Top Penny Stocks
This month’s high penny shares, which generally commerce at $5 a share or much less, have risen as a lot as 75% previously yr whereas the Russell 1000 index has misplaced greater than a fifth of its worth. They embody embody biotech firm Atara Biotherapeutics Inc. power exploration agency VAALCO Vitality Inc, and Nordic American Tankers Ltd., a transportation firm.
Investing in penny shares will be dangerous, as a result of the efficiency of particular person corporations varies broadly inside the group. Furthermore, they commerce principally through over-the-counter (OTC) transactions, that means they lack liquidity, and entail greater buying and selling prices. The small-cap Russell 2000 Index, a tough benchmark for penny shares, has fallen 25% previously yr in contrast with the 21% drop within the Russell 1000. These figures and all of these beneath are as of Nov. 3, 2022.
Listed here are the highest three penny shares throughout all industries with one of the best worth, the quickest progress, and essentially the most momentum, respectively.
Contents
Finest Worth Penny Shares
These are the penny shares with the bottom 12-month trailing price-to-earnings (P/E) ratio. As a result of earnings will be returned to shareholders within the type of dividends and buybacks, a low P/E ratio exhibits that you just’re paying much less for every greenback of revenue generated.
| Finest Worth Penny Shares | |||
|---|---|---|---|
| Worth ($) | Market Cap ($M) | 12-Month Trailing P/E Ratio | |
| Protected Bulkers Inc. (SB) | 2.53 | 305.3 | 1.5 |
| GoPro Inc. (GPRO) | 5.00 | 778.7 | 2.2 |
| Altice USA Inc. (ATUS) | 4.44 | 2,019 | 2.5 |
Supply: YCharts
- Protected Bulkers Inc.: Protected Bulkers gives, by subsidiaries, marine drybulk transportation companies. The corporate transports cargo together with coal, grain, and iron ore throughout world transport routes. Protected Bulkers’ final quarterly dividend of 60 cents per Class C or Class D most popular share was paid on Oct. 31.
- GoPro Inc.: GoPro, the know-how firm that sells cameras and mountable and wearable equipment, additionally sells cell and internet functions for archiving, enhancing, and storing footage. On Nov. 3, the corporate reported that internet earnings plunged year-over-year on falling income within the third quarter. The outcomes mirrored troublesome comparisons to a big earnings tax profit within the prior-year quarter.
- Altice USA Inc.: Altice USA is a holding firm that, by subsidiaries, affords broadband communications and video companies primarily beneath the manufacturers Optimum and SuddenLink. The corporate serves clients within the northeast and southern components of the U.S.
Quickest Rising Penny Shares
These are the highest penny shares as ranked by a progress mannequin that scores corporations based mostly on a 50/50 weighting of their most up-to-date quarterly year-over-year share income progress and their most up-to-date quarterly YOY earnings-per-share (EPS) progress. Each gross sales and earnings are vital components within the success of an organization. Subsequently, rating corporations by just one progress metric makes a rating inclined to the accounting anomalies of that quarter (reminiscent of modifications in tax legal guidelines or restructuring prices) which will make one determine or the opposite unrepresentative of the enterprise generally. Corporations with quarterly EPS or income progress of greater than 2,500% have been excluded as outliers.
| Quickest Rising Penny Shares | ||||
|---|---|---|---|---|
| Worth ($) | Market Cap ($M) | EPS Progress (%) | Income Progress (%) | |
| Atara Biotherapeutics Inc. (ATRA) | 4.65 | 438.8 | N/A (see firm description) | 1,230 |
| VAALCO Vitality Inc. (EGY) | 4.97 | 542.4 | 150.0 | 140.0 |
| Olaplex Holdings Inc. (OLPX) | 4.20 | 2,726 | 70.7 | 38.6 |
Supply: YCharts
- Atara Biotherapeutics Inc.: Atara is a biotherapeutics firm using T-cell immunotherapy to develop therapies for sufferers with stable tumors, blood cancers and autoimmune ailments. T-cells are a selected kind of immune cell. Atara does not have an EPS progress determine within the desk above as a result of EPS went from unfavorable to constructive over the interval in query.
