At the moment, the pandemic is the major factor affecting penny stocks and blue chips. Covid-19 new variant cases have started appearing around the world, causing people to fear that the pandemic has not yet ended.
As a result of these fears, there has been an increase in volatility and a higher level of uncertainty. Recent weeks have seen the blue-chip stock market flat, but several stocks under $1 have performed well. It is relatively easy to find decent gains on an intraday basis since penny stocks don’t adhere to the rules.
Due to their volatile trade trend, penny stocks are often considered speculative investments. The purpose of purchasing penny stocks is to capitalize on a potential change in stock market trends.
The unpredictable nature of penny stocks makes investing in them always risky. So, understanding penny stock volatility is important for avoiding unpleasant situations.
Investors make informed decisions based on research into relevant investments. Investing in penny stocks can be as profitable as making investments in Fortune 500 companies by knowing their metrics, fundamentals, and developments.
The shares of Naked Brand Group Limited (NASDAQ: NAKD) gained by 8.73% during the trading session on Monday, reaching a low of $0.69 while ending the day at $0.7347. During the trading session, a total of 71.05 million shares were traded which represents a -20.3% decline from the average session volume which is 59.06 million shares. NAKD had ended its last session trading at $0.73.
Wall Street analysts tracking the Naked Brand Group Limited (NASDAQ: NAKD) stock on daily basis. Out of 0 analysts, 0 deeming the stock a Buy, and 0 gave it a rating of OVERWEIGHT. Another 0 recommended that NAKD is a HOLD, while 0 rated it UNDERWEIGHT and the 0 recommended SELL.
Zomedica Corp. (AMEX: ZOM) does about 32.24M shares in volume on a normal day but saw 41.86 million shares change hands in Monday trading. The company now has a market cap of $662.62 million. Its current market price is $0.62, marking a decrease of -1.93% compared to the previous close of $0.63. The 52 week high reached by this stock is $2.91 whilst the lowest price level in 52 weeks is $0.06. The script in recent trading has seen the stock touched a high of $0.65 and a low of $0.60.
Focusing on the company’s market volatility shows that it has a 1-Week Volatility index of 16.70%, and 8.95% for the month. This stock’s Average True Range (ATR) currently stands at 0.06, with the beta factor poised at 0.32. The indicator of Volatility helps exhibit the extent to which a stock is likely to plummet or climb when the rest of the market also dips or surges. If a stock has a beta score above 1, then its rate of volatility is high. Figures lower than 1, therefore, mean that the stock’s volatility at that particular moment is low.
U.S. Well Services Inc. (USWS) saw an uptrend of 7.55% in the recent trading with $0.83 being its most recent. The current price level is 75.37% lower than the highest price of $3.37 marked by the stock while trading over the past 52-weeks, whereas it is -260.87% higher than the lowest price of $0.23 the company dropped to over the past 52-weeks.