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Are Penny Stocks on Robinhood Worth It? 3 to Watch This Week

·6 min read

3 Hot Penny Stocks to Watch on Robinhood Right Now

With so many penny stocks to buy on Robinhood, making the choice can be complicated. But, because there are so many options, there are also plenty of opportunities to make money with penny stocks on Robinhood. To understand it further, let’s go over why Robinhood is so important and what that means for investors.

Are Penny Stocks on Robinhood Worth It?

If we look back at trading penny stocks and blue chips only five years ago, the difficulty of setting up an account and the high cost of making trades, meant that the barriers to entry were sizable. And, this also meant that trading was reserved for those with more than average capital, and those who were willing to pay the high costs associated with trading.

While this had worked for decades previously, a new generation of investors were ripe to capitalize on the potential that the market could have. Enter Robinhood, a no-fee, easy-to-use platform that made trading accessible to all. And now a few years later, we are living with one of the most democratized markets in the history of stocks.

[Read More] Top Penny Stocks to Buy In a Down Market? 3 For Your List

So, while this has its downsides such as high market volatility, there is also greatly increased volume. And high volume combined with large intraday fluctuations in price means that there could be plenty of money to be made with penny stocks in 2021. So, with Robinhood going nowhere anytime soon, it is a great opportunity to find penny stocks to buy with no added costs. Considering that, let’s take a look at three small caps to watch right now.

3 Penny Stocks to Watch on Robinhood

  1. Sesen Bio Inc. (NASDAQ: SESN)

  2. Alset Ehome International Inc. (NASDAQ: AEI)

  3. Hepion Pharmaceuticals Inc. (NASDAQ: HEPA)

Sesen Bio Inc. (NASDAQ: SESN)

Sesen Bio Inc. is a biotech company that has lost quite a bit of its value in the past few months. Before we get into why let’s talk about what the company does and whether it could have value in the future. Sesen creates targeted fusion protein therapeutics. These treatments are used for patients that have cancer. One of its products is Vicinium, which is in a Phase 3 clinical trial to treat bladder cancer. The company also has VB6-845d, which is for treating solid tumors.

So, what exactly caused SESN stock to lose almost 60% of its value in the past six months? The company received a complete response letter from the FDA for Vicinium. The FDA could not approve the Biologics License Application, which is understandably bad news for the company. Despite this, SESN stock has been recovering slightly in the past week or so. Could this mean that SESN is on its way to recovery?

Right now, the biotech industry is on fire, and there are constant winners to be had. But, it’s worth looking at every aspect of the company and its pipeline to see if it is worth it or not. While the CRL from the FDA is not great news, it is nowhere near the end of the line for Sesen Bio. Considering this, will SESN stock be on your penny stocks watchlist moving forward?

Penny_Stocks_to_Watch_Sesen_Bio_Inc
Penny_Stocks_to_Watch_Sesen_Bio_Inc

Alset Ehome International Inc. (NASDAQ: AEI)

Alset Ehome International is one of the decent gainers of the day so far, despite the stock market trending down on September 8th. With over 7% in gains today, AEI stock has climbed by over 29% in the past five days. So, what exactly does AEI do? Alset Ehomeis a holdings company with a focus on sustainability.

[Read More] 3 Penny Stocks That Are ‘Must Watch’ Candidates in September

It offers everything from property development and financial services to bio-health activities and consumer products. Today’s sizable uptick likely comes from an announcement made during early morning trading. The company stated that it has increased its position in Document Security Systems Inc. (NYSE: DSS) with a $15 million investment. This investment involves roughly 12.15 million shares of DSS stock at a price of roughly $1.234 per share.

“This exercise demonstrates the confidence AEI has in DSS and exemplifies the value we place in DSS as a company that we are able to work together with for a brighter future. We are excited by what lies ahead for the two companies and what we are able to achieve together on an accelerated basis through a shared vision.”

The Chairman and CEO of Alset Ehome, Head Fai Chan

It’s worth noting that we’ve covered DSS stock numerous times in the past few months. And, this move looks like an interesting one for AEI stock. Whether this makes AEI worth buying or not is up to you.

Penny_Stocks_to_Watch_Alset Ehome (AEI Stock Chart)
Penny_Stocks_to_Watch_Alset Ehome (AEI Stock Chart)

Hepion Pharmaceuticals Inc. (NASDAQ: HEPA)

Another decent gainer of the day is HEPA stock, pushing up by around 5% at EOD. This brings HEPA stock’s one-month gain to over 15% which is quite substantial. As mentioned above, the biotech industry is heating up right now, and many companies are seeing the resulting bullish momentum.

But, to understand why shares of HEPA pushed up today, we have to see what the company does. While no announcements came out during trading today, Hepion does have some interesting prospects in the works. Right now, its leading drug candidate is known as CRV431, which is a cyclophilin inhibitor. The drug is currently in trials for the treatment of NASH, but it could be used in a variety of liver disease treatments.

In addition to this, Hepion has created an AI platform that is completely proprietary. It calls it AI-POWR, which stands for Artificial Intelligence – Precision Medicine; Omics, World database access, and Response/Clinical outcomes. It is using this process to build upon its Phase 2a program for the treatment of NASH. And, it could help the company to produce better compounds in the near future. So, while it is difficult to pinpoint why there is bullish sentiment today, especially considering the overall market drop, HEPA stock could be worth looking into for some.

Penny_Stocks_to_Watch_Hepion Pharmaceuticals Inc. (HEPA Stock Chart)
Penny_Stocks_to_Watch_Hepion Pharmaceuticals Inc. (HEPA Stock Chart)

Which Robinhood Penny Stocks Are You Watching?

Finding the best penny stocks on Robinhood all comes down to knowing what type of investor you are and where to look. But, with so many choices, it can be difficult to pick just a handful for your watchlist.

[Read More] 4 Biotech Penny Stocks To Watch After EFTR Stock Jumps 351%

The best way to go about it is to understand what the market is doing and how to use that to your advantage. Considering this, which Robinhood penny stocks are on your watchlist?