If you’re looking for the best penny stocks to buy now, there’s no shortage of stock market catalysts. Some are considering this week the calm before the storm ahead of a slew of economic data and another Fed Meeting in a few weeks. One thing is certain, and that is penny stocks are known for their unique ability to weather most financial market storms. Even during the more bearish market conditions, you are sure to find at least a handful of cheap stocks under $5 heading higher.
Finding Penny Stocks To Buy
So what should you do first in order to find the best penny stocks to buy now? Research is a great place to begin. Understand the types of stock market catalysts showing strength, and then you can compile your list of penny stocks to watch. Today, for instance, there is a strong focus on many different market niches, including cannabis stocks and certain tech stocks, including highly popular AI names. In these cases, it’s also worth noting that it isn’t so much confirmed news than it is speculative bets on future outcomes.
Why Marijuana Stocks Are Moving
In the case of cannabis stocks, the underlying catalyst stems from recent headlines that suggest the US Department of Health and Human Services is recommending looser restrictions for cannabis. Republican Representative Matt Gaetz and Democratic Senate Majority Leader Chuck Schumer are both marching to the sound of the same drum in support.
“The regulated cannabis industry in the US is hurting due to lack of capital, uniquely burdensome taxes, and nearly unfettered competition from unlicensed operators,” said Adam Goers, co-chair of the Coalition for Cannabis Scheduling Reform. “Moving down to Schedule III will provide a massive boost to our industry, particularly social equity and small business owners who have suffered the most under the status quo.”
Since this move sets the stage for potentially expanding the cannabis market across the country, cannabis bulls are coming back to the market. The latest move in marijuana stocks is one of the most robust in years. As a result, speculators are betting on a favorable result, though no firm decisions have been cemented yet.
Stock Market News Today
The bigger picture stock market news today is focusing on the economy and energy prices. Goldman Sachs recently cut its recession odds to 15%. The bank also said that it expects the Federal Reserve to skip a hike at its September meeting. However, it hasn’t put much pause to the sentiment that September is a bearish month overall.
What Is The September Effect?
The “September Effect” refers to the historical trend of weak stock market returns during September. Even though its a recognized calendar-based market anomaly, its cause remains speculative. Some think investors are locking in gains after summer to institutional sell-offs at the quarter’s end. While data from 1928 to 2021 shows September often having declines in the S&P 500, the phenomenon isn’t consistently observed every year. This can lead many economists to view it as an irregularity rather than a predictable pattern.
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Penny Stocks To Watch
So what are some of the most popular penny stocks today? In this article, we dive into some of the top names grabbing attention on Tuesday. They’ve experienced an irregular surge in trading volumes and have seen price appreciation that is more than just a few percentage points. Once you see some of the catalysts in motion, you can decide if any deserve a place on your list of penny stocks to buy now or not.
1. SNDL Inc. (NASDAQ: SNDL)
One of the popular and sometimes infamous cannabis stocks, SNDL Inc., has continued trading higher in the stock market today. The move also comes in conjunction with the marijuana industry news related to looser regulation on pot. It also comes at a time when SNDL is approaching a significant milestone event.
The company and Nova Cannabis announced that they anticipate closing their strategic partnership transaction by the end of September. “SNDL and Nova recently participated in constructive discussions with the regulatory body responsible for final approval,” stated Marcie Kiziak, CEO of Nova.
“The conversation was productive, and we are confident in the transaction’s timely progression. SNDL and Nova remain committed to navigating through these processes with transparency and diligence, ensuring the best outcome for all parties involved.”
SNDL stock has come under scrutiny thanks to prior instances of capital raises and dilution in the market. Even in light of that, shares have found a place in the hearts of retail traders and have sometimes been on the meme stonks list. With that understanding, it’s important to note that SNDL stock can be highly volatile at times.
2. Canopy Growth Corporation (NASDAQ: CGC)
While, Canopy Growth is a shell of what it once was in terms of stock price, the last few sessions have seen CGC stock rally back from levels around its 52-week lows of $0.384. The trend at the end of August is off to a stronger start. In this case, CGC stock jumped another 24% after the latest industry headlines came out.
There was also more substantial news in the middle of the month last month that had helped ignite some interest. Canopy Growth entered into an agreement for the sale of its Hershey Drive facility in Ontario, Canada. Canopy will retain its Smiths Falls-based post-harvest manufacturing facility. “Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we’re making in our supply chain network and our Canadian operations to support growth,” said Jason Reiman, Chief Supply Chain Officer, The Hershey Company.
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Canopy also recently launched a line of distillate-infused pre-rolls with up to 39% THC. The offering comes from its brands Tweed, 7ACRES, and Spectrum Therapeutics. This news, paired with the overarching legislative speculation, has helped give CGC stock a boost in the stock market in September. The question, as with all marijuana stock breakout rallies: can it last?
3. Rigetti Computing Inc. (NASDAQ: RGTI)
Shares of Rigetti Computing stock continued climbing higher in the stock market today. The penny stock made a rebound after a sell-off late last month. One of the catalysts in play is its recent earnings.
Rigetti reported a beat on sales and EPS for the quarter. Analysts at Benchmark and Needham also reevaluated their stance on RGTI stock. Each now has a Buy rating following Benchmark’s upgrade. The firms also have RGTI stock forecast price targets of $4 and $3, respectively.
“After having launched the Ankaa-1 system internally, we are excited to have our longtime partner, Riverlane, as the first external partner using the system to work on improving error correction techniques on our new architecture,” said Dr. Subodh Kulkarni, Rigetti Chief Executive Officer. “We also look forward to making Ankaa-2, our most innovative system to date, available to the general public in Q4 of this year.”
The quantum computing company has gained interest as the sector grows in popularity. Rigetti is expecting to launch its Ankaa-1 quantum processor to customers in mid-2023. It was also awarded a US Patent titled “Parametrically activated quantum logic gates,” helping to add to the positive sentiment in the stock market. Right before the end of July, Rigetti also announced a collaboration deal with ADIA Lab to develop quantum machine learning solutions for resolving certain challenges in quantitative finance.
