Robinhood penny stocks hold incredible potential for investors to generate significant returns. The Robinhood mobile trading platform offers traders the opportunity to trade with zero fees and without the requirement of a minimum balance. Although most brokers nowadays are introducing a no-commission-charges strategy, most investors with small portfolios prefer the Robinhood platform because of the variety of stocks and exchanges available.
Following the recent market turmoil, some stocks that were not previously penny stocks dropped into penny stock territory. This makes these kinds of stocks, and all other penny stocks, susceptible to market volatility but with the potential to offer day traders incredible returns within a short period. This is the reason why several investors are attracted to penny stocks. Because these stocks trade infrequently, they lack liquidity, making them highly speculative.
Here are 4 Robinhood penny stocks to keep an eye on:
4 Robinhood Penny Stocks: FuelCell Energy Inc. (NASDAQ:FCEL)
In the last two weeks, FuelCell Energy stock has surged around 15%. The company deals with clean fuel cell solutions for recovery, supply, and energy storage. Last week, the company announced that it had reached an agreement with the SEC for the settlement of the proposed proceeding in connection to particular sales related to its common shares in the open market.
The company indicated that the SEC is not looking for disgorgement or a penalty. However, FuelCell could be subject to some actions for damages or rescission concerning such sales. FuelCell has not agreed or denied any of the proposed findings from the SEC, as per the agreement.
4 Robinhood Penny Stocks: Groupon Inc. (NASDAQ:GRPN)
Due to the beatdown the COVID-19 outbreak has caused Groupon, the company recently announced several measures to help it protect and rationalize its operations. Among the measures taken is the furloughing of staff and layoffs. In its regulatory filing, the online retailer indicated that it will lay off 2,800 workers globally in phases over the coming months. This is around 40% of its total workforce.
>> Why Are These 3 Robinhood Stocks Under $1?
The company has also implemented a temporary rights plan expected to expire on March 10, 2021. Under the plan, each shareholder will receive one right for each of their Groupon shares. In the event an investor gains more than a 10% stake of Groupon’s common shares, the rights held by others will entitle them to acquire more shares. This is referred to as a “poison pill,” which is a measure taken to stop takeovers when the stock is volatile.
4 Robinhood Penny Stocks: GoPro Inc. (NASDAQ:GPRO)
There are growing concerns from investors regarding whether GoPro will survive the current market turmoil. On Wednesday, its stock dipped 15.3%, putting it 20% down year to date as investors rush for safer investments. Although there was no specific news from GoPro to trigger this plunge, this week, the camera maker began discounting its Hero8 Black camera, which is the company’s best-selling motion camera.
The Hero8 Black is now available at $299.99, with a package of accessories and memory card for $349.99. This is a $100 discount from a company that rarely discounts its products in spring. It appears that the action camera company is clearing inventory to raise cash, most likely because of the impact on demand the coronavirus shutdown on action sports and travel is causing.
4 Robinhood Penny Stocks: Catalyst Pharmaceuticals Inc. (NASDAQ:CPRX)
For investors looking for good Robinhood penny stock bargains, Catalyst Pharmaceuticals should be the first choice. This year, the rare-disease manufacturer has been slammed for no reason. The company markets a Lambert-Eaton myasthenia syndrome drug known as Firdapse. There has been controversy over the annual price of the drug, but this didn’t seem to affect sales.
According to the company’s latest quarterly update, the drug is in line to generate sales of around $135 million to $155 million in 2020. Some believe there is potential in this stock once the market normalizes. Investors not afraid of risk could consider this slammed biotech stock.
Bottom Line
These 4 Robinhood penny stocks present an incredible opportunity for day traders to earn some returns. Remember, however, that because of high volatility, penny stocks are risky and require proper research before making any decisions.
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