3 Trending Penny Stocks to Add to Your May 2022 Watchlist
Buying penny stocks can be complicated without the right guidance. There are a lot of things to consider when getting into the stock market and specifically, penny stocks. However, with the proper research and knowledge, buying penny stocks can be a rewarding experience both mentally and financially.
For some context, penny stocks are stocks that trade for less than $5 per share. They are usually stocks for small companies that are not well-known. While these stocks can be riskier, they also have the potential to generate a higher return on investment (ROI). Because of the high volatility with penny stocks, they are not for everyone. However, if you are the type of person who is willing to take on more risk for a potential higher reward, then penny stocks may be a good investment for you. When it comes to investing, a key step is to understand your own risk tolerance and goals.
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When buying penny stocks, there are a few things you should keep in mind. First, do your research on the company before investing. This includes looking at the financial statements, understanding the business model, and getting a general feel for the management team. It is also important to have an exit strategy in mind before buying penny stocks. This will ensure that you can keep your losses to a minimum and profits to a maximum. So, with all of this in mind, let’s take a look at three trending penny stocks to watch.
3 Penny Stocks That Are Trending in May 2022
- Exela Technologies Inc. (NASDAQ: XELA)
- Skillz Inc. (NYSE: SKLZ)
- TAL Education Group (NYSE: TAL)
Exela Technologies Inc. (NASDAQ: XELA)
With over 1.2% in gains at EOD on April 22nd, XELA is a penny stock that many investors are watching right now. While XELA is highly volatile, the company has made some significant headway in the past few months. Over the last six months, shares of XELA have fallen by over 84%. And recently, we have begun to see a slight bullish turnaround. Although Exela Technologies may not be a buy for all, it is an interesting penny stock to trade.
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The most recent news from the company came on April 18th. On the 18th, it announced that it would exchange around 100 million common shares for $125 million liquidation preference. This is regarding its 6% series B1 cumulative convertible perpetual preferred stock. A few days before this, the company announced a new customer and contract worth $6.8 million over the course of three years.
“We are pleased to see the momentum in XBP across various use cases. New customers are seeing the benefits of our customizable, easy to implement solutions and we look forward to further traction.”
The SVP of Bills and Payments, Americas, Lakshmi Narayanan
While XELA stock is highly volatile, it is also showing a lot of potential to make large swings in the market. Considering this, will it be on your penny stocks watchlist?
Skillz Inc. (NYSE: SKLZ)
By EOD on April 22nd, shares of SKLZ stock had climbed by more than 3%. While this is not a major amount by any means, it is significant enough to garner market attention. Although shares of SKLZ stock have dropped b around 34% in the past month, we have seen some small bullish spikes in that time. To understand whether or not Skillz Inc. is worth investing in, we have to take a closer look at the company and any recent announcements it’s made.
On April 18th, the company announced that it would release its Q1 2022 financial results after the market closes on Wednesday, May 4th. This is the next important announcement that investors need to consider for SKLZ stock. Because it is likely to continue showing high volatility in that time, investors should keep a close eye on it. But, if you’re interested in large movers, SKLZ stock could be worth adding to your list of penny stocks to watch.
TAL Education Group (NYSE: TAL)
With over 4% in gains at EOD on April 22nd, TAL is a penny stock that is trending right now. While shares of TAL stock have fallen by around 13% in the past month, the company is slated to announce its Q4 and fiscal 2022 year results on April 29th. Similarly to Skillz Inc., this is the next time that we will receive an update from TAL, and for that reason, it should be kept in mind. If you’re not familiar, TAL Education Group is a company that operates in the Chinese education sector.
A few months ago, TAL stock and other similar penny stocks were hit hard when China decided to ban for profit-tutoring. Since then, these companies have had to manufacture new ways of doing business. So, as the story has gone with companies like TAL, it’s likely that its upcoming results may be bleak. But, many traders utilize companies like TAL to make short term gains (or losses). And as a result, this high level of volatility can work in your favor. With all of this considered, will TAL be on your watchlist or not?
Buying Penny Stocks, Worth it or Not?
Are penny stocks worth buying? This is a question that many investors ask themselves. Because penny stocks are so volatile, they can be a great way to make money, but they can also be a great way to lose money if you’re not careful.
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Volatility can be a good thing if you buy when the stock is low and ripe for a move. However, if the volatility does not work in your favor, it could result in big losses. So, with all of this in mind, do you think that penny stocks are worth buying or not?
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