Oil Penny Stocks: Is Noble Corp Stock Undervalued Right Now?

Penny Stocks

Oil penny stocks are volatile in the present climate.

The sector fell into a nasty bear market in late 2018, quickly wiping months of steady gains off the board. With prices falling as low as they did (under $50 a barrel), the biggest international brands suffered just as much as the small-fry ones.

So where do you stand as a potential oil penny stocks investor at the start of 2019?

Oil Penny Stocks: Noble (NYSE:NE)

Penny stocks, of course, offer the cheapest entry point for investors, though they come with a higher risk of little to no return. (At least for short-term buyers, anyway.)

That said, at $3.40 and steadily paring its woeful December losses, is London’s Noble Corporation (NYSE: NE)

According to S&P Global Market Intelligence, Noble plunged 37% in December. Ouch. The stock plunged from highs of $7.17 in October to $2.37 by December’s end.

But this was a result of an entire market sell-off and not a unique occurrence to Noble. There is solace to be found in that and it’s offered new investors an opportunity.

January Moves

January kicked off the new year, and the NE penny stock has been steadily climbing again. So perhaps there are some risks in this sector worth taking right now.

Of course, oil prices do dictate this sector like no other, so it really depends on if you think the oil economy will bounce back.

>> Retail Stock to Watch: Spot Coffee Canada Expands in NY

Nobody can be sure of this, but that’s why oil penny stocks, in particular, are so intriguing at present. Many are showing undervalued prices off the back of December’s crash, yet, if oil prices shoot back up in the morning, these stocks are bound to go with it.

The Bottom Line

Operationally, Noble just purchased a second jack-up rig from PaxOcean. The news is a good development for the business, but in the short-term, this penny stock will likely follow oil price fluctuation.

What do you think?

Featured Image: Depositphotos © route66

About the author: Maria Ohle is a content creator spanning multiple subjects. She cites cannabis, business, and culture as her forte’s. Maria holds a degree in Drama and English and has a Diploma in digital multimedia. After two years of writing and working in Vancouver, Canada, she has returned home to Ireland to further her career. She is a dab hand at design as well as art and considers music to be man’s greatest invention.