One thing that we can say about the last 21 months is that penny stocks are getting their time in the spotlight. Thanks to the pandemic’s onset, the market’s downturn, and the thirst for volatility from retail readers, these cheap stocks are some of the most sought-after. Why? One of the reasons has to do with the upside that penny stocks offer.
The other is more related to the fact that so many “leading companies” fell to the depth of sub $5 levels, which inherently introduced an entirely new crowd to this world of cheap stocks. Whether you’re talking about some of the vaccine stocks that skyrocketed over the last year or companies like GameStop (NYSE:GME) or Nio Inc. (NYSE:NIO), which clawed back from big breakdowns in share price, the result has been the same. Traders are hungry for more.What Are Penny Stocks?
Before we get into this list of penny stocks, I understand that this may still be a new phenomenon to some readers. So let’s define a few things first. Penny stocks are shares of companies trading for less than $5. That’s according to the Securities and Exchange Commission’s definition. Some traders will have their own idea of what these cheap stocks are. But, for this article, we’ll use this as the threshold.
Next, it’s important to understand that these are very risky stocks to trade. Not all penny stocks will go on to run hundreds or thousands of percentage points. In fact, many will do the exact opposite, with some companies failing entirely. But that doesn’t mean these aren’t worth it. Just understand that volatility requires attention and an understanding of how to trade properly. For those that had a handle on this, the last 9 months have been some of the best for these penny stocks. In fact, as you’ll see, in some cases, even $500 could’ve turned into nearly $10,000 during that time. So let’s take a look at some of the best penny stocks in 2021 so far.Best Penny Stocks To Buy 2021?
Some of the best penny stocks to buy this year have been “meme stocks.” These companies have grown in popularity among retail traders and have become the focus for meme-makers on popular social media outlets like Reddit, Twitter, and Facebook. Regardless of their name, these stocks have a few things going for them. These few things are a source of both risk and reward.
The biggest driving force is the massive audience chatting and posting about these stocks. While some of these were big winners so far this year, the choice some traders are grappling with is whether or not these are still the best stocks to buy right now. That’s something I’ll leave up to you to decide.Best Penny Stocks In 2021 #1: Ferroglobe Plc (NASDAQ:GSM)
One of the hot trends in the stock market has been clean energy. That’s also wrapped in the growing market for electric vehicles, renewable energy, and the like. With that, the entire supply chain has come into focus.Ferroglobe Plc (NASDAQ:GSM) provides silicon metal and specialty alloys for customers across numerous markets. These include solar, automotive, consumer product, construction, and energy.
With the growing demand for things encompassing all of these niches, it makes sense that the company has experienced a banner year so far. In fact, just a few days ago, GSM stock reached fresh 52-week highs. That came following the company’s latest round of earnings. These not only showed significant earnings per share growth, year over year, the company also reported strong sales growth. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “The second-quarter results reflect a strong improvement in our overall performance and marks the return to profitability, an important goal for this year…As we look towards the back half of the year, we will keep the momentum going on all fronts to capitalize on the market opportunities and successfully execute some critical initiatives underpinning the strategic plan.”
The GSM stock price at the beginning of 2021 was $1.68. This week shares reached early highs of $10.06, signaling a year-to-date move of 499%. Hypothetically speaking, that means a $500 position at the start of the year is now worth nearly $2,500.Download: GSM Stock Report2. Moxian Inc. (NASDAQ:MOXC)
Next on this list of former penny stocks,Moxian Inc. (NASDAQ:MOXC) has experienced a strong move of its own this year. The start of 2021 saw shares of MOXC stock trading at$1.36 on January 4th. This week, the former penny stock hit a high of $7.65. The crazy part is that this isn’t the highest the stock has been this year. Earlier this quarter, shares reached highs of $31.38. Needless to say, even with the pullback, a $500 position at the beginning of the year is worth over $2,300 at this point.
So what’s been a source for MOXC stock’s massive rally? There haven’t been many headlines coming from the company over the last 9 months. It recently completed a reorganization, but details weren’t more than stating its new “home” in the British Virgin Islands. However, thanks to interest stemming from low float stocks as well as “the reopening trade,” Moxian has been at the center of attention throughout the year.
