Connect with us

Stocks

5 Top Penny Stocks To Buy Now According To Reddit

5 Reddit penny stocks to watch right now.
The post 5 Top Penny Stocks To Buy Now According To Reddit appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

Published

on

Today we look at a handful of penny stocks gaining a lot of attention on social media. One of the most significant driving forces since the start of the 2020 pandemic has been droves of new retail traders pumping liquidity into the market. There are a few different schools of thought about the lasting impact it could have on the market. However, the last two years have been nothing quite like we’ve ever seen.

These underlying trends have stemmed from the active retail trading community, whether it’s short squeezes, speculative breakouts, fear-driven buying, or somewhat of a mix. Thanks to the explosive rallies in meme stocks like AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME), these millions of new traders are finding a home on social media sites like Reddit.

Reddit Penny Stocks To Buy [or avoid]

It has become the new “investor round table” for traders to share ideas. Outlets like Reddit have also become heavily scrutinized for the unregulated and, at times, completely false claims made by individual online profiles. Social sentiment is a prevailing catalyst daily. You can either fight the trend or figure out a way to make money from it. According to some of the traders on Reddit this week, here are a few penny stocks to buy.

SmileDirectClub Inc. (NASDAQ:SDC)

As one of the household name penny stocks, you might assume that SmileDirectClub has good standings in the stock market today. The company is well-known for its at-home dental solutions, including invisible braces and teeth whitening. There’s also a good chance that you’ve seen at least one advertisement on TV or social media in the last few days. Regardless, SDC stock has been hard-hit over the previous year, with the final quarter of 2021 being one of the worst. Shares ripped lower following worse than expected earnings results with a mixed response from the company:

“We are disappointed with our third-quarter results driven by the macroeconomic headwinds that are influencing the spending of our core demographic…While we could not have anticipated the rapidly evolving nature of this impact on our consumer, we have responded quickly to focus our marketing on helping support them during this time, while we also move upstream with higher income demographics through the Challenger Campaign and investments in our Dental Partner Network.”

The company has taken up strategic actions to right the ship in response. This week, a wild twist of events highlights the latest move to curb expenses. SmileDirectClub suspended operations in 8 markets while also cutting back staff.

Areas impacted included Mexico, Spain, Germany, the Netherlands, Austria, Singapore, Hong Kong, and New Zealand. The main focus appears to be on the U.S., Canada, the U.K, Ireland, France, and Australia right now. Ultimately this could save $120 million in 2022, according to the company.

Kosmos Energy Ltd. (NYSE:KOS)

Even with the stock market sell-off this week, some sectors have gained bullish momentum. One of these is energy, and companies like Kosmos have climbed higher as a result. In fact, following a few days of selling this month, KOS stock has bounced back in a big way this week. Shares jumped over 15% from Monday’s low of $3.89 to Tuesday’s morning high of $4.54.

Read: 5 Hot Penny Stocks To Watch After Big News Today

Aside from the sector trends, news from Kosmos this month put it back in a brighter spotlight. The company announced that it completed drilling of its Winterfell-2 appraisal well in the Green Canyon area of the U.S Gulf. This helped the company define further the resource potential of the site, with current gross estimates sitting around 100 million barrels. With encouraging results, Kosmos Energy’s CEO Andrew Inglis expects to advance a development scheme for bringing things online in “around” two years.

In-kind with this bullish outlook, analysts at Goldman Sachs raised their $5 price target to $7.50 while maintaining their Buy on the penny stock.

reddit penny stocks to buy Kosmos Energy KOS stock chart

Transocean Limited (NYSE:RIG)

Similarly, shares of Transocean ticked higher on Tuesday, supported by strength in energy stocks. The contract drilling services provider pulled an about-face at the top of the week. A 2-day bounce in RIG stock propelled shares from lows of $2.85 to highs of over $3.30.

Much of the excitement also comes shortly after the company’s Transocean Enabler will drill a carbon injection well and sidetrack for another well drilled early in 2020 to support Equinor’s Norther Lights Carbon Capture Storage Project. This is a JV created by Equinor, Shell, and TotalEnergies.

“Beyond our core business of drilling ultra-deepwater and harsh environment wells, this is an excellent example of how we can further leverage our rigs and core competencies in support of renewable and alternative energy projects in offshore markets across the globe.”

