May 13, 2022 (Penny Stocks via COMTEX) -- If you're looking for penny stocks to buy, this market offers incredible opportunities. With how stock market volatility has been this month, a fast hand and a keen eye are crucial. When they say that this is a stock picker's market, "they" most likely mean it's a day trader's market.
That's because the trends have changed daily. With CPI and PPI data officially out, however, investors have some semblance of the state of inflation and a potential idea of what's to come later this year.
Nevertheless, with the stock market gapping up on Friday, bulls are hopeful that the worst is behind them and that an interim "bottom" is in (until the next Fed-fueled bout of volatility comes to light). Today we look at some of the more beaten down penny stocks to buy according to retail traders. They've come under pressure along with the broader markets. However, with the turnaround in the broader markets, it will be interesting to see how the traders respond next week.
Penny Stocks To Buy?
Vroom Inc. ( NASDAQ: VRM )
Ginkgo Bioworks Holdings Inc. ( NYSE: DNA )
Hycroft Mining Holding Corp. ( NASDAQ: HYMC )
Finding The Best Penny Stocks To Buy
How do you find the best penny stocks to buy? Research, research, research. Conducting strong due diligence and pairing that with a core strategy will help you find the best penny stocks to buy regardless of your market conditions. Remember that "best" doesn't always mean high volume, hundred percent returning stocks. In volatile environments, aiming for base hits instead of home runs may be better suited at the time. Today's list of penny stocks has a few companies that have pulled an about-face as bulls have come back in control (for now). Are they the best penny stocks to buy before next week? That's what I'll leave you to decide.
1. Vroom Inc. /zigman2/quotes/218801255/lastsale VRM +1.41%
One of the most active penny stocks this week has been Vroom Inc. Shares of VRM stock have experienced some of the highest daily trading volumes in its history of being a public company. More than 250 million shares have exchanged hands this week following its latest earnings report. The used vehicle trading platform drove over $900 million in sales fur the first quarter. This beat Wall Street estimates of just under $880 million. The company's loss per share of $0.71 was also better than expected. Wall Street's consensus was for Vroom to post a loss of $1.01 per share for the quarter.
Thomas Shortt, Chief Executive Officer of Vroom, also commented, "As we look forward, we intend to prioritize unit economics over growth, reduce operating expenses, and focus on 4 key initiatives to build a profitable business. I would like to thank all of our Vroommates and our third-party partners for their support in serving our customers. I'm excited about the future for Vroom and look forward to sharing more on our long term vision with you at our upcoming investor event on May 26th."
This year the company is focused on "unit economics," according to CFO Robert Krakowiak. He sees immediate benefits stemming from Vroom's acquisition of United Auto Credit Corporation and thinks the company is uniquely positioned to reduce operating expenses to accelerate its path to profitability. VRM stock has bounced back above $1.60 for the second time this week.
2. Ginkgo Bioworks Holdings Inc. /zigman2/quotes/226092395/composite DNA +2.04%
Biotech is another one of the stock market sectors that has gotten beaten up lately. If you look at the Nasdaq Biotech ETF ( NASDAQ: IBB ), you'll see what I mean. The ETF was rocked amid the broader market sell-off this month, taking it to some of the lowest levels since the 2020 pandemic. Needless to say, some investors have seen this as an opportunity, with a few biotech penny stocks responding accordingly.
Ginkgo Bioworks is one of these biotech penny stocks bouncing back this week. After hitting new lows of $2.09 on Thursday, DNA stock bounced above the $2.60 level on May 13th. The company's focus on cell programming has placed it in the focus of traders looking for applications in the food industry. Ginkgo's platform allows applications in food and agriculture, including the recent acquisition of Bayer's West Sacramento Biologics R&D site.
Last month, the company announced the move to expand its platform capabilities. As the world's food supply chain has gotten upended thanks to the Russia/Ukraine conflict, food and agriculture stocks have gotten some play. This week was also pivotal for the company as it made its way into the animal-free egg product category. Along with Evo Foods, Ginkgo Bioworks plans to develop animal-free egg proteins in Evo's product portfolio.