It is often noticed that newbie investors are discouraged from investing in cheap penny stocks due to the inherent volatility of those stocks. However, in this regard, it is also important to note that investors can often stand to make substantial gains if they manage to pick the right stocks.
In order to do so, it is extremely important for investors to keep a close watch on the market and watch the latest movements. It is especially important at a time when the wider market remains volatile. On that note, here is a look at two penny stocks that could be worth tracking.
Cheap Penny Stocks #1 NIO Inc (NIO)
One of the penny stocks that could be considered by investors at this point in time is that of Chinese electric vehicle manufacturer NIO (NIO Stock Report). Over the past months, the stock may have had a torrid time, but in recent weeks it has managed to make a comeback of sorts.
After the crash in the markets due to the economic uncertainties brought about by the coronavirus pandemic, there has been a gradual correction. In such a situation, there is a possibility of stocks of smaller organizations like NIO enjoying a reversal of fortunes.
While it is true that NIO cannot be compared to electric vehicle giant Tesla in any way, it needs to be pointed out that a bet on NIO could prove to be a clever pick. Due to recent talks about more capital infusion into the company, the NIO stock could well prove to be an option for short to near term gains for investors.
Cheap Penny Stocks #2 Plug Power (PLUG)
Another penny stock that ought to be on the radars of investors at this point in time is that of Plug Power (PLUG Stock Report). While the coronavirus pandemic has affected most businesses, the hydrogen fuel manufacturer has not suffered, and in fact, its orders have remained unchanged so far.
It is also important to note that some of the company’s biggest clients have actually experienced stronger demand in the middle of this crisis. For instance, e-commerce giant Amazon has seen a surge in demand for deliveries of essentials, and that can only be good news for Plug Power.
However, amidst the selloff in the market over recent days, PLUG stock has also suffered declines, and it could well prove to be a buying opportunity for investors who are looking for promising penny stocks. Investors could keep an eye on the stock over the coming days.