August 17, 2021 7 min read

This story originally appeared on StockNews
The remote working culture is expected to continue partly due to the rapid spread of the COVID-19 Delta variant, which is necessitating the re-introduction of pandemic restrictions in some countries and locales. This, coupled with the ongoing digital transformation in several industries, should drive the demand for software solutions. Therefore, we think prominent software stocks Adobe (ADBE), Constellation Software (CNSWF), NICE Ltd. (NICE), and PTC Inc. (PTC), which are rated A (Buy) in our proprietary rating system, could continue climbing in price. So, let’s take a closer look at these names. Read on.

The software industry has been one of the biggest beneficiaries of the COVID-19 pandemic, given the surge in demand for digital solutions by virtually every industry. The artificial intelligence (AI) market is also booming, given its broad applications in core industries. According to the International Data Corp. (IDC), AI spending is on track to increase 15.2% year-over-year in 2021. IDC analysts also expect growth to remain robust in the subsequent years.

Because COVID-19 cases are rising again, several countries are reintroducing social distancing and travel restrictions. Given this backdrop, remote working should continue for the next few months at least. Also, the ongoing digital transformation in almost every sector is expected to accelerate the software industry’s growth.

Therefore, we believe that fundamentally sound stocks Adobe Inc. (ADBE), Constellation Software Inc. (CNSWF), NICE Ltd. ADR (NICE), and PTC Inc. (PTC), which have overall  A (Buy) ratings in our proprietary POWR Ratings system, could continue advancing.

Click here to check out our Software Industry Report for 2021

Adobe Inc. (ADBE)

ADBE is a well-known San Jose, Calif.-based software company that operates through three segments: Digital Media; Digital Experience, and Publishing. The company offers products and services for creating, managing, measuring, optimizing, and engaging with compelling content and experiences.

On April 27, ADBE announced the next generation of its Real-time Customer Data Platform (CDP), which is the only enterprise application architecture built from the ground up for first-party data-driven customer acquisition and engagement. The company expects to partner with brands to deliver relevant, responsive, and respectful experiences through first-party data.

ADBE’s revenue increased 22.6% year-over-year to $3.84 billion in its  fiscal second quarter, ended June 4. Its gross profit stood at $3.39 billion, up 25% from the same period last year. And its  operating profit grew 38.4% from its  year-ago value to $1.41 billion. Its cash and cash equivalents balance rose 39.6% from the prior-year quarter to $4.25 billion over this period.

A $4.04 billion consensus revenue estimate for its fiscal third quarter (ending November 2021) indicates an 18.1% increase year-over-year. The Street expects the company’s EPS to rise 9.6% from the prior-year quarter to $3.08 in the next quarter. ADBE has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters.

ADBE gained 27.8% over the past six months to close yesterday’s trading session at $636.94. The stock has gained 41.6% over the past year.

ADBE’s strong fundamentals are reflected in its POWR Ratings. ADBE has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.

ADBE has an A  grade  for Quality, and a B for Stability and Sentiment. Among the 145 stocks in the Software – Application industry, ADBE is ranked #20.

Click here to view additional ADBE ratings for Growth, Value, and Momentum.

Constellation Software Inc. (CNSWF)

CNSWF, together with its subsidiaries, acquires, builds, and manages vertical market software businesses in the United States, Canada, Italy, Germany, India, United Kingdom, Brazil, Switzerland, Austria, Israel, and internationally. The company is headquartered in Toronto, Canada.

On June 7, CNSWF announced the completion of an  agreement with Fair Isaac Corporation (FICO), a leading predictive analytics and decision management software company, to purchase its collection and recovery business. This agreement should enhance its portfolio and allow the company to grow, leveraging FICO’s expertise.

CNSWF’s revenues increased 35.5% year-over-year to $1.25 billion in its fiscal second quarter, ended June 30. Its EPS grew 6.7% from its  year-ago value to $4.16. The company’s cash and cash equivalents balance rose 45.5% from the prior-year quarter to $851 million over this period.

A $1.33 billion  consensus revenue estimate for its  fiscal third quarter, ending September 30, 2021, indicates a 32.5% improvement from the same period last year. Analysts also expect the company’s revenue to come in at $1.40 billion in the next quarter, indicating a 28.7% rise year-over-year.

Over the past year, CNSWF has gained 42.9% to close yesterday’s trading session at $1,640.37. The stock has gained 25.9% year-to-date.

The company has an overall B rating, which translates to Buy in our proprietary rating system. In addition, CNSWF has an A  grade  for Stability, and B for Quality. It is ranked #25 in the Software – Application industry.

Beyond what we’ve stated above, we have also rated CNSWF for Growth, Value, Sentiment, and Momentum. Click here to view all CNSWF ratings.

NICE Ltd. ADR (NICE)

NICE provides enterprise software solutions worldwide. The company also provides AI-driven smarter processes, agile workforce engagement, and customer experience management solutions. NICE, which is based in Ra’anana, Israel, operates in two segments: Customer Engagement and Financial Crime and Compliance.

On August 4, NICE launched its  CXone SmartAssist, powered by Amelia, the industry’s leading conversational AI solution for customer service, to improve conversations across the customer experience (CX) journey. The industry’s first and only purpose-built AI trained to understand the intricacies of customer engagement demonstrates the company’s technological prowess.

NICE’s total revenue increased 16% year-over-year to $456.03 million in its  fiscal second quarter, ended June 30. Its gross profit grew 18.7% from the year-ago value to $305.52 million. NICE’s operating income came in at $63.98 million, indicating a 14% rise year-over-year. The company’s non-GAAP EPS increased 14.6% year-over-year to $1.57.

The Street expects NICE’s revenues to rise 13% year-over-year to $465.86 million in the current quarter, ending September 2021. The $1.58 consensus EPS estimate for the current  quarter indicates a 12.3% improvement year-over-year. Shares of NICE have gained 21.2% over the past year and 4.6% over the past month.

It’s no surprise that NICE has an overall B rating, which equates to Buy in our POWR Ratings system. NICE also has a B grade for Stability and Quality. In addition, it is ranked #16 in the Software – Application industry.

To see additional POWR Ratings for Growth, Value, Momentum, and Sentiment, click here.

PTC Inc. (PTC)

PTC is a global computer software and services company. It offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM), and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. PTC is based in Needham, Mass.

On May 27, PTC released its  new Vuforia Instruct™ offering, which is designed to streamline the creation of 3D CAD-based work instructions. This enhancement should enable industrial organizations to increase productivity, improve quality, and reduce unplanned downtime. Thus, PTC’s offering from the Vuforia Enterprise Augmented Reality (AR) Suite is expected to be in wide demand.

PTC’s total revenues increased 23.9% year-over-year to $435.67 million in its  fiscal third quarter, ended June 30. Its operating income grew 16.1% from its  year-ago value to $73.58 million, while its net income improved 47.7% year-over-year to $51.20 million. The company’s EPS increased 43.3% year-over-year to $0.43.

Analysts expect PTC’s revenues to increase 20.4% year-over-year to $1.76 billion in the current year. A $3.53 consensus EPS estimate for the current  year indicates a 37.4% rise from the last year. Also, PTC surpassed the Street’s EPS estimates in each of the trailing four quarters. Shares of PTC have gained 49.9% over the past year and 10.4% year-to-date.

It is no surprise that PTC has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The stock also has a B grade for Sentiment and Quality. It is ranked #24 in the Software – Application industry.

To see additional PTC ratings for Growth, Value, Stability, and Momentum, click here.

Click here to check out our Software Industry Report for 2021

ADBE shares were trading at $635.01 per share on Tuesday afternoon, down $1.93 (-0.30%). Year-to-date, ADBE has gained 26.97%, versus a 19.54% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.

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The post 4 Buy-Rated Software Stocks to Invest in This Month appeared first on StockNews.com https://www.entrepreneur.com/article/380515

August 16, 2021 7 min read

This story originally appeared on StockNews
Even though the economy continues its rebound and the market hits new highs, economic data is seeing mixed messages. In situations like these, it’s crucial that investors consider stocks that check every box which is why investors should consider adding smart stocks such as Gap Inc. (GPS), Apache (APA), and Ryder System (R) to their portfolio.

