5 Industries to Research for New Investment Opportunities
Finding new investment opportunities for your portfolio means having your ear to the ground on new industries that are up and coming. The world is a continually evolving place, and there is a lot of money to be made if you’re savvy with how these changes affect several established, not to mention newer industries. Here’s a peek at five sectors for new investment opportunities, but keep in mind you are responsible for doing your due diligence and informing yourself before making any investment in any company.
Technology
There’s no denying that the world is moving at a faster pace than it ever has before. That means plenty of opportunities for investments in this sector that could pay big dividends for patient investors who do their due diligence. Because it’s a highly competitive industry with new companies presenting new products every day, it’s also one of the most active market sectors for penny stocks. Penny stocks are defined as companies that trade at or below $5 per share and present some of the best opportunities for growth for investors. Consider companies like ZIXI, GLUU, and PLUS as new players in the industry.
Oil & Gas
Despite the need to find more reliable renewable energy sources, oil and gas are still a mainstay in how our world operates. Oil prices are hovering at around $70 a barrel, which is well below the $115 per barrel price that was observed in 2011. This downturn has prompted several oil and gas stocks to trend downward, but that doesn’t mean they’ll stay trending downward forever. Consider PTRC and BXE as possible contenders for the best penny stocks to buy in this sector. Both companies are oil drilling companies and have seen the price of their stock plummet as the price of oil has dropped dramatically. These stocks are considered to be primed for comebacks as the price of oil continues to rise.
Finance
Betting on penny stocks in the financial sector is a risky proposition, but it’s also one that brings about a high rate of returns when it does pay off. Consider CPSS which deals with subprime auto loan financing. The stock reached highs of close to $10 back in 2014, and while it’s on a downward trend right now, it is primed to bounce back as the economy continues to recover.
Materials
It’s hard to find a good penny stock in the materials sector, due to the nature of market fluctuations. However, gold penny stocks seem to have the rapid boomerang ups and downs that penny stock investors count on seeing. To break into this sector, consider GORO, NG, or CDE. These gold and silver-focused companies are in a market downturn for now but are poised for a comeback as the price of gold recovers.
Biotech
The biotechnology sector is a sub-sector of the healthcare and technology industries that is growing at a rapid pace. You’ll find more penny stock options in this category than you will any other sector on the market. It presents the biggest risk to investors, but it’s also a favorite among penny stock traders who are hoping to pick a winner. Biotech stocks are highly dependent on the news cycle and the success or failure of drug trials and FDA approval, so it can be a stressful sector in which to invest. However, if you’re determined, you should consider companies like CRIS, NVAX, or CPHI as starting places. NVAX focuses on vaccines for illnesses, while CRIS focuses on new drugs to treat cancer. CPHI is a company that offers Chinese-developed medicines to hospitals and retailers.
