Looking for penny stocks to buy right now? With June getting off to a fresh start this week, there are plenty of new and continuing trends to watch coming out of a mixed month of May. The reopening trade continues to gain steam. This has also lead to inflationary fears in the stock market. Though it has been sporadic, the rate at which the economy is coming back online is faster than I’m sure many had expected.
Albeit the FOMC has continued standing behind its stance that any inflation is transitory, it hasn’t eased concerns of the retail market. However, some of the fears have been shaken off as pricing pressure has gotten a bit more baked into the overal economic sentiment.
What’s more, heading into this week, there’s a fresh batch of data to digest, including employment data coming in the back half of the short week. This will be followed up closely by payroll and factory orders on Friday. We’ve also got plenty of Fed speak to consider, including Fed Chair Powell, who speaks on June 4th.
In light of this, it may be prudent to assume that we aren’t out of the woods yet when it comes to volatility. Then again, it’s this lasting market chop that has produced some of the most exciting trends this year. Some of the more recent center around alternative, renewable and green energy trends. One of the hallmarks of “reopening” has placed a focus on President Biden’s infrastructure plan. Part of this involves spending on carbon-neutral businesses. This can include anything from electric vehicles to power sources like wind and solar.Are Green Energy Penny Stocks Your Best Bet In June?
Taking a look at the landscape, in general, you’ve got your popular “green energy” stocks like Tesla (NASDAQ: TSLA), Nio (NYSE: NIO), and Plug Power (NASDAQ: PLUG). But then you’ve also got an array of other companies not covered as closely by mainstream financial outlets.
Many of these companies are trading as penny stocks right now. Remember that not that long ago, both NIO stock and PLUG stock were also hovering under the $5 level as penny stocks. Will this next “crop” of green energy penny stocks prove to have the same potential? That’s something left to be seen right now.
President Biden’s proposed 2022 budget calls for a boost in spending on climate mitigation as well as a slew of infrastructure projects. The budget calls for a $14 billion boost in climate-related spending with $2 billion for clean energy projects and $6.5 billion in lending capacity to be made available for clean energy generation.
With this jolt of potential spending set for deployment on climate-focused initiatives, it may not be a bad idea to have a list of penny stocks to watch with that as a theme. In this article, we’ll take a look at a few popular names that seem to have gained momentum heading into June.
- Ideanomics Inc. (NASDAQ: IDEX)
- Electrameccanica Vehicles Corp. Ltd. (NASDAQ: SOLO)
- Aqua Metals Inc. (NASDAQ: AQMS)
Ideanomics has been on the list of penny stocks to watch off and on for a while. However, the last few weeks have become some of the more active for the company. Overall, IDEX stock has held a consistent channel trend, trading between lows of $2.24 and highs of $3.20. Since the start of May, the EV penny stock has been on the upswing.
From a technical perspective, both the 50-day and 200-day moving averages have been important support and resistance levels. Heading into June, traders are now focused on the 50-day becoming a new potential level of support after IDEX stock broke and held above this level last week. This was the first time the penny stock did this since November of last year. At that time, Ideanomics had just begun expanding its EV portfolio. The company increased its stake in Solectrac, an EV tractor company.
Fast-forward to this year and Ideanomics’ stable of EV-focused subsidiaries. As it stands right now, the company has everything from EV tractors and motorcycles to wireless charging and, most recently, hybrid solutions via its acquisition of US Hybrid.
In its latest quarter, the company reported over $32 million in revenue and a gross profit of $10.8 million. This was the 5th consecutive quarter of growth for Ideanomics, which also included a cash position of $356 million as of March 31, 2021.Electrameccanica Vehicles Corp. Ltd. (NASDAQ: SOLO)
Another one of the electric vehicle penny stocks to watch is Electrameccanica Vehicles. The company manufactures purpose-built individual-use EVs. The flagship SOLO EV is a single-passenger vehicle built with maneuverability and easier means of commute in different metropolitan environments.
Though it’s not breaking any speed record with a 0-60 time of 10 seconds, the company has made a point to say it isn’t trying to compete with the likes of Tesla, for instance. The company does offer other models for pre-order right now. These include its sports car-inspired Tofino as well as its eRoadster all-electric two-seater.
Last month Electrameccanica officially broke ground to begin constructing its new U.S. Assembly and Engineering Technical Center in Arizona. With a newly appointed Chief Operations Officer, Kevin Pavlov, onboard and in light of the recent groundbreaking event, this could be an important year for Electrameccanica. According to a recent news release, Pavlov served as operations chief at Karma Automotive before joining the Solo team.
A look at the technical perspective shows that SOLO stock has approached its 50-Day moving average. This has been a level of resistance ever since the stock dipped below it in mid-February. Considering the momentum in the EV market right now in light of the Biden Administration’s latest budget proposal, it will be interesting to see if SOLO can break back above this major moving average.Aqua Metals Inc. (NASDAQ: AQMS)
You also can’t forget the ecosystem surrounding electric vehicle penny stocks. Aqua Metals serves in the capacity. The company focuses on metals recycling using its AquaRefining technology. In particular, the company’s technology allows it to use a water-based process to cleanly generate pure metals from scraps and things like used lithium-ion batteries.
In fact, during the first quarter of the year, Aqua Metals was a big point of interest following a $1.5 million investment into a cleantech lithium-ion battery recycling start-up, LiNiCo. The company also entered into a lease-to-buy agreement for a non-core McCarran Nevada AquaRefinery with LiNiCo.
CEO Steve Cotton explained in the company’s latest earnings that “Our primary focus is to secure our first AquaRefining license and equipment supply partnership. Aqua Metals is very close to achieving that goal. Other recent initiatives have included an investment in a strategic partner, paving the way for the formation of an alliance of companies to advance clean recycling technologies for lithium-ion batteries.”
Given the current climate for green energy companies, AQMS has become a focus for traders. There haven’t been many new updates in recent weeks. However, the bullish sentiment stemming from the Biden Administration’s infrastructure plan could be something to keep in mind, especially for companies like AquaMetals.Green Energy Penny Stocks To Watch Right Now
This isn’t to say that the only penny stocks to watch in June are green energy stocks. There are plenty of other trends to consider including reopening, for example. However, since there’s a more near-term potential catalyst in the latest infrastructure bill being presented, this could be a niche of the stock market to watch heading into the first half of June.
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