My Top 4 Penny Stocks to Watch (February 2024)

What is a Penny Stock?

Penny stocks are inexpensive shares of small companies that are usually sold for less than $5 a share. They have a reputation for being quite volatile, but they also have the potential to yield large rewards. Although these equities are typically seen as high-risk investments, people who are adept at navigating the market might profit substantially from them.

Understanding Penny Stocks

Penny stocks are frequently associated with low-market-cap companies and are typically not listed on major exchanges. Because they lack liquidity and are prone to market manipulation, they are regarded as high-risk investments. Throughout the years that I have been teaching and trading, I have discovered that dealing with penny stocks requires a solid grasp of a company’s fundamentals.

Volatility of Penny Stocks 

Because of their extreme volatility, the values of these shares can rise rapidly or fall rapidly.  Low trade volumes and the public’s restricted access to information are the causes of this volatility. I’ve seen traders profit substantially from penny stocks by recognizing this volatility and using it to their advantage.

• Corbus Pharmaceuticals Holdings, Inc (NASDAQ:CRBP). – 
• Synlogic, Inc. (NASDAQ:SYBX)  –
• Emcore, Inc. (NASDAQ:EMKR) – Emcore offers cutting-edge mixed-signal optics devices that are utilized in defense systems and high-speed communication network infrastructures. The average price objective for the stock suggests a 419.2% upside potential. Its eight Smart Score is also encouraging.
• VAALCO Energy (NASDAQ: EGY)