Top penny stocks to consider before prices skyrocket

Summary

  • Stocks less than US$5 are penny stocks.
  • These are generally smaller and new companies.
  • They may give chartbuster growth but also carry high risk due to volatility, less liquidity.

Penny stock, as the name suggests, are small stocks priced less than US$5. These are stocks of new or smaller companies whose market capitalization is around US$60 million to US$300 million. These are risky bets as their businesses are small and data is sometimes not readily available. However, many such companies are doing well and growing. Although their stock prices are low, their performance in the past year is worth considering.

Here we explore 10 hot penny stocks in the market.

Wireless Telecom Group, Inc. (AMEX: WTT) is a designer and manufacturer of radio frequency (RF) and microwave components, modules, systems, and instruments.

The company launched its IPO in October 1991. It has a market capitalization of US$ 88.16 million.

WTT’s outstanding shares are 21.66 million, and its free float is 19.61 million. Its share price has risen 129.94% YTD. It closed at US$4.07 on June 30.

Its revenue for the quarter ended March 31, 2021, was US$11.32 million, a 20% increase year over year. It booked a net loss of US$233,000 in the same quarter compared to a net loss of US$1.15 million in the March quarter of 2020.


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Source: Pixabay.

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Xcel Brands, Inc. (NASDAQ: XELB) is a US$57.79 million company in terms of market capitalization. It is a media and consumer product company engaged in acquiring, designing, marketing, and distributing consumer products.

XELB IPO came in 2001. Its outstanding shares are 19.33 million, and its free float is 7.15 million.

The company’s share has gained 125.62% year to date. It closed at US$ 2.99 on June 30.

Its revenue for the March quarter of 2021 was US$7.8 million compared to US$ 9.5 million for the same quarter a year ago. However, it logged in net loss for the quarter to be US$ 2.55 million compared to US$ 805,000 in the same quarter of 2020.

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Dare Bioscience, Inc. (NASDAQ: DARE) is a healthcare company engaged in developing and commercializing women's reproductive healthcare products.

Its market cap is US$ 85.87 million. Its IPO came in 2014. DARE's outstanding shares are 49.35 million, and free float is 46.60 million. The company's share gained 29.11% year to date. It closed at US$ 1.89 on June 30, 2021.

The company has not earned any revenue, as is the case with other similar healthcare companies before products are approved. It booked a net loss of US$7.32 million in March ended quarter, 2021 compared to US$ 4.25 million the corresponding quarter 2020.                            

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Quad Graphics, Inc (NYSE: QUAD) is a marketing management solution provider engaged in providing data-driven, integrated marketing platforms to its clients.

QUAD IPO came in 2010. Its market capitalization is US$231.6 million. Its outstanding shares are 54.68 million, and its free float is 31.83 million.

The stock closed at US$4.15 on June 30, 2021. QUAD’s share price rose 14.40% year to date.

The company’s revenue for the quarter ended March 31 was US$ 705.8 million, a 14% decrease year over year. It booked a net income of US$ 10.2 million in March quarter, 2021, against the net loss of US$ 12.4 million in March quarter 2020.                

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Mammoth Energy Services, Inc. (NASDAQ: TUSK) is a utility provider in North America, serving electric utility and oil and gas industries. 

TUSK has a US$221.7 million market capitalization. The IPO of the company came in 2016. Its outstanding shares are 46.27 million, and its free float is 34.61.

The stock gave 4.72% growth year to date. Its closing price was US$4.59 on June 30, 2021.

Revenue for the quarter ended March 31, 2021, was reported at US$66.8 million compared to 97.4 million in the March quarter the previous year. It booked a net loss of US$ 12.44 million compared to US$ 83.97 million in the same quarter the previous year.           

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Hallmark Financial Services, Inc. (NASDAQ: HALL) is engaged in marketing, distributing and underwriting insurance products and provides insurance-related services to its clients.

Its market capitalization is US$ 81 million. It launched its IPO in 1989. Its outstanding shares are 18.17 million, and its free float is 16.72 million.

The share price increased by 25.56% year to date. It closed at US$ 4.45 on June 30, 2021.

HALL’s revenue and net income for the quarter ended March 31, 2021, was US$ 114 million and US$ 9.35 million, respectively. Its revenue for the corresponding quarter in 2021 was US$101 million. The company booked a net of US$64.3 million for the same quarter in 2020.

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Source: Pixabay.

Charles & Colvard Ltd. (NASDAQ: CTHR) is a jewelry company engaged in making and distributing finished jewelry and loose moissanite jewels.

Its market capitalization is US$88.96 million, outstanding shares are 29.85 million, and free float is 25.87 million. Its IPO came in 1997.          

CTHR share has given 142.52% growth YTD.

For the March quarter, its revenue was US$9.4 million, 45% up year over year, and net income was US$1 million against a net loss of US$6.16 million a year ago.

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Bridgeline Digital, Inc. (NASDAQ: BLIN) provides a digital platform for marketers for e-commerce, e-marketing, web Content Management and analytics and Social Media management.

Its market capitalization is US$40.2 million. Its IPO came in 2007. The company’s outstanding shares are 6.45 million, and its free float is 6.39 million. Its share rose 129.46% year to date.

Revenue was US$ 2.87 million, and net loss was US$556,000 for March quarter 2021. In March quarter 2021, revenue was US$ 2.74 million, and net income was US$822,000.

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Epsilon Energy Ltd. (NASDAQ: EPSN) has a market capitalization of US$119 million. Its outstanding shares are 23.99 million, and its free float is 22.92 million. It launched its IPO in 2019.

EPSN is engaged in acquiring, developing, gathering, and producing oil and gas reserves.

It gained 34.77% year to date.

Its revenue for the March quarter of 2021 and 2020 was US$8.4 million and US$6.4 million, respectively. The company’s net income was US$2.7 million and US$ 310,000 for the same quarter in 2021 & 2021, respectively.

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Sypris Solutions, Inc. (NASDAQ: SYPR) provides outsourced services and specialty products under two segments, Sypris Technologies, and Sypris Electronics.

It has a market capitalization of US$77 million. Its IPO came in 1994. It has outstanding shares of 21.47 million, and its free float is 10.82 million.                      

SYPR share rose 136.84% year to date.

Revenue for quarter ended April 4 for 2021 and 2020 was US$19.98 million and US$ 22.4 million, respectively. It booked a net loss of US$1.6 million and US$ 305,000 for the same period in 2021 & 2020, respectively.

The data in this article has been partly sourced from Refinitiv.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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