5 Penny Stocks That Turned $2,500 Into Over $29,000 In 2021 So Far
Hot Penny Stocks That Scored Huge For Traders In 2021
Were These The Best Penny Stocks Of 2021 So Far?
If the pandemic taught us 1 thing, it’s that penny stocks aren’t just shares of worthless companies. While this article will discuss the performance of cheap stocks since the start of the year, the massive breakout seen by countless others emphasizes the true potential. What I’m talking about are the huge breakouts we’ve seen from stocks like Novavax (NASDAQ: NVAX), Blink Charging (NASDAQ: BLNK), Plug Power (NASDAQ: PLUG), Nio Inc. (NYSE: NIO), and many more.
What Are Penny Stocks?
It’s one thing to see a chart trend. It’s another thing to know what the definition of penny stocks is. And it’s yet one more thing to grasp when you see that those companies I just mentioned met that definition early last year. So, before we dive into this list of penny stocks, let’s touch on what they actually are. According to the Securities & Exchange Commission’s definition, these are shares of companies trading below $5 per share.
Yes, NVAX, BLNK, PLUG, NIO, and many more went from sub-$5 levels to well over $300 in some cases. While all penny stocks don’t go on to become multi-bagger stocks, this year, the big breakout trend for cheap stocks hasn’t slowed. In fact, based on current trading levels, some of these stocks have moved over 1,000% since the start of 2021. That means $500 could’ve potentially turned into more than $5,000 during that period. Let’s take a look at some of these penny stock monsters:
Best Penny Stocks 2021
First on this list of penny stocks is Support.com Inc. (NASDAQ: SPRT). The tech stock began the year trading at $2.25, and as of this week, it reached fresh 7-year highs of $12.67. That means the 222 shares $500 could’ve bought at the start of the year are worth more than $2,800 ($2,812.74) this week.
What Does Support.com Do?
For the first quarter of the year, Support.com wasn’t much to write home about. However, that all changed toward the start of Q2. This coincided with the $35 million settlement with Office Depot in late March. However, this isn’t the biggest story of 2021 for SPRT stock. Support.com’s core business model is providing support solutions for home-based employees. But despite what you may think about this being a reopening trade, there’s more than meets the eye.
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A strong mix of “short-squeeze” speculation along with cryptocurrency-fueled action has helped spark a surge over the last few months. The company and Greenidge Generation Holdings plan to merge. This tie-up would create a company focused on bitcoin mining operations.
When the initial details were announced, Greenidge said it expects the deal will make it the first publicly traded bitcoin mining company with a wholly-owned power plant. With the special meeting of shareholders set for September 10th, it’s clear that the market is paying close attention. Needless to say, SPRT stock has experienced a massive move in the stocks market this year.
Read More: SPRT Stock Report
Best Penny Stocks In 2021 #2: Express Inc. (NYSE: EXPR)
Playing off of that “reopening stocks to watch” trend, Express (NYSE: EXPR) is more of your “pure play” in the space. The apparel and accessories retailer fell victim to the pandemic shutdown last year. But since then, Express and its ability to leverage the growing trend in digital retail has helped breathe some new life into the former penny stock.
At the beginning of 2021, EXPR was still trading under $1, $0.93 to be exact. It briefly enjoyed a massive breakout thanks to being one of the hottest Reddit stocks to buy at the time. Following the “back to earth” period, EXPR shares found a trend to stick with ever since. As of this week, EXPR stock traded around highs of $7.32, meaning that the 537 shares you could’ve bought for $500 at the beginning of the year are worth nearly $4,000 ($3,930.84).
This week Express will report its second-quarter earnings and host a virtual investor event. With hopes high for a return to normalcy following the Pfizer/BioNTech FDA approval, retail stocks have come back into focus.
