4 Penny Stocks On Robinhood To Buy For Under $5 Right Now
4 penny stocks on Robinhood trading for less than a breakfast "sangwich" today
Looking For Penny Stocks To Buy? The 5 Robinhood Stocks Have Turned Heads This Week
There’ve been mixed feelings from penny stock traders using Robinhood as their chosen brokerage over the last few years. Everything from “glitches” to flat-out restricted trading has played a role in shedding a negative light on the mobile-first trading app.
Even in light of these shortcomings, that hasn’t stopped it from becoming one of the more popular options for retail traders. Search social media platforms like Reddit, Facebook, Twitter, etc., and you’re sure to find plenty of screenshots of Robinhood charts and trade execution tickets.
One of the more unique things about the platform is that it doesn’t allow access to all penny stocks. The Robinhood platform restricts access to OTC penny stocks. Despite this being the case, there are still plenty of NASDAQ and NYSE stocks to choose from.
In this article, we’ll take a look at some of the cheaper stocks on Robinhood that can be bought for under $5. The biggest question you’ve got to answer: Are these the best penny stocks to buy right now or avoid entirely?
Penny Stocks On Robinhood To Buy [or avoid]
- Borqs Technologies (NASDAQ:BRQS)
- RLX Technology Inc. (NYSE:RLX)
- Luokung Technology Corp. (NASDAQ:LKCO)
- ZK International Group (NASDAQ:ZKIN)
Borqs Technologies (NASDAQ:BRQS)
One of the lowest-priced penny stocks on this list is Borqs Technologies. But just because it’s trading under $1 right now, it doesn’t mean it hasn’t turned heads this week. Most importantly for those looking at BRQS stock right now is seeing how it’s performed following the stock hitting new 52-week lows last week. Furthermore, some are trying to connect dots between BRQS stock and the latest move in the crypto space.
Earlier this month, Borqs announced a strategic investment and collaboration with Zippie. This is a company specializing in payment platform technology using blockchain. According to the company, Zippie allows businesses to transact via programmable payments with money and digital assets. By the end of the year, Zippie expects to have connections with 1.3 billion mobile wallets and 3 billion bank accounts globally.
With an increasing demand for a more advanced digital payment ecosystem, fintech and blockchain companies are becoming a core focus for certain traders. Furthermore, with the uptick in things like Bitcoin and Ethereum, this DeFi/Crypto theme continues resonating in the market.
RLX Technology Inc. (NYSE:RLX)
Another one of the companies that have been in recovery mode recently is RLX Technology. Following a botched IPO and some legislative uncertainty in China, shares of RLX stock dropped hard. But over the last few days, the penny stock has bounced back a bit. The company specializes in e-vapor products in China.
The focus as of late has been on how RLX will turn itself around. Since its IPO, its latest round of earnings was a key event to look at for those following the company. Based on the bounce in the market, it looks like traders have responded favorably to the results. Gross margins of 45.1% and quarter-over-quarter revenue growth of 6% to nearly $400 million were just a few of the key highlights.
The bigger catalyst came with comments from management on RLX’s outlook for the future. Ying Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology, said, “Going forward, we will further enhance investments in scientific research, strengthen our distribution and retail network, and improve our supply chain and production capabilities, to create more value for our users and shareholders alike.”
With this as the backdrop right now, RLX stock has steadily bounced back in the market this week, and volume has continued building.
Luokung Technology Corp. (NASDAQ:LKCO)
Another one of the China-based penny stocks on this list is Luokung Technology. The company develops intelligent big data solutions for its clients. This includes interactive, location-based services and maps in China. In a similar fashion to RLX, Luokung popped thanks recently to upbeat preliminary earnings for the first half of the year.
The company reported a record total revenue for the first half of the year of $37.8 million, which didn’t compare to the $7.3 million last year during the same period. Its location-based services business segment accounted for the majority of this record revenue. More significant growth also came from remote sensing and data management services. While the dollar amount wasn’t as large as LBS, the percentage increase was more than 1,700% higher for the period ($4.4M vs. $0.24M).
Zuesong Song, Chairman, and CEO, further said that “We expect to build on the positive momentum of the first half of 2021 as additional business orders are executed and delivered in the remainder of the year.”
With formal unaudited results anticipated within the next two months, the preliminary details have been uncovered, showing potentially strong growth in 2021 so far.
ZK International Group (NASDAQ:ZKIN)
Earlier this year, ZK was one of the top penny stocks to watch. Shares surged to highs of over $14 from just $2.77 at the start of January. The reason for the breakout? The company’s new blockchain technology development coupled with a nice boost of interest in cryptocurrencies. With the dip in digital currency interest over the last few months, ZKIN stock followed a similar trend…until recently.
This week, ZKIN stock has started to pop once again. For the first time in months, the penny stock has popped above not only the 50-day moving average but also the 200-day moving average for the first time in months. As traders watch to see if it can now hold above these levels, there are fundamental events to consider.
ZK announced its first-half results showing a record revenue of $42.17 million. “In addition to the existing business, leadership at the Company decided to be innovative, and have formed several subsidiaries to develop, market, and execute on several initiatives which include raising capital to develop a DeFi Exchange and launch our own tokens, develop a cryptocurrency trading platform and the development of our own NFT Marketplace which will be launched in the Fall of 2021.”
This seems to have struck a chord with traders in the stock market this week. Also adding to the excitement was the official announcement that its subsidiary, xSigma Collectibles, partnered with Maxim to launch an NFT marketplace. So with crypto and DeFi at the forefront of speculative trading this week, ZKIN has gotten wrapped into this trend.
Final Thoughts On Penny Stocks
Like all investments, penny stocks carry plenty of risks that come with the potential for big rewards. All of these companies mentioned faced their fair share of adversity this year. However, recent trends in the short term have shown more bullish than bearish tendencies. In this case, it’s important to have a plan in mind (long-term hold or short-term trade) before making the final decision to add it to your list of penny stocks to watch or not.