Janelle Daniel, Transocean’s Vice President of Human Resources, Sustainability and Communications.

Sustainable investing is a big focus for the market right now. The ESG movement continues growing strong, which could further the company’s stake in this budding niche.

reddit penny stocks to buy Transocean RIG stock chart

Progenity Inc. (NASDAQ:PROG)

A darling of Q4 2021 was Progenity Inc. Shares of the biotech company exploded from under $1 to highs of over $6 within a few short months. Company milestones and stock market technicals came together, helping to add to the excitement.

Progenity is advancing its pipeline designed for women’s health, gastrointestinal health, and oral biotherapeutics. In particular, the company offers a range of ingestible devices that provide diagnostic sampling and drug delivery solutions. Its current plans are being pushed ahead for commercially launching its Preecludia test designed to rule out preeclampsia in pregnant patients. According to the company, this space has an addressable market of up to $3 billion.

In addition, February could be set for some excitement as Progenity will make presentations at multiple industry events. These include the Belgian Week of Gastroenterology on February 9th and the European Crohn’s and Colitis Organisation on February 18th.

Read: These Hot Penny Stocks Are Climbing While the Stock Market is Down

If this weren’t enough, PROG stock has joined the list of potential “short squeeze penny stocks” to watch right now. According to data from Fintel.IO, the current short float percentage on PROG sits around 11.5%. It was a hot topic of discussion late last year and seems to be back in the mentions among traders on social media right now.

reddit penny stocks to buy Progenity PROG stock chart

Reliance Global Group (NASDAQ:RELI)

It’s been a while since Reliance Global traded near the penny stock range. If you’re an active reader of PennyStocks.com, you may recall it as a hot stock late last year. The insurance stock skyrocketed from under $2 to highs of more than $10 following a flurry of attention on social media.

The first time we discussed the company in December, Reliance had just come off of a big launch of its 5MinuteInsure platform in new territories. However, the bigger story was similar to PROG stock as a potential short-squeeze candidate. At the time, the short float percentage on RELI sat above 30%. With a lower float, it wasn’t surprising to see additional volatility.

Fast-forward to this week, and RELI is still on that “short squeeze” radar right now. According to Fintel data, the current short float percentage is around 25.5% as of this article. Meanwhile, Reliance announced the completion of its latest acquisition of Medigap Health Insurance Company. Medigap specializes in Medicare supplement insurance and recorded roughly $7 million in revenue for the 12 months ending September 30, 2021.

“Medigap is one of the nation’s fastest-growing providers of Medicare supplemental insurance coverage with licenses and doing business in 47 states.  Our goal is to aggressively expand their operations, as well as capitalize on cross-selling opportunities across our existing portfolio companies,” explained Ezra Beyman, CEO of Reliance Global Group.

Tuesday afternoon, RELI stock firmly stepped back out of the penny stock range after reaching highs of over $7.

reddit penny stocks to buy Reliance Global RELI stock chart

Penny Stocks To Watch Right Now

According to social media users on Reddit, these are just a handful of penny stocks to buy. If any of the companies are on your list right now, the next step is doing a deeper dive. Social media is an interesting place, but you are the only person responsible for making the final investment decision. You can check out more details on penny stocks by using our stock profile tool, which gives access to news, filings, and more for free.


If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!


The post 5 Top Penny Stocks To Buy Now According To Reddit appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

Read More

Continue Reading

Economics

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart,…

Published

on

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart, Target indicated that it is seeing a shift in the consumer wallet away from the pandemic purchases and into reopening purchases - including apparel - and the pace of this shift caught some retailers off guard on inventory. WMT, COST, and TGT all saw their stocks fall sharply last week as investor concerns around a US consumer slowdown mounted and investors reconsidered just where, if anywhere, you can play "defense" in the current market.

But as Goldman's Chris Hussey writes today, this week, results from companies like DKS, Macy's, JWN, WSM, DLTR, and DG painted a decidedly different picture.

Deep discount retailers Dollar Tree - or rather Dollar 25 Tree - and Dollar General both posted strong results and DLTR raised top-line guidance.

Which isn't surprising: as we discussed in "Middle Class Is Shutting Down As Spending By The Rich Remains Robust" when consumers are trading down - as they are doing now due to Biden's runaway inflation - dollar stores see more business.