With a continued influx of mixed economic data, investors may be wondering where to put their money. For example, while yesterday’s report on weekly jobless claims met estimates, producer price increases came in hotter than expected. Even with the economic rebound still in play, surging cases of COVID remain in the back of most investors’ minds.

In times like these, it’s essential to invest in strong companies. Strong companies are those exhibiting attractive valuations, robust growth profiles, solid balance sheets, and are trading in uptrends. One way to find these stocks is through our proprietary POWR Ratings system that evaluates stocks based on 118 different factors.

The system also grades stocks based on six different components. This allows us to screen for stocks that grade highly across these components. And this is what I did for this article. I looked for stocks rated a Strong Buy in our ratings system that also graded highly in those components. Gap Inc. (GPS), Apache Corporation (APA), and Ryder System, Inc. (R) are three stocks that certainly fit the bill and are worth a look.

Gap Inc. (GPS)

GPS is an international specialty retailer offering a wide variety of clothing, accessories, and personal care products. The company’s products include denim, tees, button-downs, khakis, and fitness and lifestyle products for training, sports, travel, yoga, and other activities. Products are sold under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands.

The company is benefiting from strong business trends in the apparel industry. In particular, GPS has seen strength in its Old Navy and Athleta brands. Its Gap business is also increasing its market share in North America. Old Navy, though, which provides affordable, high-quality fashion, is the major long-term growth opportunity for the company.

As it competes in the discount apparel industry, which has been healthier than other apparel areas, Old Navy’s sales improved 27% year over year in the first quarter. The brand has also seen a significant acceleration in the digital business, which skyrocketed during the pandemic. Its Athleta brand has established itself in the fast-growing women’s athleisure market.

Athleta stores are expected to double over the next decade. GPS has an overall grade of A, which translates into a Strong Buy rating in our POWR Ratings system. The company has a Growth Grade of B, which isn’t surprising as sales are expected to rise 24% for the year, while earnings are forecasted to rise 182.9% this year.

GPS also has a Momentum Grade of A, as the stock is up 50% so far in 2021 and over 100% over the past year. We also provide Value, Stability, Sentiment, and Quality Grades for GPS, which you can find here. GPS is ranked #6 in the A-rated Fashion & Luxury industry. You can find other top stocks in this industry by clicking here.   

Click here to check out our Retail Industry Report for 2021

Apache Corporation (APA)

Based in Houston, APA is one of the world’s leading independent energy companies. It is engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids, with operations in the United States, Egypt, and the North Sea of the United Kingdom. It also holds acreage offshore Suriname, which is in South America.

In the U.S., it operates in the Permian Basin with 2.9 million gross acres in the region, making it one of the largest oil producers in Permian. The company has exposure to the Midland Basin, Delaware Basin, and Central Basin Platform/Northwestern Shelf. The Alpine High find, which is located in the southern portion of the Delaware Basin, is expected to be a major growth driver going forward.

Plus, APA’s discoveries in Suriname, through a joint venture with TotalEnergies, are expected to become one of the company’s major assets, providing significant cash flow potential. This discovery could open the door to large-scale developments there. And the partnership with TotalEnergies means APA’s capital commitment will be reduced. 

APA’s sales have also benefited from improved commodity price realizations. The company has an overall grade of A and a Strong Buy rating in our POWR Ratings system. The company has a Value Grade of B due to its low valuation. Its trailing P/E of 10.23 and forward P/E of 6.46 are very low. APA also has a Quality Grade of A.

As of the most recent quarter, the company had $1.2 billion in cash compared with only $215 million in short-term debt. Its gross margin of 36.1% is also higher than the industry average. We also provide Growth, Momentum, Stability, and Sentiment Grades for APA, which you can find here. APA is ranked #3 in the Energy – Oil & Gas industry. For more top-ranked stocks in this industry, click here. 

Ryder System, Inc. (R)

R is a provider of supply chain and fleet management solutions in the United States. The company offers fleet leasing, fleet maintenance, truck rental, dedicated transportation, transportation management, freight brokerage, supply-chain optimization, and warehouse and distribution solutions. It serves a host of industries including, automotive, consumer packaged goods, and industrial manufacturing, to name a few.

The company is benefiting from improving economic and freight conditions. Its Supply Chain Solutions segment has been aided by new business and higher volumes, and its Fleet Management Solutions segment is gaining from increased rental pricing. Management has raised its earnings guidance for 2021 due to these conditions.

As the freight environment continues to improve, so should the company’s fortunes. The company anticipates these conditions to remain strong into next year. Plus, higher pricing in its lease and commercial rental businesses and strong demand in its commercial rental unit should help drive sales. This is great news for a company that was generating losses and increasing debt when the pandemic hit.

Plus, the chip shortages are leaving new truck production short of what the industry needs. This should continue to push many companies to lease R’s trucks. The company has an overall grade of A, translating into a Strong Buy Rating in our POWR Ratings system. R has a Growth Grade of A, which makes sense as earnings are expected to rise 2,259.3% this year.

R also has a Momentum Grade of B with the stock rising 6.8% for the month and 111% over the past year. For the rest of R’s grades (Value, Stability, Sentiment, and Quality), click here. R is ranked #2 in the A-rated Trucking Freight industry. For more top stocks in this highly rated industry, make sure to visit this link.

Discover Today’s Best Value Stocks

This article was written by David Cohne, Chief Value Strategist for StockNews.com.  David has helped investors find the most profitable stocks for over 20 years

If you would like to see more of his best value stock ideas, then click the link below.

See David Cohne’s Favorite Value Stocks

GPS shares were trading at $27.96 per share on Monday afternoon, down $0.93 (-3.22%). Year-to-date, GPS has gained 40.11%, versus a 20.27% rise in the benchmark S&P 500 index during the same period.

About the Author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. He is the Chief Value Strategist for StockNews.com and the editor of POWR Value newsletter. Prior to StockNews, David spent eleven years as a consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.

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The post The 3 Smartest Stocks to Buy With $2,000 Right Now appeared first on StockNews.com https://www.entrepreneur.com/article/380386

August 13, 2021 9 min read

This story originally appeared on PennyStocks

Hot Penny Stocks For Your Watch List In August

What’s the definition of penny stocks? If you’re newer to trading, you might not realize that the Securities and Exchange Commission defines these as stocks under $5. While it might not make sense at first, the long and short of it is that the pool of small companies with lower share prices is vast and accounts for a large portion of the retail market.

Whether you’re a novice or experienced trader, the same trends and topics are evident. First, penny stocks carry plenty of risks. This can be attributed to price risk, volatility risk, and even company risk.

But, aside from the risks involved, there’s plenty of opportunities to capitalize on big rewards as well. If you look at current trends in the stock market today, I’m sure you’ll see what I’m talking about. Almost daily, Reddit traders using platforms like Robinhood and WeBull are scouring the market for low-priced stocks. In many cases, at least a handful end up breaking out big.

Just how big? The last few weeks have seen some penny stocks (now former penny stocks) rally into the multiple triple-digit percentages. Now, I will say that many have just as quickly retreated in share price, but the point is that you can make big money with penny stocks, and if you can handle a little risk, these low-priced stocks may be a good option for you to look into.

Best Penny Stocks To Buy [or avoid]

Will any of these be on your list of penny stocks to buy this month, or should you avoid them entirely?

1. MannKind Corporation (NASDAQ: MNKD)
2. MICT Inc. (NASDAQ: MICT)
3. Inuvo Inc. (NYSE: INUV)
4. Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
5. RLX Technology Inc. (NYSE: RLX)

Penny Stocks To Buy [or avoid] #1: MannKind Corporation (NASDAQ: MNKD)

We’ve discussed MannKind over the last few months as shares have bounced between $3 and $6. Despite the last month or so being difficult in the market for MNKD stock, the company has remained steadfast in its mission to expand its offering.

In fact, MNKD has been much stronger over the last week, which may have a lot to do with the company’s latest earnings update. At the start of the week, MannKind reported strong Q2 results with an increase of 54% in revenue and, specifically, a 43% boost in Afrezza net revenue for the quarter. Afrezza is the company’s prescription glucose management product. Patients inhale the dry insulin powder to control high blood sugar meant for those with type 1 or 2 diabetes. This jump in sales was driven by increased manufacturing activity during the quarter. Something else to note is that aside from this commercial product, MannKind is working on the potential commercial launch of its Tyvaso DPI product.

