Power sector penny stocks include oil and gas, clean energy, and EV battery stocks. These have been some of the hottest sectors in the past few years.
Stocks in hot sectors often have news, whether it’s because of government contracts or new technology — or even geopolitical events like the war in Ukraine. The news isn’t always positive, but as traders we focus on the practical. News is the number one thing that moves stocks.
Power sector stocks are also considered to be “defensive stocks.” Even in a bear market, these stocks are usually making money. You can cut down on luxury purchases like vacations, but you’ll still need to fill your car up and heat your home.
Table of Contents
- 1 What Are Power Sector Stocks?
- 2 What Is the Future of Power Sector Stocks?
- 3 Is It Worth Trading Power Sector Shares?
- 4 Power Sector Penny Stocks to Add to Your Watchlist
- 4.1 1. Renewable Innovations Inc. (OTCQB: REII) — The Reverse Merger Penny Stock Supernova
- 4.2 2. Clean Vision Corp. (OTCQB: CLNV) — The Choppy Former Runner Penny Stock
- 4.3 3. Meta Materials Inc. (NASDAQ: MMAT) — The Pump All-Star Penny Stock
- 4.4 4. Vision Energy Corp. (OTCPK: VENG) — The Caveat Emptor Penny Stock
- 4.5 5. Nine Energy Service Inc. (NYSE: NINE) — The Multi-Month Breakout Penny Stock
- 5 Key Takeaways
- 6 Penny Stocks Power Stocks FAQs
What Are Power Sector Stocks?
Simply put, power sector stocks are all stocks from the energy industry. A wide variety of companies fall under this umbrella, including fossil fuel drilling companies, hydroelectric power plants, coal-fired power plants, solar energy providers, and wind farms.
When we talk about power sector stocks, we generally divide them into two categories:
- Renewable energy or green energy like clean hydrogen, solar, biofuel, hydroelectric, and wind energy stocks
- Non-renewable energy like oil, gas, uranium energy, and coal stocks
Non-renewable resources like lithium, which are instrumental in EV batteries, generally fall into the clean energy category. When big sector catalysts — like the Inflation Reduction Act’s billions of dollars in grants for renewable energy — come along, EV battery stocks go for the ride.
Common wisdom dictates that power industry stocks usually rise in value when energy costs increase. Since we’re talking about penny stocks, things are much less predictable. As with penny stocks in other sectors, news catalysts can pop up out of nowhere and create big price swings, which means you need to be ready for just about anything.
What Is the Future of Power Sector Stocks?
While the power industry is on somewhat shaky ground thanks to the pandemic, its upside potential is growing thanks to initiatives like Biden’s grants for EV and green energy companies.
In addition, countries are starting to reduce their dependence on oil due to the Russian war, which resulted in economic sanctions and export caps. Since Russia is the world’s largest oil exporter, oil and gas stocks produced in other countries spiked, as well as clean energy alternatives.
Trading power sector shares is worth it when big catalysts like the pandemic and the Russian oil embargo happen. Even though the sector isn’t as hot as it was in recent years, I’m still keeping an eye on it. It’s just a matter of time before the momentum comes back.
A watchlist will help you respond quickly to price swings and maximize future returns in a hot sector. When making a penny stock watchlist, the most important thing is never to follow someone else’s picks. Study the charts to determine which penny stocks are on the move, and always take your goals and risk tolerance into consideration.
You should keep separate watchlists for each sector you trade, from artificial intelligence to EVs. Hot sector stocks often run in sympathy with each other and with sector leaders… keeping watchlists will help you to spot trends in time to trade them.
A top-notch stock screener like StocksToTrade makes building watchlists easy. You can search both listed and unlisted stocks by sector — as well as a load of other technical and fundamental criteria. It even has built-in watchlists, with the sort of specifications that I look for when building my own watchlists (that’s because I helped design StocksToTrade).
It also comes with the cleanest charts you’ll find, an integrated news scanner, and everything else you need to trade penny stocks like I do.
Power Sector Penny Stocks to Add to Your Watchlist
My top power sector penny stock picks are:
- (OTCQB: REII) — Renewable Innovations Inc. — The Reverse Merger Penny Stock Supernova
- (OTCQB: CLNV) — Clean Vision Corp. — The Choppy Former Runner Penny Stock
- (NASDAQ: MMAT) — Meta Materials Inc. — The Pump All-Star Penny Stock
- (OTCPK: VENG) — Vision Energy Corp. — The Caveat Emptor Penny Stock
- (NYSE: NINE) — Nine Energy Service Inc. — The Multi-Month Breakout Penny Stock
Remember: This is a watchlist, not a buy list. I won’t trade these stocks unless they fit my preferred setups.
And here’s a trigger warning — penny stocks in hot sectors like clean energy attract more scammers than most. You need to know that going in.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
1. Renewable Innovations Inc. (OTCQB: REII) — The Reverse Merger Penny Stock Supernova
My first power sector penny stock pick is Renewable Innovations Inc. (OTCQB: REII) — the stock formerly known as NBLD.
