Now is perhaps not the time investors want to be taking speculative risks. The Federal Reserve is intent on raising rates, a move that’s impacted equity valuations across the board. For many penny stocks, this has meant an even more outsized decline revaluation to blue chips than we’ve seen in some time.
That said, at some level, even the worst-looking companies become intriguing to investors looking for value. There are still speculators out there. Accordingly, near-term rallies in various beaten-up stocks are becoming common.
Indeed, high short interest, in penny stocks or large-caps alike, used to be a clear sign to steer clear. Today, these more speculative names have become trading vehicles for seasoned investors to buy.
That said, some penny stocks are starting to look attractive in this environment. Here are three beaten-down names I think may be worth a look. At least, for those with some aggressive growth capital on the sidelines.
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