MannKind’s collaboration partner, United Therapeutics (NASDAQ: UTHR), previously submitted an NDA to the FDA for its Tyvaso DPI product. This is a potential treatment for pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. In response to the strong Q2 performance, Michael Castagna, Chief Executive Officer of MannKind, said, “I am really proud of how our team has executed so far in 2021 supporting the growth of Afrezza and preparing for the potential commercial launch of Tyvaso DPI.”

With this as the backdrop for a recent rally in MNKD stock, it could be a sign to have it as one of the penny stocks to watch heading into the second half of the month.

2. MICT Inc. (NASDAQ: MICT)

Another one of the penny stocks that has climbed recently is MICT Inc. Shares have risen from lows of $1.74 last week to highs this week of $2.06. One of the catalysts adding to this momentum was an analyst rating from Alliance Global. The firm started MICT with a Buy rating and a $4.25 price target at the start of August.

[Read More] Former Penny Stocks To Watch After Merck’s (MRK) Latest FDA Win

Furthermore, some industry momentum could also be helping give MICT stock a boost. Its subsidiaries, GFH Intermediate Holdings and Micronet Ltd, are involved in the rapidly evolving fintech and computing solutions industries. Obviously, the former has been a big focus in 2021. Everything from retail trading and online banking to digital currency and virtual payments has grown in popularity. Some of the conditioning to a digital financial platform can be credited to the global lockdowns last year. Now that economies are reopening, some of the pandemic-era habits remain in place, with fintech being one of them.

According to the company, last quarter saw the full development of the company’s stock trading platform with the soft launch and full roll-out earlier this summer. With second-quarter earnings slated for release next week, anyone looking at MICT stock right now should keep August 16th in mind. The company also plans to host a question, and answer portion during its earnings call before the opening bell.

3. Inuvo Inc. (NASDAQ: INUV)

On the “cheaper” side of things, Inuvo Inc. is a sub-$1 stock that has recently begun to perk a bit following its second-quarter earnings results. Despite missing on EPS, the company beat Wall Street’s expectations when it came to sales estimates. What’s more, second-quarter revenue for 2021 was 66% higher than that of the same quarter last year. Attributing to this growth, Richard Howe, CEO of Inuvo, said Inuvo’s IntentKey and ValidClick product lines experienced strong growth.

“During Q2 the IntentKey performed 74% better than our clients’ goals and its 50% year-over-year and 37% sequential growth are indicative of those results. We expect to see a continuation of double-digit year-over-year growth throughout the second half of 2021 and would expect Adjusted EBITDA to turn positive when monthly revenue run rates exceed $5.5 million.”

Richard Howe

Inuvo’s product focus on providing its clients with targeted media and display advertising solutions for eCommerce applications. Obviously, with a rise in digital retail sales over the last year, companies in this category have gotten some attention. Clearly, for Inuvo, its revenue growth is evidence of that. Howe also gave guidance and set some expectations for the second half of 2021, saying, “We expect to see a continuation of double-digit year-over-year growth throughout the second half of 2021 and would expect Adjusted EBITDA to turn positive when monthly revenue run rates exceed $5.5 million.”

4. Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)

Biotech has certainly been a hot industry this year. Thanks to the global pandemic and focus on vaccine stocks, initially, retail traders have seen opportunities arise. In the case of Aerpio, the last few months have been strong for its stock. Since early May, shares of ARPO stock have increased more than 75% so far.

[Read More] Best Penny Stocks to Buy? Are These 3 Safe Bets in 2021?

Aside from excitement in biotech, the company’s recent milestones have also helped add momentum to the stock market. In particular, Aerpio has been in the middle of a merger with Aadi Bioscience to create a company focused on advancing cancer treatments.

Aadi’s precision therapies target genetically defined cancers with alterations in what are known as mTOR pathway genes. In short, mTOR connects other proteins and acts as a major component of two distinct protein complexes regulating different cellular processes. While the transaction hasn’t closed (yet), analysts have already grown bullish on the proposed deal. Earlier this quarter, HC Wainwright analyst Robert Burns upgraded Aerpio to a Buy and gave a $22 price target. Burns explained that the Aadi deal was “transformative” and that the merger could put the company on a “solid path towards becoming a self-sustaining, commercial-stage enterprise with a differentiated lead product having applicability across multiple specialty oncology indication.”

With this transaction expected to close in the third quarter, there’s now about a month and a half left to meet that milestone.

5. RLX Technology Inc. (NYSE: RLX)

Shares of RLX stock have been treading water over the last month. This comes after a botched IPO earlier this year saw its share price plummet from $35 to lows of $4.05 in July. Another contributing factor was fears that Chinese regulators would bring more rules to e-cig companies like RLX. You also can’t forget the confusion over Chinese IPOs and the access to US exchanges.

Needless to say, the last few weeks seem to have brought some steadying to the market for RLX stock. The e-vapor company’s shares have slowly bounced back by roughly $1 in that time. Now, heading into next week, RLX could be back in focus for some. The reason being is that the company is set to report quarterly results for Q2 2021 next Friday.

The company isn’t overly vocal on the newswires. However, we can look at its previous quarter’s results for a bit more guidance. Net revenues grew over 48% quarter over quarter (Q1 2021 vs. Q4 2020). Gross margins were also up quarter over quarter by nearly 43%, and gross profit jumped 59.1% during that same period.

Chao Lu, Chief Financial Officer, said, “Building on rapid revenue growth and continued efforts in improving operating leverage, our gross margin and non-GAAP net margin have remained steady in the first quarter. We will continue to pursue user value creation by enhancing our suite of product offerings and strengthening our brand leadership in the market.”

Looking For Penny Stocks To Buy? Start With Research & Education

If penny stocks appeal to you, then understanding how to trade them is the first step. We see too many people jump right into day trading without understanding how to actually do that. Most treat it similarly to a game of craps or roulette. But the fact of the matter is, you can learn to be consistently profitable trading even with cheap stocks like these. The key is having a proper strategy in place. If you’re just getting started trading, check out some of these articles:

https://www.entrepreneur.com/article/380218

August 12, 2021 8 min read

This story originally appeared on StockNews
Netflix (NFLX) and Advanced Micro Devices (AMD) are two stocks that have underperformed so far this year. Taylor Dart explains why both stocks are setting up for a second-half rally.

It’s been an impressive year thus far for the Nasdaq Composite (QQQ), with the index up more than 15% year-to-date, knocking on the door of the 15,000 level. This strong performance in the face of multi-year high inflation readings and fears surrounding a 4th COVID-19 wave is even more impressive, but it’s made it very difficult to find any bargains in the market. In fact, we have more than 60 growth stocks now trading at above 35x sales, the highest reading since this bull market began a decade ago. However, while most names look very expensive, two names look like solid buy-the-dip candidates. In this update, we’ll look at these two names and assess their ideal buy-points.

(Source: TC2000.com)

While high-flyers like HubSpot (HUBS) and Bill.com (BILL) are up more than 50% year-to-date, Advanced Micro Devices (AMD) and Netflix (NFLX) have been unable to keep up with the S&P-500 this year, up 15% and down 5%, respectively. This underperformance has left these stocks trading at more reasonable valuations than many of their peers, with NFLX looking much more undervalued in a rare period where it actually has a negative 12-month return. This is even though NFLX is on track to grow annual earnings per share by more than 65% in FY2021 alone. In AMD’s case, annual EPS growth is accelerating after a massive year in FY2020, with FY2021 annual EPS growth projected at 104%, up from 87% growth last year. While not as cheap as Netflix, AMD is also reasonably valued, assuming if it can meet its FY2023 earnings targets. Let’s take a closer look at both companies below:

Beginning with AMD, the stock broke out of an 11-month base recently following an exceptional earnings report in late July. The company reported 250% growth in quarterly earnings per share to $0.63 and 99% growth in revenue to $3.85BB, a 600-basis point acceleration from 93% revenue growth in the most recent quarter. The outstanding results were helped by strong demand for its products, with Computing & Graphics revenue up 65% year-over-year by higher client and graphics processor sales, bolstered by better selling prices. Meanwhile, the Enterprise, Embedded & Semi-Custom segment was up 183% year-over-year and 19% sequentially, driven by higher EPYC processor revenue and semi-custom product sales. The blow-out report prompted AMD to raise guidance to 60% revenue growth year-over-year. Notably, it wasn’t just revenue that beat expectations, but also margins due to pricing power, with gross margins up to 48%, a 400 basis point improvement from the year-ago period.

