Mar 24, 2022 (Penny Stocks via COMTEX) -- 3 Top Penny Stocks to Watch For Under $5 Right Now
Penny stocks continue to be a popular investment in 2022. Despite the volatility of the markets in recent months, penny stocks remain an extremely popular way for investors to make money. In fact, because of their under $5 price tag, penny stocks are a great choice for those starting with less capital. However, it's also worth noting that the volatility of penny stocks means that investors can lose money just as quickly as they gained it.
To understand why penny stocks can be a good investment, we have to take a closer look. There are several reasons for this. First, penny stocks tend to be much more volatile than stocks in larger companies or blue chips as they're commonly called. This means that they can offer much higher percentage moves if they rise in value, but they can also fall substantially as mentioned previously.
For example, two big movers we've seen today include CTI Biopharma Corp. ( NASDAQ: CTIC) and Smart for Life Inc. ( NASDAQ: SMFL ) to name a few. And while they climbed by large percentages during trading, it's complicated to say if they will continue to do so or not. So, with all of this in mind, let's take a look at three penny stocks to watch for under $5 right now.
3 Under $5 Penny Stocks to Watch Right Now
Energy Services of America Corp. ( NASDAQ: ESOA )
Zosano Pharma Corp. ( NASDAQ: ZSAN )
Sos Ltd. ( NYSE: SOS )
Energy Services of America Corp. /zigman2/quotes/209025417/composite ESOA +2.62%
One of the bigger gainers of the day so far is ESOA stock. By midday, shares of ESOA had shot up by over 17% to more than $3.89 per share. This is a substantial gain and comes alongside some big news for the company. On March 22nd, Energy Services of America began trading on the NASDAQ under the symbol, ESOA.
If you're not familiar, Energy Services is a U.S.-based contractor and service company that works in several areas of the energy industry. This includes natural gas, petroleum, automotive, chemical, and power. It states that it has more than 700 employees and operates out of the mid-Atlantic and Central regions of the U.S.
With this new listing, it's clear that ESOA should be working hard to grow in the near future. And, with the major emphasis on energy stocks we've seen during the last few weeks, the hopes are that ESOA could be a popular player. Considering this, will it be on your list of penny stocks to watch?
Zosano Pharma Corp.
ZSAN is a penny stock that we have discussed numerous times in the past few months. And today, shares of ZSAN stock climbed by over 11% to more than $0.26. It's worth noting that in the past five day and one-month periods, shares of ZSAN stock have shot up by over 40% and 99% respectively.
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These are major gains that reflect a bullish turnaround from how shares of ZSAN have been trading in the last six month period. So, why is Zosano seeing its shares move up so quickly? Well, the most recent news from the company came on March 17th. On the 17th, it announced its financial results for Q4 2021 and the full year. The biggest issue that the company has faced recently is the FDA's response to its submission of M207.
Fiscally, the company managed to raise over $15 million in gross proceeds during a February offering. And, it also reduced its workforce by around 30% during the fourth quarter. So, it's clear that Zosano Pharma is relatively beaten down at the moment. However, if it can get a new response regarding M207, it would be a game changer. Whether this makes ZSAN worth adding to your penny stocks watchlist however, is up to you.