3 Penny Stocks to Watch After the Most Recent AMC Breakout
As we end May with penny stocks, another month is on the horizon. Right now, there is a lot of bullish momentum on the entire list of penny stocks to buy. However, just because certain penny stocks are gaining momentum, does not mean that they are worth investing in. To figure that out, investors need to take a few first steps. The most important of these is research. Any penny stock that you want to invest in, should be one that you know quite a lot about.
With investing in penny stocks, or reddit penny stocks for that matter, information will always be your best advantage. Second, investors need to look at price targets, analyst information, and the past performance of the company. This is a great indicator to see what the sentiment around a company is for the present and the near future. Lastly, investors should understand what outside influences could affect the company in the coming months.
This includes if any news is being announced either specific to the company or the industry. And, is the company releasing any new products or building out its business model? Both of these are also extremely important because penny stocks tend to be highly speculative. This means that they move based on news and news alone.
And right now, that news includes everything from Covid related events, to Reddit penny stocks like AMC Entertainment Holdings Inc. (NYSE: AMC). These are just a few events occurring right now, but the news is worth considering. Keeping all of this in mind, let’s take a look at three penny stocks to watch in the first week of June.
3 Penny Stocks to Watch in June 2021
- Orbital Energy Group Inc. (NASDAQ: OEG)
- ARC Document Solutions Inc. (NYSE: ARC)
- Iterum Therapeutics PLC. (NASDAQ: ITRM)
Orbital Energy Group Inc. (NASDAQ: OEG)
Orbital Energy Group Inc. is an energy penny stock that provides electric power, solar infrastructure, and integrated energy solutions. It also engages in the offerings of engineering, procurement, and construction services to support the products that it offers. Along with this, it will design, install, upgrade, and repair its electric power transmission and distribution infrastructure, creating a lasting business model through and through.
Orbital’s last update was on May 17th, when the company released its first-quarter 2021 financial results. Included here was a revenue increase of 67% year over year to $9.5 million. Its operating loss was higher which is to be expected. This larger operating loss is due to higher SG&A expenses associated with Orbital Solar and start-up costs for Eclipse Foundation Group.
“Looking ahead, we will continue to pursue strategic acquisitions, targeting well-established service providers to the electric power and telecommunications infrastructure markets, while also driving organic growth from our existing operations. By following this course, we believe we are on a clear path to profitability while building increasing value for our shareholders.”
The vice-chairman and CEO of Orbital Jim O’Neil
OEG stock is up more than 4.7% in the market as of May 28th. So considering all of this will OEG be on your list of penny stocks to watch?
ARC Document Solutions Inc. (NYSE: ARC)
While you may not have heard of ARC Document Solutions, the company has made some big headlines in the past few weeks. Before we get into it, let’s discuss what ARC stock does. ARC Document Solutions provides document distribution and graphic production services. These services are used across multiple industries including design, marketing, real estate, construction, and more.
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Recently it announced its financial results for the first quarter of 2021. Suri Suriyakumar, CEO and President of ARC stated that “the company remained resilient and responsive throughout the first quarter as demonstrated by our EBITDA and cash generation performance, and we’ve established out momentum after a challenging quarter of sales. The growing diversity of our market continues to provide us with new opportunities to expand our customer base.”
During the quarter, ARC brought in net sales of around $61.7 million. While this is a decrease over Q1 2020, ARC still ended the quarter with roughly $50 million in cash on hand. The decrease is primarily due to Covid, and the company anticipates growth to pick back up again as time goes on. Considering all of this, will it be on your penny stocks watchlist?
Iterum Therapeutics PLC. (NASDAQ: ITRM)
Up by almost 18% on Friday before Memorial Day, Iterum Therapeutics is seeing solid bullish sentiment. The main reason behind its big gain is the conclusion of a late-cycle meeting with the FDA regarding its compound sulopenem. This is a treatment for urinary tract infections in those with quinolone non-susceptible pathogens.
Prior, the company was waiting on an advisory committee meeting with the FDA. However, the agency states that it is no longer necessary, and will have a plan of action by July 25th. This is a big deal for both ITRM and investors alike. Obviously, there is still a long way to go before sulopenem can be approved by the FDA.
But, big milestones like this always lead to high volume with a given biotech company. And, we have continuously seen positive momentum with Iterum in the months that we’ve been covering it. Outside of this, Iterum works on other oral and IV antibiotics used to treat drug-resistant pathogens. These drugs can be used in either hospital or non-hospital settings.
Iterum sees a major challenge with the current state of serious and life-threatening infections. And, with the overprescription of antibiotics only aiding this, ITRM is working hard to find an alternative. Because of this, investors could look at Iterum for both its short and long-term potential. But in the end, it’s up to you. So, does ITRM stock belong on your watchlist?
Which Penny Stocks Are On Your Watchlist?
Finding the best penny stocks to watch can be challenging. But, with the right research in hand a commitment to educating yourself about how to invest, it can be much easier. In 2021, there are plenty of things that are affecting the stock market.
This includes the pandemic, the ups and downs of cryptocurrency and blockchain penny stocks, the rise of AMC stock and more. However, these highly speculative occurrences can be used as an advantage for those who know-how. Considering all of this, which penny stocks are on your watchlist?