Check These 3 Penny Stocks Out For Your List Right Now
If you’re making a list of penny stocks to watch in 2022, there are hundreds of options to choose from. But, before picking penny stocks to buy, investors need to have a thorough and consistent understanding of what’s going on in the stock market. Today, the main catalyst causing movement is the reading of the consumer price index report.
For those unfamiliar, this report details the price of different goods across a large spectrum. In the report, we witnessed a 7% YoY gain which is the largest jump since 1982. Richard Flynn, the managing director at Charles Schwab U.K. stated that “Fears about higher and persistent inflation have been well telegraphed in recent months. Therefore, investors had been expecting the rate of inflation to rise. Today’s rise in the rate of inflation falls within investors’ expectations.”
While inflation is on many investors’ minds right now, we are also seeing widespread bullish interest in the stock market. So right now, it is crucial to understand what factors are at play and how to take advantage. Considering all of this, let’s take a look at three top penny stocks to add to your watchlist in Mid-January 2022.
3 Penny Stocks to Add to Your Watchlist in January
- electroCore Inc. (NASDAQ: ECOR)
- TAL Education Group (NYSE: TAL)
- Southwestern Energy Company (NYSE: SWN)
electroCore Inc. (NASDAQ: ECOR)
One of the bigger gainers of the day so far is ECOR stock, pushing up by over 23% at midday. Despite a twelve-month drop of around 60%, we’re witnessing a slight bullish turnaround with electroCore right now. While many large gains with penny stocks can occur without news, today, ECOR made an exciting announcement during premarket. The company stated that its gammaCore non-invasive vagus nerve stimulation device has received breakthrough designation from the U.S. FDA. This is major news and could help this nVNS device see commercial adoption.
“We appreciate the thorough and timely review by the FDA of our Breakthrough Device Request for gammaCore for the treatment of PTSD. The ability of nVNS to target several of the underlying causes of PTSD such as autonomic dysfunction, stress and inflammation, safely and effectively supports its potential as a breakthrough treatment for PTSD.”
The Senior Vice President of Neurology at electroCore, Eric Liebler
With any biotech penny stock, news from the FDA if positive, can be a major game-changer in how it trades. And given its 23% gain today, we see that this is the case with ECOR stock. So, while ECOR is highly volatile, it does look like this good news could be worth paying closer attention to. With that in mind, will it be on your list of penny stocks to watch?
TAL Education Group (NYSE: TAL)
With a 5% gain at midday on January 12th, TAL stock is quite popular right now. This is especially true considering its large drop over the past twelve months. The major news for the overall bearish trading in the past twelve months comes as China cracked down on the for-profit tutoring industry.
The government effectively stated that companies would have to find other business models outside of K-9 tutoring. This resulted in a substantial and understandable drop in the revenue of almost every major education stock in China. And after TAL stock dropped yesterday following an underweight rating from Morgan Stanley, we could be seeing a positive correction today. Other industry news reported that EDU stock (a major Chinese education stock), laid off more than 60,000 workers last year following the crackdown on the sector.
And as these companies work to find new business methods, there is a sizable amount of volatility for investors to contend with. So while it is difficult to see long-term potential in TAL stock, the short-term price fluctuations could be worth watching. Considering this, is TAL a worthwhile addition to your penny stocks watchlist or not?
Southwestern Energy Company (NYSE: SWN)
SWN stock is a penny stock that we have covered numerous times in the past few weeks. And over the last five days, shares have risen by over 11.45%, including a more than 7% gain today at midday. So, why the major bullish interest with SWN stock right now? Well, if we look beyond recent news momentarily, we see that the energy industry is seeing heightened popularity in 2022.
While travel has slowed down substantially due to the Omicron variant, many investors are bullish on the future of energy consumption. As it relates to SWN stock, the company recently announced the completion of its acquisition of GEP Haynesville. This should help to secure its footing in the Haynesville market, which will, in turn, build revenue, margins, and hopefully returns. The news of this completion also comes after the company announced a $1.15 billion offering of 4.75% senior notes back in December.
So, with plenty of capital to continue engaging in its future, SWN stock is on many investors’ watchlists right now. But, traders should make sure to understand where the industry is headed and how to take advantage moving forward.
Which Penny Stocks Are You Watching Right Now
With such a broad range of penny stocks to choose from, it can often be difficult to land on just a handful for your portfolio. However, because there are so many penny stocks out there, making money with small-caps in 2022 can be accomplished. To do so, investors need to understand two factors.
For one, traders need to have a well-thought-out trading strategy on hand. This will help to minimize surprises and maximize potential with the capital you have. And second, investors need to be able to take advantage of what is going on in the stock market by thinking outside of the box. Both of these are paramount to making a profit.
While nobody expects volatility to drop in the near future, investors are excited about the potential of the pandemic ending and it becoming subsequently, endemic. And with all of this to look forward to, which penny stocks are you watching right now?
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