(Source: YCharts.com, Author’s Chart)

If we look at AMD’s earnings trend, we can see that annual EPS is expected to accelerate materially in FY2021, and the growth isn’t projected to slow much in FY2022. This is based on current estimates of $2.45 for FY2021 and $3.02 in FY2022. If we look out further to FY2023, annual EPS is expected to climb to $3.69, leaving AMD trading at roughly 35x FY2022 estimates and ~29x FY2023 estimates. This does not offer much of a margin of safety, even if this is an incredible growth story, suggesting that while AMD is a great name to keep on one’s shopping list, it might be best to be patient for a deeper pullback before starting new positions. Let’s look at the technical picture:

(Source: TC2000.com)

As shown above, AMD broke out of a large base last month, and for the time being, continues to trade above the top of this base. Generally, I prefer not to buy breakouts in over-extended markets as they can be very failure-prone, but if AMD were to pull back to the top of this base near $95.50, this would offer a much lower-risk entry point. This is because it would allow many traders who bought the breakout to be shaken out of their positions, yet would do very damage to the larger technical picture, which will remain bullish above $85.00 per share. A pullback of this magnitude would also leave the stock short-term oversold and trading at a more attractive valuation of 31x FY2022 annual EPS estimates. In summary, while I think AMD should do well over the next year, I believe the best setup is waiting for a deeper pullback to oversold levels.

Moving over to NFLX, the stock already has a material margin of safety baked in, and sentiment on the stock has soured considerably, with NFLX being the worst performer among the FAANG group. Unfortunately, while NFLX posted strong revenue growth of 19% (lapping 25% in Q2 2020) and beat expectations for subscriber growth in Q2 (1.54MM vs. 1.2MM), it guided a softer Q3 than analysts were hoping for, with an outlook of 3.5MM paid net additions. This has increased speculation that the new streaming entrants into the space are making it very difficult for NFLX to continue growing at its previous pace, weighed down by fierce competition from Disney (DIS), Hulu, and HBO. The good news is that even if this is partially correct, Netflix looks to have priced in some of this deceleration, trading at 37x FY2022 estimates. Over the past five years, NFLX has traded in a range between 50 and 300x earnings, with NFLX now catching up to its valuation after consolidating for the past year.

In a surprising pivot, NFLX announced that it was in the early stages of expanding into video games, with it viewing gaming as another content category, similar to its expansion into original films. Competition in the gaming space is just as fierce as film, but NFLX stated that it would be including video games in its members’ subscription costs, similar to how AMZN has bolstered its Prime offering with Music and Video, making it stickier for the average consumer and providing significantly more value. If NFLX is successful, this could revitalize the stock and help the stock regain its premium multiple relative to its high-growth tech peers. Notably, the company is churning out more free cash flow than previously, so investments in gaming are easily supported by its free cash flow generation. This reinforces the view that it can expand into new categories and make relatively low-risk bets, similar to what has made Amazon so successful.

(Source: YCharts.com, Author’s Chart)

Moving over to Netflix’s earnings trend, we can see that the company is expected to grow annual EPS by nearly 70% this year, with 30% plus growth expected next year as well. If we look ahead to FY2023, annual EPS is expected to grow 192% from FY2020 levels, making NFLX one of the highest growth names in the tech space, despite being a mega-cap. This earnings growth rate easily justifies a multiple of 45, which would translate to a fair value of $672.00 based on FY2023 annual EPS estimates of $17.77. I would argue that an earnings multiple of 50 is conservative as well, translating to a higher target of $888.50. If we use the higher target and slightly richer multiple, the target offers over 70% upside from a share price of $508.00. Based on more conservative multiple of 45 and the lower target, there’s more than 32% upside. Therefore, I see NFLX as a steal at current levels, and believe this pullback has provided one of the lower-risk entries in the past few years. This is corroborated by the technical picture, which shows NFLX pulling back to its weekly moving average (green line), which has provided a buying opportunity on the past several occasions.

(Source: TC2000.com)

While it’s hard to find value out there in the tech space, NFLX and AMD look like two names worth keeping at the top of one’s shopping list. For AMD, the low-risk buy point comes in at $95.00 if the stock can re-test its recent breakout. For NFLX, the stock looks very reasonably valued at current levels, and I remain long the stock from an average cost closer to $450.00. If we were to see a dip below $480.00, I would look to add to my position.

Disclosure: I am long NFLX, AMZN

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

NFLX shares were trading at $510.81 per share on Thursday afternoon, down $1.59 (-0.31%). Year-to-date, NFLX has declined -5.53%, versus a 19.69% rise in the benchmark S&P 500 index during the same period.

About the Author: Taylor Dart

Taylor has over a decade of investing experience, with a special focus on the precious metals sector. In addition to working with ETFDailyNews, he is a prominent writer on Seeking Alpha. Learn more about Taylor’s background, along with links to his most recent articles.

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The post 2 Tech Stocks to Buy for a Second-Half Rally appeared first on StockNews.com https://www.entrepreneur.com/article/380121

August 6, 2021 9 min read

This story originally appeared on PennyStocks

Insiders Are Eating Up These Penny Stocks Right Now

Looking for the best penny stocks to buy right now? You could search hundreds of charts or sift through scanners. But some traders “follow the money” when it comes to trading. What do I mean? When you’re talking about public companies, a few requirements need to be met, according to the Securities & Exchange Commission. One of these requirements is public disclosures, and in this article, I’m going to talk about insider reporting.

Now, we’re not talking about getting a hot tip from your buddy about “inside info”; that’s not the insider trading I’m talking about. Today we’re talking about stocks that insiders of companies – management, board members, etc. – are spending their own money on. What if there was a way to know exactly when, how much, and at what price insiders buy shares in their own companies? Well, there is, and it can be found in corporate filings.

How To Find Insider Buying

There isn’t some crazy hidden place online that only “pro traders” have access to. As far as insider activity goes, it’s pretty easy to find. Form 4 filings are the most frequently referenced. These show insiders and different transactions. The info you’ll see is the transaction date, shares purchased/sold/issued, the average price per share, and any footnotes. There are also a few other types you’ll want to be aware of. For more information on all types of filings, check out “The Beginner’s Handbook For Trading Penny Stocks.”

At the very least, insider trade data can help you gauge the general sentiment of the people “pulling the levers” and “pushing the buttons” inside a company. When it comes to footnotes, these will also be important. In some cases, insiders schedule periodic purchases and sales. This usually isn’t taken the same way as open market purchases or sales.

[Read More] Are Penny Stocks Worth It? 5 That Deserve Your Attention Now

For instance, Amazon (NASDAQ: AMZN) CEO Jeff Bezos sells several billion dollars worth of AMZN stock per quarter, no matter the stock price. This is a pre-planned event that has little to do with the company or its success/failure. In this article, we’ll take a look at 5 penny stocks with recent insider buying. Will they be on your list this quarter?

Penny Stocks To Buy According To Insiders

1. Arc Document Solutions (NYSE: ARC)
2. Aptose Biosciences (NASDAQ: APTO)
3. Ault Global Holdings (NYSE: DPW)
4. Mustang Bio Inc. (NASDAQ: MBIO)
5. Ascent Solar Technologies (OTC: ASTI)

Art Document Solutions (NYSE: ARC)

Shares of ARC Document Solutions have been on the move since the start of August. In fact, over the last 4 sessions, ARC stock hasn’t seen one red close yet. You may also notice that shares have climbed on relatively lighter volume than many of the stocks we discuss have seen. With less than 43 million shares outstanding and a market cap of just over $100 million, it is a smaller company, which could support such a move on the recent volume. Needless to say, shares of ARC stock have jumped this month after the company reported its second-quarter earnings.

