Buying Penny Stocks on May 12th? Here’s What You Need to Know
After another tough day of trading for penny stocks and blue chips, there is a lot that investors need to know. To understand how to make money with penny stocks, investors need to have a well-thought-out plan and a thorough understanding of what is going on in the stock market. This is the best way to have a heightened chance of profiting with penny stocks. For that reason, let’s take a look at what happened in the stock market on May 11th, 2022.
Stock Market Recap, May 11th, 2022
On May 11th, we saw stocks drop for another consecutive day. The big deal on May 11th came as new inflation data in the CPI came out. In the CPI for April, the Labor Dept. announced that inflation had risen to 8.3% in April, which is slightly down compared to March’s 8.5% number.
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This caused a 1.5% drop in the S&P 500, which is a large amount. With this in mind, it’s likely that we will continue to see major volatility in the stock market. Considering that, let’s take a look at what you need to know about trading penny stocks right now.
What to Know About Trading Penny Stocks Right Now
If you’re looking to trade penny stocks right now, the best piece of advice is to have a potent trading strategy. This means understanding what is going on in the stock market and how to use that as an advantage.
Right now, there is a lot of panic across the entire market. And while this can be stressful and lead to poor performance for some, there are ways to take advantage. Considering that, let’s take a look at three penny stocks that gained during after-hours trading on May 11th, 2022.
3 Penny Stocks to Watch Today
- QualTek Services Inc. (NASDAQ: QTEK)
- Waitr Holdings Inc. (NASDAQ: WTRH)
- AnPac Bio-Medical Science Co. Ltd. (NASDAQ: ANPC)
QualTek Services Inc. (NASDAQ: QTEK)
One of the larger gainers of the day on May 11th was QTEK stock. During trading and after hours, shares of QTEK stock pushed up by over 6.5% and 7.7% respectively. These solid gains are a welcomed advance for investors especially considering its one month drop of over 25%.
The biggest recent news from the company is its upcoming Q1 2022 financial results release on May 17th. On the 17th, the company will post its results at market close. This is an exciting update to keep an eye on as it could determine the future of QTEK stock. With that in mind, will it be on your penny stocks watchlist today?
Waitr Holdings Inc. (NASDAQ: WTRH)
During after hours trading, shares of WTRH stock shot up by over 5.5%. This comes after a one month drop of over 30%, which is quite a lot. The most recent announcement from the company came on May 9th when it posted its Q1 2022 financial results. In the results, it posted Q1 revenue of $35 million, which is slightly less than what it posted in the quarter prior.
Also of note in the first quarter of 2022 was its net loss of $77.2 million, or $0.50 per share. Last but not least, it posted an adjusted EBITDA of a loss of $1.8 million. So, with this announcement considered, do you think WTRH is worth adding to your list of penny stocks to buy?
AnPac Bio-Medical Science Co. Ltd. (NASDAQ: ANPC)
One of the largest gainers of the day is ANPC stock, which shot up by over 16% on May 11th and more than 3% during after hours. In the past six months, shares of ANPC have fallen by over 80%, which makes today’s move a big positive.
On May 11th, the company announced that it regained compliance with the NASDAQ capital market requirement. This is big news for the company, and is likely the main reason for its gain on May 11th. Whether this makes ANPC worth buying right now or not is up to you.
Are Penny Stocks Worth Buying Right Now?
Finding penny stocks to buy can be a tricky task without the right information on hand. But, by knowing exactly what is going on in the stock market and how to take advantage, investors can have a much greater chance at making money with small caps.
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As a result, looking at the news, reading updates, and finding upcoming announcements, will give you the best chance at profitability. Considering this, do you think penny stocks are worth buying right now or not?