Since the start of the Covid pandemic, investors have been looking for top penny stocks to watch. As with any worldwide event, there is always an opportunity for investors to benefit. With Covid, the strategy for finding penny stocks to watch has become slightly different. If we look at the pandemic broadly, we see that several sectors have benefited. The most obvious of these is biotech penny stocks. These companies have well outperformed the market throughout the pandemic. What has helped is the influx of retail traders opening new accounts on platforms like Robinhood, Webull, and others. In fact, some of the largest user growth this year was seen on the Robinhood platform.
While some cite users around 13 million, what we can say is that, according to CNBC, Robinhood saw a record 3 million new customers in the first four months of 2020 when the coronavirus pandemic rolled in. Regardless of the figure – 3 million in the first 4 months, 5 million in the first 9 months, or 13 million estimated – Robinhood has seen its user base increase by millions.Pennystocks.com, “Penny Stocks Brokerage Growth Statistics For 2020”
So now, around 6 months from the beginning of Covid, there are still plenty of opportunities and plenty of new investors to capitalize upon these opportunities. As we end November, investors should be looking for different industries that could continue to be affected by Covid and other geopolitical factors. This includes biotech, travel, EV, mining, and more. As always, investing is something that is done best when individuals know their unique investing style. By utilizing this information, investors can decide which penny stocks are worth watching and which are not. With this in mind, here are five penny stocks on Robinhood to watch that are continuing to gain popularity.Penny Stocks On Robinhood to Watch
- Phoenix Tree Holdings Ltd. (DNK Stock Report)
- Newpark Resources Inc. (NR Stock Report)
- AMC Entertainment Holdings Inc. (AMC Stock Report)
- 22nd Century Group Inc. (XXII Stock Report)
- Boxlight Corp. (BOXL Stock Report)
Phoenix Tree Holdings Ltd. is one of the biggest gainers on November 18th. As of Intraday trading, shares of DNK stock are up by over 80%. For some context, Phoenix Tree works as a Chinese real estate company. Although it is different from traditional real estate businesses, the company operates similarly to most.
This includes the renting out of individual rooms as well as converting existing spaces into livable assets. The company also utilizes its own digital platform with AI to ensure that all needs are met for consumers. Many consider Phoenix Tree Holdings to be one of the largest co-living platforms in all of China. YTD, shares of DNK stock are up by a staggering 536%.
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While there isn’t one specific reason that DNK stock has shot up, many believe that it has to do with the effects of Covid. The company stated that it has been working to offer housing to college and higher educated students who are facing economic hardships due to Covid. During the pandemic, the company has also worked to offer new services to its residents which has increased the popularity of the company. While DNK stock is quite volatile at this point in time, there is a great deal of bullish sentiment behind its price action. With this in mind, many investors are viewing it as a penny stock to watch.Robinhood Penny Stocks To Buy [or avoid] #2: Newpark Resources Inc.
Newpark Resources Inc. is another big bullish gainer for November 18th. During the trading day, shares of NR stock shot up by over 18%. In the past month, shares of NR stock have shot up by almost 100%. Although it was at risk of being de-listed from the NYSE due to its under $1 price point, the company has since pushed beyond the $1 threshold.
One of the main reasons behind the big gain on November 18th came as the CEO of the company purchased 57,500 shares at a price of $1.26 per share. Often times, when an insider of a company purchases shares, investors can assume that there may be bullish momentum. On November 3rd, Newpark Resources announced its Q3 2020 financial results.
In the results, earnings came out to $0.23 per share representing a 0% gain over the previous year. Revenue for the period shot down by around 50% to $96.42 million which just missed the estimate done by analysts. As a provider of equipment and services to the oil and gas market, falling oil prices have meant less business for the company. Of course, this is highly related to the Covid pandemic as the demand for fuel has dropped significantly. But, with several vaccine candidates on the way, travel could once again begin in the near future. While Newpark Resources is highly speculative, investors should consider what greater demand for fuel could mean.Robinhood Penny Stocks To Buy [or avoid] #3: AMC Entertainment Holdings Inc.
