3 Penny Stocks That Got Off to a Strong Start in April
Are penny stocks worth investing in? This is a question that many investors ask, and it is a tough one to answer. To understand this, we have to take a closer look at trading and whether it’s right for you. The stock market is a great place to grow your bank account whether it be as a side hustle or a full-time job. And penny stocks which are under $5, have become an extremely popular way to make gains in the past few years.
When it comes to penny stocks, there are two methods that investors tend to use. On one hand, we have swing trading. Swing trading is a method where you buy stocks and hold them for a few hours, days or weeks before selling them again. This approach is for those who want to profit off of short term spikes and dips. On the other hand, we have long term holding. This is where you buy stocks and hold them for months or even years. This approach is for those who are looking for slow and steady growth.
With penny stocks, the frequency at which they move means that there are more swing traders than long term holders. However, both can be valuable ways to trade penny stocks. The moral of the story is, always know what type of trader you are and what your investing goals are as well. This is a crucial way to ensure that your risk tolerance is aligned with your portfolio. Considering this, let’s take a look at three penny stocks that are starting off April strong.
3 Penny Stocks to Add to Your Watchlist in April 2022
New Oriental Education & Tech Group (NYSE: EDU)
One of the bigger gainers of the day is EDU stock, which managed to push up by over 5% by EOD. In the past year, shares of EDU stock have shot down by more than 90%. The main reason for this comes as the government in China essentially banned for-profit tutoring last year. This resulted in companies like EDU and other Chinese education-based businesses, falling significantly in value.
Since then, these companies have worked to find new methods for conducting business such as mining cryptocurrency or offering different types of educational services. In addition, we have seen these penny stocks become wildly volatile, with most investors using them for day trading rather than investing purposes. In addition, these companies still do have some benefits to offer investors, which is why many have come in to potentially pick them up at rock bottom prices.
Now, keep in mind that EDU stock is likely to continue being extremely volatile in the coming weeks to months. So, if that is something you’re interested in, EDU stock could be worth buying. If not, it may be worth avoiding.
VEON Ltd. (NASDAQ: VEON)
By EOD on April 1st, shares of VEON stock had shot up by more than 7.4%. That is a big move and comes after a week or so of bullish sentiment for VEON stock. In the past five day and one month periods, VEON stock has shot up by over 26% and more than 60%. This comes after a six month drop of more than 65%. Because of this clear bullish turnaround, investors have begun to show heightened interest in VEON stock in the past few weeks.
So, why are shares of VEON Ltd. climbing right now? Well, the main reason comes as VEON has made some large announcements concerning its Banglalink subsidiary. The company stated today that Banglalink is in the top sot for ‘Spectrum per Customer’ rankings for private operators in Bangladesh.
“Bangladesh is a fast-growing economy with endless opportunities. There is an increasing demand for extended digital services, especially from the younger generation, and in Bangladesh, 10-24 year olds make up 27% of the population.
VEON operates in nine countries and investing in key regions such as this is an important part of our Digital Operator strategy. This allows us to support people’s needs with the very best digital services across the world.”The CEO of VEON, Kaan Terzioglu
This is great news for the company and shows just how quickly it is growing. Whether this makes VEON stock worth adding to your list of penny stocks to buy, is up to you.
Weidai Ltd. (NYSE: WEI)
Last on the list of big gainers today and one of the largest movers is WEI stock. At EOD, shares of WEI managed to shoot up by over 26%. This comes after a YTD drop of more than 37%. And because of this, there are many investors that are watching WEI stock right now.
On March 28th, WEI announced its preliminary full year 2021 financial results. In the results, the company stated that it plans to bring in revenue of between RMB698 million and RMB708 million. If you’re not familiar with Weidai, it is a company that offers auto-backed financial solutions in China. It offers used automobiles primarily, as investable assets where Chinese businesses can gain credit for small and micro enterprises.
It’s worth considering that WEI stock is highly volatile. In the past few months, we’ve seen wild price moves with WEI stock. While this should not serve to scare you, it should help to identity whether or not WEI stock fits your investing style. With that in mind, will WEI be on your buy list or not?
Can Penny Stocks Make You Money?
Finding the best penny stocks to buy is all about understanding your own risk tolerance. While investing in penny stocks can be profitable, it is not for everyone. So, always understand your goals and what you’re looking for in an investment. With that considered, do you think penny stocks are worth buying in April or not?