Investing in penny stocks can often prove to be a pretty exhilarating experience, considering the fact that investors can often make massive gains within a short period of time off the momentum of penny stocks. However, identifying promising stocks can often prove to be quite a task and especially so when the markets are in complete turmoil.
After the market bloodbath at the start of the week, things looked to be somewhat on the mend Tuesday. However, this morning, the selloff has accelerated at an alarming rate. The Dow Jones Industrial Average crashed by 1,400 points today as investors kept exiting from positions.
The market is highly volatile at this point in time, and the United States government is considering options to stabilize it. Treasury yields went down sharply on the back of speculation that the government is considering a bailout package worth $1 trillion. Many of the large-cap stocks declined sharply. However, even during such times, there are some stocks that might show momentum, particularly among penny stocks. Here is a look at four penny stocks that are moving higher in early trading.
Momentum Penny Stocks: Ibio Inc (NYSE:IBIO)
One penny stock that has jumped considerably this morning is Ibio. The company has been in focus since it started developing a coronavirus vaccine, and this morning, it provided a positive update with regards to its development. The stock rallied by 55% this morning.
The company announced that it developed the SARS-CoV-2 Virus-Like Particle in a few weeks by employing the FastPharming System. On March 11, the company filed four provisional patent applications for this. Considering the pandemic is gaining in intensity, it is a highly positive development for Ibio.
Momentum Penny Stocks: Biomerica (NASDAQ:BMRA)
Another penny stock that has been soaring this morning is Biomerica. The reason behind the rise is also linked to the coronavirus. The company announced this morning that it has started shipping samples of its COVID-19 IgG/IgM Rapid Test. This test can produce the results in a matter of 10 minutes (as opposed to days) and, more importantly, a laboratory setting is not necessary to conduct it.
In addition to that, the company has also revealed that it has started the Emergency Use Authorization application process in the United States and has filed a patent application with the USPTO. This is a positive development for Biomerica. BMRA stock rose by 280% this morning on the back of high investor interest. Investors could keep an eye on the stock today and see how it performs.
Momentum Penny Stocks: Blue Apron Holdings Inc (NYSE:APRN)
While the coronavirus pandemic has sunk many stocks, it has also come as a boost for a handful for stocks. One such stock is that of meal kit service firm, Blue Apron. Many cities in the United States have already closed down restaurants, and in addition to that, thousands of people have also started working from home in light of the coronavirus pandemic. In such a situation, Blue Apron’s service could be in high demand, and that potential has led to a strong rally in APRN stock.
Since Monday, APRN has soared by 590%, and this morning, the stock soared by 146%, making a new 52-week high of $19.49. During this time, plenty of people are going to want to use fresh ingredients to cook their meal, and that is where the company’s meal kits could prove to be a highly attractive option. The stock has displayed excellent momentum, and it is likely that Blue Apron’s stock is going to attract significant interest in the coming days.
Momentum Penny Stocks: Waitr Holdings Inc (NASDAQ:WTRH)
Our last contender on this list is WTRH stock, which has emerged as another major penny stock gainer this morning. The stock has already gained 420% this week so far, and this morning, it continued its upward movement with a further 120% growth spurt. On Tuesday, the company announced that it is fully committed to making sure that drivers, diners, restaurant partners, and employees are safe from the coronavirus pandemic.
The company also announced that it has put a range of initiatives in place in order to follow through on its commitment. It is going to offer ‘no contact’ delivery and also provide customers with the option of free deliveries. Drivers who will be delivering the food will also be supplied with gloves.
Lastly, the company revealed that if any employee contracts the coronavirus or has to go into quarantine, the company will continue to pay their hourly wage.
At the time of writing, this penny stock is up by 120% to $1.67.
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