Penny stocks, by definition, are shares of companies that trade for less than $5. These cheap stocks have given investors and traders a way to speculative bet on the potential of small companies using less capital. While they’re known for being higher-risk, the rewards can be incredible. The choices are plentiful whether you’re learning how to day trade, looking for potential swing trade set-ups, or trying to find penny stocks to invest in.
With a new quarter underway, the broader markets remain shaky. Recent economic data, upcoming CPI numbers, and a continued emphasis on recession & inflation are driving macro trends. However, it’s just another day at the office for those trading penny stocks. The exciting part about these low-priced stocks is that this next round of data – bullish or bearish – may not matter much to traders of stocks under $5. Let’s explain.
Best Penny Stocks To Watch
Broader market trends generally don’t impact penny stocks. Are there some exceptions? Of course, and that’s not the argument made today. However, as the stock market crash continues in 2022, we’ve seen plenty of cheap stocks reach new highs in the short term. This type of trend has become one of the focal points for traders looking for top penny stocks buy.
News headlines are one of the most significant reasons stocks like these are so volatile, even with the stock market down. Whether it’s news from a company, a story posted to a website or blog, an SEC filing, a Tweet, or something else, they can become catalysts for a bullish (or bearish) trend. In this article, we look at a list of penny stocks with recent news and updates that are moving in the stock market today.
- Canoo Inc. (NASDAQ: GOEV)
- Grab Holdings Ltd. (NASDAQ: GRAB)
- Blue Hat Interactive (NASDAQ: BHAT)
- SaverOne 2014 (NASDAQ: SVRE)
Penny Stocks To Buy Now
Are penny stocks with news worth it? Are penny stocks worth it, in general? It depends on a few things, including your specific trading style. Headlines can prompt short-term volatility that is generally more attractive to day traders or swing traders. On the other hand, some headlines and the details within the update can prompt a longer-term forecast. For these reasons, diving deeper beyond the headline is a good idea whenever a company posts news. Let’s see if today’s headlines are enough to put some lasting pep in the step of these penny stocks: GRAB, BHAT, SVRE, & GOEV stock.
Canoo Inc. (NASDAQ: GOEV)
One of the hottest penny stocks to watch today is Canoo Inc. (NASDAQ:GOEV). Shares of this EV start-up lost their charge in 2022 and reached fresh 52-week lows right before the second quarter finished up. Needless to say, the focus on value over growth hasn’t been the sole focus of traders, and this week GOEV stock skyrocketed on the back of big news.
Why GOEV Stock Is Moving
Canoo announced a deal with Walmart (NYSE:WMT). Why would an EV company do a deal with a grocery chain? The company will provide 4,500 Canoo electric delivery vehicles that Walmart will use for last-mile delivery services. There was also an option to purchase up to 10,000 units and contribute to Walmart’s goal of achieving zero emissions by 2040.
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Grab Holdings Ltd. (NASDAQ: GRAB)
Super app company Grab Holdings Ltd. (NASDAQ:GRAB) is fighting the trend that China-based companies have been in this week. Unlike names including Alibaba and Baidu, GRAB stock is trading higher in the stock market today. The company offers everything from food delivery and mobility to digital financial services all through its application. The recent launch of a mapping service helped bring some brief interest back to the penny stock despite the luster softening through June.
Why GRAB Stock Is Moving
No new headlines came out on Tuesday related to GRAB stock. However, some recent analyst insight seems to have resonated with retail traders this month. Evercore ISI maintained its Outperform rating on Grab Holdings. Despite lowering the price target to $5, Evercore expects significant upside for the company.
Blue Hat Interactive (NASDAQ: BHAT)
With the rise and fall of interest in the metaverse late last year and earlier this year, tech companies with exposure to this arena haven’t been much in favor. However, Blue Hat Interactive (NASDAQ:BHAT) seems to have gone against that trend over the last few weeks. In fact, since reaching 52-week lows of $0.60 in late June, BHAT stock has managed to bounce as much as 543%. The company specializes in augmented reality and interactive entertainment technology.
One of the biggest contributing catalysts was news of Blue Hat terminating a stock offering. This effectively communicated to the public that potential dilution may not be a factor (for now).
Why BHAT Stock Is Moving
Blue Hat announced a registered direct offering for $3.6 million as the stock market was about to open. While you might expect negative sentiment to become a factor seeing how the market reacted when Blue Hat terminated a stock offering, traders have responded favorably in the morning session. That may be based on the offering being done at a price of $3.60 per share. This is a significant premium to the current market price. The first tranche of $1.44 million is expected to close this week, with the remaining balance due by the end of the month.
SaverOne 2014 (NASDAQ: SVRE)
Recent IPO, SaverOne 2014 (NASDAQ:SVRE), has been relatively quiet since its debut. The company develops transportation safety solutions through accident prevention resulting from mobile phone use while driving. Basically, the company’s technology platform, SaverOne, identifies and monitors mobile phones in a driver’s vicinity and blocks the use of specific applications.
When the company went public, it registered just under 3 million units, which puts SVRE stock on the list of low float penny stocks to watch.
Tuesday, we’re seeing just how volatile these types of stocks can be. SVRE shares jumped to highs of $3.87 during the morning session following the latest milestone announced by the company.
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Why SVRE Stock Is Moving
SaverOne announced that it appointed a new Chief Marketing Officer. Israel Eybi has previous experience at 4Cast and one of Israel’s telecom groups, Bezeq. CEO Ori Gilboa explained, “We are confident that he will be instrumental in building our network of global partners for SaverOne, expanding our sales into European and US markets, as well as others globally, substantiating SaverOne as an innovative and significant factor in the global automotive safety arena. I expect he will prove to be a very valuable asset in advancing our growth strategy.”
Best Penny Stocks Today
Headlines are an easy place to find companies for your penny stocks watch list. As we’ve seen with the names on this list, it’s essential to go beyond just reading the news and diving deeper into things like corporate filings. Regardless, penny stocks with news can experience volatility immediately after it hits the wires. Today we looked at four penny stocks with news, industry-related speculation, or corporate developments sending shares higher to start the week. After seeing why they moved, are any on your watch list right now?
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