There have been a lot of success stories when it comes to investing in penny stocks. At the same time, many have lost a lot of money with these cheap stocks. The risk associated with penny stocks makes some look the other way.
However, some of the risk can be avoided if you do proper research. Looking at a company’s recent filings, news, reports, and even rumors can all help when compiling a list of penny stocks to watch.
So what niche should you look at when looking for the best penny stocks to buy? There are a lot of high-performing penny stocks in 2021. One of the higher performing industries right now includes biotech stocks. The pandemic put this sector in the frontlines of the media throughout all of 2020. Now that biotech stocks have picked up a lot of traction investors are even more interested in them.
Sometimes it can be difficult to find the best penny stocks to watch. The process behind finding penny stocks to buy can vary based on the sector you are researching. Finding penny stocks to watch is a little different when it comes to specific sectors.[Read More] 3 Reddit Penny Stocks To Buy On Robinhood Under $5
For example, with biotech penny stocks, you can look at what stage its trials are in, what that progress looks like, and how close its products are to commercialization. This can make penny stocks attractive to you whether you’re day trading or long-term investing
At this point, about 40% of the United States has received the COVID-19 vaccine. The pandemic has dwindled down in the United States now and with that has come the resurgence of many penny stocks amid reopening vaccine distribution and more testing. The companies performing well as a result of a strong economic rebound are referred to as “reopening stocks”.
These types of companies were hit hardest during the early days of the pandemic but have potential to recover as things begin to recover. Cases are still much higher in other countries like India, but Could this U.S. drop in cases allow for more penny stocks to perform well throughout the rest of this year? That’s something to think about when you’re putting your watch list together. With all of this in mind, here are four penny stocks to watch in May.Penny Stocks To Watch In May
- Precipio Inc. (NASDAQ: PRPO)
- American Shared Hospital Services (NYSE: AMS)
- Top Ships Inc. (NASDAQ: TOPS)
- Milestone Scientific Inc. (NYSE: MLSS)
A biotech penny stock that has performed well recently is Precipio Inc. This is a cancer diagnostics technology company providing products for the oncology market. These include clinical diagnostic services for blood-related cancers. The company started producing COVID-19 antibody tests last year, which has significantly helped Precipio.
On May 3rd a critical update came from the company, announcing the launch of its COVID-19 antibody test on Amazon.com. The company has exclusive rights to distribute the rapid antibody tests on the website. This test holds approval for emergency use by the FDA last year.
These can be ordered and received within 2 business days. Currently, they can only be purchased by medical facilities, but this could change in the future. COVID testing at home could be the future instead of going out to a testing site.
Amid this advancement, PRPO stock price has gone up over 100% the day the announcement was released. This is because Precipio is helping to curb infection rates during the pandemic with its product. Considering the attention placed on testing right now, PRPO could be one of the top penny stocks to watch.
American Shared Hospital Services leases radiosurgery and radiation therapy equipment to medical facilities. One of its main products is Gamma Knife stereotactic radiosurgery equipment in use to treat brain tumors.
On May 3rd AMS stock jumped by more than 35% despite there being no direct news from the company. Could this be due to the general upward momentum in the biotech sector? This can’t be said for sure, but we can talk about American Shared Hospital Service’s recent financial report.
The company reported negative fourth quarter results last month. Its total revenue decreased 3.7% year over year, as did many of its other sections. The company was impacted by COVID-19 causing patients to delay their healthcare.
The world is now reopening, meaning many may want to continue healthcare that was previously paused. This is why AMS can be viewed a reopening penny stock to watch. Looking ahead, the company will be holding a shareholder meeting on June 25th. This could be when we hear more about its plan for 2021.Top Ships Inc. (NASDAQ: TOPS)
Top Ships is an industrial penny stock that owns and operates tanker vessels. These vessels are in use to transport oil, petroleum, and chemicals. Its fleet total capacity is 714,000 deadweight tons. Top Ships stock price has moved up 27% on May 3rd. Like the last company, there is no apparent news that is impacting its stock price.[Read More] Penny Stocks Are Back; Here’s 3 to Watch Right Now
The fact that oil prices are high right now could be a factor, but what is something more obvious impacting TOPS stock? Its large price increase could be the work of retail investors or Reddit investors. The company’s shares are available on popular trading app Robinhood which allows retail investors to invest with ease.
Top Ships can be considered one of the cheapest stocks on Robinhood. The latest updates from Top Ships are the delivery of its Suezmax M/T vessel last month, as well as its annual report filing on Form 20-F. This ship delivery shows that the company is improving its fleet and could be more efficient in the future.
The annual report could be useful for investors to get more insight on what is happening with the company. These news pieces could be what is driving TOPS stock price upwards. Will you put TOPS on your list of penny stocks?Milestone Scientific Inc. (NYSE: MLSS)
Ahead of its preliminary sales results, Milestone Scientific Inc. is a biotech penny stock performing well this week. Let’s get you up to speed on what this company is. Milestone Scientific creates computerized drug delivery instruments for the healthcare industry. Its instruments provide painless and precise injections.
On May 3rd the company released its first quarter preliminary results, in which its revenue increased 61% year over year. The company’s sequential increase in sales was 32% year over year. The President of Milestone, Arjan Haverhals said, “Importantly, we witnessed growth in both our domestic and international revenues. We attribute this improvement to the success of our new dental sales and marketing strategy.”[Read More] Penny Stock Trading Strategies You Need to Know About
As Milestone continues to grow as a company its stock price seems to be doing the same. This is another case of a biotech penny stock success story. But will continue to see the same attention? Nobody knows for sure right now, but These positive results explain why MLSS stock has high volume and is up 197% in the market on May 3rd.Are These Penny Stocks to Watch?
With so many penny stocks to watch at the moment, it can be difficult to make a decision. To decide which companies for your list of penny stocks, look for those that match your investment strategy the best. If you are day trading, you may want to look out for what is causing momentum in the market such as filings, news, rumors, and speculation among other things.
If you are long-term investing, you are likely looking for a company that has a lot in its pipeline. This means you are looking at the industry as a whole and its direction, as well as all of the various moving parts of a company. No matter which way you invest, will these companies make it onto your penny stock watchlist it’s up to you to decide which penny stocks to buy and which should be avoided.