Robinhood penny stocks trade below $5 per share on the Robinhood mobile brokerage platform. Penny stocks have the potential of creating significant returns for day traders considering their affordability. The returns can be generated within a short time, which is why penny stocks are becoming increasingly popular among day traders—although they do require constant babysitting.
The advantage for traders on the Robinhood platform is that they trade 100% free without any commissions, nor a minimum balance requirement. However, it is important to note that these penny stocks lack liquidity because they are infrequently traded, therefore making them susceptible to volatility.
Here are three Robinhood penny stocks to keep an eye on:
Best Robinhood Penny Stocks to Trade Now: GoPro Inc. (NASDAQ:GPRO)
Since mid-March, GoPro stock has gained 60%. Last week, the company withdrew its financial guidance in the wake of the COVID-19 pandemic. The company is also reducing its workforce by 20%, and changing its business model to direct-to-consumer in what it hopes will be a clear path towards profitability. The motion camera maker has been hit during this crisis as most people across the globe are stuck at home because of COVID-19 restrictions.
In Q1, the company reportedly sold around 700,000 cameras, missing on its target guidance of between 850,000 and 900,000 that management had estimated in February. Its revenue is expected to be approximately $119 million, falling short of the guidance range of $140 million to $160 million. Adjusted earnings per share loss will be around $0.30.
Best Robinhood Penny Stocks to Trade Now: Vislink Technologies Inc. (NASDAQ:VISL)
Over the past week, Vislink Technologies stock has gained around 75% in value. The company deals with the development and distribution of various advanced communication products and solutions. For over 50 years, the company has dominated the industry with its innovative products and turnkey solutions that offer reliable connectivity to the military, live production, and government sectors in some of the remotest places across the world.
Recently, Vislink announced that it had received an order of $180,000 for the deployment of satellite communication equipment in Asia. Vislink CEO Carleton Miller indicated that the company’s Satcom solutions have continued to gain robust traction in various international markets. The Satcom system offers reliable, immediate, and secure communications to clients in tough environments where there is no prepositioned infrastructure, or it is unreliable. The company’s product range entails flyaway terminals, man-portable units, vehicle-mounted systems, and other related modules meant to enhance performance and optimize bandwidth.
Best Robinhood Penny Stocks to Trade Now: Verastem Inc. (NASDAQ:VSTM)
Verastem stock took a hit this week, plunging 40% on Monday after it released data from its study investigating its RAF/MEK inhibitor in combination with FAK inhibitor. The company announced data from the ongoing Phase 1 study on VS-6766, which is the RAF/MEK inhibitor combined with defactinib, the FAK Inhibitor, in the treatment of patients with KRAS mutated solid tumors.
There was an overall response rate of 67% in four out of six patients with low-grade serous ovarian cancer who were treated for 20.5 months. On the other hand, in a cohort of 10 patients with non-small lung cancer, one patient attained partial response, with another eight achieving disease control. Around 70% continued receiving the treatment for 12 weeks, while around 30% continued for around 24 weeks. The combination of VS-6766 monotherapy with defactinib demonstrated ORR of 57% in KRAS non-small cell lung cancer.
Robinhood penny stocks can generate significant returns within a short period for day traders. However, it is important to remember that these stocks are susceptible to volatile markets, and there is a possibility of losing your investment.
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