What do you consider the best penny stocks? Are they the ones exploding higher within a single session? Maybe they’re the ones that go on to become market leaders. On the other hand, you could simply be looking for penny stocks to buy and sell this week. In any case, your definition of the “best penny stocks” greatly depends on your strategy and goals.
In this article, we look at a handful of hot stocks trading for pennies on the dollar that are gaining momentum in the stock market. We’ll specifically look at recent headlines that may have become active catalysts for traders and the reason behind the uptick in interest. Then you can decide if they’re the best penny stocks to watch or if they don’t deserve a place on your list at all.
Stock Market News & Penny Stocks
When investing in penny stocks, one of the most important things to pay attention to is company news. Penny stocks are stocks that trade for under $5 per share. They are typically smaller companies. Since these companies are not as widely followed as large-cap stocks, investors need to proactively research company announcements and developments. This is to identify penny stocks with strong potential. In this article, we'll explore why company news is so crucial for penny stock investors.
Earnings Reports
One of the most pivotal times for any stock is during quarterly earnings season. Company earnings reports provide vital insight into financial performance and profitability. For penny stocks, these reports can lead to major price swings. Even small beats or misses versus analyst estimates can send shares surging or plunging. As a penny stock investor, thoroughly reviewing earnings reports is key. Check both the raw numbers and management's guidance. If a company delivers strong growth and forecasts an optimistic outlook, it could signal rising prospects.
Product Launches
When small companies release new products and services, it demonstrates innovation and an expanding business. Investors should take notice of product launches that target large addressable markets or high-growth sectors. For example, a biotech penny stock gaining approvals for new medical devices or drugs has blockbuster potential. Or a tech stock rolling out solutions that tap into surging trends like cloud computing or cybersecurity. Big product launches show penny stocks entering new territory and attracting consumer demand.
Partnerships & Deals
Penny stocks often make strategic partnerships and deals that strengthen competitive positioning. Pharma companies partner with larger players for R&D and marketing. Tech startups ally with major corporations to scale solutions. Deals can give penny stocks a significant advantage and bring stability. Investors should track partnership announcements to find pennies stocks creating value through key relationships. Compelling deals can be a catalyst for penny stock breakouts.
Management Changes
The executives and directors guiding a penny stock company are central to its path. If new C-suite leaders or board members with impressive track records join a penny stock, it signals a positive culture shift. Conversely, if executives resign or departures cause uncertainty, it raises red flags. Management changes demonstrate internal evolution and strategic direction. Penny stock investors should monitor leadership announcements closely.
While penny stocks carry more risk than large caps, staying up-to-date on company-specific news allows investors to find hidden gems. Savvy penny stock investors dig into earnings reports, new products, partnerships, leadership changes, and other announcements. Compelling company news provides the catalyst for cheap stocks to deliver outsized returns. Maintaining diligent awareness of the latest developments can help traders identify exciting opportunities in this volatile market segment.
Penny Stocks To Watch
- Sirius XM Holdings SIRI
- Scienjoy Holding Corp. SJ
- Aytu BioPharma AYTU
- ESS Tech Inc. GWH
Sirius XM Holdings (SIRI)
The audio entertainment company has been a long-standing name in the world of satellite radio. Shares have made a rebound over the last few sessions thanks to recent M&A news.
SIRI Stock News
What was the SIRI stock news? The company acknowledged receiving an offer form Liberty Media Corporation to combine Liberty’s Liberty SiriusXM tracking stock group with SiriusXM. Analysts appear optimistic on the proposal. Deutsche Bank Securities said Wednesday in a note that this will help the company achieve its goal of eliminating the net asset value discount.
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Scienjoy Holding Corp. (SJ)
Live streaming and entertainment company Scienjoy experienced a wild day of trading on Thursday thanks to news. The low-float penny stock slumped as low as $1.86 and as high as $4.77 in a matter of hours.
SJ Stock News
The company announced that it is enhancing its metaverse plans, including establishing a Scienjoy Verse Tech Ltd in the Dubai International Financial District. It also inked a memorandum of understanding with NUJOOM to acquire 90% of the content creator-driven company.
Aytu BioPharma (AYTU)
Novel therapeutic company, Aytu BioPharma saw it’s stock price pop thanks to recent headlines. It focuses on developing treatment candidates for things like ADHD, certain allergies, diabetes, GI conditions, and hair growth.
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AYTU Stock News
The latest AYTU stock news comes in the form of earnings. The company reported record revenues, record prescriptions, and the highest adjusted EBITDA in its history.
CEO Josh Disbrow also explained, “The initiatives we’ve undertaken to focus efforts on our core Rx Segment, along with the significant margin improvements we’re making, have begun being reflected in the strong performance demonstrated as we exited FY23. This elevated performance has been driven by significant Rx Segment growth, which had its most successful quarter to date with all-time high prescriptions, its highest revenues, and a 35% Adjusted EBITDA margin. Further, we are seeing continued market tailwinds with both our ADHD products which we believe bodes well for the further adoption of our novel therapeutics into the future.”
ESS Tech Inc. (GWH)
Shares of GWH stock have climbed higher for the last week thanks to market momentum and news catalysts. ESS Tech specializes in decarbonization via energy storage systems. The trend in renewable energy stocks remains in the spotlight amid the focus on ESG initiatives.
GWH Stock News
In this case, news surfaced that ESS and Honeywell HON will collaborate to speed up the commercial deployment of the iron flow battery energy storage systems.
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"The demand for long-duration energy storage represents a compelling market opportunity within the energy transition and the combination of Honeywell and ESS technology can accelerate decarbonization for the commercial, industrial and utility sectors," said Bryan Glover, chief growth officer, Honeywell Performance Materials and Technology (PMT) group. "Our strategic collaboration with ESS will accelerate Honeywell's ability to bring comprehensive solutions to our customers while working to advance long-duration energy storage across all industries requiring expansive energy storage."
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