3 Penny Stocks to Watch as May Comes to an End
With another rough day of trading penny stocks and blue chips, there is a lot for investors to understand. Right now, investors need to consider what is going on in the stock market and how to take advantage.
In 2022, we have three factors at play. The first two are rising interest rates and climbing inflation. These have been the largest factors for the bearish trading patterns of the stock market in the past few weeks. And, they are likely going to continue being the largest reasons for market momentum moving forward. The last factor in this is the effects of geopolitical tensions on the world economy. While Ukraine is not causing havoc on the U.S. economy like it had, it is still causing shifts in pricing for energy globally.
At the end of the day, buying and selling penny stocks is all about understanding how the market is moving and how to take advantage. For example, day traders can use technical analysis to look for patterns in stock charts. This can help predict when a stock is about to make a move. Fundamental analysis is also important. This involves looking at a company’s financials to see if it is a good investment. So, with this in mind, let’s take a look at three penny stocks to add to your end of May watchlist.
3 Penny Stocks to Add to Your End of May Watchlist
- Armstrong Flooring Inc. (NYSE: AFI)
- Otonomo Technologies Ltd. (NASDAQ: OTMO)
- Uranium Energy Corp. (NYSE: UEC)
Armstrong Flooring Inc. (NYSE: AFI)
One of the biggest gainers of the day and during after-hours is AFI stock. During trading and after-hours, shares of AFI stock shot up by over 45% and 5.3% respectively. While we do see large gains with penny stocks with no news, yesterday, the company announced that it received approval for additional financing. It stated that it has access to consensual debtor-in-possession financing which came out to $24 million.
During a hearing, the company stated that it received approval for its Critical Vendor Motion, which will allow it to use $9 million of its $14 million requested. This is big news for the company and especially so considering that it recently filed voluntary chapter 11 petitions. If you’re not familiar, Armstrong is a leader in flooring solutions. It operates around the world with seven manufacturing facilities and over 150 years in business. So, with all of that considered, will it be on your penny stocks watchlist or not?
Otonomo Technologies Ltd. (NASDAQ: OTMO)
Another decent gainer on May 18th and during after hours trading is OTMO stock. During those periods, shares of OTMO shot up by over 8.2% and more than 3.4% respectively. And, in the past five days, shares of OTMO stock have climbed by over 16%, which is no small feat. To understand why we are seeing bullish sentiment with Otonomo Tech, we have to take a closer look at the company and any recent announcements.
On May 17th, it announced its Q1 2022 financial results. In the results, it posted revenue of $1.03 million which is compared to $0.22 million in the previous years same period. Additionally, the company stated that it held more than $196 million in cash, with a non-GAAP operating loss of $12.5 million.
“Otonomo saw strong momentum in the first quarter, and we see this continuing as the market adoption grows by the day. Our go-to-market investment is paying off. We are increasing our deal volume, while decreasing sales cycle times and winning new customers in key use cases. We expect further acceleration around fleet and insurance use cases going forward.”The CEO of the Otonomo, Ben Volkow
This exciting news is likely the main cause of the recent bullish momentum for OTMO stock. And while it is quite volatile, it’s clear that investors are showing positive sentiment for the company. So, whether this makes it worth buying or not is up to you.
Uranium Energy Corp. (NYSE: UEC)
Uranium Energy is a penny stock that we have covered multiple times in the past few months. And with a 1.7% gain during after hours, there is some bullish sentiment following its poor performance as of late. In the past five days, shares of UEC stock have climbed by more than 9.8%, however, in the past month, they have declined by over 40%. While UEC stock is still up over the past twelve-month period, there is quite a lot of volatility to go around.
Recently, we have seen bearish trading with uranium stocks due to the price of uranium falling to around $48 per pound. This represents the lowest levels that they have seen since March. Because Uranium Energy is a pure-play uranium mining company, it is completely at the mercy of the price of uranium. So, always keep that in mind when looking at whether or not UEC stock is worth it. Considering this, do you think UEC is worth adding to your list of penny stocks to watch?
Which Penny Stocks Are You Watching Right Now?
While trading penny stocks is not easy, there are plenty of ways to profit in 2022. The best strategy is to take advantage of what’s going on in the stock market. And as mentioned earlier, there is quite a lot to use for your investing strategy.
Whether you’re looking for short or long-term gains, there are plenty of penny stocks to choose from. Always make sure that you have a strong trading strategy that works for you and your risk tolerance. And, never invest more than you’re willing to lose. Considering this, which penny stocks are you watching right now?