If you’re looking for penny stocks to buy right now, it’s important to understand that broader market trends may not be a factor. Generally speaking, even when the stock market is down like it is today, you’ll likely find at least a handful of cheap stocks to watch. Considering we’re on the cusp of some major economic and earnings data, that may surprise you. But as you’ll see in this article, we look closer at a few names trading higher while the S&P 500 and Nasdaq are trending lower.
What’s Happening In The Stock Market This Week?
Don’t get me wrong; broader market trends can influence specific sectors and their related stocks. So it is important to understand some of the more impactful events happening in the stock market this week that could sway particular sectors and industries over others.
The party starts on Wednesday with the latest round of Consumer Price Index inflation data coupled with the FOMC meeting minutes from March. Immediately following these data, we’ll get Producer Price Index inflation data and more retail sales and employment data, which could factor into the Federal Reserve’s next monetary policy meeting and rate hike decision.
There are other things to factor in, which include the new earnings season kicking off this week. You’ve also got the daily occurrences of unusual activity, unique catalysts, and more that can factor into the mix.
Penny Stocks To Watch
Skillz Inc. (NYSE: SKLZ)
Skillz stock has been climbing back from March lows for the last two weeks. The company has been on the list of penny stocks under $1 during that time thanks to an initial spark ignited from earnings results getting reported. Specifically, CEO Andrew Paradise explained that the company is “making solid progress in strengthening management and our Board of Directors with high-caliber operators who will enable us to execute against our strategic plan to achieve growth, over time, as we march to profitability…We continue to innovate on our platform and look forward to reaping the benefits from this work during 2023.”
Following the results and an earnings beat, SKLZ stock has begun bouncing. It also garnered attention from analysts. Wedbush reiterated its Outperform rating on the company and set a $2 price target on the mobile gaming company. While this was a target cut from $3.75, it still sits over 100% higher than the current SKLZ stock price. Adding more speculation into the mix was insider trading activity from CEO Paradise. He bought 1.5 million shares at average prices ranging from $0.54543 to $0.5773 at the start of April.
LifeWallet (NASDAQ: LIFW)
Medicare, Medicaid, commercial, and secondary payer reimbursement recovery company, LifeWallet has seen its share price rebound over this week. LIFW stock hit fresh 52-week lows on Monday, but the latest headlines appear to have breathed some new life into the penny stock.
This month the company announced “significant enhancements” to its LifeWallet Health platform. These enhancements included tools for providers and patients. Company CIO Chris Miranda expanded on the opportunity saying, “By creating new solutions for healthcare providers at the point of care through innovative technology, we are delivering much-needed resources to eliminate inefficiency and lost dollars while improving patient care through increased accuracy and accessibility. This gives people control over their healthcare data, helping patients, providers, and payers alike.”
With this backdrop, LIFW stock seems to have won a vote of confidence at the start of the week.
Minim Inc. (NASDAQ: MINM)
The recent volatility in the stock market has brought plenty of speculation to the tech sector and other growth-based industries. In this case, we’ve seen a similar trend echoed in several penny stocks. Minim Inc. is one of these companies that has gained much more momentum in the stock market today.
Minim creates home networking products and software under the Motorola brand. Last week, it transitioned its CEO position and brought in Jeremy Hitchcock, former CEO of Minim and Dyn (acquired by Oracle). Hitchcock said there is a “massive market opportunity” in home networking. He continued, “at $50 million in annual revenue and a market cap of less than $5 million, or 0.1x sales, there is a measurable opportunity to capture additional value.”
While shares of MINM stock may be sitting below $1 right now, that will likely change this time next week. The company announced a 1-for-25 reverse split that will become effective on April 17th. What may have also factored into the latest momentum in MINM stock is the new Amended 13D filing from Hitchcock. It showed a more than 38% stake in the company’s shares.
Stronghold Digital Mining Inc. (NASDAQ: SDIG)
Cryptocurrency prices continue climbing (for now). That has brought plenty of bullish and speculative interest in related public companies. Stronghold Digital is one of the companies in question, and shares surged higher on Tuesday thanks to a move in Bitcoin prices. One of the reasons for this has to do with the company’s business model.
Stronghold is a Bitcoin mining company that focuses on environmentally friendly operations. That has been one of the hangups for analysts looking at digital currency ESG activities. Higher energy consumption for traditional mining operations has strained an already fragile power grid. Companies like Stronghold have taken the proactive approach of mitigating this strain through creative strategies.
Following its latest earnings report, SDIG stock has started to rally. It reported a sales beat with $23.4 million in Q4 revenue. It also reiterated its expectation of achieving an estimated net cost of power of $45-50 per megawatt hour in the first quarter of 2023. The digital mining company has gained some attention, with analysts boosting price targets, including Compass Point, from $1 to $1.50.
Something to be aware of if SDIG stock is on your radar is that the company filed a prospectus to sell “from time to time” up to 62 million shares of common stock by selling stockholders. Whether this presents a dilution risk is yet to be seen, but something to keep in mind.
List Of Penny Stocks Under $1
- Skillz Inc. (NYSE: SKLZ)
- LifeWallet (NASDAQ: LIFW)
- Minim Inc. (NASDAQ: MINM)
- Stronghold Digital Mining Inc. (NASDAQ: SDIG)