3 Penny Stocks Under $2 to Watch in May 2022
If you’re looking for penny stocks to invest in under $2, there are a variety of factors that you should take into consideration. Some important things to look at include the company’s financial health, its growth potential, and its market position. When it comes to penny stocks, we know off the bat that volatility will likely remain very high. Because of this, you should always have a firm understanding of the risks involved before investing any of your hard-earned money.
That being said, there are plenty of opportunities to be had with penny stocks, especially if you know where to look. As stated earlier, one of the major reasons that penny stocks move is due to speculation and news. Stocks under $5 in general tend to release a sizable amount of press releases and updates. For that reason, you should always be on the lookout for stocks that have recently made exciting announcements.
In terms of finding stocks to buy, you can use a number of different resources. The most important thing is to do your own due diligence and research. Some good places to look include stock market forums, blogs, websites and recently, social media platforms such as Reddit and Twitter.
So, while finding penny stocks to buy is not easy, it can be profitable if done correctly. Just remember to always be aware of the risks involved and know your own tolerance for volatility. With that in mind, let’s take a look at three penny stocks under $2 to watch in May.
3 Under $2 Penny Stocks to Watch Next Month
- Hycroft Mining Holding Corp. (NASDAQ: HYMC)
- Kintara Therapeutics Inc. (NASDAQ: KTRA)
- RLX Technology Inc. (NYSE: RLX)
Hycroft Mining Holding Corp. (NASDAQ: HYMC)
With over 10% in gains at EOD, Hycroft Mining is a penny stock that we have covered numerous times in the past few months. And in the past six months, shares of HYMC have fallen by around 12%. Despite this, since March 7th, HYMC stock has climbed by over 360%. The latest news from the company came on April 26th, when it announced its preliminary Q1 2022 operating results.
In the results, the company stated that it has gold production of 5,358 ounces alongside silver production of 16,861 ounces. And, it ended the quarter with over $172 million in cash on hand. This cash amount alongside its sizable production, shows that HYMC is working hard to continue growing.
“Hycroft continues to be one of the largest gold and silver resources in the world located in the Tier 1 mining jurisdiction of Nevada, USA. We are working diligently to conclude our technical studies for the milling operation and fully understanding the potential to increase estimated silver in the resource model. In addition, we are very excited to be implementing an exploration and drill program for 2022.”The CEO of Hycroft Mining, Diane Garrett
While HYMC stock is highly volatile, the company does look like it could have a lot to offer investors. Considering these exciting results, will it be on your list of penny stocks to watch or not?
Kintara Therapeutics Inc. (NASDAQ: KTRA)
With over 14% in gains at EOD on April 25th, KTRA is another penny stock that investors are keeping an eye on right now. And in the past five days, shares of KTRA stock have climbed by more than 19%. This is a major gain and comes after big losses in the past year period. So, why is KTRA stock climbing right now?
Well, around a week ago, the company announced the closing of an $8.6 million registered direct offering. This offering, priced at-the-market. Will give the company funding for clinical studies, working capital, and other general corporate purposes. If you’re not familiar, Kintara is a California based biotech penny stock working on cancer therapies for those with unmet clinical needs. Its current programs include VAL-083 for glioblastoma and REM-001 for Cutaneous metastatic breast cancer.
While KTRA is highly volatile and evidenced by its recent momentum, it is showing potential with its movements in the past week or so. Whether that makes it worth adding to your penny stocks watchlist or not, is up to you.
RLX Technology Inc. (NYSE: RLX)
Another penny stock with decent gains at EOD on April 26th is RLX stock. At around $1.93 per share, RLX has dropped by over 84% in the last year period. But, does that mean that it is worth buying right now or not? To answer this question, let’s take a closer look. Other than a change to its board a few weeks ago, the company has not made any groundbreaking announcements recently. However, it did beat EPS forecasts by around 13% in its latest Q4 financial results.
In its unaudited Q4 and full year 2021 results, the company announced net revenue of $298 million. This is an over 17% increase from where it was in the same period of last year. And, with a net revenue increase of 123% YoY, it looks like RLX is in an interesting place right now. So, with all of that considered, do you think RLX stock is worth buying?
Are Under $2 Penny Stocks Worth Buying?
Finding the best penny stocks to buy in 2022 is challenging. However, with so much going on in the stock market, it can be much easier than previously imagined. In 2022, investing in penny stocks is extremely popular, and therefore, it can be a great way to make money if done correctly.
As always, the key to finding the best penny stocks is to research, and then research some more. There are a lot of variables that go into each stock, and you need to be aware of them before investing any money. So, with all of this in mind, do you think that penny stocks under $2 are worth buying or not?