Top Stocks to Watch in January 2025

My top stocks to watch in January 2025 have the kind of volatility that smart traders target. Every day, week, and month I survey the entire market, looking for stocks that are trending in one direction or another. Our job is to identify the stocks that have the potential to make moves and be ready to trade them if those opportunities come about.

7 Top Stocks To Watch

My top stock watchlist picks for January 2025 — based on pattern, price action, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: CRNC	Cerence Inc	– 56.65%
NASDAQ: SOUN	SoundHound AI Inc	+ 1,146.15%
NASDAQ: QUBT	Quantum Computing Inc	+ 2,077.63%
NASDAQ: VIR	Vir Biotechnology Inc	– 27.40%
NASDAQ: XXII	22nd Century Group Inc	– 98.71%
NASDAQ: KITT	Nauticus Robotics Inc	– 87.26%
NASDAQ: RR	Richtech Robotics Inc	– 53.28%

The penny stocks on this list are some of the craziest movers on the market …

Only trade these stocks if you have a solid plan and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top penny stocks!

Top Stocks to Watch Today

My top 7 stock picks are:

• NASDAQ: CRNC — Cerence Inc. — The NVDA-Collaboration Stock That’s Consolidating
• NASDAQ: SOUN — SoundHound AI Inc — The NVIDIA Investment AI Penny Stock on a Pullback
• NASDAQ: QUBT — Quantum Computing Inc — The Quantum Computing Penny Stock on a Pullback
• NASDAQ: VIR — Vir Biotechnology Inc — The Cancer News Stock
• NASDAQ: XXII — 22nd Century Group Inc — The Micro-Float Tobacco Stock
• NASDAQ: KITT — Nauticus Robotics Inc. — The No-News Robotics Sector Spiker 
• NASDAQ: RR — Richtech Robotics Inc. — The Bartender Robotics Stock

Remember — we’re traders, not investors. You need to keep that mentality in mind even if you’re a swing trader.

That means:

• Always having a trading plan — and sticking to it.
• If a stock drops below risk, you need to sell. Only losers hold onto losers.

There are some stocks on this watchlist that are day trade only. Holding onto these volatile small-cap stocks overnight can lead to some nasty surprises, like when a biotech penny stock does a new share offering to cash in on its gains.

These penny stocks aren’t directly impacted by the larger market …

But over the years I’ve noticed an indirect relationship that’s important to understand.

When major indices show strength, it leads to more plays in the penny stock niche.

We still only want to trade the best setups. Here they are … 

Cerence Inc. (NASDAQ: CRNC) — The NVDA Collaboration Stock That’s Consolidating

My first stock pick is Cerence Inc. (NASDAQ: CRNC).

On January 3, CRNC announced that it was expanding its collaboration with NVDA to advance its CaLLM family of language models.

The stock was already consolidating from a spike in November. And the news with NVDA caused prices to spike 240%* higher, to new one-year highs.

Take a look at the chart below, every candle represents one trading day:

The price retreated from the new highs on January 6, but it didn’t give back all of the gains. There’s a strong possibility that we see the price bounce after such a volatile move … 

To learn our trading process, watch the next livestream!

These stocks can follow popular patterns over-and-over again.

SoundHound AI Inc (NASDAQ: SOUN) — The NVIDIA Investment AI Penny Stock on a Pullback

My second stock pick is SoundHound AI Inc (NASDAQ: SOUN).

This was one of the first AI runners when ChatGPT broke the internet in early 2023.

Back then, SOUN spiked from $1 to $4.50. And it smashed past all-time highs in December.

After reaching all-time highs in the mid-$20s, it’s currently trading in the teens.

The recent pullback could be an opportunity. Or it could be a sign that trader enthusiasm is waning.

Take a look at the chart below, every candle represents one trading day:

This is an OG stock in the AI sector … And NVIDIA Corporation (NASDAQ: NVDA) has shares of it.

Not only is it on a bullish trajectory and has big investors like NVDA, but it also has Q3 financial data to back up the momentum!

On November 12, SOUN reported record Q3 revenue that beat expectations.

