In this article, we look at a handful of penny stocks to buy for under $5 that have grown in popularity among retail traders. In the stock market today, volatility remains high as concerns over inflation and geopolitical conflict persists.
Even with the stock market selling off, there are still plenty of cheap stocks surging higher. We’ll quickly dive into some of the most active stocks today, see what catalysts are at hand, and if there are any upcoming events to be aware of. Then you can decide if they’re right for your watch list right now.
The Stock Market Today
Some of the broader influences in the stock market today hinge on economic uncertainty. Weekly U.S. jobless claims dipped to 232,000, which was weaker than expected and the lowest since the end of June. It was also a dip from the prior period. The market is weighing the potential of a market slowdown during a period of bearish sentiment at a time when the post-summer months are typically poor for markets, in general.
These are a few things to remember when putting together your penny stocks watch list. Although cheap stocks tend to trade disconnected from broader trends, overly bearish or bullish sentiment can impact the length of time and magnitude of certain moves. As we’ve seen with some recent IPOs, the big move happens in a single session and then stalls during the sessions immediately following the event.
Magic Empire Global (NASDAQ: MEGL), AMTD Digital (NYSE: HKD), and Addentax Group Corp. (NASDAQ: ATXG) are very recent examples of what I’m talking about. Nevertheless, it hasn’t stopped traders from looking for the next round of multi-bagger penny stocks to buy.
Penny Stocks To Buy For Under $5
1. Bright Green Corp. (BGXX)
Speaking of failed IPOs, Bright Green Corp. made its public debut in May, trading around $16 for its first print. BGXX stock would explode to highs of $58 the next day but has failed to maintain any gains. Earlier this month, the cannabis company reached a lot of $1, down 98% from its highs.[Read More] Most Active Penny Stocks to Buy Now? Check These 3 Out
What’s going on with BGXX stock right now? This week, Bright Green announced a letter of intent for a partnership and acquisition of Alterola Biotech. The company plans on initially acquiring 25% of Alterola, with a proposal for a full buyout soon to follow. The aim is to leverage the cannabinoid and cannabinoid-like medicine portfolio to advance Bright’s current manufacturing and distribution of federally compliant pharmaceuticals-grade cannabis and derivatives.
Now all eyes are on the timing of the proposed tie-up. No timeline was listed in the initial update, but comments from both companies appeared to favor the transaction.
2. Virax Biolabs Group Ltd. (VRAX)
Like Bright, Virax is also a recent IPO. The company made its debut in July with an opening print of $20. VRAX stock would see highs of $29 shortly after, and then…the breakdown. The biotech company’s shares have slipped to lows of $3.01 this month. So what’s going on with Virax Biolabs now that would put it on a list of penny stocks to watch?
Besides a trend in IPO reversals, VRAX stock is also considered a low float penny stock. As of this article, most outlets show the float sitting below 5 million and the total outstanding share count at less than 15 million. In addition to this, concerns remain over monkeypox. Since Virax labs designs viral detection kits for different diseases, including monkeypox, it has gotten wrapped up in the highly speculative niche.
The first confirmed death of a monkeypox patient in Texas has brought a much brighter spotlight to some of the top monkeypox stocks this week.
3. Volcon Inc. (VLCN)
Less than a year ago, Volcon held its Initial Public Offering. The IPO price was set at $5.50 per share, but the stock opened for trading at around $9. A multi-week move to highs of $17.96 would be the last bit of bullishness for the company until recently.
The electric vehicle company specializing in off-road powersports has caught an intense bout of bullishness during the second and third quarters. Some $100+ million in UTV preorders helped spark optimism in the beaten-down stock. In an August update, CEO Jordan Davis explained, “Although our current focus is squarely on our goal of finalizing development of the Stag and moving into full production by Q2 2023, we will now turn additional attention and resources towards increasing our component supply and manufacturing output.”[Read More] Best Penny Stocks To Buy? 4 That Redditors Are Watching Now
The company recently raised over $27 million in fresh capital to do this. Meanwhile, the company has actively teased the launch of its new eBike, on Twitter throughout August. With this backdrop, VLCN stock has come back in favor according to recent social sentiment and market activity.
Are You New To Trading Penny Stocks?
Volatility remains prominent whether this is a bear market rally or a total stock market rebound. Thanks to the inherent fluctuations in penny stocks, traders and investors have reasons to follow them. These names were just a few gaining steam in the stock market today. If you’re new to trading, in general, check out some of these articles:
- How to Make Money With Penny Stocks in June, 3 Tips
- Trading Penny Stocks & Using Volume Analysis To Find Stocks To Buy
- Penny Stocks & Frequently Asked Questions From New Traders
- How To Trade Penny Stocks: A Beginner’s Guide
- Are Penny Stocks Good For Beginners? [Answered]
List Of Penny Stocks In This Article
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