In 2021, there have been plenty of ups and downs with penny stocks. This is for the most part, par for the course. However, with large volatility comes the opportunity to find potential value to be had. With any stocks under $5, the likelihood of seeing large intraday gains is palpable.
And while it may seem at random to watch a penny stock climb in the double-digit percentage points, there are ways to identify this before it happens. The most well-known method to do so is to get a trading education. And in tandem with this, investors need to research each and every penny stock they intend to add to their watchlist.
But, it also goes further than this. For one, penny stocks are some of the most speculative financial instruments out there. This means that prices can fluctuate greatly off even the smallest news. That news could be company-specific or industry-wide. And while the most important news usually has the greatest effect, it is worth paying attention to all announcements.
[Read More] 4 Robinhood Penny Stocks to Watch in Summer 2021
The next thing that investors should do is look up analyst sentiment. This is a great way to gauge the market sentiment behind a given stock. And, this also extends to what investors on Reddit or other social media sites are saying. While this is not an exhaustive list of how to buy and sell penny stocks, it should get you started. Considering these factors, here are four hot penny stocks to watch in 2021.4 Penny Stocks to Watch in 2021
- Enzolytics Inc. (OTC: ENZC)
- Ashford Hospitality Trust Inc. (NYSE: AHT)
- Ambev S.A. (NYSE: ABEV)
- U.S. Well Services Inc. (NASDAQ: USWS)
The first penny stock to watch on this list is Enzolytics Inc. ENZC is a biotech penny stock that focuses on commercializing proprietary proteins for the treatment of debilitating infectious diseases. It has patented anti-HIV therapeutics and a proprietary methodology for producing human lgG1 monoclonal antibodies.
It also has a proprietary cell line that produces human monoclonal antibodies that neutralize the HIV virus. While HIV may not be in the news as much as Covid, it is still a disease affecting millions globally, with no known cure. While there are viable treatments, these are still limited. This means that there is a largely unmet clinical need for treating HIV patients.
On May 26th the company announced that it identified conserved immutable sites on the HTLV-1 virus against which it’ll produce target anti-HTLV-1 monoclonal antibodies. Currently, there are no effective vaccines against HTLV-1 and no antiviral drugs available for treating related infections.
“We now have a comprehensive platform for producing multiple targeted monoclonal antibodies against numerous infectious diseases.
This platform includes our ability to first identify multiple conserved and expectedly immutable sites on viruses with the ability to then produce fully human monoclonal antibodies targeting those sites.
This approach opens the door to new and durable therapies that can be used to treat innumerable human infectious diseases.”CEO of Enzolytics, Charles Cotropia
ENZC stock has gone up from $0.11 to $0.17 in the last 5 days. With this recent announcement causing a big stock price increase for ENZC will it make it on to your list of penny stocks to watch?Ashford Hospitality Trust Inc. (NYSE: AHT)
The market for real estate penny stocks like Ashford Hospitality Trust Inc. is booming right now. In the past few months, we’ve talked about AHT stock numerous times. If you haven’t heard of Ashford, let’s get you up to speed. Ashford Hospitality is a real estate investment trust (REIT) focused on upscale full-service hotels.
It also has an app called the Ashford App for investors in the hospitality real estate market. During the pandemic, real estate sales have shot up dramatically. As it pertains to AHT, more vaccinations mean more people will be traveling and therefore, higher hotel usage rates. Because of this, investors are betting on the short and long-term future of AHT stock and other similar REITs.
If we look at the Dow Jones Equity All REIT Total Return Index, we can see a total picture of how the REIT market is performing. And in the last year, we’ve seen consecutive gains throughout. There is no doubt that the real estate market is becoming more valuable day after day in 2021. And while no one knows how long this will go on, right now REITs are definitely in focus This is all contributing to the stock price increases we’re seeing with AHT stock.
In the last 5 days, AHT stock has gone from $3.60 per share to more than $5.74 per share as of June 3rd. Technically, AHT is no longer a penny stock as of today, which is always great news for investors to hear. With such a large increase and the real estate market exploding in value, will AHT make it onto your former penny stocks watchlist?Ambev S.A. (NYSE: ABEV)
Ambev S.A. is a producer of alcoholic and non-alcoholic beverages. During the pandemic and as the pandemic ends, the demand for both of these types of drinks has shot up tremendously. For some context, Ambev sells beer, draft beer, and carbonated soft drinks specifically. Its brands include Skol, Budweiser, Bud Light, Stella Artois, Corona, and many other large names. Under its non-alcoholic brands are major, well-known beverages such as Gatorade, Lipton, Pepsi, and much more.
Many investors have turned to Ambev as it is considered a reopening penny stock. Sure, alcohol sales have been strong while the world has been locked down. But now with bars and clubs reopening all over the world in addition to parties and sporting events occurring, alcohol sales are likely to increase.
Ambev is experiencing the benefits of this as the United States reopens in a big way. Even the strictest of states like California and New York are starting to reopen in full with no masks for vaccinated people. While we won’t fully know the effects of this directly on Ambev until its next balance sheet, the sentiment is encouraging. With this in mind, will ABEV be worth watching in the coming months?U.S. Well Services Inc. (NASDAQ: USWS)
U.S. Well Services Inc. is another frequently discussed penny stock in the past few months. This is due to the momentum it has held in the market throughout 2021. More specifically, over the last month, demand for oil and gas has shot up, pushing USWS stock along with it. While U.S. Well Services is not necessarily a pure-play oil and gas stock, it does have a large role in the industry. USWS is an oilfield service company that provides hydraulic fracturing services to oil and natural gas exploration and production companies.
Its latest update came when the company announced its move toward full electrification of its portfolio. The company stated that is it committed to become an all-electric hydraulic fracturing services provider by the end of 2021. This would make it the first publicly traded pure-play electric completions services provider.
“U.S. Well Services has believed in the superiority of electric technology since our first Clean Fleet® was deployed in 2014. Today, we are beginning to realize our vision of going all-electric, reducing a significant amount of our outstanding debt, and streamlining our focus to become the new market leader in our industry.”The President and CEO of USWS, Joel Broussard
In the last 5 days, USWS stock price went from $1.13 per share to $1.55 per share on average. On June 2nd alone, it increased by more than 18%. With the demand for energy pushing up greatly in the past few months, investors expect this market to continue seeing momentum. And, as more and more people get vaccinated and feel comfortable traveling, we can only hope that USWS will see the benefit. Considering the above information, is USWS stock on your watchlist for June?Finding Penny Stocks to Buy is About Thinking Outside of the Box
Thinking outside of the box will always help investors to stay ahead of the game. This means considering how certain events will impact an industry or a company in specific. While this is not always the easiest, the internet is there to help.
So with thousands of penny stocks to choose from, finding just a handful for your watchlist can be seen as a daunting task. But with the proper know-how and an entrance and exit strategy, buying penny stocks in 2021 can be easy.