• EPS of -$0.04, a beat by $0.03.
• Revenue of $25 million, a beat by $2 million.

Make sure to identify major support levels to build smart positions on this stock!

The recent selloff might look scary, but the volatility is still a great sign of tradeability.

Quantum Computing Inc (NASDAQ: QUBT) — The Quantum Computing Penny Stock on a Pullback

My third stock pick is Quantum Computing Inc (NASDAQ: QUBT).

There are a lot of quantum computing stocks spiking in the market right now.

QUBT exploded higher after the company announced, on November 13, that it secured its first order from its TFLN photonic chip foundry.

Since then, the stock spiked 1,800%* over multiple days.

The recent selloff on January 8 is directly related to the comments from Jensen Huang, CEO of NVDA.

The famous tech CEO mentioned that useful quantum computers are still decades away. The words acted as a short-term gut punch for a lot of quantum investors.

 Take a look at the chart below, every candle represents one trading day:

There’s no telling where this stock goes from here. But the recent selloff gives us a lot of room to work with.

Whether it pushes higher from this level or continues the selloff, we can expect more volatility from this stock.

And where there’s volatility, there’s an opportunity to profit!

Vir Biotechnology Inc (NASDAQ: VIR) — The Cancer News Stock

My fourth stock pick is Vir Biotechnology Inc (NASDAQ: VIR).

On January 8, VIR presented bullish data for its cancer-treatment trials

Bullish news related to cancer can act as a great catalyst for these low-priced stocks.

Cancer is a worldwide phenomenon that scientists and doctors have battled for decades. Any potential cure carries a lot of hype in the market.

VIR spiked 80% after this recent announcement.

The chart retreated from the highs of $14 from January 8. But it’s still higher than the pre-spike level. That means we’re looking for intraday bounces!

22nd Century Group Inc (NASDAQ: XXII) — The Micro-Float Tobacco Stock

My fifth stock pick is 22nd Century Group Inc (NASDAQ: XXII).

On January 13, XXII announced that it was ready to back the FDA in a decision to regulate and reduce the nicotine content in cigarettes.

The share price spiked 150%* as a result … 

It’s always interesting to see a tobacco/nicotine company that advocates for people smoking less tobacco/nicotine. But we’ve seen companies like this before … JUUL started the same way.

JUUL was never publicly traded, but the company’s popularity was unmistakable.

Plus, StocksToTrade shows that XXII has a float of only 76k shares. That’s well below our goal of 10 million shares or fewer! The low supply helps prices spike higher when demand increases.

Is XXII the next JUUL?? I doubt it.

But there’s definitely a market for these kinds of companies. And the tiny float will help the stock shoot upward the next time we see an announcement.

Nauticus Robotics Inc. (NASDAQ: KITT) — The No-News Robotics Sector Spiker 

My sixth stock pick is Nauticus Robotics Inc. (NASDAQ: KITT).

This stock didn’t announce any news to push the price higher … 

That’s the true strength of this robotics/AI sector right now. There are stocks spiking without any news. They’re just ‘the right kind of’ company.

The share price started to spike on December 26. But the biggest day of volatility thus far was January 3 … 

Take a look at the spike below, every candle represents one trading day:

I’m waiting to see a bounce from this stock. Especially since the share price is near support that was set by the highs on December 27 and 30.

Watch for intraday bounces and weak-open red to green moves.

Richtech Robotics Inc. (NASDAQ: RR) — The Bartender Robotics Stock

My seventh stock pick is Richtech Robotics Inc. (NASDAQ: RR).

This robotics stock has a longer history of spiking than KITT, it also has viable catalysts to support the price action.

RR has already announced a number of press releases to hype its bartender robot. It’s pictured below from the company’s website:

Keep an eye on the RR price action this month … Similar to some of the other tech stocks on this list, the price dipped lower in early January.

We’re looking for follow-up bounces. Plus, RR knows how to announce press releases that excite traders.

The next announcement could send this stock soaring higher.

