What Is A Penny Stock?
You’re here to read about penny stocks to buy today. But do you know what a penny stock is? These cheap stocks are generally shares of early stage companies that trade for $5 or less. They come with plenty of risks, like low liquidity and a lack of publicly available information. In some cases, they are prone to fraudsters taking advantage of unwitting novice investors. However, the flip side to that is things like the potential for triple and even quadruple-digit percentage gains.
These moves can come within hours, and unlike what popular opinion might assume, they aren’t just “pink sheet stocks” or OTC stocks. Many of the stocks under $5 trade on major exchanges like the NYSE and Nasdaq. With the slew of Robinhood and Webull traders, this is good news when it comes to finding penny stocks to buy today.
Many of the mobile platforms restrict access to most OTC stocks, in general. Though there are some exceptions, the vast majority of users will focus on major exchange-listed companies. So rest assured, if that’s you, there are plenty of companies to choose from.
Why Stocks Are Down Today & Why It Doesn’t Impact Penny Stocks
One of the benefits (despite the higher risk) of penny stocks is they tend to move in a way that is disconnected from broader market trends. The stock market today is red and there’s a reason for that. Why is the stock market down today? The latest home sales and consumer confidence data prompted more concern on the state of the economy in the United States.
That comes after last week’s Fed Meeting and Jerome Powell press conference failed to instill much confidence in the markets in terms of future rate hikes, inflation, and projections for next year. With GDP revision and PCE data still to come this week, investors are walking on eggshells and it’s showing in trading trends.
The S&P 500 dropped to some of its lowest levels in months. The associated SPY ETF dipped to the mid $420s, which it hasn’t seen since June. Meanwhile, the tech-heavy Nasdaq and the QQQ ETF followed suit. The Qs dipped to lows of $354.63, which is also below its 100-day moving average. The ETF hasn’t traded below this technical level since January. As for the Dow, its DIA ETF dipped below the 200-day moving average for the first time since May.
Amid this blood red market, there are more than a few hot penny stocks to watch today. In this article we’ll dive into the details and see what’s propelling momentum. Then you can decide if they’re worth adding to your list of penny stocks this week.
Hot Penny Stocks To Watch
1. Blink Charging Co. (NASDAQ: BLNK)
2. FuelCell Energy Inc. (NASDAQ: FCEL)
3. EOS Energy Enterprises Inc. (NASDAQ: EOSE)
Blink Charging Co. (NASDAQ: BLNK)
Energy-related stocks are getting recharged in the stock market today thanks to a few tailwinds. Blink Charging, an EV charging equipment and services company, saw its shares bounce for the first time in weeks. The move comes as attention on market bellweathers, like Tesla (NASDAQ: TSLA), picks up. But it isn’t just industry sympathy sentiment helping BLNK stock today. The company also released news of its own.
Blink Charging reported that it teamed up with Parkopedia. It will offer EV drivers more access to electric vehicle charging and integrate nearly 12,000 Blink charging stations across the US to Parkopedia’s services.
Jim Nemec, Chief Revenue Officer for Blink Charging explained, “The combination of Parkopedia’s excellence in serving drivers through convenience in parking accessibility and Blink’s extensive range of public EV chargers gives EV drivers confidence in finding a reliable charging experience wherever they are. This initiative builds upon our strategy of making it easy for EV drivers to locate Blink chargers through a variety of platforms.”
This is the first green trading day BLNK stock has seen since September 14th.
FuelCell Energy Inc. (NASDAQ: FCEL)
Another, more direct, energy-related stock to watch this week is FuelCell Energy. The comapny provides sustainable clean energy technology and fuel cell products and solutions for its customers. Ranging from governments & municipalities to business and utilities companies, FuelCell has placed a clear focus on clean energy efficiency.
Despite a lackluster earnings report, FCEL stock has managed to rebound over the last few days. Jason Few, President and Chief Executive Officer mentioned, “Excluding the revenues generated by the sale of modules to KFC in the prior year quarter, overall revenues in the third quarter were up slightly compared to the prior year quarter…Also during the third quarter, we were very pleased to expand our presence in the Korean market with domestic clean energy electric utilities that had previously installed FuelCell Energy power platforms.”
Other interest regarding FCEL stock has focused on the recent deal with Toyota that was announced earlier this month. The two comapnies completed the “world’s first Tri-gen production system,” that produces renewable electricity, renewable hydrogen and water from biogas. Toyota was contracted by FuelCell to supply products of the Tri-gen system under a 20-year purchase agreement.
EOS Energy Enterprises Inc. (NASDAQ: EOSE)
EOS Energy develops zinc-based energy storage systems. With clean energy stocks remaining a focus in the last few weeks, the penny stock has seen an uptick in activity and stock price. Its Znyth battery is designed as a direct competitor to lithium-ion batteries.
Recent earnings helped give EOSE stock a boost earlier this quarter. While it missed earnings per share and sales estimates, commentary from management seems to have boosted sentiment. Eos Chief Executive Officer Joe Mastrangelo said, “We have made significant progress on our transition to Z3 and I am very pleased with the initial output and performance of the semi-automated line. We are seeing clear advantages with Z3’s cycle time, performance consistency, and system simplification. Being able to run discrete manufacturing processes in the first half of the year has resulted in valuable learnings which we believe will result in both time and capital efficiencies as we develop our state-of-the art manufacturing line and begin to scale our production.”
Since the “reset” and EOSE stock sell-off earlier this month, shares have begun rebounding. The move coincides with milestone news related to Dominion Energy (NYSE: D). EOS Energy’s Eos Z3 platform was chosen by Dominion Energy Virginia for a new pilot project.
In response to the milestone, Ed Baine , President of Dominion Energy Virginia said, “Battery storage is a key component in making the grid increasingly clean…We are excited about this pilot project and partnering with Eos Energy Enterprises on its zinc-hybrid technology, which provides a safer alternative to conventional lithium-ion batteries.”