Penny stocks may seem like a good place to start if you are new to investing. As their name implies, a penny stock is one whose share price is under $1, though the term often includes stocks that are valued under $5.

But a low price does not mean low risk. Sure, they can gain traction quickly, but if they can swing quickly upward they can also do the same in the opposite direction. This is why they are more volatile than the major indexes; and while the price per share may not be very high, these quick swings can result in bigger margin losses, even if they don't damage your financial portfolio too badly.

That said, here are a few penny stocks making big moves right now, and are definitely worth watching (if not investing, in some cases).

Arrival SA is A [Moderate] Buy

When it comes to penny stocks, though, at least one EV company is a solid BUY right now. Arrival SA (NASDAQ: ARVL) is an [commercial] electric vehicle manufacturer. They design EV technologies with scalable micro-factories. Combined with proprietary components, materials, and software—all developed in-house—their efforts help improve pricing for fossil fuel variants and lower total ownership cost that is actually sustainable.

Obviously, EV manufacturers are of great interest right now, so their stocks can be very competitive. Tesla (NASDAQ: TSLA) stock, for example, is near $200 a share (which is actually only about half its 52-week high). Rivian Automotive (NASDAQ: RIVN) share value may be more attractive, at about $35 (in mid-November), but that is only the bottom 10% of its 52-week range, so its average price should be much higher.

Arrival SA shares are currently selling at around $0.50. While their 52-week high is $13.92, the stock is expected to make up some ground within the coming months, to reach a price target of $5.67 by the time they release their next earnings report (February 14, 2023). Furthermore, Arrival is expected to outperform with an upside of 1,079.8%.

Perhaps the biggest selling point for Arrival SA stock is its long list of partnerships. For one, Arrival has partnered with Microsoft to develop its Automotive Open Data Platform. They have also partnered with UPS to address electric van needs; and, similarly, with Uber, to develop electric car fleets for the ride-hailing industry.

This makes ARVL a Moderate BUY.

Canoo Inc Is Also A Moderate Buy

Canoo Inc (NYSE: GOEV) is a mobility technology company in the same space as EV manufacturers, though they focus on what they describe as “lifestyle vehicles”. Effectively these are multi-purpose vehicles that can offer more versatile utility than a traditional sedan/ family vehicle.

Founded in 2017, the stock is only about two years old. In that time, the value has fallen from its IPO price of $22.82 to $1.525, which is just north of its 52-week low.

While Canoo, Inc does not have great returns on equity or assets, right now, their beta indicates they are only 21% more volatile than the whole of the S&P 500. Still, their Price/Sales ratio (163.05) and Earnings Per Share (-$2.25) are not what many would consider impressive—and the stock is down -82.25% on the year, so far.

However, GOEV has been on a tear the past month, up +18.22%. More importantly, the stock has an upside of 285.25%, which means analysts think it could do better than it initially expected. After all, HC Wainwright analysts recently raised their outlook on Canoo, Inc.

More importantly, though, the company recently announced plans to open a manufacturing plant in Oklahoma City. This plant will create at least 500 new jobs but, more apparently, will be equipped to produce upwards of 20,000 vehicles a year by the end of 2023.

This makes GOEV also a moderate Buy.

Snail, Inc is a Hard Sell, For Now

Free-to-play online gaming is also a big market right now and within this market, Snail, Inc (NASDAQ: SNAL) shares are also in the realm of penny stocks. Less than a week ago, the leading global independent game developer and publisher saw its share price jump from its all-time low of $1.54 to its all-time high of $4.36 only to settle, this week around $3.37.

Of course, SNAL stock had its first trading day on November 10, 2022, so they don't have any past trends to observe. Snail, Inc. stock has already hit a new high and started to revert back down, making this penny stock a bold SELL option for the time being. It could, of course, just as easily bounce back again—as it is a young and building moment—but analysts seem to be adamant that unloading the stock is your best bet; at least for now.

Sell your SNAL shares, if you have them; you may get them back at a better price later.