The document solution company saw net sales, gross margin, and earnings per share jump compared to the same 3-month period last year. In fact, EPS showed the largest increase at $0.06 per share versus just $0.03 last year.

“The diversity of our products and services continue to drive expansion into digital color production and the economic re-opening is bringing new vitality to our existing customers in the AEC market. Every major category of sales grew during the second quarter.”

Suri Suriyakumar, Chairman, President, and CEO of ARC

If you head over to the ARC stock profile page, you’ll also see insiders buying up shares of this penny stock in August. The company’s CEO picked up just over 47,000 shares at average prices ranging from $2.0914 to $2.323 between August 2nd and 4th.

Aptose Biosciences (NASDAQ: APTO)

Shares of Aptose have experienced a very different trend in the stock market this year. Year-to-date, the penny stock is down over 35%. But, the recent fundamental activity could be a point of focus for the market. Let’s dig a bit deeper and see why.

While the year hasn’t been great, August is a different story. Shares of APTO stock have held above $2.50 and continue testing upper levels in the multi-week channel around $.280. Something that may have helped with the more sustained sideways trend (versus continued downtrend) is recent earnings results.

Aptose reported an earnings per share miss of a $0.15 loss per share versus an expected $0.14 loss. However, as an early, clinical-stage company, the focus may be less on financials and more on pipeline progress. In this case, the company discussed its current Phase 1 a/b trials with its luxeptinib treatment in acute myeloid leukemia and B-cell malignancies. William G. Rice, Ph.D., Chairman, President, and Chief Executive Officer, “As we have begun to observe dose-dependent anti-tumor activity, we plan to continue dose escalation for extended duration to treat as many patients as possible on these higher dose levels and tackle these increasingly refractory patient populations.”

While this may have been an initial attraction in the market, insider activity could be another. Donald R Wilson Jr., a 10% owner through DRW Investments, picked up 57,199 shares of APTO stock at an average price of $2.647 on August 3rd. However, the same Form 4 showed DRW selling 60,000 shares on August 5th at an average price of $2.62. See more SEC filings on the APTO stock profile page.

Ault Global Holdings (NYSE: DPW)

Another one of the penny stocks with insider activity is Ault Global. The company has focused efforts on becoming a more diversified investment company over the last few months. Ault recently boosted its investment in neurodegenerative and psychiatric disorder treatment company Alzamend Neuro Inc. (NASDAQ: ALZN).

Alzamend recently submitted an investigational new drug application to the FDA to begin a Phase 1 study of its AL001. This is the company’s oral therapy for dementia related to Alzheimer’s disease. Obviously, with the excitement surrounding Biogen’s (NASDAQ: BIIB) Alzheimer’s treatment earlier this quarter, Alzamend could be something to keep track of.

This update came just a few weeks after Ault formed a real estate equities company to begin commercial real estate investing. AGREE (Ault Global Real Estate Equities) will focus on middle-market real estate in the US.

These may have been intermediate catalysts for recent market volatility. However, insider activity has also come into focus. The DPW stock profile page shows a string of Form 4s filed between July 9th and August 5th. The most recent filings in August show purchases of company stock being made by Executive Chairman Milton Ault, III. In total, 4 Form 4s were filed showing the purchase of a total of 40,000 DPW shares. Prices range between $2.3269 and $2.4699. In a separate Form 4 on the ALZN stock profile page, Ault III reported purchasing over 2 million shares of Alzamend at an average of just over $1 per share.

Mustang Bio Inc. (NASDAQ: MBIO)

Shares of Mustang Bio jumped at the end of the week this week thanks to attention on the company’s latest insider action. On August 5th, you’ll see on the MBIO stock profile page that Manuel Litchman, President & CEO, picked up 86,206 shares of MBIO stock at an average price of $2.91 at the end of July.

This purchase came just days before Mustang announced receipt of the European Medicines Agency Priority Medicines designation. This was for Mustang’s MB-107 treatment for x-linked severe combine immunodeficiency in infants, also known as bubble boy disease.

Read More

The Agency also granted Advanced Therapy Medicinal Product classification to the drug in April and Orphan Drug designation last November. Right now, MB-107 is being assessed in a Phase 1/2 clinical trial at St. Jude Children’s Research Hospital, Seattle Children’s Hospital, and UCSF Benioff Children’s Hospital.

Ascent Solar Technologies (OTC: ASTI)

Finally, the only OTC penny stock on this list, Ascent Solar, has been climbing back this month. The latest move comes after about a quarter and a half of selling pressure took ASTI stock below its 200 Day Moving Average for the first time since 2020. While excitement has built back up in renewable energy stocks and solar specifically, other developments have also helped give the solar stock a boost.

First, the company inked a deal with a new funding partner, BD 1 Investment Holding. Ascent entered into a securities purchase agreement for roughly $10 million in new funding, with BD 1 purchasing over 660 million shares at an average price of $0.015 per share. “This new funding agreement is a strong vote of confidence from our controlling shareholders to the restructuring and recapitalization effort undertaken by Ascent Solar since early 2020,” said Victor Lee, President, and CEO of Ascent Solar Technologies, Inc.

Ascent also participated in a US Special Operations Command Technology Experimentation. The company demonstrated the performance of its CIGS PV systems, a mobile power solution. Since these updates, ASTI stock has bounced back. From August 2nd to the 6th, shares are up by roughly 50%.

Penny Stocks With Insider Buying

Regardless of price, insider activity is something to keep tabs on. In some cases, it can alert you to potential opportunities. On the other hand, it can reveal certain funding activities that may not have been announced in a formal press release. Whatever the case, at the very least, you can use this piece of info as another layer in your research process to find profitable opportunities or avoid losing

https://www.entrepreneur.com/article/379581

August 1, 2021 6 min read

This story originally appeared on PennyStocks

3 Penny Stocks For Your Early August Watchlist 

With a new month here, the time to find the best penny stocks to buy is now. But, it’s not as easy as making a watchlist and hoping for profits. Rather, investors need to understand where the stock market is headed, and which penny stocks may benefit. In 2021, it’s all about considering how short-term trends may result in heightened popularity or volume with certain penny stocks. 

And because there are so many events going on simultaneously, it can be a lot to keep track of. However, by paying attention to the news and understanding wholly how it could affect different industries or companies in specific, investors can work to stay one step ahead of the game. The best trader will always be the one with the most information on hand. And in 2021, information is more accessible than ever. 

[Read More]This Biotech Stock was Once a Penny Stock but is Now Making Big Moves on the Nasdaq!

With the Robinhood IPO occurring only a few days ago, we see that trading is open to all. Because the stock market is so democratized right now, billions in capital have flooded in over a short time frame. So, recognize that volatility is high, but the chance of turning a profit can be equally high if you know how to trade penny stocks. With all of this in mind, let’s take a look at three to watch in early August.

3 Hot Penny Stocks to Watch Right Now 

1. New Oriental Education & Technology Group Inc. (NYSE: EDU) 
2. Ebang International Holdings Inc. (NASDAQ: EBON) 
3. Globalstar Inc. (NYSE: GSAT) 

New Oriental Education & Technology Group Inc. (NYSE: EDU)

In the past few months, the trend of education penny stocks has increased greatly. And one of the more interesting companies in this field right now is New Oriental Education & Technology Group Inc. This company offers K-12 private educational test preparation services. As of May 31st, 2020 the company’s services and programs were offered in 104 schools, 1,361 learning centers, and 12 bookstores. This is a substantial reach for the company and one that could prove to be beneficial to it in the long run. 

Read More

Only recently, the Chinese government placed a ban on for-profit tutoring. While this expectedly resulted in a price drop for EDU stock, shares did make a small comeback shortly after. Over the past year, EDU stock has lost over 85% of its value.

However, in the past few days, shares have climbed by over 15%. In addition, the company’s volume during that time has also increased substantially. Needless to say, the situation in China may still have more questions than answers so a more speculative sentiment has materialized in the market. Based on this information, it’s up to you to decide if EDU stock is worth watching or not.

Ebang International Holdings Inc. (NASDAQ: EBON)

Ebang International Holdings Inc. is a blockchain penny stock that we’ve been covering for quite some time. The company creates a large range of blockchain-related products. And for that reason, its share price is usually highly correlated with that of certain cryptocurrencies.

