What Are the Top Penny Stocks to Watch in 2021?

Introduction

Penny stocks, also called micro-cap stocks, are shares of companies that trade at a low price. These stocks are popular among investors who are looking for high returns with a low investment. However, penny stocks are also considered high risk because they are often issued by companies that are not well-established. In this article, we will discuss the top penny stocks to watch in 2021.

What are Penny Stocks?

Penny stocks are shares of small companies that trade at a low price. These companies often have a market capitalization of less than $300 million. Penny stocks are typically traded on over-the-counter (OTC) markets or on the Pink Sheets, which are not regulated by the Securities and Exchange Commission (SEC). Because these stocks are not regulated, they are considered high risk.

Top Penny Stocks to Watch in 2021

1. New Oriental Education & Technology Group Inc. (EDU)

New Oriental Education & Technology Group is a Chinese company that provides educational services. The company's stock has been on a steady uptrend in 2021, with a year-to-date return of over 20%. The company has a strong financial position and is expected to benefit from the growing demand for education in China.

2. Beyond Meat, Inc. (BYND)

Beyond Meat is a company that produces plant-based meat substitutes. The company's stock has been on a steady uptrend in 2021, with a year-to-date return of over 40%. The company has a strong brand and is expected to benefit from the growing trend towards plant-based diets.

3. Zomedica Corp. (ZOM)

Zomedica is a company that develops products for the veterinary market. The company's stock has been on a steady uptrend in 2021, with a year-to-date return of over 200%. The company has a strong product pipeline and is expected to benefit from the growing demand for animal healthcare.

Investing in Penny Stocks

Investing in penny stocks can be risky, as these stocks are often issued by companies that are not well-established. It is important to do your research before investing in penny stocks. You should look at the company's financials, management team, and product pipeline. You should also consider the risks associated with investing in penny stocks, such as volatility and lack of liquidity.

Conclusion

Penny stocks can be a high-risk, high-reward investment. However, if you do your research and invest wisely, you can benefit from the potential upside of these stocks. The top penny stocks to watch in 2021 include New Oriental Education & Technology Group, Beyond Meat, and Zomedica Corp. As with any investment, it is important to do your due diligence and understand the risks associated with investing in penny stocks.