3 Penny Stocks That Traders Are Watching Right Now
Although trading penny stocks and blue chips has been difficult in the past year and a half, many investors have been able to make money with small caps. Now, it may seem easy enough to find penny stocks that are trending however, it goes beyond this. Rather, to make money with penny stocks, there are a few things that all traders should keep in mind. First and foremost is to have a trading strategy. In the simplest terms, this can be either short or long-term trading.
On one hand, we have short-term or swing traders. These are investors that utilize short-term (hours to a few days) trends to find potential winners. This can be a great way to add up small gains, but it can also do the opposite. It’s worth noting that because penny stocks are so volatile, many investors utilize this strategy when investing in them.
On the other hand, we have long-term trading. This involves finding small caps with potential in the long term (months to years), and those that may break out of penny stock territory. The longer-term strategy is less common, however, it can be profitable if you know what to look for. While there are more ways to invest in penny stocks, these two methods tend to cover the strategies in a broad sense. So, keeping all of this in mind, here are three penny stocks that traders are watching right now.
3 Penny Stocks to Watch in September 2021
1847 Goedeker Inc. (NYSE: GOED)
1847 Goedeker Inc. is a company that operates a large e-commerce platform for appliances, fitness equipment, furniture, and other home products. In addition, Goedeker provides installation and removal services for the products it sells. It’s worth noting that we’ve covered GOED stock numerous times due to it constantly being trending, and the large intraday moves that it can make. Today is no different, as GOED stock managed to push up by over 9% by EOD. So what has this company been up to recently?
Back in August, GOED released its second-quarter results for 2021. During this period, the company achieved combined proforma revenue of $140.1 million. This showed a 53.1% year-over-year growth for 1847 Goedeker. The company’s combined proforma net income was $17.3 million, and its combined proforma adjusted EBITDA was $15.2 million. All of these numbers are quite exciting and show that GOED stock is growing right now.
“We believe our strong second-quarter proforma results reinforce the many operational benefits and synergies presented by the Appliances Connection acquisition. Now that the transaction is closed, we are well-positioned to scale and aggressively pursue our intermediate-term goal of achieving $1 billion in annual revenue.”
CEO and Director of GOED, Doug Moore
Since this update was released, GOED stock has increased in market value. Considering this information, will GOED be on your penny stock watchlist?
Electrameccanica Vehicles Corp. (NASDAQ: SOLO)
Electrameccanica Vehicles Corp. is a penny stock that managed to climb by around 5% at EOD on September 17th. This company develops, manufactures, and sells electric vehicles. The company currently offers the SOLO single-seat electric vehicle. It is also developing a two-seat roadster called the Tofino. These vehicles are sold at 10 retail locations as well as online on its website. While many EV manufacturers focus on beating out the current auto market, Electrameccanica is working on competing in the short-distance commuter industry.
On September 15th, the company started its customer deliveries of its SOLO EV. The company plans on delivering keys to customers starting on October 4th. Production of the vehicle began with its manufacturing partner Zongshen Industrial Group. And, it’s worth noting that it started building a 235,000 sq ft U.S. assembly facility and engineering technical center in Mesa, AZ back in May.
“We are revolutionizing the transportation space by providing consumers, fleets, and rideshare users a purpose-built solution to solve today’s urban driving challenges.”
President and CEO of Electrameccanica, Paul Rivera
The current EV market is extremely hot, with many companies benefitting from increased interest. And, SOLO is no different, as seen by its sizable uptick by EOD today. Noting this info, will SOLO stock make your watchlist in 2021?
Regis Corporation (NYSE: RGS)
Regis Corporation is a penny stock that climbed by almost 3% today. While this may not seem like a lot, it is substantial considering the overall bear market that we witnessed on September 17th. If you’re not familiar, this company owns and operates hair salons in the U.S., U.K., and Canada among other countries. It also franchises hair salon businesses in these countries which helps to maximize its reach.
On top of this, Regis sells hair care and beauty products and operates a salon management system and app. It’s worth noting that under the Regis brands are well-known hair-cutting stores such as Supercuts, SmartStyle, Cost Cutters, and a variety of others. As of June 30th, 2021 the company owns or operates 5,917 salons in total.
On August 25th, Regis reported its fourth-quarter and full-year results for 2021. The company announced that its nominal sales continued to improve during this time, and its system-wide same-store sales went up 4.2% year over year. The company’s total revenue of $99.1 million was an increase of 64.8% year over year. Its EBITDA loss decreased by $10.6 million during this period as well. This was all great news for Regis Corporation and shows the resiliency of the haircare market during the pandemic.
“While we are still feeling the effects of the pandemic, Regis is well-positioned heading into fiscal year 2022 due to our achievements during a time of unprecedented challenges in fiscal year 2021. The Regis of today is an entirely different company when compared to the beginning of fiscal year 2021, from our management team to our technology platform and everything in between.”
President and CEO of Regis, Felipe Athayde
Considering all of this exciting news, will RGS be on your list of penny stocks to watch in September 2021?
Are Penny Stocks Worth Buying Right Now?
Finding the best penny stocks to buy can be tricky in today’s market. But, with the right research on hand, it can be much easier than previously imagined.
Although the market is in a very volatile place right now, with a proper trading strategy, using these fluctuations to your advantage is entirely possible. So, with all of this in mind, do you think that penny stocks are worth buying right now?