Penny stocks are typically traded for under $5 per unit and usually belong to small companies. There are fewer takers for penny stocks in the market, so they have low liquidity, and investors may find it hard to sell them at a price that reflects the market. While penny stocks can help you make a significant amount of profit, there is, undoubtedly, an equal degree of risk involved.
Here are the top five penny stocks of 2021:

NexGen Energy Ltd.
NexGen Energy Ltd. is a Canadian uranium exploration and development company. Its stock has returned investors over 271% in the last 12 months, so there’s no reason why it shouldn’t be on this list of the top five penny stocks of 2021. Although NexGen has interests in multiple uranium-related projects, their premier project is the Rook I in Saskatchewan, which comprises 32 mineral claims in the area.

Zovio Inc. (ZVO)
This online education provider’s stock ascended to $7 per share earlier this year, but weak guidance and flagging sales pulled it down again. That said, the company’s strong financial ratios and coding boot camps can help it ascend the charts again. The stock price has, in fact, gone up 22% since May.

Exela Technologies
This Texas-based company provides enterprise-scale transaction processing services and information management. The current stock price of Exela Technologies is $1.60. Today, businesses are concerned with inefficiencies in their processes, and vendors like Exela Technologies can reduce expenses by automating those processes, so their demand is ever increasing. This is another reason why it’s among the top five penny stocks of 2021.

National Asset Recovery Corp
This collateral recovery company specializes in the repossession of motor vehicles and luxury assets like planes, motor homes, boats, and heavy equipment. Although it has come into focus recently, the company doesn’t have significant operations and intends to evaluate several business opportunities. It doesn’t have an active official website either, and the stocks may be counted as momentum-driven penny stocks.

TD Holdings Inc
This China-based holding company is one of the top five companies whose penny stocks you should watch in 2021. The company is involved in commodity trading and provides supply chain management services. Its primary business is commodity trading, mainly non-ferrous metal products like gold, silver, zinc, and copper.