In specific, Ebang manufactures Bitcoin mining machines for sale in the U.S., China, and Hong Kong. The company provides mining machine hosting services for remote usage as well. This has become a popular trend among Bitcoin miners, as remote hosting is much more efficient than running in-person operations.

With cryptocurrencies like Bitcoin and DogeCoin exploding in value at certain points in 2021, the company has experienced a lot of positive momentum as well. 2021 has been a landmark year for crypto because of its large growth in popularity and massive attention in the news. And as stated before, it’s important to stay up to date with the price of crypto as EBON stock often moves with the crypto industry as a whole. In addition, the large microprocessor shortage witnessed over the past few months has been a major benefit to EBON. 

As a provider of Bitcoin mining machines, Ebang has seen the demand for its products rise substantially during that time. In the past five days, shares of EBON have risen by over 3.5%. While this may not seem like a major gain, it is substantial considering EBON’s trajectory throughout the last six months or so. With this information in mind, is EBON a contender for your penny stock watchlist?

Globalstar Inc. (NYSE: GSAT)

Globalstar Inc. is a communications penny stock that has continued to make moves in the market over the last year or so. YTD, shares of GSAT stock are up by a staggering 305% or so. And while prices are down in the last month, we can look at the future prospects that Globalstar has to see where it could be headed. 

For some context, Globalstar is a company that provides mobile satellite services such as GPS tracking for emergency locations, anti-theft, asset tracking, and more. In addition to this, it offers IoT tracking devices for cargo, container, and rail cars. With the increasing globalization of the world, devices like these are important to keep the transport industry running. And, it also works as a complement to Globalstar’s other assets. 

[Read More] Best Multibagger Penny Stocks to Buy? 3 For Your Watchlist

On July 1st, Globalstar announced its partnership with FocusPoint International Inc. FocusPoint will provide crisis assistance services under the Global Overwatch & Rescue Plan to Globalstar customers.

“We are so pleased to extend this valuable service to Globalstar customers. Many of our users partake in extreme sports and engage in higher than average travel frequency making this offering a service that can help further improve our customers’ peace of mind. FocusPoint provides a comprehensive risk consulting service that is a great compliment to the connectivity we provide our customers.” 

The CEO of Globalstar, David Kagan

The safety market is one that is both large and growing. With the pandemic coming back for a fourth wave, many are forgoing vacations to large population areas, and instead choosing to stay outdoors. This means that there could be heightened demand for GSATs products if all goes according to plan. Keeping this recent announcement in mind, will GSAT stock be on your watchlist?

Which Penny Stocks Are You Investing In?

Finding the best penny stocks in 2021 can be challenging. But, by learning how to trade penny stocks, investors can stay ahead and feel confident in their strategies moving forward. With all of this in mind, which penny stocks are you investing in right now?

https://www.entrepreneur.com/article/378987

July 25, 2021 6 min read

This story originally appeared on PennyStocks

Are These Top Penny Stocks on Your August Watchlist?

With August right around the corner, investors are searching for the best penny stocks to buy now. To do so is a combination of research and having a proper trading strategy for penny stocks. This year investors should also consider the effects of social media on the stock market. Websites such as Reddit and Twitter have become major influences on price action. Because of this, it’s important to stay up to date in order to stay ahead of the newest trends. 

[Read More] 3 Former Penny Stocks With Bullish Analysts & Price Targets Up To 120%

With August only a few days away, it could be time for the market to refresh, and hopefully, stay on a solid bullish trajectory. But, with the pandemic still in full swing, this is pure speculation right now. Here are four penny stocks to watch as July comes to an end. 

Top Penny Stocks To Buy [or avoid] Right Now:

1. Verb Technology Company Inc. (NASDAQ: VERB) 
2. Luokung Technology Corp. (NASDAQ: LKCO) 
3. Uranium Energy Corp. (NYSE: UEC) 
4. IZEA Worldwide Inc. (NASDAQ: IZEA) 

Verb Technology Company Inc. (NASDAQ: VERB)

Over the past year, the tech industry has become one of the most popular sectors to find penny stocks. And, one of the leaders in this industry right now is Verb Technology Company. Verb operates as a Software-as-a-Service (SaaS) company. This means that it provides software to companies and businesses alike.

One thing to keep in mind is that VERB stock is considered a meme stock. This means that it is frequently discussed on Reddit and Twitter, alongside other popular companies such as GME stock and AMC stock. While this does make it more volatile, it also increases the amount of investor attention placed on the company.

Verb’s platform consists of subscription-based software that is accessible by its clients. These applications have a user interface both on desktops as well as mobile devices. In the past month alone, shares of VERB stock have shot up by over 100%. This is a major gain especially considering the large fall the market took on Monday, July 19th.

SaaS is a thriving business right now and has remained that way throughout the pandemic. With more people online, more businesses are looking for tech solutions to solve everyday issues. Considering this, does VERB stock have a place on your penny stocks watchlist?

Luokung Technology Corp. (NASDAQ: LKCO)

Another technology company to keep an eye on this coming month is Luokung Technology. As a company, LKCO is a leader in the spatial-temporal intelligence industry. It additionally has earned a strong reputation for location-based services (LBS) and HD maps. Most of its business is conducted in China, where it provides services for everything from autonomous vehicles to in-vehicle mapping.

This has become a large industry in the past few years, and one that many investors expect to continue growing in the near future. And, if we also consider the extremely high demand for vehicles right now, we see even more potential for LKCO stock in the long term.

On July 22nd, Luokung announced that its subsidiary, eMapGo will be providing autonomous driving simulation testing services for Geely Automobile Research Institute Co. Ltd. Geely is considered the largest domestic automobile company in China, and sold over 1.32 million vehicles last year alone.

“Luokung’s autonomous driving simulation test product is one that we are particularly proud of. We have provided services to several global automakers and tier 1 suppliers and look forward to expanding our customer base by promoting safe autonomous driving travel services.”

Mr. Xuesong Song, CEO of Luokung

This is big news for the company, and could turn into a longer term deal if all goes according to plan. While the full details of this announcement are not yet available, it could be interesting to keep up to date with LKCO stock. 

Uranium Energy Corp. (NYSE: UEC)

The uranium market has been on fire in the past year and a half. With a global push toward clean energy, uranium continues to be a top choice for its efficiency and renewable nature. In line with this, Uranium Energy Corp. is one of the primary choices for penny stocks investors looking to get into the uranium industry.

Its portfolio contains one of the largest databases of historic uranium mining developments in the country. The company owns its Hobson processing facility, which is centrally located in Southern Texas, where other uranium operations are ongoing right now. 

Read More

With an extensive history of mining and a strong leadership team, UEC is aggressively pursuing new opportunities in the uranium industry. Most of its vision is focused on property acquisitions throughout the U.S. Besides Texas, this includes New Mexico, Arizona, Wyoming, and Colorado. Because of the increasing demand for uranium, UEC could be well-positioned for the future of cheap and clean energy. With all of this in mind, will UEC be on your penny stocks watchlist moving forward?

IZEA Worldwide Inc. (NASDAQ: IZEA)

IZEA Worldwide is a company that works in the marketing industry. For some context, IZEA offers both software and professional services based on the influencer market. This allows influencers to connect with brands, and therefore, grow the creator economy to new heights. Launched in 2006, IZEA has since mediated around 4 million transactions, which is no small feat. 

On July 21st, IZEA announced that it had secured a $1 million influencer marketing contract expansion. These funds will come from a Fortune 500 customer for influencer marketing services.

“Team IZEA is off to a strong start for Q3 2021, bolstered by several meaningful contract awards from repeat customers. We have already set a record for the best-Managed Services bookings in the month of July, and we are continuing to see strong demand for our expertise in the influencer marketing industry.” 

Ted Murphy, Founder, and CEO of IZEA

In addition to this, the company announced that its Managed Service bookings in Q2 2021, increased by almost 190% to $11.1 million. This is very substantial, and something that investors should keep in mind. With the influencer and creator space growing everyday, IZEA stock could be worth adding to your list of penny stocks to watch. 

