3 Penny Stocks to Add to Your Trending Small-Caps Watchlist
If you’re looking for the best penny stocks to buy, there are hundreds of options to choose from. But, to understand which are worth buying, investors need to do their research.
When it comes to stocks, there are a lot of things to consider. The most important thing is to find stocks that have the potential to grow in value either in the short or long term. However, there are also other things to keep in mind, such as the company’s financial stability and the overall market conditions.
With penny stocks, we tend to see speculation have a much greater effect than with blue chips. Because of this, investors need to consider and make assumptions about how news and announcements will impact different penny stocks.
When looking for penny stocks, it’s also important to consider the company behind the stock. This means looking at the financial stability of the company, as well as aspects like their business model and competitive landscape. By understanding these things, investors can get a better idea of whether or not a company is worth investing in. Now, when it comes to penny stocks, most traders tend to utilize a short term trading strategy. This means that it is best to consider more speculative effects that may make a stock more volatile.
Factors That Can Impact Penny Stocks
- Upcoming earnings announcements
- FDA catalysts
- New products or services
- Changes in management
- Analyst ratings changes
All of these things can have an effect on the price of a penny stock, so it’s important to be aware of them. So, with that in mind, let’s take a look at three hot trending penny stocks to watch in May.
3 Trending Penny Stocks to Add to Your Watchlist
- DiDi Global Inc. (NYSE: DIDI)
- Acutus Medical Inc. (NASDAQ: AFIB)
- Mullen Automotive Inc. (NASDAQ: MULN)
DiDi Global Inc. (NYSE: DIDI)
DiDi Global Inc. is a penny stock that we have discussed multiple times in the past few weeks. And in that time, shares of DIDI stock have continued to fluctuate greatly. This high volatility is one of the reasons that so many investors like buying and selling shares of DIDI stock. On Friday, April 29th, shares of DIDI stock managed to climb by around 5%, ending the day at just under $2. To understand why, we have to take a closer look at the company.
One of the main reasons that DIDI stock has been climbing comes as the Chinese government recently announced that it would provide stimulus for the economy. This comes as regulations have been extremely harsh in China toward tech in the past year or so. And now, with the hopes of more lax regulations, many investors are excited about what the future of DIDI stock and other Chinese stocks may hold. So, with that in mind, will it be on your penny stocks watchlist?
Acutus Medical Inc. (NASDAQ: AFIB)
Another popular penny stock is AFIB stock. On Friday, April 29th, shares of AFIB ended the day with gains of over 13%. This gives it a staggering five day gain of over 45%, which is no small feat. The big news for the company came on April 27th when it announced the refinancing of its debt as well as the divestiture of its left-heart access portfolio to Medtronic.
It stated that it will receive an upfront payment of $50 million from Medtronic, which will involve the sale of its AcQCross line of products among others. And, its debt facility will be replaced by one with Deerfield worth $35 million and a five year maturity date. All of this is very exciting news for the company and shows just why shares are climbing so much right now. While AFIB stock is highly volatile, it is also showing that it could have potential moving forward. Whether that makes it worth adding to your list of penny stocks to buy or not is up to you.
Mullen Automotive Inc. (NASDAQ: MULN)
Another penny stock that we have discussed frequently is Mullen Automitive. While shares of MULN stock did decline on Friday and by more than 88% in the past six months, most tend to buy and sell MULN due to its high volatility. And, there is more than enough of that to go around. As an EV penny stock, Mullen often has price correlation to other major players in the market, (cough, TSLA, cough). And this can be both a positive and a negative.
On its own, Mullen has made several major advancements for its in-house solid state polymer battery cell. It states that this battery could allow for over 600 miles of range on a single charge. If this is true, Mullen could have a major winning product on hand, especially as the world transitions to EVs. So, while MULN stock is highly volatile, the company continues to be a popular penny stock to watch.
Which Penny Stocks Are You Buying in May?
Finding the best penny stocks to buy this coming month can be tricky. But, because there are so many to choose from, it all comes down to knowing where to look. Now, to find the best penny stocks to buy, investors need to understand exactly what is going on in the stock market.
As stated earlier, penny stocks are extremely speculative. This means that they are extremely likely to move based off of news, events, press releases, etc. So, with all of this in mind, which penny stocks are on your buy list for May 2022?