As June gets off to a swift start for penny stocks, which sectors are investors watching? Well, to understand this, we have to consider what is going on in the world. For example, with Covid cases decreasing globally, the trend of reopening penny stocks continues to be popular.
These are small-caps that either benefitted or are benefitting from economic reopening. This could include anything from entertainment penny stocks to tech stocks and more. It’s difficult to confine this term to just one industry as it truly depends on what the individual company does.
Next, we have biotech penny stocks. These companies had a great year in 2021, and have continued to be on a hot streak. With biotech, it’s important to consider what the company does, and how far along its compounds are in the trial process. While these are not the only two industries that are hot right now, they do both have a major correlation to Covid.
And to understand how to invest in penny stocks in 2021, investors need to utilize the idea of cause and effect. So, regardless of the industry, what role does the company have in both its industry and in the post-Covid economy. With all of this in mind, let’s take a look at three penny stocks to watch this week for your small-caps list.3 Penny Stocks for Your June Watchlist
- Evofem Biosciences Inc. (NASDAQ: EVFM)
- NextDecade Corp. (NASDAQ: NEXT)
- Borqs Technologies Inc. (NASDAQ: BRQS)
Up by around 14% in pre-market trading on June 7th is Evofem Biosciences Inc. We’ve covered EVFM stock plenty of times in the past few weeks as the bullish sentiment surrounding it remains quite strong. So, why did EVFM jump today? Well, the best explanation is an analyst shift in price target coming early in the morning. Specifically, the analyst Raghuram Selvaraju at H.C. Wainwright dropped his price target on EVFM stock to $4 from $7. Additionally, he maintained a buy rating for the stock.
While dropping a price target may seem like a bad thing, a more realistic target is always a positive. And, a $4 price target implies more than 300% upside potential for EVFM stock right now. While these targets are just that, they still can be indicative of what investors are feeling about a company. To dive deeper, let’s take a closer look at what Evofem does. Evofem is a commercial-stage biopharmaceutical company working on products to treat women’s health needs. This includes its FDA-approved product known as Phexxi.
Additionally, its lead candidate right now, EVO100, is in studies to see its efficacy in preventing urogenital Chlamydia. Only a few weeks ago, Evofem announced the closing of a major $50 million public offering of 7.5 million shares of common stock. The proceeds from this will go toward both commercialization activities for Phexxi as well as the phase 3 trial of EVO100. Considering all its movements in the past few weeks, will EVFM stock be on your watchlist?NextDecade Corp. (NASDAQ: NEXT)
Another major pre-market gainer is NextDecade Corp. Pushing up by almost 30% during early morning trading, NextDecade is a clean energy company, working on the future of renewables in the U.S. Through its subsidiaries Rio Grande LNG and NEXT Carbon Solutions, NextDecade is working on a major 27 mtpa LNG export facility in Texas, as well as a massive carbon capture and storage project.
The company states that the Rio Grande facility could be the largest U.S. LNG export solution that links the Permian Basin with the Eagle Ford Shale to the global liquid natural gas market. So, a play for NEXT stock is a play for the renewable energy market.
Today’s major gain for NEXT also comes alongside an analyst rating. This morning, NextDecade was given an ‘Overweight’ upgrade from ‘Equal-Weight’ by Morgan Stanley, with a price target of $6. At $2.44 as of its close on Friday, this represents more than double its current price. Again, it’s worth noting that price targets won’t always be achieved. But, the analysts at these major firms tend to know what they’re talking about. Because of this, these ratings are always important for investors to consider.
Additionally, the speculative effect of an analyst firm upgrading or downgrading a stock will always be high. This means that a stock can either jump or fall substantially in a short period. But, with Biden pushing clean energy more than ever, many investors are betting on the future of renewables in the U.S. and globally. Because of this, NEXT stock could be worth adding to your watchlist in June.Borqs Technologies Inc. (NASDAQ: BRQS)
While a 7% pre-market gain may seem small compared to the penny stocks above, it is still quite substantial. For some context, Borqs Technologies is a tech company working on everything from 5G to software IP libraries and more.
Today’s solid gain for the tech penny stock comes as Borqs received a 1.7 million square foot land use right to the 5G Industrial Park Project in Huzhou, China. Here, it will further develop its 5G infrastructure for mobile technologies as well as relating R&D and incubation activities. On top of this, it will use this facility to develop its IoT products manufacturing and assembly.
The company states that this project should be operational by the end of this month which is a staggeringly quick timeline. As a tech company, Borqs has benefitted greatly from the pandemic. Its work on Android-based smart connected devices as well as cloud-service solutions help to make it one of the leaders in this side of the tech industry in China and globally.
And, according to the company, it is “leveraging its unique strategic chipset partner relationships as well as its broad software and IP portfolio.” So while today’s move is both speculative and fundamentally exciting, the future of 5G penny stocks could be even more exciting. Whether this makes BRQS a penny stock to watch, however, is up to you.