Published on 26 Jan 2022 on InvestorPlace via Yahoo Finance

7 Penny Stocks To Pick Up for Profits in Q1

Based on how the market’s acting lately, now may not seem like the best time to get into penny stocks. With interest rates rising, investors are moving out of riskier assets, and into safe harbors. Growth stocks, from Big Tech companies all the way down to microcaps, continue to plunge in price.

At first glance, that sounds like bad news for low-priced, speculative plays. To a large extent, this is true. Penny growth plays, such as the ones that soared during last year’s meme stock mania, are in freefall. As fundamentals again take precedence over hope and hype, many of the more bubbly penny names have more room to fall before the dust truly settles.

But while it may be best to avoid low-priced growth stocks today, that may not be the case with more value-oriented cheap (in terms of share price) stocks. As value, which for years has lagged behind growth, is coming back into vogue. Coupled with company-specific events/improvements, this could mean there’s a path to higher prices.