As a result, Dollar Tree surged as much as 20% on Thursday, the biggest intraday move since October 2020. Evercore ISI said Dollar Tree's move to a "$1.25 price point" last November from $1 “came in the nick of time" adding that "given the broad-based inflationary cost pressures, the 25% price increase drove material sales and margin upside for both the namesake division and the total company," wrote analyst Michael Montani who also said that while freight, transport, and labor headwinds are real, some of the pressure cited by Target last week was likely company specific.

The analyst concluded that the read-across from DG and DLTR is “favorable,” and it seems that the low-end consumer is “hanging in better than initially thought.” Or rather, the middle-class is getting crushed and it has no choice but to trade down to the cheapest retail outlets.

And with countless shorts having piled up and getting massively squeezed, the S&P 500 Consumer Discretionary Index today has risen as much as 5.6%, its best day since April 2020, as optimism on the health of the consumer returns following a string of better-than-expected earnings reports from retailers.

Top performers in the S5COND index include Dollar Tree, Dollar General, Norwegian Cruise, Caesars Entertainment and Carnival; the Discretionary Index is on pace for its best week since March 18, when the group climbed 9.3%; the index sank 7.4% as Walmart and Target reports spooked investors. The index is still down almost 30% YTD.

"Retail earnings are bullish.... with four blow-outs,” said Vital Knowledge’s Adam Crisafulli, referring to quarterly reports from Williams-Sonoma, Macy’s, Dollar General, and Dollar Tree.  “The overall retail industry is experiencing stark changes and the market is incorrectly conflating these shifts with underlying demand weakness when the actual health of the consumer is much better than it seems,” Crisafulli says, although there are many - this website included - who wholeheartedly disagree with his optimistic view of the US consumer.

Remarkably, thanks to today’s rally, even Burlington Stores, which sank as much as 12% in premarket on disappointing results, is trading up as much as 11% and some say, the rally helped reverse the earlier tumble in NVDA shares.

The discretionary group is also getting a boost from airline operators Southwest and JetBlue, helping travel-related names, while on the economic front, better-than-expected personal consumption (for the revised Q1 GDP print). and jobless claims may be adding to the bullishness according to Bloomberg.

Tyler Durden Thu, 05/26/2022 - 15:00

Read More

Continue Reading

Stocks

Restaurants’ Share Of Food-Dollar Grows To Record 54.9% In April

Restaurants’ Share Of Food-Dollar Grows To Record 54.9% In April

By Nation’s Restaurant News

Restaurants continued to increase their share…

Published

on

Restaurants' Share Of Food-Dollar Grows To Record 54.9% In April

By Nation's Restaurant News

Restaurants continued to increase their share of spending in April, reaching 54.9% of the food dollar, according to U.S. Census data released Tuesday. That was a 260-basis-point increase from April last year, when the share was 52.3%, said analyst Mark Kalinowski, president and CEO of New Jersey-based Kalinowski Equity Research LLC.

“Even more impressively, as best as we can tell, this 54.9% market share figure for April 2022 is an all-time monthly high for the U.S. restaurant industry,” Kalinowski said in a note released Tuesday about the April U.S. Census data.

Kalinowski said restaurants, especially multi-unit public chains, were increasing prices but at a more modest rate than retail groceries.

“The key takeaway from this is you have a lot of menu prices going up in the restaurant industry,” he said in an interview.

“And, of course, the fear anytime you're raising your menu prices is that customers will trade down, but that hasn’t happened.”

Kalinowski noted that while restaurant brands were increasing prices, the rate of hikes was less than in grocery prices.

“If you need to eat — and I haven't yet met the person who didn't need to eat — you have got to buy the food from some place unless you're growing it yourself or you have a neighbor who grows it,” he said. “The fact is the restaurant industry offers a lot of convenience. It offers experiences that the grocery stores can't match.

“It is so firmly a part of the American fabric now that Americans don't necessarily want to cut their restaurant spending,” Kalinowski said.

The analyst also noted that larger restaurant brands were being very calculated in how they were raising prices to offset their increased commodity and labor costs.

For example, Kalinowski noted, “McDonald's looks at the food at home inflation and takes that into account with their menu pricing. I would imagine there's definitely a lot of other chains out there that have gotten a little more sophisticated with how they take their menu pricing.”

Those judicious price increases are easier for large, multi-unit chains to institute than for independent restaurants, he noted.

