In this article, we discuss the 10 best penny stocks popular on Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Penny Stocks Popular on Reddit.
Internet forums like Reddit have opened up the stock market to a new generation of investors who come from all types of different backgrounds, diversifying the marketplace and resulting in a flurry of new investments into equities. In late July, Goldman Sachs analyst David Kostin told investors in a research note that the retail favorite stock list of the investment bank had outperformed the benchmark S&P 500 Index by 3 percentage points in June, an indicator of the ever-growing power of retail investors on the overall market dynamics.
Some of the stocks presently popular on Reddit include Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), among others. However, for those not interested in these pricey options, there are several penny stocks popular on the internet platform, some of which are discussed below. Penny stocks are popular on the platform because many retail investors operate on limited budgets and are not averse to risk-taking.
Smart investors can gather valuable insight from the trends related to the penny stocks and their impact on the market, especially with regards to meme stocks and high volume trades that have exploded in popularity over the past few months. As more money is poured into the market, volatility has been high, but for those who can turn profits from diligent research into penny stocks, playing the game with the big boys becomes that much easier. It is fair to say that retail investors have delivered a rude awakening to the world of big finance in recent months.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best penny stocks popular on Reddit. These were ranked keeping in mind the number of mentions on Reddit, analyst ratings, hedge fund sentiment, and basic business fundamentals.
Farmmi, Inc. (NASDAQ: FAMI) is a Chinese firm that processes and sells agricultural products. It is placed tenth on our list of 10 best penny stocks popular on Reddit. The company has a market cap of over $70 million and posted more than $30 million in revenue last year. On May 13, the share price of the firm jumped more than 7% after it announced that Zhejiang Forest Food, a subsidiary of the firm, had been awarded a mushroom export order to Israel.
On June 23, Farmmi, Inc. (NASDAQ: FAMI) announced that it had entered into an agreement with Sigma Holding as part of a plan to expand into the distribution network of agricultural products. The strategic and cooperation agreement envisions the joint establishment of a new firm and a 50-year partnership between the sides.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $507,000 in Farmmi, Inc. (NASDAQ: FAMI), up from 1 in the previous quarter worth $858,000.
Alongside Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), Farmmi, Inc. (NASDAQ: FAMI) is one of the stocks popular on Reddit.
Pintec Technology Holdings Limited (NASDAQ: PT) is placed ninth on our list of 10 best penny stocks popular on Reddit. The firm markets financial technology services and is based in China. It has a market cap of over $39 million and posted more than $57 million in revenue last year. In December last year, the firm had announced that it would be partnering with China Mobile Communications to develop a joint project related to advanced fintech solutions. The project would make use of big data analytics and artificial intelligence technology.
In April this year, Pintec Technology Holdings Limited (NASDAQ: PT) stock soared 30% after it announced that it had entered into an agreement for the purchase of Shenzhen Jishengtai Technology, a technology company that markets security solutions, in an all-stock deal.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $141,000 in Pintec Technology Holdings Limited (NASDAQ: PT), down from 3 in the previous quarter worth $129,000.
Just like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), Pintec Technology Holdings Limited (NASDAQ: PT) is one of the stocks popular on Reddit.
8. Ever-Glory International Group, Inc. (NASDAQ: EVK)
Number of Hedge Fund Holders: 2
Price as of August 3, 2021: $5.08 per share
Ever-Glory International Group, Inc. (NASDAQ: EVK) is ranked eighth on our list of 10 best penny stocks popular on Reddit. The company retails clothes and is headquartered in China. In earnings results for the first quarter, posted on May 14, the frim reported a revenue of close to $71 million, up 21% compared to the revenue over the same period last year. The company has a market cap of $33 million. In addition to China, the firm has business interests in Germany, the United Kingdom, Europe, Japan, and the United States.
On August 2, Ever-Glory International Group, Inc. (NASDAQ: EVK) announced that the board of the firm had approved a stock buyback program worth up to $5 million valid till the 31st of December this year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Ever-Glory International Group, Inc. (NASDAQ: EVK) with 98,800 shares worth more than $264,000.
In addition to Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), Ever-Glory International Group, Inc. (NASDAQ: EVK) is one of the stocks popular on Reddit.
Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) is a pharmaceutical company headquartered in New Jersey. The firm focuses on developing drugs for critical care. It is ranked seventh on our list of 10 best penny stocks popular on Reddit. The company joined the Russell 2000 Index in late June. Myron Holubiak, the CEO of the company, said at the time that the inclusion was an important milestone for the firm and reflected the work it had been doing in developing first-class treatments for patients around the globe.
In earnings results for the first quarter, posted on May 13, Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) reported earnings per share of -$0.04, beating market predictions by $0.05. The cash and cash equivalents over the period were over $103 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) with 989,096 shares worth more than $1.7 million.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR) are some of the stocks popular on Reddit, just like Citius Pharmaceuticals, Inc. (NASDAQ: CTXR).
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is placed sixth on our list of 10 best penny stocks popular on Reddit. The firm is based in Washington and makes and sells pharmaceutical products. It concentrates on the development of drugs for the treatment of serious infectious diseases. The company has been working on several COVID-19 related drugs and last month obtained regulatory approval from Australian authorities for a study of AT-H201, a therapy for hospitalized COVID-19 patients.
In earnings results for the first quarter, posted on May 14, Atossa Therapeutics, Inc. (NASDAQ: ATOS) reported earnings per share of -$0.04, beating market estimates by $0.01. The cash and cash equivalents over the period were more than $137 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Atossa Therapeutics, Inc. (NASDAQ: ATOS) with 3.3 million shares worth more than $6.9 million.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR) are some of the stocks popular on Reddit, alongside Atossa Therapeutics, Inc. (NASDAQ: ATOS).
