As May comes to an end, we look ahead to see what June will bring for penny stocks. This month was hard to stomach if you’re an investor and not an active trader. The S&P 500 ETF ( NYSE: SPY ) dropped over 7%, the Nasdaq ETF ( NASDAQ: QQQ ) dipped nearly 10%, and the Dow Jones ETF ( NYSE: DIA ) slipped over 6%. Meanwhile, the small-cap stocks benchmark ETF, the Russell 2000 ( NYSE: IWM ), fell more than 7.8% at its May low. Downtrodden economic data, inflationary fears, and rate hikes helped fuel negative sentiment. But for traders, it was a different story.
On an almost daily basis, we saw shares of some of the smallest companies surge. Whether it was a 1-day 100%+ pop or a multi-day rally lasting a week, opportunities were there for day traders & swing traders alike. So what should you expect in June 2022? Most market participants expect a bit of the same as far as volatility is concerned.
We still don’t have a firm “top” on inflation, and some speculate that the FederalReserve may adjust its rate hike trajectory based on what has transpired in May. The latest round of Fed minutes points at a move that includes multiple 50 basis points interest rate increases. The minutes stated that “Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings.”
Penny Stocks To Watch June 2022
- Express Inc. ( NYSE: EXPR )
- Aterian Inc. ( NASDAQ: ATER )
- Gevo Inc. ( NASDAQ: GEVO )
- Better Therapeutics ( NASDAQ: BTTX )
- Innoviz Technologies Ltd. ( NASDAQ: INVZ )
1. Express Inc. (NYSE: EXPR)
Retail stocks have gotten the brunt of the stock market crash in 2022. Express Inc. hasn’t been immune to this trend either. This week, the clothing and accessories brand dropped to fresh 2022 lows as recessionary fears gripped the market. Shares of EXPR stock posted a solid first quarter, which helped send shares higher at the end of the month.
Some highlights included a 30% increase in net sales and a 31% increase in consolidated comparable sales. As far as eCommerce went, Express said it realized a 21% growth in demand and is on track to achieve a goal of $1 billion in eComm demand by next year. Topping it off, management raised its full-year comp sales outlook to an increase of 8%-10%.
What To Watch With EXPR Stock
Looking at June, the options market could have given some insight into sentiment. If you look at each expiration date during the month (June 3rd, 10th, 17th, and 24th), there is a significant amount of open interest in Call options for the June 17th $4 strike. With over 5,000 contracts so far, this is more than all Put option open interest combined for that expiration date. With more retail company earnings showing strength in certain sector pockets, EXPR could be one of the penny stocks to watch for June.
2. Aterian Inc. (NASDAQ: ATER)
Another retail-focused company, Aterian Inc., is on this list of penny stocks for June. It specializes in the pick and shovel aspect of the industry. In particular, Aterian offers eCommerce brands a platform of partners and brands to create top-selling consumer products. Utilizing artificial intelligence through its AIMEE (AI Marketplace Ecommerce Engine) platform, Aterian has built a robust portfolio of SKUs selling at scale on outlets like Amazon, Shopify, and Walmart.
What To Watch With ATER Stock
One of the drivers for the retail trading crowd has been the short interest in ATER stock. Right now, Fintel.IO data shows this figure hovering around 34%. Meanwhile, the Aterian options chain shows a high level of Out-of-the-Money calls at the June 17th strike. Specifically, the $5, $7.50, $10, and $12.50 strikes each have thousands of open interest contracts as of this article.
3. Gevo Inc. (NASDAQ: GEVO)
If you’ve traded cheap stocks frequently, chances are you’ve come across Gevo Inc. now and again. The renewable energy company has been on a hot streak as far as dealmaking is concerned. Earlier this year, Gevo signed a contract with oneworld Alliance members who plan to purchase up to 200 million gallons of sustainable aviation fuel per year for a five-year term. According to management, this is expected to bring up to $800 million in revenue.
Gevo also reported earnings showing a sales beat for the quarter. Though it slightly missed on EPS. In a May update, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said, “We are moving forward with our Net Zero 1 plans in Lake Preston, South Dakota and couldn’t be more pleased with the progress we have made. We look forward to beginning site preparations later this year and construction early next year. We believe we have a world class team in place to manage the development of this first of its kind, Net-Zero plant and the many additional plants that will be needed to produce this valuable fuel. In northwest Iowa, our dairy RNG facility continues its ramp to stable production and I am very proud of how well that team executed to deliver the project on time and within budget. We intend to build many Net-Zero plants over the coming years and we believe we have all the right people in place to get it done.”
What To Watch With GEVO Stock
Thanks to a global fuel shortage, companies with exposure to this arena have gotten plenty of attention. Meanwhile, GEVO stock has been a focal point ahead of these planned developments for its Net-Zero plant and RNG facility. Meanwhile, data-seekers might find it interesting that GEVO could also be one of the short interest stocks to watch with a 20.41% short float. Speculators in the options market have also taken a bullish approach to the penny stock as far out as next year. The January 20, 2023 Calls have a large amount of open interest throughout the chain.
4. Better Therapeutics (NASDAQ: BTTX)
Biotech has probably become one of the hardest-hit industries this year. The NASDAQ Biotech ETF ( NASDAQ: IBB ) has fallen to some of its lowest levels since the onset of the 2020 pandemic. Meanwhile, there are pockets of momentum in small- and micro-cap stocks.
Better Therapeutics has been one of these stocks, with shares becoming more active in May. One of the most significant moves came leading up to its latest quarterly update. There was also a social-media-fueled buying spree that helped give shares a bump as well. Traders pointed out the higher short interest and lower float of BTTX stock.
What To Watch With BTTX Stock
Once again, BTTX stock is back on the list of penny stocks with higher short interest. Fintel data shows a 22.23% short float. Meanwhile, TD Ameritrade shows this slightly higher at 22.66%. The company has several clinical programs in different stages to watch, with its BT-001 trial completion and De Novo submission anticipated for the end of Q2. Considering that June marks the end of the second quarter, this could be an essential thing to keep in mind. Meanwhile, at the start of the month, Better hosts an educational webinar on June 1st and a Key Opinion Leader webinar on June 3-7.
5. Innoviz Technologies Ltd. (NASDAQ: INVZ)
Now for the technology name on this list of penny stocks. Tech is another hard-hit pocket of the stock market this year. But Innoviz could be on the radar for some in June. Thanks to several milestones, the LiDAR sensor and software company has gained momentum in May, and none had to do with earnings.
Innoviz was chosen by an unidentified “major car company” to be the direct LiDAR supplier for multiple brands at the start of the month. It also said that the agreement would increase its order book by $4 billion to $6.6 billion, and for anyone looking at penny stocks, the B-word has carried weight.
What To Watch With INVZ Stock
This week the company brought on new management team members. These were specific to its sales leadership. Innoviz CEO and Co-Founder Omer Keilaf explained, “We are excited about our newest appointments as we continue to expand our automotive business and begin penetrating the non-automotive industry in parallel.”
The company also appointed country managers for U.S. and Japan who both bring experience from companies including Ford, Nissan, Honda, and Toyota. With new deals and management, it will be interesting to see what comes next for INVZ stock as the auto industry attempts to rebound from the stock market crash this year.
Penny Stocks To Buy
Determining the type of trader you are will make it easier to find the right penny stocks to buy. Slow-moving stocks are probably not your style if you’re looking for short-term momentum. At the same time, if you’re looking at investing in penny stocks , quick scalps and day trades might be a bit too active for you. No matter the market, the goals are the same: make money and repeat the process. With that in mind, are any of these on your list of penny stocks in June?
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