What are the Top Penny Stocks to Watch in 2021?

As the financial market continues to fluctuate in 2021, many investors are looking forpenny stocksto watch. Penny stocks are stocks that trade for less than $5 per share and are often considered high-risk investments due to their volatility. However, they can also offer high potential rewards for investors who are willing to take the risk. In this article, we will discuss some of the top penny stocks to watch in 2021 and provide some investment strategies for those interested in investing in them.

Top Penny Stocks to Watch in 2021

1. Ocugen Inc. (OCGN)

Ocugen Inc. is a biopharmaceutical company that specializes in developing gene therapies and vaccines for eye diseases. The company has recently partnered with Bharat Biotech to develop a COVID-19 vaccine for the U.S. market. Ocugen has seen significant growth in its stock price over the past year and is expected to continue to do so in 2021.

2. Sundial Growers Inc. (SNDL)

Sundial Growers is a cannabis company that produces and distributes cannabis products in Canada and the U.S. The company has seen a surge in demand for its products due to the legalization of cannabis in multiple states. Sundial's stock price has been volatile in the past, but it has the potential for high returns for investors willing to take the risk.

3. Zomedica Corp. (ZOM)

Zomedica is a veterinary diagnostic and pharmaceutical company that specializes in developing treatments for pets. The company recently received approval from the FDA for its diagnostic test for thyroid disorders in dogs. Zomedica's stock price has fluctuated in the past, but it has the potential for growth in 2021.

Investment Strategies for Penny Stocks

Investing in penny stocks can be risky, but there are strategies that investors can use to minimize their risks and increase their chances of success.

1. Do Your Research

Before investing in any penny stock, it's important to do your research on the company's financials, management, and industry trends. Look for companies with strong fundamentals and a clear growth strategy.

2. Set Realistic Expectations

Penny stocks can offer high potential rewards, but investors should set realistic expectations for their returns. It's important to remember that penny stocks can be volatile, and there is always the risk of losing your investment.

3. Diversify Your Portfolio

Investing in a diverse range of penny stocks can help reduce your overall risk. Consider investing in stocks from different industries and sectors to spread out your risk.

Conclusion

Investing in penny stocks can be a high-risk, high-reward strategy for investors. The key to success is to do your research, set realistic expectations, and diversify your portfolio. By following these strategies, investors can increase their chances of success and potentially earn significant returns. As always, it's important to consult with a financial advisor before making any investment decisions.