It’s been a while since REII went on its monster run…
It went from $0.08 to $3.72 in 2 days at the start of December. It got me believing in OTC supernovas again… That’s a 4,600% gain!
It didn’t even have to sign a contract to start this rally. Instead it simply changed sectors from real estate to clean energy.
Reverse mergers can be a catalyst… they can also be a disaster. In the world of penny stocks, they often feature shell companies merging with privately-owned companies to pump up their stock.
SPACs are still a hot strategy, the summer pumps just are not, there’s a difference and if you watched more video lessons you’d see that, study up
In the early going, REII has kept me paying attention. Its hydrogen fuel cell business has announced 3 contracts with Fortune 50 companies for EV charging stations. Although these contracts are all in the low millions, they’re with big names like General Motors.
Why I Like It
REII’s December run was exhilarating… but not too profitable for me.
Its 80% bounce on December 5 was one of the most perfect bounces I’ve ever seen. I figured it could do it again. I was wrong, and lost more than $1,200 over several trades as the bouncing ball trended lower (click the link to see my individual trades).
Penny stocks are often unpredictable, especially a reverse merger like REII which doesn’t have a chart to study yet. It was averaging 1.5 million shares traded per day in its first few days of trading… now it’s trading under 50,000 shares most days.
The good news? It can still pull off a nearly 400% run, like it managed around the New Year.
2. Clean Vision Corp. (OTCQB: CLNV) — The Choppy Former Runner Penny Stock
My second power sector penny stock pick is Clean Vision Corp. (OTCQB: CLNV).
CLNV is a clean energy company that pumps out PR for hydrogen fuel cells, plastic conversion, basically anything it can. Even though it recently uplisted from the sketchy pink sheets to the OTCQB market, I’d still trade it with extreme caution.
This true penny stock posted its own 400% run in late November. I tried to dip buy it THREE TIMES in the first hour of trading on November 30… Leading to a total loss of over $4,500 (click the link to see my individual trades)!
Unlike most traders, I believe in being honest about my losses — especially when they’re embarrassing.
Do me & yourself a favor & NEVER believe any penny stock's story or the promoters who advertise them. Expect the absolute worst from every stock, from every "trader" on $TWTR giving tips, never follow ANY alerts from anyone else & instead learn to refine your own trading process!
Giving traders FOMO is how promoters do their jobs, but brainwashed newbies and dishonest traders play into this dynamic too. They all talk about the potential of stocks like CLNV…
I want to show you how even experienced traders can lose with these stocks.
Why I Like It
I’ve gotten a sense of whether its runs will lead to a total collapse like in April 2022, or stay in play like the past couple months. That doesn’t mean I know whether this run will continue…
What I do know is that the market is still responding to CLNV’s pumps.
On December 15 it spiked over 100%. It ran another 90% over New Year’s.
The volume isn’t great, and these spikes weren’t in response to real news. When it announced a new acquisition on January 23, it posted a red day.
I’m going to be careful with this stock — and you should too. But there’s no way I’m taking my eyes off of it.
3. Meta Materials Inc. (NASDAQ: MMAT) — The Pump All-Star Penny Stock
My third power sector penny stock pick is Meta Materials Inc. (NASDAQ: MMAT).
MMAT makes nanocomposites intended for use in a variety of industries — including EV battery production. As often happens with penny stocks, few of these products actually make money…
But when skillfully publicized, this wishful thinking can lead to real returns, like MMAT’s multi-month 260% breakout in fall 2022.
During this run, I was more focused on its preferred shares, which traded under the ticker MMTLP. These shares would soon be converted into common stock in MMAT’s spin-off oil-and-gas company, Next Bridge Hydrocarbons…
Those who held too long are left with stock that gets no voting rights, produces no dividends, and can’t be traded. Basically, MMAT made the stock disappear.
The good news about big losses is that they can be the start of your new life as they should help you realize how important education/preparation is. All those who got annihilated by $MMTLP $MMAT $COSM promoters remember your mistake & vow never to be so trusting/unprepared again
This isn’t MMAT’s first rodeo on the backs of its poor newbie shareholders. Shortly after FINRA halted the pump in MMTLP, the federal regulator slapped 8 promoters with a $100 million lawsuit. One of the focuses of the suit is the criminal pumping that happened in MMAT’s predecessor, Torchlight Energy Resources (NASDAQ: TRCH).
Why I Like It
Why am I watching this deflated pump?
Despite all the bad news, MMAT’s stock has found a measure of support around the $1 level. That’s 40% higher than the stock traded at when it started its October run.
Its brainwashed shareholders haven’t jumped ship yet. Some are in too deep. They need to believe that MMAT will finally deliver on the potential its promoters are always talking about.
There’s cause to think another pump is on the way. MMAT’s cash burn rate makes it a virtual necessity — it’s much more likely to solve its cash flow problems with a new share offering than by monetizing a new product before its reserve runs out. If that cash is to come in the form of exercised warrants, it will need to get its stock price above $1.75.
