4 Penny Stocks for Your Reopening Watchlist
With penny stocks climbing as economic sanctions dwindle, which companies are you watching? Companies that are trending as pandemic restrictions loosen are referred to as reopening penny stocks by traders. There are blue-chip reopening stocks, but we are talking about penny stocks trading under $5. The pandemic has changed the lives of everyone, and we all can’t wait for it to be over.
The question that remains is, what will happen to the stock market as we get closer to the end of the coronavirus? This question can already start to be answered as many states are loosening their Covid restrictions. Because of this, investors are compiling lists of penny stocks that could presumably benefit.
The United States for example is at its lowest COVID case count in a very long time. Furthermore, over 40% of the U.S. population has received at least the first dose of the vaccine. This is great as the U.S. is where a large number of penny stocks to watch are focused or located.
At the same time, many places are struggling because of COVID and are seeing a spike in cases. One example of this is India, which for a variety of reasons, is seeing a massive resurgence of Covid infections. This is a clear reminder of the severity of the pandemic, and that we are not out of the woods yet.
The United States’ recovery from the pandemic has already caused many reopening penny stocks to go up in price. Think about the companies that got hit the hardest when the pandemic started back in March 2020. Maybe your mind goes to travel stocks or retail stocks. Even marijuana penny stocks are performing well as COVID restrictions lower.
As you can see, it is a broad range of companies that could benefit from this. No matter which type of reopening penny stock you’re looking to buy, there are many options out there. Let’s look at four that could be worth adding to your watchlist in May.
Reopening Penny Stocks To Watch
- Express Inc. (NYSE: EXPR)
- Ashford Hospitality Trust Inc. (NYSE: AHT)
- American Resources Corporation (NASDAQ: AREC)
- Harvest Health & Recreation Inc. (OTC: HRVSF)
Express Inc. (NYSE: EXPR)
There are a few reasons that Express Inc. has been increasing in market value. Before we dive into it, let’s look at what the company does. If you live in the United States, you have most likely seen an Express store in your local shopping mall. That is because Express is an apparel and accessory-based retail store with more than 570 stores across the U.S. and Puerto Rico.
One of the primary reasons for Express’s recent success is due to reopening. Since shopping malls are seeing a ton of traffic as COVID restrictions loosen, Express’s sales are increasing. Most of the company’s business is in the United States, so COVID issues in other countries do not have a negative impact on this reopening penny stock.
EXPR has also seen a lot of momentum as it is one of the more popular Reddit penny stocks. Express is often mentioned on the popular stock subreddit WallStreetBets. Some posts mentioning this stock in the last three months have garnered thousands- sometimes more than one hundred thousand views on a post. The higher than usual retail numbers have helped to increase the popularity of EXPR stock in 2021, moving from under $1 to more than $3.44 a share as of May 5th.
Ashford Hospitality Trust Inc. (NYSE: AHT)
Ashford Hospitality Trust Inc. is a reopening penny stock we have talked about a lot over the last few months. Ashford is a real estate investment trust (REIT). Its primary focus is on upscale full-service hotels. The company additionally operates the Ashford App tailored towards investors involved in the hospitality REIT industry.
Real estate is doing great this year. Home prices saw one of the largest recorded increases in annual history back in January. The Dow Jones Equity All REIT Total Return Index has been breaking new 52 week highs in the past few months, leading to dramatic bullish sentiment around the real estate market. These are big contributing factors to AHT stock’s success in the market. On May 5th, AHT stock is down however, we have to look at it from a bigger picture.
AHT is about to release its full first-quarter results, which could be worth looking into. Its preliminary results show that the company beat revenue estimates, but reported a Q1 loss. So now it will be interesting to see what the full results release statement says, which we will likely see very soon. With this in mind, will you add AHT to your reopening penny stock watchlist?
American Resources Corporation (NASDAQ: AREC)
American Resources Corporation is an energy penny stock that offers raw materials like metallurgic coal and coal used in pulverized injection. Its products are used for steel manufacturing among other processes. If you do not already know, steel prices and the correlating demand are steadily climbing right now.
This could be due to the large industrialization that is going on as Covid cases decline. Consequently, many steel stocks are performing well, and AREC has joined the party. AREC stock has been trending downwards for some time now, but on May 5th it is up nearly 5% by midday.
While steel prices do have a direct impact on AREC stock, there could be another reason for its positive performance today. American Resources Corporation announced that it has been selected as a consortium member in a U.S. Department of Energy Contract. This is in order to assess northern Appalachian critical and rare earth elements. Led by Penn State, it will be targeting rare earth elements and critical mineral recoveries from waste streams.
“Penn State has been a great partner for us as we continue to create innovative ways to capture, process, and purify critical and rare earth elements from coal-based waste and byproducts. We are honored to join this consortium with Penn State, and its other members, and to further our existing partnership.”
The CEO of American Resources, Mark Jensen
With AREC’s stock price increase and its recent announcement, will it make your list of reopening stocks to watch?
Harvest Health & Recreation Inc.
As mentioned in the introduction, marijuana stocks are performing well amid loosening COVID restrictions. Harvest Health & Recreation Inc. is a cannabis company cultivating, processing, and selling inhalable, ingestible, and topical cannabis products. Some of these products include cannabis oil products, vaporizer pens, and edibles among many others.
Given the increased access to retail stores as Covid restrictions loosen, it is likely that HRVSF could see more momentum. Additionally, we tend to see products like alcohol, cannabis, and tobacco all see heightened demand whether the economy is good or bad. On May 5th shares of HRVSF stock are going up, and it seems to be for one specific reason. The company opened its seventh dispensary in Florida. This is its new location, centered in Olympia Heights.
“We are pleased to open our seventh Harvest location in Florida, one of the fastest-growing medical markets in the U.S. We look forward to serving patients and providing quality products at this new location in one of our core markets.”
The CEO of Harvest Health, Steve White
As Harvest expands its business and reopening becomes looser, the company may continue to see heightened momentum. Because Covid restrictions in Florida are some of the lowest in the country, Harvest Health’s large entrance into this market will remain intriguing. With this in mind, will Harvest Health & Recreation be on your list of reopening penny stocks to watch?
The Future Of Reopening Stocks
One thing to keep in mind is that nobody knows when the pandemic will end. The United States is among the countries making the biggest strides with its high vaccination numbers and low cases. This progress is the reason that many reopening penny stocks are going up.
When making a list of penny stocks to buy, it is essential to stay up to date on the latest world news and COVID restriction updates. With that being said, which reopening penny stocks will you place on your list?
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