Diversification is a great strategy when it comes to investing. One important part of that is “risk tolerance”. Chasing only the most secure option, (most risk-avoidant investments) will prompt a certain something: Low Returns. That is the place where penny stocks come in with high risk, but the potential for high rewards. Penny stocks means any stocks whose cost is low in the markets.
It is suggested that investors understand and consider Exchange-Traded-Funds (ETFs) and other lower-risk investment vehicles. But on the other hand, it's important to remember the level of risk in the portfolio. Penny Stocks are a relatively inexpensive way of moving toward this procedure.
Investors are excited about the potential that another month could hold. While a new month is just riding a page off of your schedule, it frequently has a symbolic effect on the stock market. A new month presents a fresh start for investors to work with, and in 2021, it's a welcome opportunity. So, what do we have to see in the coming months? With that in mind, let's look at some NYSE-listed penny stocks that you can buy before 2021 ends.
Gerdau is a Brazilian steel producer with operations in Brazil, North America, and South Africa. It produces items like rebar, slab steel, structural steel, and rolled steel.
There are a couple of reasons to be keen on steel stocks right now. Likely the most important is that in the United States, there's an enormous push to revive infrastructure.
Recently, President Joe Biden uncovered his plan to spend $2 trillion to modify crumbling streets and bridges across America, with that spending set to fix 20,000 miles of streets and 10,000 bridges, according to President Biden. That requires steel, which is good for Gerdau.
In the second quarter, Gerdau was a strong performer. The company witnessed an increase of 119% on a year-over-year (YOY) basis in the quarter. It additionally saw net benefit increase by an incredible 654%.
GGB stock tends to rise heavily based on a strong buy rating and target prices. It currently trades for about $5, the maximum furthest reaches of a penny stock, however, analysts' consensus target cost is $7.93.
Given the intrinsic tailwinds in Biden's foundation spending, it's not difficult to understand the reason why a growing company like Gerdau conveys over half potential gain now.
TEAM INC. (TISI)
Team Inc. is a company that deals with analytics and services for the oil industry. The company manages resource assurance and optimisation. That implies it inspects and fixes resources using systematically empowered services. The company also works outside of the oil business, It's associated with aerospace, construction, pulp, and paper just as different businesses.
But at the end of the day, stock investors are interested in one thing over all others: returns. Also, that is the reason Team Inc. is one of the most appealing penny stocks out there. TISI stock could more than triple, according to analysts with inclusion. They have given it a normal target price of $10, and it presently exchanges at $2.80.
And there's some reason to believe that Team Inc. may be growing soon. It was recently awarded a multi-year contract by Chevron (NYSE: CVX). Group Inc. President Amerino Gatti said, "This agreement award is the result of long-term partnerships and a history of fruitful joint effort. Our new Asset Integrity and Digital Group will work intimately with Chevron to give innovation empowered inspection services and engineering evaluation solutions".
Arcos Dorados Holdings (NYSE:ARCO)
Arcos Dorados Holdings is a restaurant franchiser and operator. In particular, the company operates and franchises McDonald's (NYSE: MCD) restaurants throughout Latin America and the Caribbean.
Unlike some of the other picks, ARCO stock most likely won't significantly increase or even double in price. After all, it currently trades at just $5 per share and has a target price of a little over $7.
On the Archos Dorados website, 10 analyst ratings are listed. Three of them are "impartial" ratings, and the rest are "overweight" or "buy" evaluations.
Although this potential gain looks positive, it might show up as a less attractive stock when compared to others on this list. However, what it needs in relative potential gain, it compensates for in terms of brand power. Like McDonald's stock, ARCO stock has a dividend policy. Arcos Dorados suspended that profit in late 2020 but announced it will continue to pay out in 2021.
The company has been performing well for some time now. In Q2, total revenue grew 104.5% on a year-over-year basis. On top of that, revenue also grew 4.2% on a long-term basis.
Some of these stocks have joined a couple of watch records for the month. Remember that since short float percentages are higher, there isn't any guarantee of a real squeeze. Regardless, knowing the "battleground," in a manner of speaking, can help you better understand why some stocks are moving the way they are.
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