3 Penny Stocks That Could Be Worth Keeping An Eye On
In 2021, the volatility of both penny stocks and blue chips means that many investors are looking for safer options. While no penny stocks or any stocks for the matter are necessarily ‘safe’, there are some that may fluctuate less than others. For example, energy penny stocks and mining penny stocks tend to move up and down in price less than others. This is the result of the industry, and the relatively low speculation they carry.
But, right now we also have to consider what’s going on in the market. Most importantly, this includes Covid-19 and the effects of the Delta variant. With cases rising globally many investors are fearful about the near term of investing. And while markets are mostly flat right now, we are seeing certain penny stocks rise in the meantime.
But as always, it’s important to stay up to date with all the latest news and events. This will help to put you ahead of the game and ensure that there are no unexpected price events in your portfolio. And given the extraordinary times we are living in, prices can move with no notice, and very quickly. So, with all of this in mind, let’s take a look at three penny stocks that could be worth watching in 2021.
3 Penny Stocks to Watch in August 2021
Kosmos Energy Ltd. (NYSE: KOS)
Kosmos Energy Ltd. is an energy penny stock that we have discussed frequently over the past few months. This is due to its constant momentum and the relative stability of its pricing. For some context, Kosmos Energy is an exploration company with operations that take place in deepwater areas. Primarily, Kosmos explores for oil and gas independently at its locations around the world. These locations include the U.S. Gulf of Mexico, Ghana, and more.
On August 8th, the company released its second-quarter 2021 results. The company achieved revenues of $384 million, and net production of 51,600 barrels of oil equivalent per day. Kosmos’s net cash provided by operating activities in the quarter was $289 million. This is quite substantial and could be a reflection of the heightened demand for fuel as a result of higher travel and people going back to work.
“With strong cash generation, the successful RBL extension, and the recently completed GTA FPSO transaction, Kosmos’ financial position has materially improved and we remain well-positioned to execute our remaining financing plans later this year.”
The CEO of Kosmos, Andrew G. Inglis
This is an exciting sentiment is something that investors should consider highly if interested in investing in KOS stock. So considering this, is KOS a contender for your penny stocks watchlist?
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is a mining penny stock that has become quite popular in the past few months. Up by around 4% at midday, IAG stock can fluctuate over longer periods of time. However, it is relatively stable compared to similar companies. To understand IAG’s business, let’s take a closer look at what the company does.
IAMGOLD develops and operates various gold mining properties around the world. These include the Rosebel mine and the Essakane mines located in South America and West Africa respectively. On August 4th, 2021 the company released its second-quarter results for 2021. In this report, IAMGOLD stated that the company experienced some struggle during the quarter due to the pandemic.
“The second quarter of 2021 was challenging primarily because production from our Rosebel mine was unexpectedly adversely affected by unusually heavy rains and an increase in COVID-19 cases in Suriname, in addition to difficult industrial relations.”
The CEO of IAMGOLD Corp., Gordon Stothart
While it is important to consider adverse events like this with mining stocks, they are relatively infrequent. Despite the struggle that IAMGOLD experienced, shares of IAG stock have pushed up by around 4% in the past few days. This could be due to rising gold prices, or due to investor’s belief in the company. With all of this in mind, will IAG make your penny stock watchlist?
Harmony Gold Mining Limited (NYSE: HMY)
Harmony Gold Mining Company Limited is a penny stock that explores for, extracts, and processes gold. The company’s operations take place in South Africa and Papua New Guinea. Harmony also explores for uranium, silver, and copper deposits. It currently has nine underground operations at various projects in its areas of operation.
Because of the broadness of the materials it mines, it’s best to consider HMY as more than just a gold stock. However, its correlation to gold is one of the reasons that so many investors are interested in the company right now. And today, shares of HMY stock pushed up by a respectable 2.4% at midday.
While Harmony has not released any recent company-specific updates, its best to follow the path that the price of gold is taking. Because HMY is a pure play gold stock, its price often follows the trajectory of the gold industry at large. And, because the price of gold does not tend to fluctuate greatly, many investors consider it to be a relatively stable penny stock to watch.
Right now as a result of the pandemic, many investors are looking at gold stocks as safeguard choices. This is common when large geopolitical events arise and when events such as Covid-19 go up and down in severity. Keeping all of this in mind, is HMY a contender for your penny stock watchlist?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy can be tricky with so much going on in the market. However, with a careful look into what’s occurring around the world and how that may affect stocks, investors can have an easier time finding penny stocks for their watchlists.
If you’re looking for more stable stocks to watch, mining stocks and energy stocks can be decent choices. However, investors should do the proper due diligence by looking at price action both historically and in the present. Considering all of this, which penny stocks are you watching right now?