3 Penny Stocks to Add to Next Month’s Watchlist
With December fast approaching, investing in penny stocks has never been more popular. But, to secure a profitable trading strategy with small caps, there are a few things that all investors should know. First and foremost; penny stocks are some of the most speculative assets out there.
As a result of high speculation, world events and specific announcements relating to certain industries, can have a major effect on the price of the penny stocks you’re watching. For this reason, it is crucial to understand exactly what is causing movement in the market and how you can take advantage of it. To make money with penny stocks, investors should also have a thorough understanding of how to trade penny stocks. This may seem simple, but it is often an overlooked step that many investors avoid.
At the end of the day, investing in small caps is completely dependent on you and your trading strategy. But because there are hundreds of penny stocks out there, picking the best ones for your portfolio can be easier than previously imagined. With all of this in mind, let’s take a look at three penny stocks that could be worth watching next month.
3 Penny Stocks to Watch in December 2021
- Qualigen Therapeutics Inc. (NASDAQ: QLGN)
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Ambev S.A. (NYSE: ABEV)
Qualigen Therapeutics Inc. (NASDAQ: QLGN)
Skyrocketing by over 100% at midday are shares of QLGN stock. In the past five days, QLGN has shot up by nearly 134%, sparking major coverage and popularity with the biotech company. It’s worth noting that we covered QLGN yesterday on November 22nd, following its substantial gain. So, why are shares of Qualigen moving up so rapidly?
The latest update from the company comes as Zack’s Small Cap research put a $9 price target on the company. This likely was the cause of its high volume yesterday and subsequent value spike. Aside from this, the company reported its Q3 2021 financial results last week. In the results, it stated that its revenue increased 38% YoY, which is very substantial.
Much of this involves its FastPack Analyzer which since 2001, has achieved more than $100 million in sales. This diagnostic system is proprietary and provides accurate testing results for immunoassays. Currently, it is in use by over 1,000 physics offices, and the company plans to continue growing that number. While a $9 price target and its recent momentum are both highly driven by speculation, it does seem like QLGN could have a lot to offer. Considering all of this, do you think it deserves a spot on your penny stocks watchlist next month?
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a Chinese education stock that has climbed by around 4% in the past five days. While this may not seem like much, it is substantial considering the less-than-stellar trading year EDU stock has had. If you’re not familiar, this organization provides K-12 AST services, as well as test preparation and online education. It provides test preparation classes for students taking admission and language examinations in the United States. In addition, the company offers language training courses in English, German, Korean, and other languages.
New Oriental presented new business updates on November 14th. Because of new rules and regulations in China, New Oriental has stated that it plans to terminate all tutoring services related to K-9 AST at all of its learning centers by the end of 2021. According to the corporation, this will have a major impact on revenues for the fiscal year ending May 31, 2022.
Amid new regulations, most Chinese education companies cannot provide all of the services previously offered. While they can still offer some of their services, a large section has been removed. As a result, this will affect the revenues of New Oriental and likely other similar companies as well. Despite this, shares of EDU stock have seen bullish interest in the last few trading sessions. This could be the result of a bullish correction with EDU stock after it dropped substantially a few months ago. While its outlook is uncertain, EDU could be an interesting addition to your list of penny stocks to keep an eye on.
Ambev S.A. (NYSE: ABEV)
Ambev S.A. is a company that sells alcoholic and non-alcoholic beverages, as well as food items. The company is involved in the manufacturing, distribution, and sale of these goods. Ambev sells alcohol brands such as Modelo, Bud Light, Budweiser, and Stella Artois as well as non-alcoholic beverages under the Pepsi, Lipton, Gatorade, and Canada Dry brands, among many others. In the past month, shares of ABEV stock have climbed by almost 12%. This could be due to heightened demand for alcoholic beverages given fewer Covid cases in some areas around the world.
At the end of October, the company released its financial results for the third quarter. The company’s quarterly net profit increased by 57.4% to $660.89 million. As stated earlier, demand for some of Ambev’s products has risen considerably as bars and eating establishments have reopened. Ambev’s third-quarter volumes increased 7.7% year over year, marking the best in the company’s history.
In the last month, ABEV stock has increased significantly. On October 25th, ABEV’s stock price was at $2.70 per share. Now on November 23nd, ABEV stock has reached $3.04 per share. With loosening Covid restrictions in the U.S. and the holiday season around the corner, do you think that ABEV stock is worth adding to your penny stocks watchlist?
Can You Make Money With Penny Stocks in 2021?
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Understanding who you are as an investor and which stocks best fit your portfolio, can be one of the most challenging parts of trading. But, with that step completed, making money with penny stocks can be much easier than previously imagined. With that in mind, do you think that penny stocks can continue to make gains this year?