Reddit Penny Stocks to Buy? 3 To Watch as GameStop and AMC Push Up
3 Reddit Penny Stocks Making a Big Comeback Today
Reddit penny stocks remain some of the most popular securities in the stock market today. And with many blue chips underperforming in the past few weeks, investors have turned to penny stocks. But before we get into “why,” it’s worth discussing what Reddit penny stocks are.
Reddit, the popular social media site, allows communities of users to interact with one another via subreddits. And, over the past few months, many investors have come together to invest in groups, in both penny stocks and blue chips that they feel a connection to. While this began with GameStop Corp. (NYSE: GME), it quickly involved other big names like AMC Entertainment Holdings Inc. (NYSE: AMC) and others.
These investors came together to invest in companies that they felt a personal connection to, rather than doing so because of fundamentals or the underlying business model of these companies.
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Thus, the term Reddit stocks was born. And now, these same investors are turning their eyes toward a wide range of penny stocks. It’s important to note that any penny stocks to watch as a result of Reddit, will likely see massive speculation. This is simply par for the course.
However, with high volatility comes the potential to make big gains (and losses). And with a wide list of penny stocks to buy as a result of Reddit, the options are limitless. With this in mind, let’s take a look at three Reddit penny stocks to watch.
3 Reddit Penny Stocks to Watch
1. Kosmos Energy Ltd. (NYSE: KOS)
Kosmos Energy Ltd. is an oil and gas penny stock that explores and produces fossil fuel-based energy in several countries around the world. The company’s main assets are in the U.S. Gulf of Mexico, Equatorial Guinea, and Ghana. It also has an offshore Mauritania and Senegal gas development. Its proven basin exploration program has made great strides for the company as well, over the past few months alone.
On May 10th, the company reported its first-quarter 2021 results which could be impacting its stock price. The company had a net production of 53,100 barrels of oil equivalent per day. This resulted in a material net under-lift position of approximately 1.3 million barrels of oil.
Recently the company also closed a $450 million offering of senior notes due 2028. The Chairman and CEO of the company Andrew G. Inglis said, “2021 is off to a strong start with momentum building across the business. We have begun infill drilling activities in Ghana and the Gulf of Mexico will soon begin drilling in Equatorial Guinea, and are on track to deliver our production and cash flow targets for the year.”
With high revenues and positive oil and gas progression in the market, KOS stock could see more momentum. On May 17th shares of KOS increased by more than 9%. This company has experienced more than 100% in growth during the last six months alone. So with all of this in mind, will KOS make it onto your penny stock watchlist?
2. Chico’s FAS Inc. (NYSE: CHS)
Chico’s FAS Inc. is a retail penny stock that sells women’s private branded casual-to-dressy clothing, intimates, and more. Its brands include Chico’s, White House Black Market, Soma, and TellTale. As you may know, the retail industry took a hard hit because of the pandemic. Stores closed for long periods, and even when reopened, many were not going out to shop.
Now the world is starting to recover. Cases of COVID-19 have dramatically fallen in the United States. More than 46% of the U.S. population has received a dose of the vaccine, which is highly encouraging. This is resulting in a resurgence in CHS stock price. Chico’s can begin to sell more of its products in the retail setting, now that reopening in the United States is taking place.
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Investors are excited about what could be next with CHS stock. This is seen in its stock price, moving up 5% and having higher than average volume on May 17th. One reason for this bullish sentiment is that the company announced the date for its first-quarter earnings call. This will take place on Tuesday, June 8th, which is when we are likely to find out how positive reopening has been for the company.
Many traders refer to companies like this as “reopening penny stocks”. Keeping this information in mind, will you invest in CHS stock and add it to your watchlist?
3. Birks Group Inc. (NYSE: BGI)
The final company on this list of penny stocks is Birks Group Inc. This company designs, develops, manufactures, and sells jewelry, watches, sterling, and much more. As a retail company, Birks took a hard hit just like Chico’s last year. But now that the pandemic has dwindled down in the United States, Birks is seeing a lot of positive momentum.
Some of the brands the company offers include Patek Philippe and Graff, which are sold at its 27 Birks stores in Canada and the United States. There is not currently any company-specific news that is driving BGI stock higher.
But it seems like investors see future potential for BGI stock, as it has higher trading volume than it regularly does. Additionally, many believe that with economic recovery in place, the luxury goods market could increase in value moving forward.
On May 17th, BGI stock shot up by around 19% which is quite a solid gain. The primary reason for this company experiencing an uptick is likely due to the pandemic and fewer cases of Covid nationwide. Retail is making a big comeback, and unemployment numbers are finally starting to fall.
When news like this is released it helps retail penny stocks as well as reopening penny stocks. This company is already in a much better position than it was before the pandemic started. With this in mind, will you invest in BGI stock?
Are Reddit Penny Stocks Worth It?
The answer to this question comes down to what type of investor you are. If you’re looking to create a penny stocks watchlist of highly volatile stocks, Reddit penny stocks may be for you. However, if you’re not interested in large price fluctuations, it may be better to look elsewhere.
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Before investing in penny stocks, investors need to have a full understanding of what type of investor they are. This is the best way to ensure that there are no surprises when it comes to price action in your portfolio. With this in mind, are Reddit penny stocks worth it? It’s up to you.