 2.8% by the end of 2023 and at 2.8% End Of 2024.
- The Fed also said that the Committee will keep monitoring the implications of incoming information on the economic outlook and that it would be prepared to adjust the stance of monetary polity approriately if risks emerge.
While the initial move in the market was lower, Jerome Powell’s comments seem to have brought some calm to an otherwise hawkish stance. This article will look at a few of the hot penny stocks that have made a move as President Biden and Federal Reserve Chair Jerome Powell made comments today.
AgEagle Aerial Systems (NYSE: UAVS)
In a move to aid Ukraine, U.S. President Joe Biden made statements today to help the country in its efforts to remain in control of its own country. Biden explained that the U.S. would send the “most cutting-edge systems” and authorize some $800 million worth of security assistance for Ukraine. In particular, Biden discussed that the country would also deliver “tactical” drones representing a “commitment to sending our most cutting-edge systems to Ukraine for defense.”
With this news, aerospace and defense stocks are in focus. AgEagle Aerial is one of the stocks as the company specializes in drone, sensor, and software solutions. Earlier this week, we talked about UAVS stock in more detail. Citing the Russia-Ukraine conflict, we pointed out the company’s latest development with its senseFly subsidiary and how it became one of the 11 vendors to complete required testing to designate it as a “Blue UAS.” This was under the Defense Innovation Unit’s (DIU) Blue sUAS 2.0.. senseFly’s eBee TAC Unmanned Aerial System was approved for procurement by the U.S. Department of Defense.
“We expect this to be a major growth catalyst for AgEagle in 2022, positively impacting our financial performance in the years ahead as AgEagle solidifies itself as the go-to source for high-performing, state-of-the-art full-stack drone solutions that get the job done,” explained Barrett Mooney, Chairman and Chief Executive Officer of AgEagle. Given the attention on drone stocks today, UAVS could be one of the names to know right now.
Vislink Technologies Inc. (NASDAQ: VISL)
Another one of the drone stocks jumping after Biden’s comments was Vislink Technologies. The company specializes in collecting and delivering video data, including broadcast markets and surveillance. It also offers live streaming for 5G, cellular, and AI-driven technologies.
The company’s IMTDragonFly transmitter is used in video transmission systems for capturing video from UAV and bodycams. Vislink was also selected to supply the California Law Enforcement agency with fully integrated unmanned aircraft system solutions a few years back.
Adding more excitement recently is the inclusion of the company’s name in a Department of Defense contract titled “58–Wireless HD video transmitters.” Specifically, the contacts said:
- The MICC End User requires the following items, Brand Name Only (Exact Match), to the following:
- LI 001: VisLink Part# 23MLRUV-B3-FPDEF-23MLRACC Microlite Receiver -Frequency, Family -1980-2500 MHz MLR VClip, Universal -Encryption -AES Encryption 256 Bit + 128 Bit -Frequency Plan -Default Frequency Plan -Accessory Kit -23MLR Kit – Case, Antenna, Cables, 6, EA;
- LI 002: VisLink Part# 23MLT3-B3-NT-ML3-VC-ACC-NA-ML3-ACC Microlite 3 Transmitter -Frequency and Power -2.0-2.5 GHz MicroLite 3 200mW output with DVB-T and LMST -Encryption -AES BCRYPT Encryption 256 Bit + 128 Bit -Telemetry -No telemetry -Mounting Options -V-Clip Camera Back Clamshell -Antenna Combination -No Antenna -MLT3 Accessory Kit -MLT3 Std Ship Kit; Case, Lemo Power Adapters, 6, EA;
- LI 003: VisLink Part# 713-E061-05A-R 1.98-2.5GHz 14.5dB V W/SS BRKT, 12, EA;
With this latest focus on drone stocks, VISL has gained more ground in the stock market today.
Globalstar Inc. (NYSE: GSAT)
Though it isn’t a drone company, Globalstar has come into focus amid the surge of uncertainty stemming from the conflict between Russia and Ukraine. Satellite surveillance stocks are a topic of frequent discussion as a result. Globalstar’s suite of satellites has expanded its reach following the latest deal with Macdonald Dettwiler and Associates. It will acquire 17 new satellites and extend the life of its existing constellation in an agreement valued at $327 million.
The company also recently appointed Dave Haight to drive the company’s Internet of Things business. Haight helped develop the IoT business at AT&T as well as other companies.
“We view Globalstar as having four pillars of value: the legacy satellite business, which includes Duplex and SPOT services, commercial IoT, our arrangement with a potential customer discussed in our regulatory filings, and terrestrial spectrum. We are confident that Dave will help us drive the commercial IoT pillar to great success,” said Dave Kagan, Globalstar CEO.
During his time at the telecom giant, Haight was head of projects that added more than 30,000 points of distribution to the company’s retail and digital divisions. With the rise of interest in satellite stocks, in general, and the addition of this news, GSAT stock could be on the list of penny stocks to watch right now.
Draganfly Inc. (NASDAQ: DPRO)
Drone solutions and systems developer Draganfly Inc. took the focus of some traders in the stock market today. Whether it’s the public safety market, agriculture, mapping, or public safety, the company’s suite of solutions aims to meet the growing needs of the unmanned aircraft vehicle industry. While this is the ultimate goal, Draganfly has also expanded on the types of technologies it offers beyond UAV-only.
Earlier this quarter, the company released news discussing its launch of a new Access & Healthcare Solutions platform with its partner Fobi AI. The focus is on deploying Draganfly’s Vital Intelligence Smart Vital Kiosks. This Vital Intelligence platform offers screening for different health indications. It has also found itself in the sanitizing marketplace to diversify its business further.
Needless to say, DPRO stock is in the spotlight. That’s more thanks to an increase of interest in drone companies right now.
Are Penny Stocks Worth It With Rising Rates?
There’s plenty of volatility based on the current state of things in the stock market today. As a trader, weighing risk and reward against secular trends is an important thing to consider. The one thing about penny stocks that most enjoy is that they tend to move independently. Even during a stock market crash, you’ll find at least a handful of stocks under $5 moving higher. Today, comments from President Biden and Fed Chair Jerome Powell have left their mark on several of these cheap stocks.