3 Penny Stocks to Watch in February 2022
Following a jobs report, both penny stocks and blue chips were trading mixed on Friday, February 4th. Despite the Dow being down by around 0.2% at midday, the market is still up for the week which is an encouraging sign. In the past month or two, we’ve seen major uncertainty drive sizable price drops across the stock market.
This is the result of Covid, geopolitical tensions, rising interest rates and inflation, and so on. And because of this, there is more than enough volatility to go around. Now, when it comes to penny stocks, there are plenty of ways to take advantage. Most investors that buy and sell small-caps, tend to do so with a swing trading strategy. This means buying and selling on a short term basis. Swing trading lends itself heavily to volatility, which means that it is highly popular right now.
And while trading all stocks in 2022 has been difficult to say the least, information remains your best chance of profitability. So, as we head further into February, there is a lot to take in. But, with a well-thought-out trading strategy on hand, buying penny stocks can be easier than ever. With that in mind, let’s take a look at three penny stocks to watch right now.
3 Penny Stocks For Your Watchlist Right Now
- Exela Technologies Inc. (NASDAQ: XELA)
- ALJ Regional Holdings Inc. (NASDAQ: ALJJ)
- Transocean Ltd. (NYSE: RIG)
Exela Technologies Inc. (NASDAQ: XELA)
By midday, shares of XELA stock had shot up by over 3% to around $0.81 per share. This is a substantial gain and brings XELA’s five day winning streak to over 26%. In the past week or so, the main reason for Exela Technologies gain comes from an announcement made on January 26th.
On the 26th, the company stated that it has renewed a contract with a “leading consulting firm”. This sparked an almost 40% gain, which was then followed by more big news. The company stated that it would offer 100 million shares at a buyback price of $1 per share as part of a program to reduce the number of outstanding shares. It stated that shareholders could exchange 25 shares of common stock into a tradable $25 note due 2029 with a 6% interest rate annually.
This is great news for investors and the company alike. And, in the past few weeks, we’ve covered XELA stock numerous times as a result. Now, it’s tough to say if it can keep up this positive momentum. But, for now, it looks like XELA stock could be worth adding to your penny stocks watchlist.
ALJ Regional Holdings Inc. (NASDAQ: ALJJ)
One of the bigger gainers of the day so far is ALJ Regional Holdings Inc. By midday, shares of ALJJ stock had shot up by over 13%. Before we get into why, it’s important to understand what ALJ Regional Holdings does. ALJ Regional is the parent company of Faneuil Inc., which is a provider of call center services as well as operations, staffing services, and it operates collections for commercial and governmental clients.
On February 4th, the company announced that it and Lakeside Book Company have jointly entered into a definitive agreement for the acquisition of all issued and outstanding shares of Phoenix Color Corp. Phoenix is a wholly-owned subsidiary of ALJ, and offers children’s books, book component printing, and much more. It has facilities in Maryland and Indiana, and is a major part of the book-making industry.
“We know Phoenix well as a recognized leader in book components. Adding their team’s capabilities to Lakeside’s service offerings will enable our publishing customers to conveniently manage book and cover printing in one place. We are always looking for ways to make the printing supply chain more efficient for publishers and this transaction would be a significant step in that direction.”
The CEO of Lakeside, Dave McCree
This is big news for the company and should help it to continue growing in the near future. With all of that in mind, will ALJJ stock be on your penny stocks watchlist?
Transocean Ltd. (NYSE: RIG)
Another big gainer of the day so far is Transocean Ltd. By midday, shares of RIG stock had jumped by over 7% to $3.70 per share. This brings its five-day gain to over 14%, which is no small feat whatsoever. Now, there is no company-specific news that is driving RIG stock’s price today. However, we are seeing the overall oil and gas industry rise during trading today as the price of oil pushes up.
This is the result of a sizable demand with a large amount of constraints surrounding supply right now. In addition to this, Transocean recently announced that its Q4 and full-year 2021 earnings will be available on February 22nd after the market closes. While this is a few weeks away, there is a lot of anticipation leading up to this.
If you haven’t heard of Transocean, it is a provider of contract services for offshore oil and gas drilling. Right now, the company has full or partial ownership in 37 mobile offshore drilling units. This includes 27 ultra-deepwater floaters and 10 harsh environment floaters. As stated earlier, there is a sizable amount of demand for oil and gas right now. And for that reason, many investors are paying attention to RIG stock. With that in mind, does RIG deserve a spot on your list of penny stocks to watch?
Which Penny Stocks Are You Watching Right Now?
If you’re making a list of the best penny stocks to buy, there are hundreds of options to choose from. Because there is such a wide breadth of penny stocks out there, it can be difficult to pick the best ones for your list.
However, with there right research on hand and a commitment to understanding how to trade penny stocks, it can be much easier than previously imagined. And in 2022, there is also a sizable amount of momentum to take advantage of. Considering this, which penny stocks are you watching right now?
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