Which Penny Stocks Are on Your August Watchlist?

If you’re making a penny stocks watchlist right now, there are plenty of options to choose from. With so many penny stocks out there, it can seem like a daunting task to just pick a few from the list.

[Read More] Hot Penny Stocks to Buy For Reopening? Check These 3 Out

However, with the right research in hand and a commitment to finding the best stocks to buy, it can be done. Considering this, which penny stocks are on your watchlist right now?

https://www.entrepreneur.com/article/378328

July 21, 2021 5 min read

This story originally appeared on StockNews
Technology-focused seismic solutions company ION Geophysical’s (IO) robust pipeline of 3D program opportunities and rapid advancement in the Mid North Sea High program have positioned it well in its niche market. However, the recent dip in crude oil prices could affect its customers’ offshore capital spending programs, thereby negatively impacting its growth. Also, investor concerns about rising COVID-19 cases, which could again threaten global demand, could cause the stock price to decline more. Let’s discuss.

Asset light global technology company ION Geophysical Corporation (IO) offers data-driven decision-making, acquisition equipment, and processing services to offshore energy, and ports, and defense industries internationally. The Houston, Tex., company operates through E&P Technology & Services and Operations Optimization segments.

Closing yesterday’s session at $1.54, the stock is trading 71.2% below its $5.35 all-time high. Furthermore,  the stock’s price has declined  36.6% so far this year and 24.1% over the past month. IO is currently trading below its $2 and $2.82 respective 50-day and 200-day moving averages,  which indicates a downtrend.

IO recently announced its preliminary financial outlook for the second quarter of 2021. It expects its revenues to be approximately $20 million, which represents a 13% decline year-over-year. Although the company has been making solid progress in its new 3D program in the North Sea, significantly lower multi-client data sales and a significant drop in crude oil prices, on OPEC and its allies’ recent agreement  to increase output, could maintain the stock’s volatility in the coming months.

Here is what we think could influence IO’s performance in the near term:

Macroeconomic Headwinds

Because rising infections from  the Delta variant of COVID-19 threaten global demand and economic recovery, oil prices slumped below the key $70 level a barrel on Monday, with the commodity witnessing its worst day since March. The Organization of the Petroleum Exporting Countries and its allies’ (OPEC+) decision to increase production by 400,000 barrels beginning in August to cool prices has stoked fears of an oil surplus. Investors’ concern surrounding the energy industry is evidenced by the SPDR S&P Oil & Gas Exploration and Production ETF’s 13.2% decline over the past month. This uncertain backdrop could cause IO’s stock to suffer  further declines in the coming months. 

Bleak Financials

During the first quarter, ended March 31, 2021, IO’s total revenue declined 75.1% year-over-year to $14.04 million, due primarily to a lower volume of data library sales and lower proprietary tender activity. Its gross margin was 6% for this quarter, versus  50% in the prior-year period, due primarily  to a decline in revenues. IO’s loss from operations rose 139.2% sequentially to $10.23 million, while its net loss increased 45.5% sequentially to $7.16 million.

IO’s 17.7% trailing-12-month gross profit margin  is 55.2% lower than the 39.4% industry average. The company’s trailing-12-month ROA, net income margin, and ROTC are negative 22.2%, 52.5%, and 13.7%, respectively. In addition, its  $11.85 million trailing-12-month cash from operations  is 96% lower than the $293.40 million industry average.

Unfavorable Earnings Outlook

A $96.98 million  consensus revenue estimate for the current year represents a 20.9% decline year-over-year. Furthermore, IO’s revenue is expected to decline 28.2% from its  year-ago value to $124.37 million next year. Wall Street analysts expect IO’s EPS to decline 10.7% year-over-year to negative $2.89 in the current year. The consensus EPS estimate for the current quarter ended June 2021 represents a 97.3% decline from its year-ago value. Also, IO failed to beat the consensus EPS estimates in three of the trailing four quarters.

POWR Ratings Reflect Bleak Prospects

IO has an overall D rating, which translates to Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. IO has a C grade for Quality. This reflects the stock’s negative profit margin.

In terms of Momentum grade, the company has a C, reflecting its negative price returns over the past month. It has an F grade for Stability. This is consistent with the stock’s relatively high 3.25 beta.

Beyond the grades we’ve highlighted, one can check out additional IO ratings for Sentiment, Value, and Growth here. Of the 93 stocks in the C-rated Energy – Oil & Gas industry, IO is ranked #83.

Click here to view the top-rated stocks in the Energy – Oil & Gas industry.

Bottom Line

Even though IO’s North Sea 3D multi-client program has garnered significant attention, concerns surrounding the resurgence of COVID-19 cases and oil price volatility could weigh heavy on its stock in the near term. In addition,  the company’s poor growth prospects and inadequate financials could lead to a further price decline. Therefore, we think the stock is best avoided now.

IO shares were trading at $1.57 per share on Wednesday morning, up $0.03 (+2.24%). Year-to-date, IO has declined -35.39%, versus a 16.59% rise in the benchmark S&P 500 index during the same period.

About the Author: Imon Ghosh

Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization.

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The post Is ION Geophysical Corp. a Smart Exploration and Production Technology Stock to Own? appeared first on StockNews.com https://www.entrepreneur.com/article/378014

July 18, 2021 7 min read

This story originally appeared on PennyStocks

4 Penny Stocks to Watch With July Coming to an End 

With penny stocks in focus right now, many investors are searching for the best small caps to watch. And while trading has not exactly been ideal in the past month or two, some traders believe that the near future could hold a great deal of potential. To understand why we have to consider what’s going on in the world right now. And most prominently, that is the pandemic and when it may come to an end. 

[Read More] Hot Penny Stocks to Buy Now? 6 Reopening Stocks To Watch In July 2021

With cases of the Delta variant rising around the world, many investors have reignited earlier fears about the potential of a full reopening. And while we may not go back to the lockdown we’ve seen in the past, this fear is playing out with both penny stocks and blue chips. Now, it’s worth noting that plenty on the list of penny stocks, happen to move independently of the larger stock market. Because of this, it seems as though there is always value to be found. Considering these factors, here are four penny stocks to watch in late July 2021. 

4 Penny Stocks to Watch Right Now 

1. Conformis Inc. (NASDAQ: CFMS)
2. Ault Global Holdings Inc. (NYSE: DPW) 
3. Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO) 
4. Investview Inc. (OTC: INVU) 

Conformis Inc. (NASDAQ: CFMS)

Conformis Inc. is a biotech penny stock that has experienced a great deal of momentum in the past few trading sessions. This company creates medical tech products such as joint replacement implants and more. Its iDuo product is a personalized bicompartmental knee replacement system in use by many patients around the world. In addition to this, CFMS offers a variety of other products as well. On July 7th, Conformis Inc. announced the settlement of patent litigation with Wright Medical Technology Inc.

“We are pleased to have resolved all of the ongoing patent litigation related to the Wright Medical dispute. The settlement once again highlights the strength and value of our intellectual property, as well as our steadfast commitment to protecting and enforcing it.”

The President and CEO of Conformis

While this is not major news for the company, it is an important factor to consider. With its solid lineup of IP, Conformis remains a leader in the joint replacement market. Right now, CFMS stock is showing higher volume than usual, at around 13 million compared to around 2 million on an average trading day. Additionally, it’s worth noting that shares of CFMS stock shot up by over 7% on Friday, July 16th. So considering all of this, will you be adding CFMS stock to your watchlist this week?

Ault Global Holdings Inc. (NYSE: DPW)

Ault Global Holdings Inc. is an industrial stock that develops power system solutions. The company is involved in the design, manufacturing, and retailing of these products. Ault’s offerings are primarily sold to military, medical, aerospace, and telecommunication companies, which gives it quite a broad reach. Some of its products include power supplies, multiplexers, power conversion equipment, and much more.

[Read More] 4 High Volume Penny Stocks to Watch in July 2021

On July 16th, the company announced the formation of Ault Global Real Estate Equities Inc. This will allow the company to invest in commercial real estate. The company states that Christopher K. Wu will become the new CEO of Ault Global Real Estate.

