3 Penny Stocks For Your Mid January Watchlist as Trump Stocks Rise
If you’re making a penny stocks watchlist right now, there are hundreds of options to choose from. While it can be difficult to pick just a handful for your list, by understanding what’s going on in the stock market it can be much easier. Right now, there are a lot of factors that are impacting how penny stocks trade.
First and foremost we have the pandemic and the Omicron variant specifically. This has wreaked havoc across world markets for the last month or so. Next, we have the changing economy in the U.S., which includes the recent Fed minutes, unemployment numbers, and high inflation.
All of these are contributing greatly to how penny stocks trade and how they will trade in the near future. With penny stocks, we tend to see speculation be much higher than that of blue chips. And because of this, knowing how to take advantage of what’s impacting the market, is crucial.
Lastly, having a thorough understanding of how to trade penny stocks, will always be a major benefit to your trading. Because penny stocks move so quickly, this can quickly mean the difference between profits and losses.
When it comes to Trump stocks, we’ve seen a sizable amount of momentum during certain trading days over the past year. This includes companies like Digital World Acquisition Corp. (NASDAQ: DWAC) and Phunware Inc. (NASDAQ: PHUN), which have both climbed substantially in relation to the former President. So, while they are popular, they are also highly volatile. So, with all of that in mind, let’s take a look at three penny stocks for your mid-January watchlist.
3 Penny Stocks to Watch in January 2022
Lloyds Banking Group plc (NYSE: LYG)
Up by almost 4% at EOD on January 6th are shares of LYG stock. And, in the past five days, shares have climbed by over 11% and more than 16% in the past month. Over the last twelve months, shares have shot up by over 41%, which helps to explain why the company is so popular right now.
If you’re not familiar, Lloyds is a pure-play financial services company that offers banking and a range of insurance/wealth services. Right now, one of the largest impacts on the finance industry is Covid and the Omicron variant. Because the pandemic is still going on, many expect the finance sector to continue taking a hit.
However, if we can see an economic recovery begin, we could see the banking industry come back strong. While there is a lot of uncertainty with a penny stock like LYG, its business truly depends on what happens in both the U.K. and global economy. But, with its sizable twelve-month gain, many investors are keeping a close eye on the company. Considering this, will it be on your list of penny stocks to watch?
Kaival Brands Innovations Group Inc. (NASDAQ: KAVL)
One of the largest gainers of the day so far is KAVL stock, pushing up by over 24% at EOD. While shares are still down by around 90% for the twelve-month period, we are seeing this slight bullish rise occurring in the past few trading days.
So, why exactly is KAVL stock moving right now? Well, there is no company-specific news that could help to identify today’s move with KAVL stock, however, it did make an announcement only a few weeks ago. On December 14th, the company stated that U.K. smokers preferred its Bidi Vapor E-Cigs over rivals.
“While the U.S. e-cigarette market numbers have shown that consumers prefer the BIDI® Stick, we are ecstatic to see that the U.K. market research results confirms that the 2% nicotine BIDI® Stick is similarly preferred by adult e-cigarette users and smokers in the U.K.”
The CEO of Bidi Vapor and Kaival Brands, Niraj Patel
This is big news for the company and should help with adoption in the long term. Considering that, will it earn a spot on your penny stocks watchlist moving forward?
Kosmos Energy Ltd. (NYSE: KOS)
Another big gainer of the day on January 6th is KOS stock. By EOD, shares of KOS had joined the bullish run on other energy penny stocks with an 8% rise. This brings its five day gain to over 24%. While this may not seem like a lot, we have to consider the rest of the stock market’s trajectory during that time.
Now, no news came out today to help explain this gain, however, as stated earlier there is a lot of bullish sentiment in the energy industry right now. In addition, many investors believe that Kosmos could finally move toward profitability in 2022 or at least breaking even.
In the full 2021 financial year, the company posted a trailing twelve-month loss of around $169 million. However, the market consensus is that Kosmos Energy could break-even and even turn a profit in 2022. Early estimates show a potential profit of around $270 million, however, this is purely an estimate. So, with all of this in mind, do you think that KOS stock is worth buying right now?
Which Penny Stocks Are You Watching Right Now?
Because there is so much going on in the stock market, understanding exactly how to trade is extremely important. In addition to this, knowing who you are as an investor is crucial.
This can quickly mean the difference between picking the right penny stocks for your goals and the wrong ones. In 2022, we are still seeing a sizable amount of volatility which is mostly due to the Omicron variant and the U.S. economy.
Both of these continue to result in large intraday fluctuations with stocks of all types. So, keeping a close eye on the news, updates, and important announcements, can give you an upper hand when it comes to trading. So, with all of this in mind, which penny stocks are you watching right now?
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