Why These 3 Penny Stocks Climbed During Trading Today
Finding the best penny stocks to buy in 2022 is challenging. But, understanding what penny stocks are and what is going on in the stock market, will both help you to have the greatest chance of profitability. For starters, penny stocks are shares of companies that trade for less than $5 per share. Most of the time, penny stocks are highly volatile due to their price and the amount at which they are impacted by speculation. This means that it is crucial to pay attention to the news and what is going on in the world that could affect the company’s stock price.
Right now, we are seeing an incredible amount of volatility with both penny stocks and blue chips. For that reason, it is more important than ever to be diversified. This means that you should have a mix of stocks from all industries on your watchlist. In addition, you should know exactly what your tolerance for risk is and what you’re looking for in a penny stock to buy. While it can be challenging to do so, making money with penny stocks is completely possible in 2022.
Lastly, always make sure to never trade with emotion. This is one of the most important lessons when it comes to trading penny stocks. When you let your emotions get in the way, it is very easy to make impulsive decisions that you will regret later on. Stick to your strategy and never stray from your entry and exit points. If you can do these things, you will be well on your way to becoming a better trader. With that in mind, let’s take a look at three penny stocks that climbed during trading on May 16th.
3 Penny Stocks That Pushed Up on May 16th, 2022
- Arcadia Biosciences Inc. (NASDAQ: RKDA)
- Clever Leaves Holdings Inc. (NASDAQ: CLVR)
- IQIYI Inc. (NASDAQ: IQ)
Arcadia Biosciences Inc. (NASDAQ: RKDA)
One of the larger gainers of the day on May 16th is Arcadia Biosciences, which shot up by over 24% at EOD. This sizable gain brings it to a five-day uptick of over 42%.
The main reason behind this comes as the company announced its Q1 2022 financial results on May 12th. In the results, it announced that its sales increased by almost 50% over the previous quarter. In addition, it shipped the first order of its GoodWheat product.
“Arcadia is starting to see the fruits of all its labor over the last year as we transitioned to a CPG-driven company and right-sized the organization. Sales have increased 48% compared to last quarter, with a more agile organization and the lowest infrastructure costs since 2019.
And our Q1 year-over-year sales have increased nearly 300%, due to the acquisition of Arcadia Wellness brands Zola coconut water, ProVault CBD-infused sports performance formulas, and SoulSpring™ and Saavy Naturals bath and body care products.”The CEO of Arcadia, Stan Jacot
This is all very encouraging news and shows that RKDA is working hard to grow. With that in mind, will it be on your penny stocks watchlist or not?
Clever Leaves Holdings Inc. (NASDAQ: CLVR)
With over 22% in gains on May 16th, CLVR is another penny stock that investors are watching right now. Similar to Arcadia, Clever Leaves announced its Q1 2022 financial results during trading on May 12th. This is likely the reason that we are seeing a climb with its price right now. In the results, the company announced that revenue increased YoY by 50% to more than $5.2 million. Additionally, it was able to pay off a significant amount of debt which is a great sign.
“Our first-quarter performance reflects our strong execution on our redefined growth strategy. Our revenue increased 50% year-over-year to $5.2 million, reflecting robust growth in our cannabinoid revenues across our target markets, as well as continued performance strength in our nutraceuticals business…As we progress further into 2022, we remain committed to strengthening our operational efficiencies and enhancing the value we create for our stakeholders.”The CEO of Clever Leaves, Andres Fajardo
This is exciting news for the company and should be kept in mind when considering whether it’s worth buying or not. With that in mind, will CLVR be on your list of penny stocks to watch?
IQIYI Inc. (NASDAQ: IQ)
Another big gainer on May 16th is IQ stock, which shot up by over 14% with an additional 4% in gains during after hours. The main reason for this comes after a double upgrade rating change by J.P. Morgan analyst Alex Yao. Yao added a buy rating which is a change-up from its previous underweight rating. And, he stated a price target of $8 from $2.
This is a major increase that represents over 130% in gains from where it stands currently. In addition to this, the company will hold its Q1 2022 financial results release on My 26th during premarket trading. This is the next time that we will get a glimpse into what and how IQ is doing. So, with this considered, does IQ deserve a spot on your penny stocks watchlist or not?
Which Penny Stocks Are You Watching?
If you’ve invested in penny stocks in the past few months, you’re likely accustomed to the heightened levels of volatility that we’ve seen in that time.
If not, there are a large number of factors that you need to pay attention to. While investing in penny stocks in 2022 is not easy, it can be profitable if done correctly. With that in mind, which penny stocks are on your watchlist right now?