AMC Entertainment Holdings Inc. should be a familiar name to any U.S. investors. As the owner of AMC movie theaters, the company has seen a great deal of bearish sentiment since the beginning of the pandemic. This is because movie theaters have had to close due to Covid based lockdowns. But, in the past month or so, announcements about new vaccines mean that normal life could resume in the near future.
This glimmer of hope means that entertainment stocks have begun to see a resurgence of bullish trading. While YTD shares of AMC stock are down by around 50%, on November 18th, shares shot up by almost 9% during intraday trading. While short interest has stayed at around 11%, analysts predict that the company could see a $2.15 price target for the 12 month consensus.
We have to consider that AMC stock could continue to be volatile due to its correlation with pandemic related news. And while these short term gains are encouraging, investors could view AMC stock as a potential long term penny stock to hold. Mittleman Brothers, a leading investment firm stated that “while AMC Entertainment Holdings has moved closer to the zone of insolvency and clearly required further financing…they should be able to raise additional capital through equity sales and asset sales.”
Back in April of this year, analysts stated that AMC could go into bankruptcy after shares fell to $1.95 on April 13th. Soon after, shares shot back up to $7.71 on September 2nd, upon announcing a significant capital raising endeavor. With the facts listed above, investors could view AMC Entertainment Holdings as a penny stock to watch.Robinhood Penny Stocks To Buy [or avoid] #4: 22nd Century Group Inc.
22nd Century Group Inc. is a penny stock that works out of both the cannabis and tobacco industries respectively. On one hand, the company is working on producing tobacco with lowered nicotine and nicotine alkaloids within it. In addition, the company is working on developing cannabis with different levels and types of cannabinoids. As you can see, XXII stock fits into many categories.
But, overall many investors consider it to be a biotech penny stock with operations in cannabis and tobacco. On November 17th, CEO of 22nd Century Group James Mish, bought 100,000 shares of the company at a price of $0.93 per share. On November 18th, shares of XXII stock shot up by over 37% during intraday trading before dropping down to a 14% gain for the day.
One of the many reasons for bullish sentiment with XXII stock is the future of the cannabis industry. With Joe Biden and Kamala Harris showing positivity toward legalizing cannabis, many believe that companies like 22nd Century Group could be the future. In addition, rising demand for cannabis throughout Covid has put a big spotlight on marijuana penny stocks. With XXII stock up over 46% in the past 6 months, it looks like it could be an interesting penny stock to watch.Robinhood Penny Stocks To Buy [or avoid] #5: Boxlight Corp.
Boxlight Corp. is an interesting Covid-correlated penny stock to watch. The company is a producer of education technology products that are utilized for digital learning. This includes several softwares that can be alternatives to in class education. On November 18th, New York City announced that its public schools will shut down on Thursday. This shutdown is due to spiking Covid cases in the city.
“New York City has reached the 3% testing positivity 7-day average threshold. Unfortunately, this means public school buildings will be closed as of tomorrow. We must fight back the second wave of Covid-19.”Mayor Bill de Blasio
After the announcement hit, shares of BOXL stock shot up by around 8% as of midday November 18th. Many believe that companies like Boxlight Corp. and Zoom Video Communications Inc. (ZM Stock Report) are interesting plays for the resurgence of Covid cases. In the past 6 months, shares of BOXL stock have shot up by over 120% to a November 18th price of $1.50. While we don’t know how long Covid cases will continue to rise, BOXL stock does show a correlation with the pandemic.
What’s more is that analysts have recently turned bullish on BOXL stock. Alliance Global Partners and Maxim Group recently boosted their price targets on the penny stock. While Alliance has a target of $4, Maxim’s is 300% higher than the current trading level at $6. Is that really attainable or are analysts overly bullish on the penny stock?