The company’s offerings focus on targeted advertising campaigns and promotions to attract potential customers for their clients. As reopening trends have taken hold, so have different forms of marketing and awareness. Moxian’s digital advertising suite serves content across myriad platforms. These include mobile phones and smart TVs.Download: MOXC Stock Report3. Vinco Ventures (NASDAQ:BBIG)
One of the more recent meme stocks making its presence known isVinco Ventures (NASDAQ:BBIG). Attention began focusing on the company thanks to a pending merger and proposed acquisition of a TikTok competitor in Asia, Lomotif. In Vinco’s recent quarterly update, the company said that it achieved a record number of Monthly Active Users (MAUs) with over 30 million MAUs, according to Data Analysis Firm Sensor Tower. The company also recently launched recording Artist Tory Lanez album “When It’s Dark” on the E-NFT .com platform. “When It’s Dark” is the first album to go platinum on the blockchain with over 1,000,000 units sold.
Aside from the business side of things, Vinco has also become the focus of retail traders thanks to higher levels of short interest in BBIG and traders looking for potential “short squeeze stocks” to watch. If you look at the last few weeks of trading, you’ll see that BBIG stock has experienced a strong move higher as the “short squeeze” trend has taken hold.
Since the start of the year, BBIG has managed to run from $1.38 on January 4th to highs this week of $8.41 so far. That means the hypothetical $500 position we keep referencing would be worth over $2,500 at this point.Download: BBIG Stock Report4. Peabody Energy (NYSE:BTU)
If you’ve been a reader of PennyStocks.com, you’ll likely rememberPeabody Energy (NYSE:BTU) from late last year. At the time, shares of BTU stock weren’t trading nearly as high as they are now. In fact, if you look back at the start of the year, Peabody’s shares began the year at $2.46. Fast-forward to this week, and we’re now looking at fresh 52-week highs of $18.77. That means the $500 position at the beginning of the year would be worth roughly $3,300 right now.
Peabody is an energy company. But instead of renewables, solar, nuclear power, or other popular niches, the company produces coal. While this may be seen as “dirty energy,” Peabody has tasked itself with providing fuel baseload electricity for emerging and developing countries while also creating steel to build foundational infrastructure.
Growth over the past quarter (Q2) has helped boost sentiment in the stock. It has also become justification for analysts to grow bullish. B. Riley raised its price target for the stock 2 times within the same 30-day period. As of right now, that sits at $15, up from $11 in August and $7 previous to that.Download: BTU Stock Report5. AMC Entertainment (NYSE:AMC)
This year, no other penny stock seems to epitomize the rise of the retail trader better thanAMC Entertainment (NYSE:AMC). As one of the original “meme stocks,” shares of AMC started 2021 trading at $2.20 a share. While it went on to see an explosive move to highs of $72.62, the former penny stock is sitting around $47 to start this week. Despite that pullback, the movie theater company’s shares are still up nearly 2,100% year-to-date. That means a $500 position at the start of the year would be worth over $10,300.
Aside from this being in the “reopening” category, AMC has grown a cult following. Those staunchly believing in its potential to rise to levels never seen by the stock have helped fuel momentum for months. What’s more, the company has begun gaining ground thanks to moviegoers coming back to theatres.
The holiday weekend saw Labor Day Admissions revenue hit new records. According to the company, more than 2 million people watched movies at AMC’s U.S. theatres from September 2nd through the 5th. Roughly 800,000 also visited AMC’s international theatres in Europe and the Middle East. AMC shares surged to start the new week thanks to this mix of fundamental optimism and retail-driven momentum.
Download: AMC Stock ReportAre Penny Stocks Worth It?
Clearly, penny stocks are worth it if you know what to look for. This article discussed how just 5 companies performed on a year-to-date basis starting on January 4th, 2021. Compared to early morning highs on September 7th, 2021, these have all experience massive jumps in just 9 months and a few days. In this hypothetical example, using a total of $2,500 spread across all 5 penny stocks at the start of 2021, that would now be more than $21,000 as of morning highs on September 7.
Though all penny stocks don’t go on to perform like these, there are more than a handful of names that see double and even triple-digit moves daily. Some may only run for that single session while other moves go on for months at a time. The important part for you is to know how to trade and profit from what the market gives.