3 Penny Stocks to Watch That Could Have Momentum This Month
If you’re looking for penny stocks that could have momentum in 2021, you’re not alone. But, in order to make money with penny stocks, there are a few things that all investors need to consider.
First and foremost is what strategy you plan to use for trading penny stocks. While it’s easy to find stocks online via Reddit or Twitter, there should always be an extra component of research that goes into your strategy. This means looking at balance sheets, company announcements, press releases, and any industry-related news that could impact it.
If you haven’t traded penny stocks, it’s worth noting that they tend to be some of the most volatile and speculative assets out there. This means that any news can impact a penny stocks price in a matter of a few moments. While volatility may seem scary at first, with a proper trading strategy by your side, it can be much easier than previously imagined.
Lastly, make sure you take into account everything that is occurring in terms of worldly news. This will help to point out what type of momentum the overall market could expect. Considering all of this, let’s take a look at three penny stocks for your October watchlist.
3 Penny Stocks For Your October 2021 Watchlist
Sonim Technologies Inc. (NASDAQ: SONM)
Sonim Technologies Inc. is a tech penny stock that has begun to show bullish momentum in the past few days. Despite a less than stellar trading period in the past few months, Sonim could have a lot to offer potential investors. For some context, this company offers rugged mobile phones, tablets, and related equipment and accessories. Some of its products include the Sonim XP8, XP5s, XP3, and RS80. It offers charging accessories, remote speaker microphones, and other communications systems.
On September 30th, the company launched its ultra-rugged XP3plus flip phone for Verizon Business customers. The new phone builds on the legacy of its predecessor the XP3. This new product has a large display, more buttons for improved productivity, and a new user interface. The new phone also meets Sonim’s rugged performance standard that exceeds military durability standards.
“The new XP3plus ensures clear communication regardless of your work environment whether you are in construction, public safety, security, manufacturing and more.
Any worker in need of simple and immediate voice communications can benefit from the XP3plus, especially with the preloaded Push-to-Talk Plus application from Verizon, making it easy and efficient to stay connected with field workers.”
The CMO of Sonim, John Graff
New products are always exciting in the tech industry. And for investors, this could present an opportunity to see the future of SONM. So, based on this info, will SONM be on your penny stocks watchlist?
ZW Data Action Technologies Inc. (NASDAQ: CNET)
ZW Data Action Technologies Inc. is a communications penny stock that is in a similar position to SONM. While shares have seen a slight bullish turnaround in the past few trading days, overall the past year has not been too kind to ZW Data.
If you’re not familiar, ZW Data Action Technologies is a company that offers marketing, advertising, precision marketing, and data analysis management systems. Specifically, ZW offers omnichannel ads and precision marketing tools for its customers. ZW also develops and operates blockchain technology-based products and services.
On October 7th, the company launched its blockchain infrastructure platform for business applications on NFT and DeFi. The blockchain infrastructure automation platform is expected to provide micro, small, and medium enterprises, development, and more for blockchain network and app services. This automation platform has a projected market size of $150 billion. After the announcement on October 7th, shares jumped by over 16% before ending the day with a roughly 7% gain.
“We are excited about the launch of our BIF Platform, as we are unwavering in creating and providing a digitized smart ecosystem and solution where all MSMEs could easily access secured blockchain-powered technologies and applications to rapidly adapt to different business scenarios.”
Chairman and CEO of ZW, Handong Cheng
It’s worth noting that CNET stock’s average volume is under 400k, but on October 7th, it reached over 32 million. Keeping this in mind, will CNET make your penny stock watchlist?
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu Inc. is a penny stock that has climbed by over 13% in the past five days and 18% in the past month. For some context, Gaotu is an education company that is based in China. Gaotu offers K-12 after-school tutoring services and foreign language courses. Some of its courses include English, Chinese, physics, chemistry, and history among many others. Additionally, Gaotu offers English test preparation courses for those taking post-graduate entrance exams.
On September 21st, the company reported its unaudited second-quarter financial results for 2021. The company’s net revenue increased by 35.3% to RMB 2,232.3 year over year. Additionally, its gross billings and paid course enrollments went up 12.2% and 4.1% respectively.
“We say that 2014 is Gaotu’s first attempt as a startup, and 2016 is our second start, then we can also say that 2021 is our third start. We should always keep the goal of education in mind, always firmly believe that education is a noble profession. It’s undeniable that we have boundless faith in the bright future of the Chinese education industry.”
Founder, Chairman, and CEO Larry Xiangdong Chen
As stated previously, it looks like there is increasing bullish sentiment with GOTU stock right now. Whether this is the result of previous bearish movement or new faith in the company remains to be seen. However, with this in mind, does GOTU stock deserve a spot on your October watchlist?
Which Penny Stocks Are on Your Buy List Right Now?
Making a list of penny stocks to watch is the best way to stay ahead in the stock market. While it can be challenging in 2021 given the sheer number of things that are impacting penny stocks, making money with small caps can be done.
[Read More] How to Invest in Penny Stocks in October 2021
So, always have a strategy by your side and stick to your research. With that in mind, which penny stocks are on your buy list right now?