PHUN - Best Penny Stocks To Buy? 3 To Watch Before Next Week
2023-07-21 10:52:19 ET
What are the best penny stocks to buy right now? Ask two traders, and chances are you’ll get two completely different answers. In the stock market today, volatility is running rampant. That means the day-to-day swings are becoming more aggressive and presenting even more opportunities to capitalize.
One of the most volatile asset classes just so happens to be penny stocks. These are defined as stocks trading for less than $5 and typically include companies that are in their growth phases. Unlike what popular opinion might suggest, all penny stocks aren’t limited to the OTC market. Many will trade on major exchanges, including the NASDAQ and NYSE.
Thanks to the rise in popularity of apps like Robinhood and Webull, retail traders have become accustomed to finding cheap stocks on higher exchanges like these. The main reason is that both apps initially limited access to OTC penny stocks in lieu of the NASDAQ and NYSE-only. As a result, the daily hunt for stocks under $5 grows.
Just look at one of the companies that we had discussed almost weekly since late June, Sirius XM ( NASDAQ: SIRI ). At the time of our initial article 4 Short Squeeze Penny Stocks to Watch Before Next Week, we had highlighted the company along with others that had a higher short interest. Fast forward, and SIRI stock has exploded from around $3.70 on June 22nd to highs this week of $7.95. Moves like this are what continue to attract attention to cheap stocks to buy.
In this article, we look at a handful of cheap stocks to watch. Importantly, we dive into recent catalysts to see what’s happening in the stock market today. We will also search for any upcoming events or potential milestones that could grab the market’s attention. Then you can decide if these are candidates to add to your list of penny stocks.
Penny Stocks To Watch
- Phunware Inc. ( NASDAQ: PHUN )
- Dragonfly Energy Holdings Corp ( NASDAQ: DFLI )
- Tupperware Brands Corp. ( NYSE: TUP )
Phunware Inc. (PHUN)
Penny stocks, in particular, can be heavily influenced by sentiment. With that, we’re talking about things like social sentiment and sympathy sentiment. Obviously, if you’re familiar with the meme stock craze, you’re familiar with the type of action that comes with social sentiment spikes. In the case of sympathy sentiment, it’s a little different story. This is where a headline or big development related to another company influences action in other companies with similar traits.
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Phunware has long been in lockstep with Trump stocks. Thanks to the rise of interest in Digital World Acquisition Corp. ( NASDAQ: DWAC ), PHUN stock and others are gaining interest. Originally, Phunware was dubbed a Trump stock after details emerged regarding the 2020 campaign app that it had built to support the former President’s bid. Now it is wrapped into the inch along with other companies with ties to the 45th President.
Needless to say, no further details specific to Phunware have come out. So there’s a high likelihood that sympathy sentiment is playing a role. So why is DWAC stock up today? The SPAC reached a settlement with the SEC, which opens the doors to proceed with its planned merger with Trump Media, including Trump Social. Given this as the case, those watching PHUN stock may want to keep a finger on the pulse of sentiment surrounding DWAC stock as well.
Dragonfly Energy Holdings Corp (DFLI)
We’ve discussed Dragonfly Energy for a few weeks as energy stocks have been heating back up. The penny stock traded some of its highest single-day trading volumes of the year on Tuesday. The move came after Dragonfly announced an expanded partnership with nuCamp RV to fully integrate power systems supplied by Dragonfly’s Battle Born Batteries. With a float of under 10 million shares, DFLI stock has gained momentum with this micro-trend in low-float penny stocks.
Dragonfly has continued raising eyebrows with more news. The company announced that it will be granted a U.S. patent for a battery pack assembly design for custom installation. According to Dragonfly, the patent covers the look and design of the assembly case of its GC3 12V 270Ah LiFePO4 deep-cycle battery.
Commenting on the milestone, Dr. Denis Phares, CEO of Dragonfly Energy, said. “Our signature deep cycle batteries are well known in our core markets and position us to expand into new industries. In addition to our advancements in cell manufacturing and other fundamental storage technologies, these design patents maximize the value of our innovations.”
This week the company received another patent for its deep-cycle battery design. It also said in an interview that it completed its US lithium battery cell pilot line and has begun using it to support large-scale production.
What do analysts think about DFLI stock? Chardan currently has a Buy rating on the penny stock. The firm also slapped on a $10 price target, which puts its forecast price 376% higher than where DFLI stock closed on Thursday.d
Tupperware Brands Corp. (TUP)
Household stocks have been a hot topic recently. The epic rise from the ashes of companies like Carvana as well as the explosive rebound that made history in companies like AMC and GameStop, have put a special focus on name brands that trade for pennies.
Tupperware is one of the well-known names in food storage that has recently gained some attention this week. Shares trade below the $1 mark but have climbed from lows of $0.61 to nearly $0.80 within the last few days. The company’s recent collaboration with Vera Bradley has helped keep it in the spotlight.
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The two rolled out a collection of reusable food and beverage products. “We are proud to once again partner with Tupperware, a fellow heritage brand that shares Vera Bradley’s commitment to creating high-quality products and making the world a brighter place,” noted Greg Jaeger, Vera Bradley’s Director, Brand Marketing. “Following last year’s successful collaboration, we are excited to debut a new collection of on-the-go solutions that perfectly blend the colorful style of Vera Bradley with Tupperware’s exceptional product design.”
Short interest could be a focus of retail traders right now. Like SIRI stock, another household penny stock to watch a few weeks ago, TUP stock has a higher short interest. The current short float percentage, according to TD Ameritrade, is 23.37%.