3 Penny Stocks to Add to Your Small-Caps Watchlist Right Now
With the holiday season in full swing, penny stocks continue to see bullish interest. Although it may be difficult to find penny stocks to buy before they take off, there are a few ways to do just that. First and foremost, investors can look to see which penny stocks are trending. Useful platforms here include Reddit and Twitter, as these are places where traders come together to discuss stocks of all types.
But, keep in mind that penny stocks on Reddit and Twitter, tend to be extremely volatile. The next step is to look for abnormally high volume. Volume is an indicator displaying how many shares of a stock have been traded in a given day. If volume is higher than average, it can signal that a penny stock is trending. In addition, abnormally high volume can signal that an event or announcement has been made regarding a company.
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This brings us to our next point, which is speculation. Penny stocks tend to be some of the most speculative assets out there. And as a result, any news can lead to massive price movements. For this reason, paying attention to what’s going on with penny stocks on your list and news surrounding their respective industries, can be a major benefit to your portfolio. Considering all of this, let’s take a look at three penny stocks to watch during the holiday season.
3 Penny Stocks For Your Holiday Watchlist
- ReTo Eco-Solutions Inc. (NASDAQ: RETO)
- Gaotu Techedu Inc. (NYSE: GOTU)
- Ideanomics Inc. (NASDAQ: IDEX)
ReTo Eco-Solutions Inc. (NASDAQ: RETO)
ReTo Eco-Solutions Inc. provides a diverse range of products and services. These products and services are mostly for ecologically friendly building materials, environmental protection equipment, manufacturing equipment, and other similar items. The company’s products are utilized to improve ecological surroundings through project consultancy, design, and installation. With a 1% gain on November 24th, shares of RETO stock have climbed by around 15% in the past month.
ReTo released its financial results for the first half of 2021 in October. Revenues and equipment sales both decreased year over year and in the first half of the year. In better news, REIT Mingsheng Environmental Protection Construction Materials Co. Ltd., the company’s wholly-owned subsidiary, has begun the comprehensive construction stage of a new project.
“We have increased our investment in ecological restoration, ecological governance technology, and market development, and have launched such projects in a few counties in Shanxi Province. This will enable us to improve the company’s performance in the second half of the year.”Chairman and CEO of ReTo, Mr. Hengfang Li
In the past YTD period, shares of RETO stock have shot up by over 49%. And, it’s worth noting that from November 5th until November 17th, shares climbed by a staggering 150% or so. Considering that, will RETO stock be on your penny stocks watchlist?
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu Inc. is an educational penny stock that climbed by over 2% on November 24th despite a one-year drop of around 95%. If you’re not familiar, this company offers K-12 after-school tutoring services in China. Its services include those for math, English, Chinese, biology, Japanese, and much more. The company also offers English test preparation courses and professional courses. Gaotu additionally operates Weishi, which is an interactive WeChat learning platform.
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Its latest update comes from a few months ago when it released its second-quarter financial results for 2021. The company reported net revenues of RMB 2,232.3 million, which was a 35.3% increase year over year. Gaotu’s gross billings went up 12.2% year over year as well. Additionally, the company experienced a very high net loss, compared to net income last year.
“In order to support the equality of education, ever since May, we have successively collaborated with multiple non-profit organizations such as the China Charity’s Aid Foundation for Children, the China Youth Development Foundation, the China Next Generation Education Foundation, and the Henan Normal University through cash donation or free course offerings, to aid the revitalization of rural area education and achieve the goal of equal access of education for everyone.”The Chairman and CEO of Gaotu, Larry Xiangdong Chen
With all of that in mind, whether GOTU stock deserves a spot on your list of penny stocks to watch is up to you.
Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics Inc. is a penny stock we have mentioned frequently in the past few months due to its upwards trajectory. On November 24th, shares of IDEX stock climbed by around 9%, which is no small feat. For some context, Ideanomics is an industrial company focused on pushing for the adoption of commercial electric vehicles and groundbreaking fintech solutions. Ideanomics provides solutions for procurement, charging, financing, and energy management for EVs. On the other hand, its Ideanomics Capital division invests in new and budding fintech services.
On November 23rd, the company reported its third-quarter financial results for 2021. The company’s revenue was $27 million for the quarter. Its revenue from its mobility unit was $11.5 million, up from $8.7 million last quarter. Ideanomics achieved a gross profit of $4.5 million, up from $0.7 million in 2020.
“This quarter was highlighted by two very important strategic planned acquisitions of VIA Motors and Energica both scheduled to close in the first quarter. The integration of these two companies provides Ideanomics with full OEM capabilities across vehicle types, and positions Ideanomics as one of the only full-service, turnkey, offerings in the market today.”The CEO of Ideanomics, Alf Poor
After its sizable climb today, will IDEX be on your penny stock watchlist?
Are These Penny Stocks on Your List Right Now?
Finding the best penny stocks to buy right now can be tricky. With so much movement occurring with both penny stocks and blue chips, keeping up to date with every event can be a challenge. However, because there is so much movement with small-caps, making money with penny stocks in 2021 can be completely doable.
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One thing to keep in mind is that having a proper trading strategy, will always increase your chances of profitability. Those with a consistent method, tend to do better when it comes to trading penny stocks. So, with all of this in mind, are any of these penny stocks on your list right now?