Are you looking for penny stocks to buy right now? You’re not alone, and the latest resurgence in retail trading trends has placed a focus back on meme stocks. Some may call them “Reddit penny stocks,” “stonks,” or give various other titles. Let’s call it what it is and define these as popular penny stocks to buy among mainly retail traders.
These tend to be much higher volatility trades, and many can go on to experience massive gains within hours or even days. There’s usually an underlying theme to look for as well. Whether it’s something as general as biotech penny stocks or bitcoin stocks, or more specifically, low float and short squeeze stocks, retail traders will find ways to take advantage of any momentum in the market.
Today we’ll look at five popular penny stocks gaining traction in the stock market then you can decide if they’re top names for your watch list or if they should be avoided entirely:
Meme Penny Stocks To Buy [or avoid] 1. ContextLogic Inc. (NASDAQ: WISH)
ContextLogic was made famous during the early days of the pandemic, and if you’re unfamiliar with the company, you might not know why. This is the public vehicle for the popular website Wish, which has become a popular novelty eCommerce platform. You can purchase everything from butterfly knives to dress shirts and everything in between. But the trouble with China-based stocks has become a sticking point for some investors, hence, one of the contributing factors to WISH stock’s decline.
Nevertheless, there are some bullish undertones to Chinese penny stocks today. As we outlined earlier this morning, this week, Chinese stocks jumped thanks to rate cuts by China’s central bank. The rally wave was first seen in Hong Kong as traders applauded the move and spilled over into early US trade on Thursday. With China tech stocks as one of the beneficiaries, ContextLogic seems to have played well off of this trend.
In addition to this, retail traders have gotten behind this name even as shares have dipped lower. Some expect this to become a leading competitor to other popular online retail outlets like Amazon. While that’s yet to be seen, WISH stock has popped during the second half of the week so far.
2. Progenity Inc. (NASDAQ: PROG)
Look back at late last quarter on Progenity’s chart, and you’ll see how impressed the market was with the company’s progress. Progenity’s share price surged from below $1 to as high as $6.20 following several key catalysts. The initial jump came after Progenity announced plans for the commercial launch of its Preecludia test. It’s designed to rule out preeclampsia in pregnant patients, which has an addressable market of up to $3 billion, according to Progenity.
Read: Trading Penny Stocks? Top Stock Market News For January 20th, 2022
But this was just the tip of the iceberg for traders. PROG stock was also on the list of short squeeze penny stocks to watch. Ultimately, this is what led to the added popularity and likely one of the reasons that it remains on some watch lists in 2022. While things have settled down a bit, PROG stock remains one of the higher short interest names with 11.47% of its float short, according to data from Fintel.io.
If PROG stock is on your list, February could be an important month for the company. Progenity presents at industry conferences next month. These include the Belgian Week of Gastroenterology on February 9th and the European Crohn’s and Colitis Organisation on February 18th.
Meme Penny Stocks to Buy [or avoid] 3. Cerberus Cyber Sentinel Corp. (NASDAQ: CISO)
One of the recently popular penny stocks to watch is Cerberus Cyber Sentinel. This comes shortly after the company uplisted from the Over-The-Counter exchange to the Nasdaq earlier this year. During its initial debut, the cybersecurity company tumbled but has since managed to situate itself around the $4 level.
This week CISO stock is on the radar of retail traders after announcing a pivotal M&A milestone. Cerberus reported its trailing revenue for 12 months ended September 30, 2021, increased to roughly $45.5 million. This reflects its proforma results after all acquisitions have been made. Right before its Nasdaq IPO, Cerberus completed the purchase of True Digital Security. It folded a network security company into its portfolio.
“From the beginning, our model has been to find highly talented, entrepreneurial cybersecurity organizations with a passion for what we do to help our customers…We will continue to find companies that align with our strategy and culture,” said David Jemmett, CEO, and founder of Cerberus Sentinel, in Thursday’s press release.
With this backdrop, M&A could remain a focus for some traders heading into the new year.
4. Vinco Ventures Inc. (NASDAQ: BBIG)
Like Progenity, Vinco Ventures has several catalysts to be aware of right now. These involve speculation, technicals, and some corporate developments as well. The central point of interest is the pending spin-off of Vinco’s Cryptyde company.
As we discussed last week in the article “3 Short Squeeze Penny Stocks To Buy For Under $5 Right Now,” speculation surrounding this and other events have brought plenty of interest into BBIG stock. That has also led to skepticism in the form of heavy short interest as well. In light of that, BBIG’s short float percentage about a week ago sat around 22.5%.
Interestingly, the story among traders explains the TYDE spin-off as “rumored.” If you look at a November 22nd release, you should see that it’s something planned and outlined by Vinco.
“We are making good progress on extending the brand to additional geographies, including the U.S. and India. We also announced the planned spin-off of our blockchain business, Cryptyde,” said CEO Lisa King. Cryptyde was notable in the launch of recording Artist Tory Lanez’s album “When It’s Dark” on the E-NFT.com platform. This was the first album to go platinum on the blockchain, with over 1,000,000 units sold.
5. Paysafe Ltd. (NYSE: PSFE)
Sticking with this crypto trend, Paysafe is another one of the penny stocks to watch. Shares popped early on Thursday thanks to related headlines that fueled new optimism for the company. It announced the extension of a cooperation agreement with transcoin.me to add cash-based payment solutions for purchasing cryptocurrency.
According to details of the January 20 release, Transcoin’s current suite of payment options includes Paysafe’s digital wallets, Skrill and NETELLER. Deniss Belaicuks, CEO of transcoin.me, commented, “Partnering with Paysafe to offer a full suite of payment methods is an integral part of our ability to deliver on our mission. Extending these payment solutions to a cash-based service like Paysafecash significantly increases the reach of our cryptocurrency exchange by extending it to cash-reliant customers.”
Read: 3 Penny Stocks Under $1 For You List This Week
With this, PSFE stock has come back into the view of traders searching for crypto-related stocks to watch. Also, for those who like technical levels, you’ll see PSFE stock is approaching its 50-day moving average. It has been a consistent resistance level since March 2021, with the stock failing to break and hold above this technical level.
Hot Meme Stocks To Watch
No matter how you trade, if meme stocks are attractive to you, prepare for a different style of trading entirely. They’re heavily sentiment-based and include plenty of other factors unrelated to fundamentals. The potential is apparent as plenty went on explosive rallies over the past few months.
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