Trending Penny Stocks to Buy Now? 5 to Watch This Week Which trending penny stocks are on your watchlist right now?

5 Trending Penny Stocks to Add to Your Watchlist Right Now

After a volatile and exciting week of trading penny stocks, investors show bullish sentiment in the stock market. Last week, we witnessed record highs with the S&P 500 and Bitcoin, both illustrating just how much positivity there is in the stock market right now.

But, we are also experiencing an unprecedented level of volatility that has led to large intraday swings in both directions. You've also got external factors like extremely bullish buying spikes moves in small-cap stocks like newly-dubbed "Trump Stock," Digital World Acquisition Corp. (NASDAQ:DWAC). This 1,000+% move last week ultimately woke up the broader small-cap space and we saw countless penny stocks surging into the close of the week. Looking ahead we can monitor what else is going on in the world to understand where the opportunity might be heading into the final week of October.

For example, after Bitcoin hit a record high of over $67000 on platforms like Robinhood, we witnessed many crypto and blockchain penny stocks climb substantially in value. This is a more obvious example and a perfect display of cause and effect.

Read more: 6 Best Penny Stocks To Watch As Bitcoin Price Hits All-Time High

With penny stocks, we tend to see speculation play a more prominent role than with blue chips. This is due to their low price, high volatility, and willingness to shift in price. But, this means that investors need to stay as up-to-date as possible on everything going on with the stocks they're interested in.

In addition to looking at company-specific news, traders need to understand what is occurring in the industry at large. All of this will provide traders with a solid backbone on which they can invest. Considering all of this, let's take a look at five trending penny stocks to add to your watchlist right now.

Trending Penny Stocks To Buy [or avoid]

1. Kosmos Energy Ltd. (NYSE: KOS)
2. Cyclerion Therapeutics Inc. (NASDAQ: CYCN)
3. Gaotu Techedu Inc. (NYSE: GOTU)
4. Color Star Technology Co., Ltd. (NASDAQ:CSCW)
5. Inpixon (NASDAQ:INPX)

Kosmos Energy Ltd. (NYSE: KOS)

Kosmos Energy Ltd. is an oil and gas company focused on deepwater exploration. The company actively searches along the Atlantic Margins in places like offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico. Kosmos also owns a gas development offshore property in Mauritania and Senegal. In addition to all of this, Kosmos has a proven basin exploration program that is currently operational.

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On October 13th, the company acquired an additional 18% interest in the Jubilee field and an additional 11% interest in the TEN fields in Ghana from Occidental Petroleum. The total purchase price of the other interests was $550 million. These acquired assets significantly enhance Kosmos' five-year plan. The company expects these additional Ghana interests to generate about $1 billion of incremental free cash flow by the end of 2026.

"This is a compelling transaction for Kosmos that accelerates our strategic delivery and is expected to provide long-term sustainable cash flow from fields where we have a deep understanding of the value and future upside."

CEO and Chairman of Kosmos, Andrew G. Inglis

Since this announcement was made, KOS stock has gone up substantially in the market. Its volume is also higher than its average over the past few trading days. Keeping this in mind, will KOS be on your list of penny stocks to watch?

Cyclerion Therapeutics Inc. (NASDAQ: CYCN)

Cyclerion Therapeutics Inc. is a biotech penny stock that has been climbing in several recent trading sessions. This company creates medicines for serious central nervous system diseases. Cyclerion is involved in the discovery, development, and commercialization of these products. One of its products is CY6463 which is in Phase 2 trials to treat mitochondrial encephalomyopathy, stroke-like episodes, and more.

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On September 22nd, the company announced a publication demonstrating that the administration of a small molecule soluble guanylate cyclase simulator was effective. It reduced markers associated with neuroinflammation in multiple preclinical models. Neuroinflammation is a big part of various diseases such as Alzheimer's and other neurodegenerative disorders.

"A body of preclinical and clinical data supports the development of CY6463 and CY3018, our brain-penetrant sGC stimulators, and administration of CY6463 has been shown to result in positive clinical effects on multiple measures of brain neurophysiology."

