What Are the Top Penny Stock Symbols to Watch in 2021?

Possible article:

What Are the Top Penny Stock Symbols to Watch in 2021?

Penny stocks, defined as stocks that trade for less than $5 per share, can offer high potential returns but also high risks. Some investors are drawn to penny stocks because they may have low valuations, volatile price movements, and the allure of finding a hidden gem that could soar in value. However, penny stocks can also be illiquid, prone to scams, and subject to sudden drops or even delistings. Therefore, it is important for investors to do their due diligence, diversify their portfolios, and manage their risks wheninvesting in penny stocks.

If you are interested in penny stocks, you may wonder which symbols to watch in 2021. While no one can predict the future performance of any stock, here are some penny stock symbols that have recently gained attention from analysts, traders, and investors.

GameStop (GME)

GameStop, a brick-and-mortar video game retailer, became a household name in early 2021 when a group of individual investors on Reddit and other social media platforms sparked a buying frenzy that drove up the stock price from around $20 to over $400 in a matter of weeks. The so-called "Reddit army" aimed to squeeze out short sellers who bet against the stock, causing a short squeeze that added fuel to the rally. Although the stock has since retreated to around $180, it is still up over 800% year-to-date and has attracted both admirers and critics. Some see it as a symbol of the power of retail investors to challenge Wall Street, while others see it as a speculative bubble that will burst eventually.

Sundial Growers (SNDL)

Sundial Growers, a Canadian cannabis company, has also been a popular penny stock in 2021, partly due to the growing momentum of the cannabis industry and the potential for more states and countries to legalize marijuana. The stock has seen some sharp swings, with a low of $0.11 in November 2020, a high of $3.96 in February 2021, and a current price of around $0.90. The company has been trying to expand its market share and reduce its debt, but it still faces challenges such as regulatory uncertainty, competition, and the pandemic.

Zomedica (ZOM)

Zomedica, a veterinary diagnostic and pharmaceutical company, has been another penny stock that has caught the attention of some investors in 2021. The stock has risen from around $0.15 in November 2020 to a high of $2.71 in February 2021, before dropping to around $0.90 currently. The company has been working on developing and commercializing diagnostic tests for pets, as well as other products and services. However, it is still in the early stages of its growth and faces competition from established players in the industry.

Other penny stocks to watch

Of course, there are many other penny stocks that could be worth watching, depending on your investment strategy and risk tolerance. Some examples include:

- Ocugen (OCGN), a biopharmaceutical company that is developing a COVID-19 vaccine candidate and other therapies

- Naked Brand Group (NAKD), a fashion and lifestyle brand that has been trying to transform its business model and reduce its debt

- Castor Maritime (CTRM), a shipping company that operates dry bulk vessels and has seen some volatility in its stock price due to market conditions and company news

- Aeterna Zentaris (AEZS), a biopharmaceutical company that focuses on oncology and endocrine therapies, and has been trying to reduce its expenses and advance its clinical trials.

Investing in penny stocks requires caution, patience, and research. It is important to understand the risks and potential rewards of penny stocks, and to avoid relying on hype, rumors, or emotions. Some tips for investing in penny stocks include:

- Don't invest more than you can afford to lose

- Diversify your portfolio with other assets and strategies

- Use limit orders to buy and sell stocks at specific prices

- Set realistic goals and exit strategies based on your own analysis and criteria

- Stay informed about the company's financials, management, competition, and industry trends.

Conclusion

Penny stocks can be intriguing but risky investments, and there is no guarantee that any stock will perform well or poorly in the future. However, by doing your homework and being disciplined, you may be able to find some penny stocks that fit your investment objectives and criteria. Whether you decide to watch GameStop, Sundial Growers, Zomedica, or other penny stock symbols in 2021, remember to invest wisely and responsibly.