“Independents lack the scale advantages that large chains have,” he said, “so part of the challenge for independence is, in the time of just big commodity cost inflation, how do you battle that. That's not saying it's easy for the large chains — it's hard on everybody just about.”

Over the past two years, he added, the industry has seen the largest shift toward big restaurant brands who are taking increased shares of what is a larger pie.

Census data for April calculated U.S. food services and drinking places posted $83.741 billion in sales, as compared to the April 2022 figure for U.S. grocery stores of $68.906 billion.

Kalinowski said it was intriguing that combined foodservice and drinking place sales with grocery sales had increased significantly from pre-pandemic levels.

“There seems to be meaningfully more spending on food/beverages than there was pre-pandemic,” he said. “The April 2022 combined number of $152.6 billion is 26.4% larger than the April 2019 combined number of $120.7 billion.”

This past April marked the 12th consecutive month for which that number was up more than 10% over the corresponding pre-pandemic monthly number, Kalinowski noted.

“We continue to look for restaurants’ market share in full-year 2022 to be at least one full percentage point higher than the full-year 2021 figure of [positive] 52.7%,” he said.

“All in all, this is good news for restaurant stocks — which tend to be comprised of the very largest restaurant concepts in most cases,” Kalinowski said in his note. “Large concepts have fared better than smaller chains and independents during the pandemic, creating the largest opportunity in decades for market-share gains within the restaurant industry favoring large chains.”

Tyler Durden Thu, 05/26/2022 - 13:40

Read More

Continue Reading

Economics

‘Insiders’ Are Buying This Dip

‘Insiders’ Are Buying This Dip

The Nasdaq is in the middle of its worst drawdown since the Lehman crisis and the Dow just suffered its longest…

Published

on

'Insiders' Are Buying This Dip

The Nasdaq is in the middle of its worst drawdown since the Lehman crisis and the Dow just suffered its longest losing streak in 99 years.

As that is happening, faith in The Fed is crumbling as Powell faces the central bankers' nemesis of stagflation... and all in an election year (threatening the confidence in The Fed's independence should it falter from its path of uber-hawkishness).

According to the latest BofA Fund Manager Survey, the grim 'market' has sent investors reeling with those equity funds tracked by EPFR Global suffering six straight weeks of outflows (the longest stretch of withdrawals since 2019), and cash levels among investors soaring to their highest level since September 2001.

Additionally, the BofA survey also showed that technology stocks are in the 'biggest short' since 2006.

The 'proverbial' dip-buyer appears to have abandoned hope as the strike on any Fed Put (at which Powell will fold like a cheap lawn chair over the pain) gets marked lower and lower.

But...

There is one group apparently, that is willing to dip a toe in the capital market deadpool - corporate insiders.

As Bloomberg reports, according to data compiled by the Washington Service, more than 1,100 corporate executives and officers have snapped up shares of their own firms in May, poised to exceed the number of sellers for the first month since March 2020 marked the pandemic trough two years ago.

The ratio has surged to 1.04 this month from 0.43 in April.

Notably, the insider buy-sell ratio also jumped in August 2015 and late 2018, with the former preceding a market bottom and the latter coinciding with one.

“It is a function of investors functioning at the '30,000 foot level' or 'macro' whereas insiders are functioning at the 'boots on the ground', company-fundamentals level,” said Craig Callahan, chief executive officer at Icon Advisers Inc. and author of 'Unloved Bull Markets'.

“We believe the company-fundamentals view is usually correct.”

Nicholas Colas, co-founder of DataTrek Research, is not as confident:

“All we know for sure is that the valuation of any stock or the entire market hinges on whether investor confidence in future cash flows is rising or falling. At present, confidence is falling,” he wrote in a recent note.

“This is not because stocks expect a recession. Rather, it is because the range of possible S&P 500 earnings power runs in a wide channel and can become wider still.”

Starbucks' Interim Chief Executive Officer Howard Schultz and Intel CEO Patrick Gelsinger are among corporate insiders who scooped up their own stock amid the latest market rout that took the S&P 500 to the brink of a bear market.

With their share prices plunging, we can't help but wonder if this 'buying' is mere virtue-signaling so that the board won't fire them for their absymal loss of market cap? 

Tyler Durden Thu, 05/26/2022 - 13:20

Read More

Continue Reading

Trending