If you want to profitably trade penny stocks in 2021, then make sure you bookmark this article.
Since the Great Recession rocked global markets in 2008 and 2009 stocks and penny stocks to watch alike have largely rebounded. New all-time highs have been reached while the price-to-earnings ratios of many S&P 500 companies are increasingly expensive, often prohibitive to many investors.
So where do these investors turn when they’re looking to trade penny stocks that haven’t already exploded in value over the last decade? After all, it’s very difficult to find good long term deals in the market when even smaller S&P 500 companies are showing market caps near $1 billion.
In case you're new to Penny Stocks Investing and trading penny stocks, it essentially involves investing in stocks of those companies that trade with a LOW share price, often less than $1. An extremely low share price allows an investor to hold thousands of shares for a relatively small amount of invested capital.
Since this business involves investing in a company's potential on the stock market, it requires considerable investing experience.
By the way, if you're brand new to penny stocks, make sure to check out this beginners guide to penny stocks from millionaire trader Timothy Sykes.
While you're here, you can also check out our small cap stocks article to see what stocks are yielding good dividend payouts in 2021.
Small-capitalization stocks, and Penny Stocks alike have been hit particularly hard in the market’s rapid volatility over the past couple months. Investors see the Coronavirus’ fallout threatening this sensitive group, which tends to see its performance suffer more than larger companies in recessions.
With that being said, now might be a great time to take advantage of the best penny stocks to buy for literal pennies on the dollar! Just imagine the value of a million shares invested in a company like TSLA, or APPL in the early days.
If you want to trade penny stocks, check out some of the companies we've listed below.
Want to learn step by step How to Trade penny stocks successfully?
The Top Penny Stocks for 2021 Are:
1. Karora Resources (KRRGF)
Karora Resources is a multi-asset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of precious metal properties. It is Karora’s vision to become the next sustainable high quality mid-tier producer.
The company is showing impressive growth and expected reserve growth, paired with a very solid financial position.
In mid-December of 2020, they unveiled a first consolidated reserve and resource estimate for its two main assets - Beta Hunt and Higginsville - in Western Australia, which showed an increase to the proven and probable (2P) gold reserve of 334% to 1.33 million ounces.
The market cap for KRRGF sits at 425.252M, with a 52 week range of 0.6306 - 3.5700.
According to Investopedia, In its last set of results (for the period ending Sept. 30, 2020), Karora turned in an amazing 34% increase in its consolidated cash balance from the previous quarter.
2. Aileron Therapeutics Inc. (ALRN)
Aileron Therapeutics is focused on transforming the experience of chemotherapy for cancer patients by developing and delivering a novel chemoprotective medicine to protect against multiple chemotherapy-induced side effects.
According to Pennystocks.com, late last year, the company announced positive clinical data from its ongoing Phase 1b tria, which demonstrated clinical proof of concept of ALRN-6924. Prior to second-line topotecan administration, the application of ALRN6924 resulted in a protective effect against severe anemia, thrombocytopenia and neutropenia.
This past week the company pushed forward with another round of financing. This time it was a near $35.9 million offering at $1.10 share price. The initial reaction saw the stock dip. But considering the closing was on or about January 8th, ALRN quickly recovered.
ALRN share price currently sits at around $1.82.
3. Conduent, Inc (NASDAQ:CNDT)
Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally.
According to MarketBeat, Conduent Incorporated (NASDAQ:CNDT) released its quarterly earnings reports in November 2020. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.12. The business earned $1.04 billion during the quarter, compared to the consensus estimate of $996.25 million.
Its affordability has served as a beckoning signal to many investors who seem to respond positively to the call. In fact, the company offers one of the cheapest buys right now on the stock market according to our analysts.
With all the risk in trading penny stocks comes a lot of potential opportunity. After all, getting in on the ground floor of a company before its stock price explodes is the dream of many casual investors, and penny stocks are one of the primary ways to accomplish that. Check out our latest article and check out these penny stocks to watch under 1 cent
4. Precision Drilling Corp (NYSE: PDS)
Precision Drilling Corporation is an integrated oilfield drilling and energy service company providing services to the oil and gas industry. The Company provides oilfield rentals, well services, catering services, and drilling services through its several business units.
PDS has a market cap of 309.384M, and a 52 week range of 0.27 - 23.75.
Long term Investors out there wondering how to invest in penny stock should make a deal with PDS, one of the best-performing penny stocks to buy now and the best cheap stocks to buy now.
5. Northern Dynasty Minerals Ltd. (NYSE: NAK)
This Vancouver based company specializes in U.S. mineral exploration, and it's one of my favorite penny stocks to buy right now.
Northern Dynasty Minerals Ltd just had a strong start to the trading session on January 11th, and for good reason. The company announced that the State of Alaska plans to appeal the recent denial of the Pebble Project permit.
This world-class Pebble Project in Alaska is being advanced toward development by Northern Dynasty (NYSE: NAK). The Pebble Project is the most significant undeveloped copper and gold resource in the world.
CNA Finance writes that ultimately, the recent news released by NAK is overwhelmingly exciting. When the USACE handed down the permit denial, investors were shocked. A previous USACE Environmental Impact Statement suggested that approval would be coming down the line.
Now, there’s yet another chance for approval to take place, and it’s not just Northern Dynasty Minerals, the Pebble Limited Partnership, and investors asking for the approval. Now, the Alaskan government is getting involved, which could help to tip the scales and set the stage for a permit approval.
Should the permit be approved, the company will be embarking on one of the largest mines in the world, setting the stage for tremendous growth ahead.
NAK currently sits at around $0.45 per share.
6. Hecla Mining Company (NYSE:HL)
In a time of political and economic uncertainty the oldest minerals stock on the exchange is a place where investors could turn.
Hecla Mining Company is a precious metals company. Their business is to create value for shareholders by discovering, acquiring, developing, producing, and marketing mineral resources at a profit. They aim to create long-term value for shareholders from mining silver, gold and associated base metals.
Hecla Mining Company has reported record silver reserves for 10 years in a row. We see this as a great stock to hold.
The silver producer was up 50% year-to-date in December of 2020. Hecla solely mine commodity products that trade based on supply and demand. Short-term movements in the price of silver and gold are often driven by investor sentiment.
NOW is a great time to take advantage of this cheap penny stock with shares sitting at just $5.98.
As we mentioned, penny stocks to watch are notoriously risky. So tread with caution. Many stock traders have gambled and lost more than a fortune on speculative stocks.
That said, there is certainly the opportunity to discover undervalued and under-reported companies before they take the markets by storm.
Additionally, stocks like these are too small for most big, institutional investors to get involved in. Many of them are restricted from investing in smaller companies while others just don’t feel it’s worth their time.
Moreover, analysts tend to ignore stocks like this. That can be a double-edged sword: For one, other low-level investors are less likely to jump on a stock simply because it hasn’t received any coverage anywhere else. However, it makes doing your research on a company even more difficult.
Check out our latest article on micro cap stocks for March 2021 here.