Buying penny stocks in 2021 has been challenging. With the pandemic, fears of inflation, and a general market slump, penny stocks have not performed as well as hoped in the past two months. Despite this, small-caps have outperformed the general stock market, as indicated by large intraday volume and gains among certain companies. Because of the massive gains witnessed last year and into early 2021, many stocks were riding on sky-high valuations.
Soon after, we witnessed a major price correction, bringing both penny stocks and blue chips back down to an acceptable level. And since then, stocks have been trading mostly sideways. This is common when there is a great degree of uncertainty in the market.
And while vaccine efforts are massively underway, up until a few weeks ago, investors were unsure about the future of the pandemic. So, now that things are looking up, some believe that the market could see a solid rebound in the coming months.
With industries like energy, hospitality and entertainment, renewables, biotech, and more all showing potential, the opportunity is palpable. Understanding how current market trends will affect specific penny stocks to watch is the best way to have a chance at profitability in your portfolio.
And while we may not be out of the woods yet, declining case numbers show a glimmer of hope on the horizon. Considering this, there are plenty of penny stocks to buy right now. But, finding those with the most value is the challenging part. With all of this in mind, here are three hot penny stocks under $3 that you need to know about.3 Under $3 Penny Stocks to Watch For 2021 Sphere 3D Corp. (NASDAQ: ANY)
Up by a staggering 53% at midday on June 10th is ANY stock. In the past five days alone, shares of Sphere 3D Corp. are up by over 85%. While many gains go without news in the stock market, Sphere made a big announcement earlier in the week. On Tuesday, Sphere announced an Agreement and Plan of Merger with Gryphon Digital Mining. For some context, Gryphon is a Bitcoin mining operation that utilizes ultra-efficient, zero carbon footprint miners from Bitmain. It aims to be the first 100% renewable energy crypto mining company.
Right now it utilizes hydroelectric power, but it has plans to move into other clean energy sources such as nuclear, solar, and wind. Yesterday, the pair announced that they have entered into another agreement to purchase 250,000 Certified Emission Reductions or CERs. These credits push it further as an ESG penny stock (environmental, social, governance). Additionally, the pair state that they can remain carbon negative for at least the next half-decade, which is quite a substantial feat.
“We understand that carbon emissions extend way beyond the energy that a business uses, so even though we are 100% renewable already, there’s more we can do. These credits are our pledge to not only offset additional emissions but to go beyond that and be carbon negative.”Rob Chang, CEO of Gryphon Digital Mining
With the trajectory of the world in terms of energy consumption and sources, renewable energy dependency is extremely important. While this deal is not a be-all-end-all for the companies, it does show the commitment they have to clean energy sources. With all of this in mind, is ANY stock worth keeping an eye on right now?Dogness Corp. (NASDAQ: DOGZ)
If you haven’t heard of Dogness Corp., you’re probably not alone. To understand what it does, let’s take a closer look at the company. As its name implies, Dogness Corp. is a producer of smart products, hygiene products, and health and wellness items for dogs. The company works vertically, which ensures that its products have the highest margins available. Additionally, it operates a large amount of research and development, which over the years has resulted in over 200 patented and patent-pending technologies.
Today’s over 20% gain for DOGZ stock is the result of a large deal with the major U.S. goods retailer, Costco. Early in the morning, Dogness reported that the Costco Wholesale Corporation will feature Dogness in several locations around the U.S. Initially, its products will be available in Arkansas and Oklahoma, but it has a large-scale rollout planned for the 2021 holiday season. These stores will feature products from Dogness including its Smart Treat Dispenser, Smart Water Fountain, and the Smart Cam iPet Robot.
“We are excited to be further expanding our relationship with Costco, a valued partner, Costco will prominently feature several of our best-selling smart pet products, which will help further raise awareness and drive sales. This is an ideal partnership with extensive additional upside as we continue to outperform and expand to a larger scale and into more stores.”Silong Chen, CEO of Dogness
This is a big deal and one that investors should not take lightly. Considering it, will DOGZ stock be on your watchlist right now?Evofem Biosciences Inc. (NASDAQ: EVFM)
If you read PennyStocks.com often, you’re probably familiar with Evofem Biosciences Inc. If not, EVFM is a women’s health geared biotech company. In the past five days, shares of EVFM stock have set up by over 15%, including today’s midday 3% gain. Evofem’s flagship compound is known as Phexxi and is an FDA-approved commercialized product.
Additionally, its lead candidate right now is known as EVO100 and is being tested for its ability to prevent urogenital Chlamydia and Neisseria gonorrhoeae. This product is currently in a Phase 3 trial known as EVOGUARD. Only a few weeks ago, Evofem announced the closing of a $50 million public offering. Worth 50 million shares of common stock, this deal will go toward both commercialization activities for Phexxi, as well as the EVOGUARD Phase 3 clinical trial.
With biotech companies, and any companies for that matter, capital is the most important facilitator of growth. Because trials and commercialization efforts are so cost-intensive, having access to funding is extremely important. With this money, Evofem can work hard to get Phexxi into the hands of as many women as it can. Additionally, it can continue to work on the Phase 3 trial mentioned above. Considering these exciting announcements, is EVFM a penny stock to watch or not?Investors Continue to Push Momentum for Penny Stocks
Over the past few weeks, we’ve seen more momentum with the entire list of penny stocks to watch. However, we are still witnessing a larger market slump. As stated earlier, the stock market has traded mostly sideways over the past few months.
This is the result of uncertainty about the future of the pandemic and some additional factors. However, with vaccine rates hitting all-time highs, investors remain hopeful about the future of both blue chips and penny stocks. With this in mind, which small-caps are you watching right now?