Buying Penny Stocks on May 31st? Here’s What You Need to Know
If you’re looking for penny stocks to buy on May 31st, there are plenty of options to choose from. After a mostly positive trading week, investors are excited for what the future could bring.
And although there is a sizable amount of volatility in the stock market right now, there is also many reasons to be bullish on the future. For one, there are lots of penny stocks that are trading at low values. To understand this further, let’s take a look at what you may have missed on May 27th, 2022.
Stock Market Recap, May 27th, 2022
On May 27th, penny stocks and blue chips had a very bullish trading day. As of EOD, the Dow Jones had shot up by over 575 points, with the S&P 500 up by over 2.5%. This shows that there is plenty of bullish momentum to back up the major bear movement we’ve seen in the past few weeks.
Now, it is tough to say if this will continue as there are also plenty of reasons to not feel confident about the future. But, with the first green week in a while coming to an end, let’s take a look at what you should know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
Right now, there is bullish sentiment in the market as stated earlier. And with the Dow breaking its longest losing streak since 1932, there is positivity to take advantage of. But, as stated earlier, investors should still be cautious.
Right now, we have high rates of inflation, rising interest rates, and more. And with inflation data coming out regularly, it is more important than ever to pay attention to what is going on in the news. While trading is not easy, understanding exactly what is going on in the stock market can help you to make money with penny stocks. Considering this, here are three penny stocks to add to your watchlist right now.
3 Penny Stocks to Watch Today
Romeo Power Inc. (NYSE: RMO)
Romeo Power is one of the larger recent gainers with over 7% in gains on Friday. During after-hours trading, we saw a 3.3% uptick with RMO stock, indicating sizable bullish sentiment. And, this comes after a one month drop of over 30%, which is quite substantial. So, why the gain for Romeo Power?
The most recent news from the company came on May 26th when it announced that it would supply batteries for use in commercial powertrains. This is great news for the company, and will complement its strategy for supporting vehicle electrification. While it hard to say whether RMO stock is worth buying, there’s no doubting that this announcement is exciting. With that in mind, will RMO be on your penny stocks watchlist or not?
Uxin Ltd. (NASDAQ: UXIN)
Another decent gainer from last week was UXIN stock. And with a 2.9% after hours gain on Friday, UXIN is another penny stock that investors are keeping a close eye on right now. While there is no news from the company to support this gain, we can look at its most recent announcements to try and deduce a reason.
On May 19th, the company announced that it received notice from the NASDAQ stating that it did not meet the $1 listing requirement. This was not great news for the company and investors alike and did not result in favorable trading. So, this recent bullish movement could be a turnaround from that, with investors hoping to buy in at a cheap price. Regardless, will UXIN be on your list of penny stocks to buy today?
Eos Energy Enterprises Inc. (NASDAQ: EOSE)
With over 8.5% in gains on Friday and more than 2.6% in gains during after hours, EOSE is a penny stock the investors are eyeing right now. And, if that’s not enough, in the past five days, shares of EOSE stock have climbed by more than 45%. While it is tough to say why Eos Energy is climbing, it could be due to the overall bullish sentiment in the energy industry right now.
And, during its most recent first quarter report, the company posted sizable growth. Recently, we’ve seen this major uptick in the price of energy due to the ongoing conflict in Ukraine. And while it has settled down to some degree, it is still worth considering. So, do you think EOSE stock is worth buying or not?
Which Penny Stocks Are You Watching Right Now?
If you’re looking for the best penny stocks to buy, there are hundreds to choose from. And, at under $5, they’re relatively inexpensive investments. But, just because a stock is cheap doesn’t mean it’s a good investment.
You still need to do your homework to find stocks that have the potential to generate returns. Right now, the high level of volatility in the stock market means that penny stocks are riskier than ever. So, if you’re going to invest in penny stocks, you need to be extra careful. With this in mind, which penny stocks are you watching right now?