Top Stocks Under $5

Hot sector penny stocks — whether we’re talking AI penny stocks, biotech penny stocks, or another sector attracting a lot of news — are something traders should always be looking at. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

It’s important to proceed with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 hinges on a selective and strategic approach. The goal is to tap into their explosive growth potential while implementing robust risk management practices. By zeroing in on companies making news in their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

What Do You Need to Trade Stocks?

The biggest thing you need to become a self-sufficient trader is something money can’t buy…

Patience.

Everything else is easy enough to come by.

Most brokers don’t charge commissions when you buy listed stocks — which is every stock on this list.

You can see the brokers I recommend here.

What else do you need?

You’ll need a trading computer and decent internet. You’ll also need a powerful trading platform like StocksToTrade…

StocksToTrade puts top-of-the-line charts and stock screening at your fingertips. It’s got a built-in news scanner that puts earnings reports and news that move stocks in one place.

We think you’ll see the difference immediately. Get your first 14 days here for only $7.

Then comes the hard part…

You need to learn patterns. You need to find out which strategies work for you. You need to put in screen time…

Paper trading is a good way to get your feet wet. StocksToTrade can do that too.

You need to make trading plans and track your trades. I know, it’s a lot. That’s why I’ve designed the best mentorship program out there — Daily Income Trader.

Our trading community will bring you live webinars, strategy sessions, and the chance to ask questions of me and other top traders.

My goal is to teach you how to think for yourself and trade through any kind of market.

Here’s one of the biggest things I teach you to do… 

How to Find Your Top Stocks to Watch: 5 Tips for Every Day

The best traders don’t believe in ‘hot stocks.’ They watch what the market is doing every single day.

There’s no trick to it. Building a daily watchlist comes down to five easy steps.

#1: Run Your Scans

You know what’s moving by setting your stock screener to pick up the right stocks.

I run scans all through premarket, looking for stocks up at least 10%, on decent volume and a catalyst that isn’t complete garbage.

The market is a game of supply and demand. A stock screener is the best way of measuring that demand.

#2: Know Your Catalysts

Crappy penny stocks will always have press releases and celebrity tweets when they’re running. It’s your job to know what’s fluff and what isn’t.

Luckily, it isn’t hard. Is the market reacting well to it? Then it’s probably decent news.

We have an add-on service specifically dedicated to the news that moves stocks. It’s called Breaking News Chat — and it can be your secret weapon. 

#3: Study the Charts

Studying charts can be the difference between randomly trading a stock and seeing a good entry.

How do I know that most days TSLA starts the day red it often finishes green? It’s because I’ve studied its charts.

#4: Look for Volume

Volume is the biggest indicator of price action.

You can trade a stock move with no news. But you probably don’t want to make a trade with no volume.

This is another thing to study when you’re looking at a chart.

Take a look at a stock’s biggest moves. How much volume does it get when it’s making a move? 

#5: Learn From Other Traders

Never copy another trader’s trades. If you’re last in on a trade, you’ll only make money by luck. And you sure won’t learn to trade for yourself.

The training we offer at StocksToTrade is designed to help you become a self-sufficient trader. We show you how we come up with our trade ideas, we don’t give them to you.

Profit and loss isn’t the mark of a good trader. It’s the planning and execution you put in.

We can help you get there in a few different ways:

• My Weekly Watchlist: On Sundays, my weekly watchlist is free on StocksToTrade’s YouTube channel.
• StocksToTrade Advisory: This is an intro to my trading approach — with premarket sessions, a weekly watchlist, and an in-depth monthly report.
• StocksToTrade Daily Accelerator: This is my no-cost daily newsletter, filled with mindset tips, the best plays of the week, and whatever else I think needs sharing.

Conclusion

I’ve shown you the work that goes into building a watchlist…

And I hope I’ve scared you enough that you don’t take these picks as recommendations!

Trading is something you do at the same time as millions of other people. Having stock picks is as silly as taking cue cards on a date…

And it works about as well.

Your trading success doesn’t depend on any ‘secrets’ I can tell you. The only thing it depends on is you learning about your own trading style.

Treat this watchlist as a starting point. Keep on working on your own watchlists until they fit the way you trade.

What do you think about the stocks I’m watching this month? Have you traded any of them? Let me know in the comments!

*Past performance does not indicate future results