The 2022 crash has sent a shockwave of concern across markets. But one asset class continues to shine even as massive selling pressure takes large-cap stocks lower. You are correct if you guessed penny stocks are what I’m referring to. These low-priced, high-flying equities have brought excitement during a time when emotions have been tested, and portfolios have gotten ripped apart.
What are penny stocks? Penny stocks are shares of companies trading for less than $5 per share.
The thing to keep in mind is that these types of stocks typically represent smaller company shares. In most cases, these companies are in the early stages of development and, as a result, carry plenty of risks beyond general market volatility. That’s why they are favored by most day traders in the stock market today. You’ll see more than a handful of stocks under $5 trading at significant multiples of their previous closing prices daily.
The good and bad is that most of these moves last a day or two and then ultimately settle down. This doesn’t mean investing in penny stocks is a bad idea. But it does suggest that additional research and a stomach for high volatility are necessary. On the other side of the coin, the retail trading community flocked to these stocks during the 2022 crash. The day-to-day jumps have offered a bit of alpha at a time when things seem just to drift lower.
How To Find Penny Stocks To Buy
Where should you begin? If you’re looking for penny stocks to buy, catalysts are a good place to start when you’re putting together a watch list. These can be anything from insider trading activity or news headlines prompting market momentum. Once you’ve identified the catalyst, you can make your ultimate decision whether or not the trade set-up is right for you. Today we look at a handful of stocks with news that are turning heads early.
Penny Stocks To Watch
- Bionano Genomics Inc. (NASDAQ: BNGO)
- Qudian Inc. (NYSE: QD)
- View Inc. (NASDAQ: VIEW)
- Outlook Therapeutics Inc. (NASDAQ: OTLK)
Bionano Genomics Inc. (NASDAQ: BNGO)
Biotech stocks were hit hard this year, with sector index ETFs dumping to their lowest levels since the 2020 pandemic sell-off. But that doesn’t mean the opportunity is gone. In fact, day-to-day trends have shown strong potential in biotech penny stocks. For the most part, pipeline news, patents, industry presentations, conferences, etc. These are all sources of speculation and catalysts for moves in the stock market.
Today, Bionano Genomics came back into the spotlight after a few weeks of a slow move lower. The company offers genome analysis solutions for researchers. Following its participation at the European Society of Human Genetics, which wraps up today, patent news has sparked some attention on BNGO stock.
BNGO Stock News
The US PTO granted the company patent number 11,359,244. It’s titled “Characterization of molecules in nanofluidics.” Accordingly, the abstract for the…