Over the years, penny stocks have been among the favorite class of stocks for a large number of investors. There are a few reasons for this. First of all, these stocks generally trade for less than $5 each. Therefore, investors can make handsome profits from relatively small investments.
That being said, one needs to conduct highly diligent research in order to pick the right penny stocks to buy to stand a chance of making a profit. Because these cheap stocks are so inexpensive, the power of compounding is very clear.
Volatile moves are a regular occurrence so even a few pennies can mean big percentage gains. On that note, here is a look at a list of penny stocks that have made decent moves lately. But are they penny stocks to trade right now?
Penny Stocks To Watch #1:
One of the biggest penny stock movers on Friday was ImmunoGen, Inc. This continued into Monday and came after the company announced its financial results for the third quarter. ImmunoGen reduced its losses per share to $0.15 per share from $0.31 per share in the year-ago period. It also managed to beat analysts’ estimates of $0.19 per share.
On the other hand, the company’s revenues hit $13.28 million for the quarter and that proved to be one of the bigger triggers behind the rally. The revenues beat analysts’ estimates by a whopping 45.18% and also improved on the revenues in the year-ago period of $10.93 million. IMGN stock rallied by as much as 27% and should be watched closely this week as well.
Penny Stocks To Watch #2:
Moneygram International (MGI)
On the other hand, the stock of money transfer giant Moneygram International Inc crashed on Friday. It came after the company’s third-quarter financial results failed to meet expectations. Revenue plunged by as much as 7% year on year to hit $324.6 million. The company has experienced a significant drop in its United States operations and that has not been compensated by its international operations.
Analysts had expected the company to deliver revenues of $334.5 million for the quarter. The stock crashed by as much as 14.65% on Friday. It is going to be interesting to see if it can rebound this week. Needless to say, shares of MGI stock moved higher on Monday as the financial sector rallied at the start of the week.
Even with this latest drop, the companies deal with XRP Ripple cryptocurrency continues to stoke the flames. Furthermore, this is the first time that Moneygram dropped below $3.40 since August. “Our third-quarter results reflect the continued transformation of our business as we increasingly focus on customer experience improvements, cross-border digital growth, and industry-leading innovation through our strategic partnership with Ripple,” said Alex Holmes Chairman and CEO.
Penny Stocks To Watch #3:
Meet Group (MEET)
Last, Meet Group Inc has been on an impressive run from the start of October. It is one of the penny stocks to have shown excellent momentum so far. Back in October, the company provided an update with regards to its projections in the third-quarter earnings and it proved to be positive.
Due to the relative success of new features like live streaming, Meet Group upgraded its projections for the quarter. As a result, the stock has been on a tear ever since. This quarter alone, MEET stock has gained 48%. In fact, the penny stock inked new November highs already this week.
In a move to diversify, the company announced the launch of NextDate™ at the end of October. This is a new live streaming dating game for users of its popular MeetMe and Skout mobile applications. Will this help the stock “MEET” new highs before 2020.