4. Vision Energy Corp. (OTCPK: VENG) — The Caveat Emptor Penny Stock
My fourth power sector penny stock pick is Vision Energy Corp. (OTCPK: VENG)… except it isn’t.
I’d been watching this obviously manipulated stock for the inevitable panic. That was how I’d made $1,737 in total earnings with this stock (click the link to see my individual trades). But when it lost 50%, then 90% of share value in two separate gap-downs in January, it fell like a stone.
The pump is obviously over — you can’t trade this stock even if you wanted to. VENG’s new caveat emptor designation means that most brokers won’t let you take new positions in this stock.
This didn’t come as a surprise to me. If you’ve studied my 7-step pennystocking framework, you know that this total collapse is the endgame of most penny stocks:
Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp
Why I Don’t Like It
I’m not featuring this stock because I have hope that it will rebound enough to bail out its bagholders…
One DM’ed me the other day. He’d sunk his daughter’s college fund into this stock! Now that it’s gone, he’s beside himself.
He isn’t my student. He was thinking about joining the Trading Challenge in 2017… then he read all of the bad things that promoters have to say about me. He didn’t invest in his education, and fell victim to the HODL trap.
I’m featuring VENG as a cautionary tale. NEVER believe the hype! These promoters make me sick…
Soooooo many promoters promise such big things with their pumps but it ALWAYSSSS ends up bad…read https://t.co/QTYT7tQ5da & watch https://t.co/KhqHFIvHsM & retweet/send this tweet to someone you know who is brainwashed/destined to hold even during the dump too. They MUST learn!
A brazen pump like VENG is the reason I teach. Even the most rudimentary fundamental analysis would have shown that they didn’t have the money to go through with their green energy terminal plans…
And the insane stair-stepper pattern that it followed in November and December (under the ticker VIHDD) showed clear evidence of manipulation. This climb and crash was happening on around 200,000 shares traded a day!
Congrats to my https://t.co/GzKdGBYi7C students NAILING this play LONG and short: Quickbags: 2400 @ 18.10, covered @ 10.4 on $VIHDD Tim its been a unreal journey, but I just passed 500k in trading profits with my $VIHDD trade! EmSi: Thanks for the alert $VIHDD! In 9.25 Out 14.19 pic.twitter.com/kfotX1mw0u
I can’t change the system, and I understand why many people hate penny stocks. But this corruption is going to happen whether or not you trade. I teach the patterns that these promoted stocks follow — these lazy promoters have been using the same playbook since I first started teaching over a decade ago.
The first thing you should learn is Rule #1: cut losses quickly!
5. Nine Energy Service Inc. (NYSE: NINE) — The Multi-Month Breakout Penny Stock
My fifth power stock penny stock pick is Nine Energy Service Inc. (NYSE: NINE).
Consider this last watchlist pick a bonus: an actual, bonafide penny stock success story (at the time of writing at least).
NINE has graduated from penny stock status. That’s because of the 600% run it’s been on since late September.
Back then, it was in the $2s… and it started the year under $1, in danger of being delisted.
Why did it beat out hotter stocks from March’s oil-and-gas run like Indonesia Energy Corp. Ltd.
(AMEX: INDO)? One word: earnings.
NINE’s sales have been helped by the ongoing energy crisis. Its valuation has risen as traders eye “safer” stocks.
I still wouldn’t invest in NINE. It recently filed a $350 million shelf offering — which means it can dilute at any time.
Why I Like It
NINE may have hit its peak in mid-January. Since then, it’s fallen by almost 25%.
If it continues to panic, I’ll be watching for dip buy opportunities.
With sector-wide catalysts affecting stocks in every branch of the power sector, I’m keeping my eye on energy stocks. When you build your own watchlists, follow these three steps:
- Do your own research
- Don’t buy into the hype
- Wait for the right setups to trade — sometimes the best trade is no trade at all
If you want to learn more about trading in this volatile sector, apply for my Trading Challenge today! You’ll learn from my 20+ years of trading experience and mingle with experienced traders. That’s the key to learning how to become a smart, successful, and self-sufficient trader yourself.
What power sector stocks are you watching? Let me know in the comments!
Penny Stocks Power Stocks FAQs
What are the best energy stocks to buy right now?
There’s no “best energy stock to buy” in a vacuum. I build my watchlists with former runners and stocks with good chart patterns. Then I wait for them to run on news and unusual volume.
Power sector shares have been falling due to the war in Ukraine and all the sanctions put on Russia. Russia is the world’s biggest oil exporter, so these sanctions destabilized lots of power stocks in a sector that’s been shaky since the pandemic and ensuing lockdowns.
There is no “best share in the power sector” — even a traditional powerhouse stock like XOM has a rough chart beyond the past two years. I trade stocks to take advantage of these swings, and don’t stick with a stock when conditions are not right.