How Penny Stocks Will Be Affected by the 431K Jobs Added in March
Right now, penny stocks are a hot topic of conversation, and with the unemployment rate down, it’s no surprise that people are looking for the best penny stocks to buy. But before you start buying penny stocks willy-nilly, there are a few things you need to know.
What is the Unemployment Rate And How Will it Affect Penny Stocks?
Right now, one of the largest impacting factors on the stock market is the dropping unemployment rate. Today, news came out showing that the unemployment rate has fallen to a pandemic low of 3.6%. This comes as more than 431,000 jobs were added during the month of March. While this will likely have a large effect on the stock market moving forward, investors should keep a close eye on it right now.
First of all, researching penny stocks is a crucial step to investing. Just because a penny stock is trading for under $5 and is trending, does not mean that it is a good investment automatically. In fact, penny stocks can carry a higher level of risk when compared to their blue chip counterparts. This is why it is extremely important to know both what is going on in the stock market and how to take advantage of that.
And, traders should also have a consistent understanding of their own investing style and the penny stocks that they’re investing in. So always make sure to do your homework before you invest in penny stocks or any stocks for the matter.
Second, investors need to consider how reactive penny stocks are. Oftentimes, stocks that are trading for under $5 will see major gains or losses depending on news or announcements. And with the low prices, small movements can result in a large percentage change.
A clear example of this today is Blackboxstocks Inc. (NASDAQ: BLBX) and Zosano Pharma Corp. (NASDAQ: ZSAN). These two penny stocks managed to move wildly during intraday trading. So if you’re not comfortable with stocks that can swing wildly in either direction, penny stocks might not be the best investment for you.
So, taking all of this into account, let’s check out three penny stocks that you should add to your watchlist right now.
3 Penny Stocks to Watch As Unemployment Continues to Fall
- Clever Leaves Holdings Inc. (NASDAQ: CLVR)
- SG Blocks Inc. (NASDAQ: SGBX)
- US Xpress Enterprises Inc. (NYSE: USX)
Clever Leaves Holdings Inc. (NASDAQ: CLVR)
By midday, shares of CLVR stock had shot up by more than 18%. This is a major gain for the company and comes alongside several weeks of bullish movement for CLVR stock. During that time, we’ve covered it on numerous occasions for this reason. In the past month, shares of CLVR stock have exploded by more than 170%.
While it’s tough to say exactly why shares of Clever Leaves are climbing once again, we can look at why it was moving in the first place. A few weeks ago, the company reported its fourth quarter results. In the results, it posted revenue increases for Q4 and the full year 2021 of 25% and 27% respectively. This brought its revenue to more than $15.4 million for the period.
“We have made progress in the fourth quarter by strengthening our operational foundation and advancing our commercial momentum to better position us for 2022.
We delivered year-over-year revenue growth of 26% and 29% across our non-cannabinoid and cannabinoid businesses, respectively. We also maintained our prudent approach to cost management as we drove continued production efficiencies.”Andres Fajardo, the President and incoming CEO of Clever Leaves
These results are very exciting for the company and show just how much it is working to grow. While its growth is dependent on the larger moves made in the cannabis industry, there’s no doubting that these are exciting prospects. With that in mind, does CLVR deserve a spot on your penny stocks watchlist or not?
SG Blocks Inc. (NASDAQ: SGBX)
Another big gainer of the day so far is SGBX stock. At midday, shares of SGBX stock had shot up by more than 12% to over $2.20 per share. This gain reflects news that the company announced during premarket trading. Early on Friday, April 1st, the company stated that its subsidiary, SG ECHO, has increased its relationship with a private client. It states that this client is its largest contract to date, and this new move will bring a purchase order for over 100 units. The PO should bring in roughly $6 million for the company in revenue.
“We value our clients and we’ve seen a lot of scalability with some of our pre-existing relationships. This large order enables SG to maximize purchasing capabilities, and provides our ECHO team with consistent work, which in turn boosts efficiencies on the production floor.”The CEO of SG Blocks, Paul Galvin
With this exciting update in mind, will SGBX be on your list of penny stocks to buy?
US Xpress Enterprises Inc. (NYSE: USX)
With over 2.3% in gains by midday, USX stock is another popular penny stock that investors are watching right now. While shares of USX stock did climb by more than 20% during morning trading, they corrected by midday to its current gain. Now, keep in mind that there is no company or industry specific news that is driving this gain.
And with penny stocks, we often will see large price movements solely based off of speculation. The latest news from the company came last month when it announced that its Co-Founder and Chairman, Max Fuller, purchased 26% more shares in the company. Since then however, USX has been mostly quiet. Considering the major speculation surrounding it and this latest move, will USX be on your penny stocks watchlist or not?
Are Penny Stocks Worth Buying After the Latest Jobs Report?
Finding the best penny stocks to buy can be tricky. But, with positive jobs data and a bullishly moving stock market, there is a lot for investors to be excited about right now. With all of this in mind, do you think penny stocks are worth buying after this latest jobs report?