Top Penny Stocks With News
Penny stocks are shares of companies that trade for $5 or less, but there’s so much more to them than just a pricing mechanism. On any given day, you might see a slew of these cheap stocks captivating the attention of retail traders.
While broad sector trends might influence a few select stocks under $5, generally speaking, penny stocks are usually moving independently from the overall market. It’s not uncommon to see the stock market crash to new lows, but a handful of low-priced stocks exploding to new highs on record trading volume. That’s the dynamic that keeps high-volatility hunters coming back for more.
With this week already set up to be a hectic week full of economic data and monetary policy chatter, we’re sure to see some interesting trends. First thing is first: how do you find the best penny stocks to buy?
The simple answer is, to begin with, a watch list. One of the easiest ways to find trending companies to watch is to look for news. This article looks closely at a handful of penny stocks with news that has taken off in the stock market today. Once you see what is uncovered and analyze any potential upcoming events, you can decide if they deserve a place on your list of penny stocks to watch in October.
3 Penny Stocks To Watch
- Applied DNA Sciences (NASDAQ: APDN)
- ToughBuilt Industries Inc. (NASDAQ: TBLT)
- Exela Technologies Inc. (NASDAQ: XELA)
Penny Stocks To Watch #1: Applied DNA Sciences (NASDAQ: APDN)
DNA technology company Applied DNA Sciences was a rocketship earlier this year. Shares surged to highs of $7.35 from under $1 on the back of big news. The company announced that it initiated an analytical validation of a PCR-based monkeypox test right around the time that monkeypox was commanding headlines. Since the excitement around the virus has died down, APDN stock has pulled back.
This week, however, shares of penny stock are back on the move.
APDN Stock News Today
Applied DNA announced Monday that it received the most significant single purchase order for its Linear DNA product to date. According to the company, the value of the order is “in the mid-six-figures,” and Applied will deliver the product over the next few quarters.
CEO Dr. James A. Hayward said, “The application of DNA-based probes in molecular diagnostics is rapidly expanding to give the industry powerful new tools to enhance the diagnosis of infectious diseases, genetic disorders, and malignancies. Our proprietary enzymatic approach to manufacturing DNA via PCR underpins our ability to produce DNA more efficiently and rapidly relative to other DNA production methods and at scale.”
ToughBuilt Industries Inc. (NASDAQ: TBLT)
Tools and accessory company, ToughBuilt has been in and out of favor with retail traders as somewhat of a meme stock over the last few months. It sporadically trades with irregular volume, but when it has seen surges, TBLT stock has exploded. Looking back at the previous six months, you can see that the penny stock has managed to rally as high as $9.35 and drop as low as $1.34.
TBLT Stock News Today
This week, ToughBuilt announced its third-quarter Amazon sales figures. The company reached $3.91 million, equal to a jump of 28% from the same period last year. ToughBuilt also said that over the 9-months ending in September, sales climbed 24% to $10.92 million compared to $8.30 million last year.
CEO Michael Panosian explained, “Despite unusual and volatile market conditions, our growth remains significant. As we expand our global Amazon marketplaces, online sales continue to be a driving contributor to ToughBuilt’s overall revenue growth.”
Exela Technologies Inc. (NASDAQ: XELA)
Like ToughBuilt, Exela Technologies has sometimes become somewhat of a meme stock. The tech company’s share price has dropped significantly over the last ten months. Even with that as the backdrop, it hasn’t stopped traders from playing the daily trends in the penny stock. This week, XELA stock climbed back toward the $0.50 mark on the heels of another update.
XELA Stock News Today
The company, along with CF Acquisition Corp. VIII (NASDAQ: CFFE), a Cantor Fitzgerald SPAC, entered into a merger agreement. Under the terms of the deal, following the close of the deal, the cobined company will be called XBP Europe Holdings and trade under the symbol XBP and is anticipated to come to completion during the first half of 2023.
Exela will indirectly own a majority of the new public company, which is valued at an enterprise value of $220 million.
Penny Stocks To Buy (or avoid?)
When it comes to penny stocks with news, you’ve got to keep short-term momentum in mind. As discussed above, low-priced stocks tend to move independently from the overall market. In relation to that, the catalysts are also essential to research. Headlines can bring short-term momentum to penny stocks. That might be great for the day, but when it comes to multiple days of bullish trends, it rests on how significant a headline is.
Many of these penny stocks have experienced previous breakouts on the back of the news. But shortly after that, that uptrend died down. Will that become the case again in the stock market this week? I’ll leave that up to you to decide.