Five penny stocks to consider in July: DLNG, SREV, GASS, TEDU & STEK

The stock market has been through a tumultuous time this year. Whether large-cap or small-cap, companies are struggling to navigate the volatile market. The upswing in the stock market seen last year has withered away due to various negative macroeconomic factors.

Here we discuss five stocks that offered more returns over the past period than the current inflation rate of 8.6%. The returns are calculated based on the closing price of June 17, 2022. 

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Tarena International, Inc. (NASDAQ: TEDU)

Closing price on June 17, 2022: US$4.27

This Beijing-based company provides professional education services, including IT and non-IT courses. It also offers K-12 education services in China. 

For the first quarter of fiscal 2022 ended on March 31, the company reported a revenue of RMB 623.5 million (US$93.2 million), a 16.8% increase YoY compared to RMB 533.8 million (US$79.8 million) in the same quarter a year ago.

Its net profit came in at RMB 26.6 million (US$3.98 million) or RMB 0.47 per share diluted, compared to a net loss of RMB 120.8 million (US$18.1 million) or RMB 2.17 per share diluted in the March quarter of 2021. 

It was the first time that Tarena had made a profit since the pandemic outbreak. The company has a market capitalization of US$241.68, as per Refinitiv. 

Its outstanding shares are 56.60 million, and the free float is 38.37 million. TEDU stock traded in the range of US$15.35 to US$1.46 in the last 52 weeks. 

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Stemtech Corp (OTC: STEK)

Closing price on June 17, 2022: US$5.00

Miramar, Florida-based Stemtech is a global marketing company. It also develops science-based products to help the body maintain healthy stem cells for optimal health. 

For the quarter ended March 31, 2022, the company generated a revenue of US$1.16 million compared to US$1.08 million for the same quarter a year ago.

It booked a net loss of US$0.49 million or US$0.01 per share diluted compared to a net loss of US$166.8 million in the corresponding quarter of 2021. 

The company has a market capitalization of US$223.43 million. Its outstanding shares are 44.69 million, and the free float is 13.76 million. 

The STEK stock traded between US$1.05 and US$5.95 in the last 52 weeks. 

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Dynagas LNG Partners LP (NYSE: DLNG)

Closing price on June 17, 2022: US$3.56

Glyfada, Athens-based Dynagas is a limited partnership company. It owns and operates liquid natural gas (LNG) carriers on multi-year contracts with international energy companies.

The company will release its March quarter 2022 results on June 27, 2022. 

For the fiscal year ended December 31, 2021, its revenue was US$137.7 million compared to US$137.2 million in the previous fiscal year. 

Its net income rose to US$53.2 million or US$0.88 adjusted per common unit compared to US$34.05 million or US$0.74 adjusted per common unit in fiscal 2020. 

The company has a market capitalization of US$186.53 million. Its outstanding shares are 52.40 million, and the free float is 17.64 million. The stock has a P/E ratio of 3.12. 

DLNG stock traded from US$2.55 to US$4.49 in the last 52 weeks. 

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ServiceSource International, Inc. (NASDAQ: SREV)

Closing price on June 17, 2022: US$1.47

ServiceSource provides customer and revenue lifecycle management solutions. Its services include data integration, processes, and cloud technologies. It is based in Denver, Colorado.

For the three months ended March 31, 2022, its revenue was US$48.9 million compared to US$45.02 million in the same quarter the prior year. 

The company incurred a net loss of US$4.38 million or US$0.04 per share diluted compared to US$8.83 million or US$0.09 per share diluted in the March quarter of 2021.  

The company has a market capitalization of US$147.38 million. Its outstanding shares are 100.26 million, and the free float is 96.55 million. 

The SREV stock traded in the range of US$0.93 to US$1.63 in one year.

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StealthGas, Inc. (NASDAQ: GASS)

Closing price on June 17, 2022: US$3.21

StealthGas Inc is a marine shipping company based in Athens, Greece. It owns LPG carriers. It provides transportation services to LPG and crude oil producers, refineries, and traders globally.

The company reported a revenue of US$37.4 million for the quarter ended March 31, 2022, compared to US$35.87 million in the March quarter of 2021.

Its net income came in at US$0.755 million or US$0.02 per diluted share compared to US$7.6 million or US$0.20 per diluted share in the March quarter of the previous year. 

The company has a market capitalization of US$122.63 million. Its outstanding shares are 38.20 million, and the free float is 29.95 million. 

GASS stock traded in the range of US$1.72 to US$4.18 in the last 52 weeks. 

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Bottom line:

The current macroeconomic developments do not add any additional risks to penny stocks, which inherently come with various market risks. Investors should apply due diligence before investing in the stock market.