Read More: EXPR Stock Report
3. Vertex Energy Inc. (NASDAQ: VTNR)
Energy stocks aren’t out of the equation either when it comes to reopening. Vertex Energy (NASDAQ: VTNR) is a clear example of that. The year began with VTNR stock trading at $0.76 and reached highs this year of $14.32. As of this week, Vertex hit Tuesday highs of $8.02 during the early morning session. That means the $500 worth of shares at $0.76 in January (657 shares) were worth a cool $5,269.14, over 950% more in just 8 months.
Vertex specializes in refinery and marketing of used motor oil. Its products (Group II+ and Group II Based Oils) are supplied to the lubricant manufacturing industry across North America. Right now, investors are focused on the pending mobile refinery acquisition that was announced in May. The company agreed to buy the refinery for $75 million. Since the transaction is expected to close in the upcoming quarter, timing has become more important. Further to this, Vertex expects to have definitive funding sourced and in place before the end of next month.
Read More:VTNR Stock Report
4. AMC Entertainment Holdings Inc. (NYSE: AMC)
No list of penny stocks breakout out big in 2021 would be complete without AMC Entertainment (NYSE: AMC). But, even with the huge move made earlier this quarter, AMC stock isn’t up to most, year-to-date. That’s ok considering that $500 could’ve gotten you 227 shares at the $2.20 opening price on January 4th. Fast-forward to this week, and AMC stock hit an early morning high on Tuesday of $38.49, making that position worth $8,737.23. Not bad for a few months’ “work,” I suppose.
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If you’re unfamiliar with the company, AMC Entertainment owns a franchise of cinemas globally. The pandemic all but brought the company to its knees in 2020. But reopening efforts, a massive short squeeze, interest from a loyal retail trader following, and new FDA vaccine approvals have helped AMC stock maintain its higher price.
This week AMC stock surged after the latest news from Pfizer/BioNTech and its FDA approval. The meme stock has long supported “the ape community” in a defiant move against Wall Street hedge fund shorting tactics. With the fresh take following hopes for a speedy reopening and new movies set for release, will AMC stock be one of the top names on your list?
Read More: AMC Stock Report
5. Cassava Sciences Inc. (NASDAQ: SAVA)
Finally, we get into a biotech stock, Cassava Sciences (NASDAQ: SAVA). While the big focus over the last 20 months has been on coronavirus stocks, this year’s micro-trend has favored companies developing other treatment platforms. In particular, Alzeheimer’s stocks have surfaced. Following the big decision by the FDA to approve Biogen’s (NASDAQ: BIIB) Aduhelm marked the Alzheimer’s treatment approved in nearly two decades. Certainly, it was a milestone moment for the industry. Furthermore, it shed a brighter light on other companies. Cassava is one of these.
At the beginning of 2021, $500 could’ve gotten someone shares of SAVA stock at $6.84, which is just $1.84 higher than the most expensive penny stock. I’ll also mention that Cassava has been one of the names on our list of penny stocks to watch since last September. Regardless of where it was, where it is, has our attention. This week, shares of the Alzehimer’s stock reached early highs of $123.37 on August 24th. That means the 73 share position from January was worth over $9,000 ($9,006.01).
This week Cassava announced an agreement with the FDA on a Special Protocol Assessment for its Phase 3 studies of Simufilam. This is the company’s treatment for Alzheimer’s disease. The milestone effectively demonstrates that the FDA reviewed and agreed on the design features of Cassava’s Phase 3 protocols and justified it, reaffirming its guidance to advance Simufilam into a Phase 3 pivotal program this fall.
Read More: SAVA Stock Report
Are Penny Stocks Worth It?
Clearly, penny stocks are worth it if you know what to look for. In this article, I discussed how many whole shares that $500 was worth at the open on January 4th, 2021. Compared to early morning highs on August 24th, 2021, these have all experience massive rallies in just 8 months and 20 days. Case in point, adding everything up, a total of $2,500 spread across all of these penny stocks at the start of 2021 is now more than $29,000 as of morning highs on August 24.
Though all penny stocks don’t go on to perform like these, there are more than a handful of names that see double and even triple-digit moves daily. Some may only run for that single session while other moves go on for months at a time. The important part for you is to know how to trade and profit from what the market gives.