The markets are absolutely abuzz with excitement, and penny stocks are one of the beneficiaries. Unless you’ve been living under a rock, retail traders have secured a small win in 2021. A flurry of buying in shares of stocks like GameStop (NYSE: GME) and Express (NYSE: EXPR) has ignited a powerful surge and empowered retail traders. GME has climbed 1,900% since the start of the year. Express shares have now climbed over 1,400%, and it has been thanks to social media breaking down barriers.
Every outlet, including ours, has talked about the paradigm shift we see in the market right now. The interesting part is that it could have legs. Now it’s a game of “what stock is next” to breakout? It’s no longer a matter of if but when. Even before the big GameStop short squeeze, retail traders have been flocking to markets to secure their slice of Wall Street profits.
In part, thanks to the pandemic lockdowns, interest built-in making money with penny stocks and blue-chip stocks alike. Many newbies treated their first foray into the market like lottery tickets. But as things have evolved, so too has retail as a whole.Finding Top Penny Stocks
From green energy and electric vehicle stocks to technology and biotech, interest is at one of its highest points in recent history. So the search is on for the next penny stocks to put on the watch list before February. One thing that people are looking at (aside from shorted stocks) is certain secular trends. The new Biden administration has been vocal about climate change and renewable energy.
The Administration has also focused on curbing the pandemic as quickly as possible, and we’ve already seen a growing interest in things like epicenter stocks. These are the ones that could benefit the most in light of the economy reopening, according to Fundstrat’s Tom Lee. With this in mind, we’ve seen a few hot trends in some of these names. Will they be on your watch list before next month?Top Penny Stocks To Watch Right Now
- Liberty Trip Advisor Holdings (NASDAQ: LTRPA)
- Drive Shack Inc. (NYSE: DS)
- Muscle Maker Inc. (NASDAQ: GRIL)
Liberty Trip Advisor has been on our list of penny stocks for months now, and for a good reason. Speculation, early last year after the March sell-off, speculation helped fuel a massive run in the penny stock. Obviously, one of the hardest-hit industries in the stock market was travel. Everything from hospitality and entertainment to rail, auto & air was hammered down last year. This triggered a ripple effect in other industries as well, including oil & gas.
However, since hitting its 52-week lows in March, LTRPA shares have jumped as much as 574% so far. With new vaccines rolling out, is it only a matter of time before travel goes back into full swing? Regardless of the reality or timeline, speculation is playing a role. Since its subsidiary is Tripadvisor, there’s more direct exposure to the travel and hospitality industries, in general. Tripadvisor is the world’s largest travel platform, aggregating reviews and opinions from its community of travelers about accommodations, restaurants, experiences, airlines, and cruises.
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Also, keep in mind that hotel-booking stocks are also gaining momentum. Look at shares of Trivago (NASDAQ: TRVG) on Wednesday. Shares of the hotel booking site surged over 100% on its highest trading volume in years. With the resurgence of reopening optimism, will Liberty Trip Advisor & travel stocks, in general, continue gaining?Drive Shack Inc. (DS)
Drive Shack is another one of these “reopening stocks” to watch right now. The company operates a portfolio of entertainment & hospitality locations centered around golf. These include driving-ranges and a newly launched mini-golf business. We discussed the company earlier this week among other consumer cyclical stocks as interest has increased this year.
This month the company announced a new partnership with pro-golfer Rory McIlroy. Specifically, it will likely focus on the roll-out of the indoor golf brand, Puttery. The initial location is set to debut this summer in Dallas, with a second one to follow, in Charlotte. McIlroy is said to be investing in the future of this brand via Symphony Ventures. Drive Shack also expects to open another 5 locations by the end of this year.
Drive Shack has also been the center of attention for some analysts. Aside from JMP’s Market Outperform rating in September, B. Riley weighed in just before the end of 2020. The firm currently has a Buy on Drive Shack along with a price target of $5.50.Muscle Maker Inc. (GRIL)
In the same light as travel and leisure, restaurant stocks are gaining interest again. This ranges from small- to large-cap names. Muscle Maker Inc. is one of the smaller restaurant names readers are likely familiar with. Shares have been consistently climbing since the beginning of last year’s fourth quarter. During this time, GRIL stock climbed from around $1.50 in October to highs of $2.50 this week.
One of the initiatives that the company has focused on is ghost kitchens. Several restaurant brands have taken up this strategy as the “new normal” hasn’t really become clear, yet social distancing measures are still intact. Earlier this month, the company announced opening its second ghost kitchen location in the Girard neighborhood located in the city of Philadelphia.
Then, just last week, Muscle Maker expanded on its digital offering. In particular, the company launched its MuscleMakerPrep.com. Within a 250-mile radius of locations, customers can order ready-made “healthier for you” prepared meals shipped directly to their doorstep. The first location to launch this program is in the Chelsea neighborhood of NYC. Muscle Maker also explained that more sites are planned to come on-line throughout the first half of this year.Should Epicenter Penny Stocks Be On Your List Right Now?
This is certainly a trend to monitor as the economy makes attempts at reopening. Aside from retail and travel stocks, we’ve also got things like energy and even biotech to consider. As we see the next steps taken to bring global economies back, the ripple effects are realized. One problem that should be ignored is the new strains of coronavirus that’ve been found. Will it have lasting impacts or shut down the economy again? That’s going to be something that we’ll see unfold as the year goes on.