Buying Penny Stocks on May 16th? Here’s What You Need to Know
After a not-so-great week of trading penny stocks and blue chips, investors need to be on their toes on the week of the 16th. While the week ended on a high note, many investors are still down in the double digits due to trading that has occurred in the few weeks prior.
While penny stocks can be profitable, it is crucial to understand exactly what is going on in the stock market and how to take advantage. With that in mind, let’s take a look at what happened last week and how that could help you to take advantage of current trading patterns.
Stock Market Recap, May 13th, 2022
On May 13th, U.S. equity markets climbed, despite a major decline for the week. Because inflation and tighter monetary policy continue to be the trend, the Dow has posted its seventh consecutive weekly loss.
And, we ended the week with very high levels of volatility, which most investors expect to continue in the coming months. So, with that in mind, let’s take a look at what you need to know about trading penny stocks this coming week.
What to Know About Trading Penny Stocks This Week
Coming up, U.S. housing data will come out towards the latter half of this week as well as key data from Europe, U.K., and Canada regarding inflation. In addition to this, we will also see earnings from some major retailers, which will definitely be worth looking into.
As stated plenty of times before, be sure to be on the lookout for increased levels of volatility in the stock market. This is something that most expect to continue in the coming weeks to months. Considering that, let’s take a look at three penny stocks to watch today.
3 Penny Stocks to Watch Today
Vroom Inc. (NASDAQ: VRM)
On Friday, May 13th, shares of VRM stock managed to shoot up by over 12% to more than $1.60. This is a substantial gain that brings it to a five day uptick of over 23%. While the fundamentals for Vroom have not been what they could be, the company does look like it could have a lot to offer with its latest balance sheet.
The company reported for the first quarter of 2022 that its sold vehicles amount was up by 26% YoY. In addition, it announced a 60% increase in e-commerce revenue with e-commerce gross profit up 8% YoY as well. With this in mind, will VRM make your penny stocks watchlist?
Gingko Bioworks Holdings Inc. (NYSE: DNA)
Gingko Bioworks is a penny stock that we have covered multiple times in the past week or so. With a 11% gain on Friday the 13th and over 2.2% in after-hours movement, DNA could be worth keeping an eye on.
Now, in the past six months, shares of DNA stock have fallen by over 80%. And aside from its recent gains, it’s clear that Gingko Bioworks is highly volatile. But, if you’re willing to put up with these large market fluctuations, DNA stock could be worth adding to your list of penny stocks to watch this week.
Nu Holdings Ltd. (NYSE: NU)
Another major gainer at the end of last week was NU stock, pushing up by over 20%. In the past month, shares of NU stock have fallen from over $7 to its most recent price of around $4.90. While its penny stock status has been short-lived, many investors are keeping a close eye on the company in case it decides to jump back into blue-chip territory.
The reason for its recent jump comes as analyst James Friedman from Susquehanna put a $10 price target on the company with a ‘positive’ rating maintained. So, whether this rating is enough to make NU stock worth buying or not is up to you.
Which Penny Stocks Are You Watching?
Finding the best penny stocks to buy in 2022 is all about understanding which companies are worth investing in and which ones aren’t. With so many options on the market, it can be tough to know where to start.
But, with the right information on hand and a commitment to having a well-thought-out trading strategy, investors can have a much greater chance of making money with penny stocks. Considering this, which penny stocks are you watching this week?