- VAALCO Vitality Inc.: VAALCO Vitality is an unbiased power firm that produces, develops, and explores property in West Africa. On Aug. 10, VAALCO reported that income greater than doubled as internet earnings practically tripled YOY in the course of the second quarter, largely attributable to sturdy commodity costs.
- Olaplex Holdings Inc.: Olaplex is a holding firm that, by subsidiaries, sells magnificence merchandise to guard and restore broken hair. On Aug. 9, Olaplex reported strong progress in internet earnings and income YOY, pushed by positive factors within the U.S. and worldwide markets.
Penny Shares With the Most Momentum
These are the penny shares that had the very best whole return over the previous 12 months.
| Penny Shares With the Most Momentum | |||
|---|---|---|---|
| Worth ($) | Market Cap ($M) | 12-Month Trailing Whole Return (%) | |
| ADMA Biologics Inc. (ADMA) | 2.61 | 512.5 | 75.2 |
| VAALCO Vitality Inc. (EGY) | 4.97 | 542.4 | 56.0 |
| Nordic American Tankers Ltd. (NAT) | 3.37 | 683.0 | 49.6 |
| Russell 1000 Index | N/A | N/A | -20.6 |
| Russell 2000 Index | N/A | N/A | -25.0 |
Supply: YCharts
- ADMA Biologics Inc.: ADMA Biologics is a bioptech firm that manufactures, develops, and markets biologics for the remedy of immunodeficient sufferers. Its remedies goal people with immune-compromised or immune-suppressed techniques. ADMA mentioned in late October that it eceived FDA approval to open its seventh plasma assortment facility, which is able to gather plasma for manufacturing and sale within the U.S.
- VAALCO Vitality Inc.: See firm description above.
- Nordic American Tankers Ltd.: Nordic American Tankers is a Bermuda-based worldwide tanker firm with a fleet of about two dozen tankers.
Benefits of Investing in Penny Shares
Potential for Excessive Returns: Most penny shares have tiny market capitalizations, that means it takes a small sum of money to maneuver their share worth considerably. Subsequently, constructive information, reminiscent of signing on a significant buyer or forming a brand new strategic alliance, can result in sizeable returns earlier than the mainstream investing world discovers the inventory. Conversely, unfavorable information can result in vital losses.
Leverage: Penny shares entice buyers with a small quantity of buying and selling capital as their decrease share costs permit them to purchase 1000’s of shares. For instance, if an investor has $500 to take a position, they will buy 2,000 shares of a penny inventory buying and selling at 25 cents. If that inventory doubles over a month, the investor makes a fast 100% return on their funding. Nonetheless, with the identical beginning capital, the investor may afford solely a small variety of shares in most S&P 500 shares, making it virtually inconceivable to realize these positive factors over the identical interval.
Dangers of Investing in Penny Shares
Low Liquidity: Penny shares usually commerce on skinny quantity, that means it may be troublesome for buyers to enter and exit their positions. Furthermore, these shares usually have a large unfold between the bid and ask, which will increase buying and selling prices. For instance, if a penny inventory has a bid worth of $1.00 and an ask worth of $1.50, a dealer wanting to purchase at market will get caught paying a 50 cent per share premium. Subsequently, buyers ought to use restrict orders to reduce buying and selling prices when shopping for and promoting penny shares.
Excessive Valuations: Penny shares that begin shifting quickly greater in worth present up on inventory screeners and should even get media consideration. This usually attracts extra speculators who push costs up even greater, resulting in unstainable valuations. For example, in the course of the dotcom bubble within the late Nineteen Nineties, many penny know-how shares doubled and tripled in worth regardless of not producing any earnings. Nonetheless, when the market turned bearish a number of years later, many Nasdaq-listed penny shares with unsustainable valuations fell considerably or have been delisted.
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