If you’re looking for the best penny stocks to buy, you might begin your search by looking for press releases. Stock market news remains one of the go-to points of information when it comes to research. Many times companies will release an update that highlights a major development. This can quickly result in a trigger point for traders. Headlines in the stock market today suggest that the bull market is still alive and well. With that, we’ve seen a jump in several niches. One of these is small-cap stocks.
Take a look at the iShares Russell 200 Small-Cap Index ETF (NYSE: IWM) today. Not only is it trading higher by around 1%, but it’s also far-outpacing other broader market ETFs, including the S&P 500 (NYSE: SPY) and the Nasdaq ETF (NASDAQ: QQQ). Early action on Wednesday, too most stock lower thanks, in part, to treasury yields bouncing. This has recently become a sticking point for traders. Late last week, we saw the effects of higher yields suggesting the underpinnings of inflation.
One of the reasons that small-cap stocks have been rallying, in general, may have a lot to do with the current administration. The Biden camp has made a stance that has supported smaller businesses, which could translate favorably for small-cap stocks. Several market analysts also agree with this notion.
Boris Schlossberg, of BK Asset Management, told CNBC, “The market is going to believe that he is going to try to do everything in his power, both from a financial point of view and also from a regulatory point of view, too, to make things much easier for small caps as we go forward.”
The latest $1.9 trillion stimulus package has also set the stage for money flow. With it could come another wave of retail momentum as we saw last year. Schlossberg went on to say further that, “The much-better trade is going to be long Russell, short Nasdaq going forward. That’s a trade that has not worked at all for the last four years but I think is going to work very well in 2021.”Best Penny Stocks To Buy Or Avoid Right Now?
Against the backdrop of strength in small-cap stocks, investors are searching for ones that have survived the pandemic and have already begun to trend higher in 2021. Keep in mind, though that we’ve seen plenty of trends come and go in the market. Understanding these trends and how or if they can last is another aspect to consider when it comes to finding the best penny stocks to buy. With that, here’s a quick list of stocks that have kicked off March strongly after recent updates:
- ReWalk Robotics Ltd. (NASDAQ: RWLK)
- Senseonics Holdings Inc. (NYSEAMERICAN: SENS)
- Castor Maritime Inc. (NASDAQ: CTRM)
ReWalk Robotics had a banner year this year rallying from around $1.40 to highs of $6. But after reaching that high, RWLK stock pulled back agressively over the last few weeks. It wasn’t until this week that the penny stock finally began rebounding. Wednesday’s session saw a continuation of this trend thanks to a key updates from the company and Wall Street.
H.C. Wainwright kicked things off on Monday, raising its price target to $3.50 and maintaining its Buy rating. This got some traders talking. But it wasn’t until late Tuesday, early Wednesday, that momentum really kicked in. The company entered a contract with BKK Mobil Oil health insurance fund to supply its exoskeleton to eligible people with spinal cord injury in Germany. This deal opened up a network of over one million beneficiaries. Further to this, ReWalk just received a significant boost in attention after the National Institute for Health and Care Excellence published a briefing on the company’s ReStore Soft Exo-Suit in the UK.
When it comes to achieving broad adoption of this system, ReWalk said that this publication is a “critical step.” Based on these events this week, RWLK stock has surged and could remain one to watch as the month continues.Senseonics Holdings Inc.
Another one of the active penny stocks to watch right now is Senseionics. The company’s stock had experienced a similar move to ReWalk in that there was a strong jump through mid-February followed by multiple weeks of a pullback. However, this week, SENS stock seems to have remained above a key level that actually acted as a resistance point earlier in the year. The area on its chart around $3.20 was a level that SENS stock couldn’t break above until the second week of February. This week, that same area has acted as a support level of sorts. Both Tuesday and Wednesday saw the penny stock test this as the low of the day. However, in both cases, shares managed to bounce back.
This week, Senseonics has benefited from the excitement surrounding its latest milestone. It was revealed that the company was awarded a U.S. patent titled “Integrated optical filter system with low sensitivity to high angle of incidence light for an analyte sensor.” What’s more, in its filings, you’ll also notice that Roche Finance Ltd reported a 4.7% stake on Tuesday. This added to the already growing list of institutions taking positions in the company. Last month, Soros Fund Management and Highbridge Capital both reported positions in the company.
Next Tuesday, the company presents at the H.C. Wainwright Global Life Sciences Conference. So if SENS is on your penny stocks list right now, keep Tuesday, March 9th in mind.Castor Maritime Inc.
If there are hot sectors to watch right now, they’re energy and industrials. No matter if you’re talking about crude oil, natural gas, “green hydrogen,” etc., energy is in a bright spotlight after the Biden Administration placed a focus on infrastructure spending. This goes hand-in-hand with the angle on industrial stocks. Castor Maritime is a global shipping company delivering dry bulk commodities worldwide. From grains to coal or sugar to cocoa, dry bulk cargoes cover a range of raw materials.
With global trade attempting to recover, shipping stocks have been gaining interest. This week, Castor shares spiked after its latest update. The company announced the delivery of the M/V Magic Venus. This 2010 Japanese-built dry bulk vessel is expected to begin employment under a time charter agreement around March 5th. According to the company, Castor expects daily gross charter rates of $18,500, which could generate upwards of $2.8 million in gross incremental revenue. Ultimately, on a fully delivered basis, Castor will have a fleet of 12 vessels, with an aggregate capacity of 1.1 million deadweight tonnage.
As traders eye “reopening stocks” or “epicenter stocks,” shippers could remain a key point of focus. With this in mind CTRM could be one of the names to add to the list of penny stocks to watch.Final Thoughts On Penny Stocks With News
When it comes to news headlines, no matter if you’re looking at penny stocks or $50 stocks, it’s important to get the full details. Most of the time, when companies release information on material events, they’ll also file something with the SEC, usually an 8-K. This filing reveals not only the press release details but also any other information related to deals, payments, etc. So if you find that certain penny stocks with news are breaking out, take a minute to observe any finer details to consider. In some cases, knowing the “bigger picture” can help you make a better-executed trade or avoid a highly risky situation altogether.