What are the Top Penny Stocks to Watch?

What are the Top Penny Stocks to Watch?

Penny stocks, also known as micro-cap stocks, are stocks that are traded for less than $5 per share. These stocks are typically associated with small companies and startups, and they are often considered to be high-risk, high-reward investments. However, with the right research and strategy, penny stocks can also offer incredible returns for investors who are willing to take on a little more risk.

In this article, we will take a look at the top penny stocks to watch in 2021, and discuss some strategies for investing in these stocks.

1. Ocugen Inc. (OCGN)

Ocugen Inc. is a biopharmaceutical company that is focused on developing and commercializing gene therapies to treat a variety of diseases, including blindness. The company has been making headlines lately with its partnership with Bharat Biotech to develop a COVID-19 vaccine for the US market.

Investors who are interested in Ocugen should keep an eye on the company's progress with its COVID-19 vaccine, as well as its other gene therapy products. Additionally, it's important to note that biotech companies are often subject to regulatory hurdles, so investors should be prepared for some volatility.

2. Sundial Growers Inc. (SNDL)

Sundial Growers Inc. is a Canadian cannabis company that produces and distributes a variety of cannabis products, including flower, pre-rolls, and oils. The company has experienced some volatility in the past, but it has recently been making a comeback thanks to increased demand for cannabis products.

Investors who are interested in Sundial Growers should keep an eye on the company's financials, as well as any regulatory changes that may affect the cannabis industry. Additionally, it's important to note that cannabis stocks are often highly speculative, so investors should be prepared for some risk.

3. Zomedica Corp. (ZOM)

Zomedica Corp. is a veterinary diagnostic and pharmaceutical company that is focused on developing and commercializing innovative products to improve animal health. The company's flagship product, TRUFORMA, is a diagnostic platform that allows veterinarians to quickly and accurately diagnose a variety of conditions in animals.

Investors who are interested in Zomedica should keep an eye on the company's progress with TRUFORMA, as well as any other new products that may be in development. Additionally, it's important to note that veterinary companies are often subject to regulatory hurdles, so investors should be prepared for some volatility.

Investment Strategies for Penny Stocks

Investing in penny stocks can be a high-risk, high-reward endeavor, but there are some strategies that investors can use to increase their chances of success. Here are a few tips to keep in mind:

1. Do your research: Before investing in any penny stock, it's important to do your due diligence and research the company thoroughly. Look at financials, industry trends, and any news or press releases that may be relevant.

2. Diversify your portfolio: Because penny stocks are often highly speculative, it's important to diversify your portfolio and invest in a variety of stocks. This can help to spread out your risk and increase your chances of success.

3. Set stop-loss orders: Stop-loss orders can help to limit your losses if a stock starts to decline. By setting a stop-loss order, you can automatically sell your shares if the stock drops below a certain price, which can help to protect your investment.

4. Stay disciplined: Finally, it's important to stay disciplined and stick to your investment strategy. Don't let emotions or short-term market fluctuations dictate your decisions, and always be prepared to adjust your strategy if new information comes to light.

Conclusion

Penny stocks can offer incredible returns for investors who are willing to take on a little more risk, but it's important to do your research and approach these investments with a clear strategy. By keeping an eye on companies like Ocugen Inc., Sundial Growers Inc., and Zomedica Corp., and by using strategies like diversification and stop-loss orders, investors can increase their chances of success in the world of penny stocks.