Inflation is becoming a huge catalyst for the stock market. Today’s Personal Consumption Expenditures price index or “PCE” data showed a higher-than-expected number of 0.6% month-over-month and 4.7% over the last year. That is why the stock market is down today.
We’ve already seen hot CPI and PPI inflation data from January signal caution for stocks. Now, what’s known as the Federal Reserve’s preferred inflation gauge, PCE, is sounding the alarm.
Penny Stocks To Watch
What does this mean for penny stocks? Generally speaking, not much, which is why they’re one of the ideal assets that retail traders focus on daily. In this article, we look at a handful of cheap stocks to watch that are heading higher as broader markets drop lower. Once you see why they’re moving, you can decide if they’re the best penny stocks to buy now or avoid entirely.
EOS Energy Enterprises Inc. (EOSE)
Shares of EOS Energy are a clear example of how penny stocks can outperform and disconnect from broader market trends. As the stock market is down today after another inflation-fueled blow, EOSE stock is trading higher.
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Earlier this month, the energy storage platform developer provided a business update and gave guidance on its revenue outlook for fiscal 2022 results. Revenue was expected between $17 million and $20 million, with 2023’s outlook between $30 million and $50 million. Eos also reported receiving an order for a 47MWh initial renewables plus storage project “with one of the largest operators of energy storage in the US.”
The markets are waiting for EOS Energy’s next round of earnings. After the closing bell, the energy company releases its Q4 and full-year on February 28th. The company gave initial forecasts for 2022 and 2023 revenue in a February business update. It sees last year’s results in a range of $17 million and $20 million and this year’s revenue between $30 million and $50 million.
If EOSE stock is on your watch list, keep that in mind.
Troika Media Group (TRKA)
Shares of Troika Media have been on our lists of penny stocks to watch this year. One of the underlying catalysts is Troika’s situation with Blue Torch Finance.
Last month, the two companies entered a further limited waiver of certain events of default under an original March 2022 finance agreement. There are currently “good faith” negotiations between the companies to amend the deal and mitigate events of default. This month, an updated filing showed the company entered into an Amended and Restated Limited Waiver of default events. In particular, “The A&R Limited Waiver will expire on the earliest of (x) the occurrence of an Event of Default under the Financing Agreement that is not a Specified Event of Default, (y) a failure by the Company to comply with certain sale and refinancing milestones set forth in a side letter agreed by the Company and the Lenders and (z) June 20, 2023, subject to potential extension of up to 60 days.”
In addition, Troika also withdrew a registration statement, which saw a bullish reaction in the market. The company has retained Jeffereies to help in its search for strategic alternatives. CEO Sid Toama explained, “We believe that now is the time to explore opportunities to optimize our capital structure and have engaged a market leader in Jefferies to maximize our ability to deliver shareholder value. We have worked closely with our senior secured lender over the last eight months and recently announced an Amended and Restated Limited Waiver, which provides us with time to explore different means to enhance shareholder value.”
With renewed optimism and a longer runway with its lender, traders continue closely watching TRKA stock.
Nuburu Inc. (BURU)
SPAC mergers have not done well since the NASDAQ and NYSE adopted what was usually a strategy heavily exploited in the OTC market. Regardless, the practice continues, and Nuburu is the latest to demonstrate its lackluster outcome for retail traders. BURU stock combined with Tailwind acquisition, and once shares began trading under the new symbol, prices quickly imploded. Now that BURU stock is a penny stock, however, the retail crowd it has drawn may think differently.
Nuburu is a blue laser technology company. Its products are used to produce faster and higher quality welds. This week’s earnings results seem to have helped bring back some bullish sentiment in the market. Nuburu reported revenue of $1.4 million for the year, a 282% rise compared to its previous year’s results. Furthermore, fourth-quarter revenue was 602% higher than the previous year’s Q4 figures.
“We ended 2022 on a high note as we began making deliveries under our previously announced contracts with Essentium and AFWERX. We have begun 2023 with the business momentum to pursue our near-term commercial and operational objectives as we completed our business combination and our listing on the NYSE American exchange, and we continue to ship lasers systems,” said Dr. Mark Zediker, CEO and Co-Founder of NUBURU.
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Zediker also said that the NUBURU BL™-Series is expected to begin shipments in Q2. With the second quarter roughly one month away, this may be something traders are eyeing.
Faraday Future Intelligent Electric (FFIE)
Another one of the penny stocks under $1 to watch right now is Faraday Future. While shares have pulled back over the last few weeks, FFIE stock remains higher on the year. Shares opened for trading around 30 cents and currently sit just shy of $0.60.
Most of the attention has been on the company’s commercial rollout of its flagship EV, the FF 91 Futurist. In addition, Faraday reworked its leadership and funding plans, which has helped bring more reassurance to traders. Faraday recently appointed its Global Executive VP of Global User Exosystem, Tin Mok, to the Board of Directors.
The FF91 sedan is expected to start production next month, with delivery beginning in April. This ultra-luxury model will cost around $200,000 and marks the “most important historic moment since FF was established,” said CEO Chen Xuefeng. Recent funding of $135 million has helped make this possible, and will be able to have all of the equipment necessary to build the FF91, according to Faraday.
As the timing of all of this gets closer, FFIE stock has been put back on the watch list by some of the market’s retail traders.
List Of Penny Stocks
For the TL;DR crowd, here’s a list of penny stocks mentioned in this article:
- EOS Energy Enterprises Inc. (NASDAQ: EOSE)
- Troika Media Group (NASDAQ: TRKA)
- Nuburu Inc. (NYSEAMERICAN: BURU)
- Faraday Future Intelligent Electric (NASDAQ: FFIE)
