The lower price tag on buying penny stocks can be the first spark of inspiration for new investors. Penny stocks present an opportunity for buying cheap stocks which are potentially profitable; however, the risk in these lower priced stocks is not insignificant.
Consider buying penny stocks in growing industries including digital and advanced technologies.
#1: Internap Corp (NASDAQ:INAP) penny stocks are a result of low revenue and their potential rise may result from recent business decisions.
Internap Corp specializes in data and cloud platform providing, a service currently in great demand and not likely to dissipate soon. In 2015, the company’s stocks traded above $40; however, by 2016, they were reduced to stocks under 5. What the company has lacked over the past few years is top line revenue growth; therefore, it has taken measures to cut costs and improve margins. With adjusted EBITDA, the penny stocks could rise regardless of low revenue. To reduce debt this year, Internap issued stock and acquired SingleHop, a managed hosting provider, to boost growth.
#2: Applied Optoelectronics Inc. (NASDAQ:AAOI) has stocks to watch as business fluctuates following pressure from a major customer.
From its somewhat humble start in 2017 around $20, the fiber-optic networking provider stocks rose to $100 by July of the same year. The enthusiasm for what this company had to offer sank due to pressure from one large customer and unfortunate Q3 guidance, ending in a two-thirds loss following the stock’s peak. Considering the likelihood for increased demand and competition for 100G transceivers, the company could lose shares in Amazon and Microsoft; however, the market is expected to grow and AAOI stocks are currently priced for another drop in revenue.
#3: Plug Power Inc. (NASDAQ:PLUG) penny stocks have a volatile history to discourage investors lacking vision for its niche industry potential.
Power Plug creates fuel cell-powered vehicles and is a prime candidate for finding a niche market in industrial applications similar to business giants like Amazon and Wal-Mart. However, the company’s shares lost 99.8% of its value following highs in 2000. Deals made with both Wal-Mart and Amazon provided temporary rises, but, Power Plug’s history has made it a questionable investment to most cautious market participants. Despite weak gross margins, cash flow improvements could make these penny stocks worth watching this year.
Penny stocks in the healthcare sector are not the “safe bets” they once were; however, the following related stocks have profitable potential.
#4: Tenet Healthcare Corp (NYSE:THC) penny stocks may be just as likely to improve as degrade and investors looking for stocks to buy need to have a high risk tolerance to potentially make a profit.
Thanks to federal alterations, health insurance providers began to fight for increased cost controls and outpatient procedures, resulting in a costly “kickbacks” settlement with four Atlanta hospitals for Tenet Healthcare. The debt load (close to $15 billion) combined with the $2 billion estimated market capitalization is, obviously, off-putting for investors. Nonetheless, if they cut costs and remain profitable by Ebitda standards, $150 million could be reserved this year. Tenet is trying to sell its Conifer financial services unit; if this plan works, these penny stocks could soar. Keep in mind, if declines persist, the company could go bankrupt.
#5: Trevena Inc. (NASDAQ:TRVN) penny stocks have seen fewer losses than anticipated.
Trevena is a biotechnology company working on relevant medical treatments to include a Phase III candidate for acute pain and a new migraine relief drug. Their penny stocks are finally starting to experience a boost while in the midst of a four-month consolidation range near $1.60 per share. As investment capital continues to fund the company’s development, Trevena’s penny stocks have growth potential over time.
#6: Idera Pharmaceuticals Inc. (NASDAQ:IDRA) is a competitor in the race for cures for lifethreatening illnesses with penny stocks expected to soar.
This clinical-stage drug development business creates treatments which may aid in the cure for cancer and some rare diseases. This company was granted fast-track FDA designation for a particular product listed as IMO-2125, meant to relieve victims of metastatic melanoma alongside Ipilimumab. These products put Idera in the running for penny stocks to buy now as its new products have great potential in this fast-moving industry.
Rounding off the list of hot penny stocks to watch closely include familiar companies for entertainment and shopping.
#7: Gaming equipment provider, Everi Holdings Inc. (NYSE:EVRI), has penny stocks which could render great rewards if the economy remains strong.
Everi shares rose 600%+ in just under two years; however, priorities in the industry of saving money over upgrading equipment made investors nervous. Much of the stock was sold off. If more businesses become interested in going through an upgrade cycle for their equipment, these penny stocks could rise significantly and rapidly. The reward is potentially as great as the risk in investing with Everi, with the company’s large debts and reliance on a continuing strong economy.
#8: AMC Entertainment Holdings Inc (NYSE: AMC) penny stocks need a relatively small increase to rise above the streaming fad.
Over 38% of the AMC stock float was sold short. If the numbers of people attending movie theaters decreases, revenue for AMC and other related stocks will plummet and the debts will grow. On the other hand, if their currently cheap penny stocks rise to even a modest $30, the gains could rise 100% from the low. Among the experts, the debate of whether or not AMC has great stocks to buy now is heated and the reward would indeed be impressive with just a little effort.
#9: J C Penney Company Inc. (NYSE:JCP) penny stocks suffered from a bad call on the part of new management.
Whereas you may have been dragged to J C Penny’s for your back-to-school clothes, new management wanted to focus on stocking appliances. The established customer base balked at the rescinding of the discount prices they had come to expect and the attempt was, ultimately, a failure. Buyers for these penny stocks are returning, however, and analysts suspect earnings of 44 cents per share on revenues of approximately $4 billion.
#10: The familiar e-commerce provider, Overstock.com Inc. (NASDAQ:OSTK), may change its focus to improve profitability of its penny stocks.
Overstock.com had stiff competition in the online market world. Over the course of 7 years, the company’s stocks lifted to 30% with an annual return of less than 4%. The stock has since quadrupled thanks to the blockchain hype. Investor interest has focused in on tZERO unit, the Overstock.com digital token. The company is considering selling the e-commerce store to focus on their digital coin ICO. If the company has made the right choice and gets a great price on selling the original store, Overstock.com may prove to have stocks to buy worth attention.