3 Robinhood Penny Stocks That Are Thinking Outside The Box

Will These Top Penny Stocks Be On Your May Watchlist?

Penny stocks are in use as a financial instrument for a variety of purposes. Since they are usually smaller companies, penny stocks are best for those with a high-risk tolerance. However, because of this high-risk profile, there are also high rewards. As investors, we must have realistic expectations and consider both internal and external factors that go into the formation of a company's value. 

As we all know, volatility comes with the penny stock territory. If proper research is done, however, buying and selling penny stocks can be a very lucrative investment. Diversifying one's portfolio can also mitigate the risk for large losses that may occur. It's important to never never let an unfortunate trade lead to FOMO or fear of missing out. This can lead to further losses if emotions get in the way. Think critically and maintain confidence in your investments.

The high volatility associated with penny stocks under $5 comes from recent news, quarterly performance, and future aspirations of a company. The funds it receives from investors can be put to use for future projects and growth. 

When generating a penny stock watchlist, market trends are a good indication of the future movement of invested funds. For example, the technology industry has seen massive growth this past year and is showing no signs of slowing down. Because of this investors are more likely to feel comfortable investing in penny stocks and different sectors such as tech stocks.

With the plethora of tech penny stocks to choose from let's narrow our scope to those that have seen bullish tendencies this past year. When considering penny stocks to buy we want to consider ones that have had positive price trajectories in the trailing months. This represents growing investor interest and potential for future growth. 

In a time of ‘supply and demand,' small-cap stocks involved in acquisitions and sales have been outperforming the rest of the market. In addition, the access to buying penny stocks on Robinhood has increased the amount of free-flowing capital in the market. With these factors considered, here are some penny stocks that you should add to your watchlist.

3 Penny Stocks On Robinhood With a Tech Emphasis

1. Ambev S.A. ABEV
2. Uxin Limited UXIN
3. MoSys Inc. MOSY

Ambev S.A. ABEV

When searching for notable penny stocks to buy, companies that sell desired products tend to do better in the long run. Ambev S.A. is a Brazil-based producer of carbonated soft drinks, beer, and other non-carbonated, non-alcoholic beverages.

Operations for the company have expanded all over the Americas since 2005. During the past year, it has seen a consistent price per share increase and has grown over 43%. That's four times the average of the S&P 500.

In times like this, ordering from home has become the standard and alcoholic beverages have become high in demand. Whether it be due to boredom or for another reason ABEV has shown no indication of slowing down.

Today alone it increased in the double-digit percentage points. In an opening economy, people's trust in businesses that have been reliable even in the worst of times will go a long way. 

AB InBev, a parent company and 62% stakeholder of ABEV, is a huge factor in its operations. AB InBev's larger-scale and business practices are established and maintained by its senior managers. When needed, ABEV appoints these executives from the parent company to help with upscaling. Considering all these factors do you think the penny stock ABEV will continue to grow in the coming months?

Uxin Limited UXIN

With a lack of dealership traffic due to the COVID-19 pandemic, new car sales plummeted. This encouraged the sale of used cars and used car-related services to benefit tremendously. A company in this market is Uxin Limited. UXIN is an online used-car transaction services platform that based in Beijing, China. Founded in 2011, this tech penny stock offers online retail and the auction of used vehicles. 

Although it sold fewer cars than previous quarters, its increases in positive gross profit margins have been an optimistic sign for investors. Its steady decline over the past five years has finally shown a glimmer of hope in the last three months, having increased by over 120%. With a strong positive outlook on profit margins and an 82% reduction in net losses since last year, the company seems to finally be back on an upward trajectory.

After the fiscal third quarter in 2021, a UXIN representative noted that it, "completed the transformation to an inventory-owning model during the three months ended December 31, 2020, with 99% of the transaction volume sold from the Company’s own inventory."

With a sharp spike in the demand for used cars and an increase in profit margins for selling these used cars online, UXIN is in a good position for this upcoming quarter. What do you think, is UXIN a good penny stock to add to your watchlist?

MoSys Inc. MOSY

Tech penny stocks that are showing future growth potential are those that are pushing the boundaries of the modern world. This includes those engaging with the most recent technologies and securities meant to optimize and protect other businesses. MoSys Inc. does just that.

As a semiconductor solutions provider, MOSY offers software, hardware, and firmware solutions to its customers. Its products enable rapid, smart data access and data decisions using cloud networking, security, and tests. This allows companies to improve operations through more advanced solutions.

Back in 1991 MOSY began operations in San Jose. Now, MoSys is known for its blazer accelerator engine ICs, 100G linespeed, and development kit products. Its portfolio includes five search and classification algorithm patents that are in use for its cloud computing. Engaging in 5G technology keeps MOSY relevant and competitive in the ever-growing market of tech penny stocks. Given this, MOSY could be put on your watchlist for this May.

Will These Robinhood Penny Stocks Be On Your Watchlist?

As we move further into May, investors are constantly searching for the best penny stocks to watch. While being selective about the industry you’re looking to find penny stocks in is good, research should always be your main strategy. 

With so many penny stocks out there, it’s easy to get lost trying to find the right ones to buy. So while this list should serve as inspiration, making a penny stock watchlist will always be the key to profitability. With this in mind, will these Robinhood penny stocks be on your watchlist?