Today we look at penny stocks to buy based on the latest retail trading activity. While further research and analysis are always suggested, things like insider trading and unusual options flow can play a part when looking for sentiment.
Penny stocks are shares of companies trading below $5 and pose plenty of risks to investors. For that reason, when corporate insiders or larger shareholders & institutions make large trades, the market tends to notice.
There are plenty of things that can send penny stocks higher or trigger crushing breakdowns in price. News, social media chatter, corporate filings, and broad industry speculation can act as triggers. While average traders and investors may seek out penny stocks to buy for their lower prices & potential to make money day trading, there are other reasons that some choose to invest in cheap stocks as an option in the market. One of the reasons is the potential to see a company grow from the ground up.
Companies like Novavax (NASDAQ: NVAX), Eastman Kodak (NYSE: KODK), and many others began as penny stocks and have become critical players in their respective industries. A handful of very popular companies and household stocks sit below the $5 threshold. The opportunities are there, and history suggests that penny stocks are worth it under the right circumstances. Are retail traders right about the names on this list of penny stocks?
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4 Penny Stocks To Buy [or avoid]
- ironSource Ltd. (NYSE: IS)
- Aurora Innovatin Inc. (NASDAQ: AUR)
- Applied Blockchain Inc. (NASDAQ: APLD)
- Waitr Holdings Inc. (NASDAQ: WTRH)
ironSource Ltd. (NYSE: IS)
Tech penny stocks are hot in the stock market today, thanks to renewed bullishness. ironSource has been one of the companies we’ve monitored closely since the 14th as it was a top name experiencing unusual options activity. When we wrote “, 3 Good Penny Stocks To Buy Right Now According To Options Traders,” IS stock was on the radar following big news of a merger with Unity (NYSE: U).
According to the July 14the update, “The companies’ complementary offerings create a unique end-to-end platform that allows creators to create, publish, run, monetize, and grow live games and RT3D content seamlessly.”
But it was actually the options market that was a more significant point of interest. Specifically, the IS stock options chain for the September 16th expiration was in focus. Larger options volume at the $2.50 strike had turned heads in the retail market. Fast-forward about a week, and IS stock has rallied more than 25% as speculation on the Unity deal builds.
Aurora Innovatin Inc. (NASDAQ: AUR)
With technology as a focus in the stock market today, many areas within the industry have caught an excellent rebound. This includes the market for automotive technology and where Aurora Innovation comes into play. The company specializes in autonomous technology and self-driving safety systems. Its Aurora Driver is designed for multiple vehicle types, including semi-trucks and ride-hailing vehicles. With partners like Toyota, FedEx, Volvo, and Uber, there’s no shortage of intrigue, considering AUR stock is trading for less than $5.
This month, traders have refocused their attention on the autonomous technology company after it reported its latest milestone. Aurora’s platform demonstrated its ability to identify system issues in a vehicle utilizing its Fault Management System. The technology prompted vehicles to safely pull over without any human intervention.
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Sterling Anderson, Aurora Co-Founder, and Chief Product Officer. “Safely detecting and responding to those issues is essential for a reliable self-driving product operating at scale. Our Fault Management System lays the groundwork for safe autonomous operations without vehicle operators, chase vehicles, or remote human fallback systems.”
Looking ahead, Aurora could be on the radar into the end of the month. That’s because the company will host its second quarter business review conference during the first week of August. So if AUR stock is on your watch list right now, keep August 3rd in mind as this is the date of the event.
Applied Blockchain Inc. (NASDAQ: APLD)
Cryptocurrency and blockchain technology penny stocks will likely be a point of focus for retail traders right now. That’s because the price of Bitcoin, the price of Ethereum, and other cryptocurrency prices are surging this week. One of the catalysts has stemmed from the upcoming “Ethereum merge,” Against a backdrop of strength in tech, several companies in this niche have seen considerable bullish trading momentum.
One of the stand-out blockchain penny stocks this week is Applied Blockchain. Shares have exploded more than 170% since Monday’s opening bell, thanks to several catalysts. In addition to bullishness in crypto, Applied Blockchain also announced an operational update and gave guidance on the rest of the year.
Specifically, the company expects to hit revenue at a midpoint of $7.2 million. This was an increase from its previous midpoint of $5.95 million. Furthermore, Applied discussed its performance expectations for its third co-hosting datacenter which should be online next year. Applied said it expects the data center to give a “clear path” to 500 MWs and potentially generate $100 million of Adjusted EBITDA annually.
The biggest question now is can APLD stock continue mirroring the overall trend that the cryptocurrency industry has this week.
Waitr Holdings Inc. (NASDAQ: WTRH)
During the pandemic, food delivery stocks were red hot. Companies like DoorDash, UberEats and even penny stocks like Waitr Holdings gained the market’s attention. As things have cooled from the pandemic, so have related stocks. But recent developments for some (cue Waitr Holdings) have placed new interest in the companies.
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Last week Wiater announced an agreement with several CBD dispensaries in Texas. Its aim to begin delivering the non-psychoactive version of cannabis caught the attention of retail traders as marijuana stocks have started heating up. Pending legislation and recent comments from US President Biden have helped stoke sentiment.
Responding to a question on the South Lawn over the weekend, Biden said, “I don’t think there should — I don’t think anyone in pri- — anyone should be in prison for the use of marijuana. We’re working on the Crime Bill now.”
In addition to the cannabis-related news, Waitr has been on the deal-making trail. Earlier this month, the company announced an agreement with Burq to add new product categories, including apparel. This helped Waitr continue achieving its goal of a “deliver anything” model, which is to also include specialty grocery and alcohol on the platform.
Time To Buy Penny Stocks?
There’s always a market for buying penny stocks. The real question to answer is what are the best to buy now? Depending on your strategy, high volatility stocks might be best for day traders but not necessarily the right fit if you’re investing in penny stocks. On the other hand, companies that slowly grow and reflect a similar market trend might be less fitting for short-term trades and better for long-term investment.
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