Study Author and Head of Translational Medicine at Cylerion, Chris Winrow

In the past few days, CYCN's volume has been almost four times its market average. This is a clear indicator of its trending nature and how popular CYCN stock is right now. With this in mind, will CYCN make your list of penny stocks to watch?

Gaotu Techedu Inc. (NYSE: GOTU)

Gaotu Techedu Inc. is one of several Chinese educational stocks moving in the last week or so. For some context, Gaotu offers K-12 after-school tutoring services in the country. These K-12 services include math, English, chemistry, biology, Chinese, and more. It also provides foreign language courses, professional courses, English test prep services, and qualification exams.

On September 21st, the company released its second-quarter financial results for 2021. During this period, its revenue increased by 35.3% year over year to a total of RMB2,232.3 million. Its gross billings went up 12.2% year over year to RMB2,694.7 million as well. In addition to all of this, Gaotu's paid course enrollments totaled 4.1% higher year over year.

"We say that 2014 is Gaotu's first attempt as a startup, and 2016 is our second start, then we can also say that 2021 is our third start. We should always keep the goal of education in mind, always firmly believe that education is a noble profession. It's undeniable that we have boundless faith in the bright future of the Chinese education industry."

The CEO, Founder, and Chairman of Gaotu, Larry Xiangdong Chen

Over the past week, we've seen several days with GOTU stock moving up in the double-digit percentage points. With this to note, is GOTU on your penny stock watchlist right now?

Color Star Technology Co., Ltd (NASDAQ:CSCW)

Tech penny stocks have certainly been something that traders are zeroing in on this quarter. The broader sector, as a whole, is strongly rebounding into year-end. Everything from information technology to entertainment has benefited. In the case of Color Star Technology, its entertainment-focused model continues attracting attention in the stock market.

Read more: Best Penny Stocks To Buy Now? 3 To Watch At The End Of October

Most recently, a focus on artificial intelligence and its involvement in tech is what Color Star is working on. In particular, it's building a metaverse project that encompasses everything from virtual reality entertainment like concerts and an active platform for non-fungible tokens (NFTs) related to simulation scenes. There are also layers to the metaverse project, including shopping. Via the company's Color Star app, users can access entertainment, social networking, virtual gaming, and even interact with celebrities virtually with their avatars in the metaverse.

With immersive experiences becoming a more significant point of interest since the pandemic, companies like Color Star are working on blending online life with offline reality leveraging entertainment as the pathway to do so.

Inpixon (NASDAQ:INPX)

Sticking with the focus on augmented and virtual reality stocks, Inpixon has gained some interest over the weekend. The company specializes in its Indoor Intelligence™ platform. It has effectively been used for mapping, positioning, and helping create smart & secure environments. While its location awareness technology has helped extend its reach in government-related settings, a recent development could have given a boost when it comes to civilian applications.

Last week Inpixon announced a new initiative along with Ostendo Technology, Inc., a company developing quantum photonics and micro-display technologies. In addition to a current Strategic Collaboration and Cross-Marketing Agreement, the two companies will provide the City of Miami Beach's Washington Avenue Business Improvement District with an augmented-reality-enabled mobile "ExperienceApp.'

This app also supports the integrated use of Ostendo's AR smart glasses for an initial period of two years. According to Nadir Ali, CEO of Inpixon, "Inpixon's ExperienceApp will be built on our CXApp mobile app platform and will incorporate mapping, positioning, analytics, and AR to deliver an exceptional user experience that is productive, intelligent, easy to use, and will be viewed through Ostendo AR smart glasses."

With a surge of post-market action on Friday, it will be interesting to see how INPX stock begins the upcoming week.

Can Penny Stocks Continue to Climb This Year?

Although there is a lot of momentum in the stock market, investors need to choose wisely to have the best chance at making money with penny stocks. And, with this momentum, investors should also understand the root cause and how to use that to their advantage.

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Considering that several factors are impacting blue chips and penny stocks right now, it's best to break it down individually and focus on one area of the market at a time. Considering this, do you think that penny stocks can continue to climb this year?