Just because something is cheap, doesn’t necessarily mean it’s worth it. This is the case with all penny stocks. When it comes time to buy, there should be much more that goes into your strategy than just, “It’s a cheap stock”. Small cap stocks today are incredibly volatile. The stock market, in general, has experienced yet another major surge. There’s also a huge shake-up going on with one of the most popular trading platforms, Robinhood.

This, of course, hasn’t stopped users from buying penny stocks on Robinhood. But it could mark a changing of the times for millennial traders. Needless to say, the more you know, the better off you are. Going full circle, the more you know about certain penny stocks, the more prepared you might be to make a trade. Just because these are “cheap” are they worth it to trade?

We’ve discussed epicenter penny stocks many times in the past. This idea was initially made popular by Fundstrat’s Tom Lee. He explained epicenter stocks as ones that’ve gotten hit the hardest by the pandemic but could rebound the strongest in light of a vaccine. Considering that the latter is now a reality, it might be time to look for some epicenter penny stocks to watch.

Shares have now managed to climb from around $1 in October to highs this week of $3.16. Not only does this mark a move of nearly 200%, but DS stock is at a critical level. If you look at the chart, you’ll see the last time DS stock tested these levels in June, it failed to maintain them and ended up falling back down. The difference between now and then, obviously is that now we’ve got vaccines rolling out. What’s more is that this week, analysts at B. Riley adjusted their price target higher on the stock to $5.50. The firm also maintains a Buy rating.

If you look at some of the industries gaining considerably higher levels of interest, what have you seen? In my opinion, one of the hottest of the fourth quarter has been electric vehicles and renewable energy. With the upcoming inauguration of Joe Biden as the 46th President of the U.S., his initiatives on renewables have become a huge focus for traders. Furthermore, the compounded impact from earlier in the year stemming from Tesla’s Battery Day have added fuel to the speculative fire.

The company announced an update to this project this week. That seems to have become a nice catalyst heading into the end of the month. Pilot factory land has been purchased and water rights were secured. “At full capacity, our pilot facility will recycle 20,000 metric tons of feedstock a year to recover critical and strategic materials needed to manufacture new EV and consumer electronic batteries – and to ensure these lithium-ion batteries do not end up in the landfill as waste,” said CEO Doug Cole.

This week, Energy Fuels reported that it will enter the rare earth business next quarter adding to its current offering. The company will work to produce clean energy and entered into a supply agreement with The Chemours Company (CC Stock Report). Under the terms of the agreement, Energy Fuels plans to acquire a minimum of 2,500 tons of natural monazite sans per year. According to the company, after the program’s ramp up, it will be the 1st U.S. company in years to make marketable mixed rare earth element concentrate set for commercial-scale separation.

Adding to this, Gevo inked a supply deal with Avfuel for sustainable aviation fuel. While there weren’t specific figures given, Gevo said it marked the first load of sustainable aviation fuel for an FBO at the King Country International Airport. What’s more is the Gevo’s progress remains a sticking point for analysts right now. If you look at ratings from the likes of H.C. Wainwright, the firm has a Buy rating on the stock with a $5 target; 109% higher than the current trading levels.