To properly diversify your investment portfolio, you’re well-advised to invest in a number of key penny stocks. These are deeply affordable stocks that often go overlooked by casual investors.
Why Penny Stocks Are So Vital
Officially, the SEC considers a stock to be a penny stock if it is priced under $5 per share. Every investment expert agrees that diversification is key for building a safe foundation for your future. With properly diversified holdings, you can weather downturns that are devastating to less cautious investors. You may naturally be drawn to invest in the high-profile stocks that get a lot of coverage in the media. Established “Blue Chip” stocks are bound to make up a substantial proportion of your portfolio. After all, these are the firms most likely to pay out substantial dividends. However, you shouldn’t neglect buying stock in up-and-coming firms with enormous growth potential.
What To Look For in a Penny Stock
When evaluating penny stocks, revenue growth potential is the most important criteria to consider. Companies with innovative product lines are more likely to thrive in the years ahead. You should also prioritize companies with strong leadership teams. Many of the most promising penny stocks have already received backing from major financial institutions. Here are four penny stocks to watch in 2021.
1. Ideanomics (IDEX)
This holding company holds major stakes in several different promising technology companies. IDEX has invested in companies innovating in electric vehicles and financial services. Through its holdings, IDEX is also investing in electric trucks and light rail. IDEX holds a controlling share in DBOT, a new kind of financial exchange. Through DBOT, people can invest in companies too small to be listed on traditional exchanges.
2. NexTier OilField Solutions (NEX)
Thanks to the fracking boom, traditional energy companies are well-poised to do well in the years ahead. NexTier is one of the largest firms providing digital services for oil companies. With its cutting-edge monitoring software, companies can identify equipment problems early. Recently, oil billionaire Dan Wilks purchased over five percent of IDEX.
3. Super League Gaming (SLG)
In early March 2020, Maxim Group awarded SLG with a “Buy” rating. This is one of the leading new companies in the Esports industry. SLG focuses on aggregating and distributing Esports media. SLG has recently attracted sizable investments from the financial institutions Nomis Bay and 3I.
4. ReWalk Robotics (RR)
RR is one of the most fascinating new companies in the fields of biotechnology and prosthetics. Quite a few experts have promoted RR’s technical competency and vision. In fact, RR recently raised $40 million to develop its visionary product line. Through its proprietary exo-suit technology, RR hopes to provide mobility for people who suffer spinal cord injuries. Though these lightweight exo-suits are in early development, RR’s competent design team looks poised for success.
According to the expert analysts at Money Morning, penny stocks “present the opportunity for big gains.” So long as you exercise due caution, you should be able to make a tidy sum through penny stock investing.
Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.