“We believe there are attractive assets in commercial real estate in the United States that would benefit from capital investment and repositioning, and we believe Chris Wu, given his experience in the commercial real estate sector, will provide strong leadership to drive investments that meet our criteria.

Chris brings a unique skill set and connections to provide non-recourse financing to the Company, allowing us to expand our real estate portfolio with limited impact on the Company’s resources.”

The executive chairman of Ault, Milton “Todd” Ault

Because the real estate industry is booming right now, Ault sees a large market opportunity to get in on. While the results of this venture are yet to be seen, investors have high hopes for the near future with this real estate move. With this in mind, will DPW stock make your watchlist?

Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)

Aerpio Pharmaceuticals Inc. is a biotech penny stock that develops and commercializes various compounds. This includes those that treat ocular disease and vascular stabilization. Its lead product, razuprotafib, has completed Phase 2b clinical trial to treat diabetic retinopathy. The company has experienced a lot of positive momentum this year, bringing investor attention from all around the market. So, to understand ARPO better, let’s take a look at what it has been up to in the past few weeks.

On June 4th, the company provided a second update on its Aadi Bioscience presentation at the ASCO 2021 Virtual Meeting. Apart from this, there has been no other company-specific news released from Aerpio. Despite this, shares of ARPO stock shot up by around 3% on July 16th. At the start of 2021, this penny stock was at $1.05 per share on average, now shares sit at around $2.06, which is quite a substantial increase. Considering this, will ARPO stock be on your watchlist this coming week?

Investview Inc. (OTC: INVU)

Investview Inc. is a fintech company working on new solutions for the financial industry. Specifically, it offers financial education, research, and technology. Investview’s product offerings include investment tools, advisory services, and much more to help its customers. The company also offers crypto mining and adaptive blockchain technologies. Its move into the crypto market shows just how innovative the company is. And as a result, many investors are looking at INVU as a player in what the finance industry could become in the future.

On July 16th, Investview paid its preferred quarterly dividend and closed its perpetual preferred offering. The company’s iGenius subsidiary also recently reported a strong record growth trend in the first quarter of 2021. These are the two most recent announcements from the company and could help to explain its bullish momentum in the past few trading sessions.

“This was an all-around highly successful quarter for iGenius. During the quarter, our strategies led to strong global customer demand for our high-quality financial education tools, research, and digital asset technology products. We also offered various incentives and promotions that were well received and contributed meaningfully to sales and customer growth for the quarter.”

The CEO of Investview, Joe Cammarata

While trading in the past month has not been ideal, the demand for educational tools remains quite high. Whether this makes INVU stock worth watching or not is up to you. 

Are These Penny Stocks on Your Watchlist?

Finding the best penny stocks for your watchlist all comes down to a few factors. First, what type of investor are you, and what is your tolerance for risk? These two questions alone should help to identify which penny stocks may be worth watching.

[Read More] Best Penny Stocks to Buy Under $3? Here’s 3 For Your Watchlist

Second, what do the company’s financials look like and what is its long-term outlook? With research as the backbone for all great investors, finding the best penny stocks to buy in 2021 can be easy if you are willing to spend the time.

https://www.entrepreneur.com/article/377685

July 11, 2021 8 min read

This story originally appeared on PennyStocks

Are These Hot Penny Stocks on Your Watchlist?

Finding the best penny stocks to buy in 2021 is all about understanding the market trajectory. With so many penny stocks to choose from, making a decision is difficult, to say the least. But, with the power of the internet at everyone’s disposal, this can be easier than previously imagined. The best place to start is by creating a penny stocks watchlist. This will help to narrow down your choices to only a handful of companies, rather than hundreds. 

[Read More] 7 Top Penny Stocks to Watch That You Probably Haven’t Heard Of

And with a proper watchlist, the research stage can begin. This involves understanding every aspect of a company from its financials, to what makes it move. With all of this in mind, here are seven industry-leading penny stocks to watch right now. 

5 Penny Stocks You Need to Know About 

1. Zomedica Corp. (NYSE: ZOM) 
2. Oxbridge Re Holdings Ltd. (NASDAQ: OXBR) 
3. Waitr Holdings Inc. (NASDAQ: WTRH) 
4. Envirotech Vehicles Inc. (OTC: ADOM) 
5. Komos Energy Ltd. (NYSE: KOS) 

Zomedica Corp. (NYSE: ZOM)

Zomedica Corp. is a biotech penny stock that is performing well right now. The company’s main focus is veterinary health for dogs and cats. Currently, Zomedica is developing and commercializing TRUFORMA which is a diagnostic biosensor platform that detects thyroid cancer in animals. So why has ZOM stock been going up so much recently? On July 6th, Zomedica released a corporate update. The company currently expects TRUFORMA to have five initial assays to test for adrenal and thyroid disorders soon.

“While the change to our sales structure and the delay of fT4 and ACTH certainly were unexpected, we believe that these issues are being addressed effectively within and outside Zomedica. We have calibrated spending to coincide with a later adoption curve than anticipated, are working cooperatively and effectively with our partner, Qorvo, and are looking forward to delivering all of the promises of TRUFORMA later this year.”

The CEO of ZOM, Robert Cohen

ZOM has also been referred to as a “meme stock”. Meme stocks are companies that increase in value because of social media and their popularity on such. This has pushed the volume of ZOM much higher than it regularly would be without the social media hype. One year ago this penny stock was worth $0.16 per share on average.

Now the company’s stock price is at $0.73 per share as of July 9th. At one point in 2021, the company’s share prices reached above $2.60 per share indicating a high degree of bullish investor sentiment. With all of this in mind, will ZOM make your list of penny stocks to watch?

Oxbridge Re Holdings Limited (NASDAQ: OXBR)

Oxbridge Re Holdings Limited is a financial penny stock working on several interesting business prospects. The company works in the area of property and casualty reinsurance. Additionally, Oxbridge actively underwrites reinsurance contracts for various companies. These include property and casualty insurance-based corporations. 

OXBR stock has experienced a lot of positive momentum in 2021 so far. Despite this, not much news has come out of Oxbridge in the past few months. So why is OXBR stock increasing in market value? Well, as you may have seen, the real estate market is exploding in value right now.

With property prices rapidly increasing, the price to insure said properties is going to cost more. This is a potential reason that OXBR stock is performing well and has a higher volume than its average on July 9th. One year ago, OXBR stock was worth about $1.10 per share on average. Now on July 9th, OXBR stock is at $2.90 per share on average. Considering this, is OXBR stock a contender for your watchlist this year?

Waitr Holdings Inc. (NASDAQ: WTRH)

Waitr Holdings Inc. is a tech penny stock that has seen a great deal of momentum throughout the pandemic. This company operates platforms for mobile food ordering and competes with some of the largest names in the industry. The company’s two platforms are Waitr and Bite Squad, and allow customers to order food for delivery and carryout. It’s worth noting that it has more than 20,000 restaurants in 700 cities on its roster as of December 31st, 2020. 

At the start of June, the company announced a corporate rebrand initiative. The company intends on changing its name and visual identity in the next 12 to 18 months. The company’s CEO and Chairman Carl Grimstad said, “This decision to rebrand will better reflect our identity and business operations as we continue our expansion into new verticals outside of the food delivery segment and should improve and enhance our marketing and public relations synergies. Our three core constituents provide us with a myriad of commercial opportunities.”

[Read More] 9 Hot Penny Stocks to Watch For the Upcoming Week

The last update that came from Waitr Holdings Inc. was the June 22nd announcement stating that the company has added Long John Silver’s to its platform. In the last 6 months, WTRH stock has not had the most positive momentum, but could things be changing for the company now? On July 9th, WTRH stock is up significantly in the market. With this in mind, will WTRH stock make your watchlist this week?

Envirotech Vehicles Inc. (OTC: ADOM)

Envirotech Vehicles Inc., formerly known as Adomani, is an electric vehicle penny stock. The company produces zero-emissions electric vehicles and drivetrain systems. These vehicles and systems are intended for commercial fleets. It also provides kits to convert gas-powered vehicles to EVs, which is a growing market right now.

On July 7th, Envirotech received a $400,000 purchase order from Joseph Holdings for five vehicles. CEO Phillip Oldridge said, “This order is a promising start to our FAR relationship with Joseph Holdings and we’re pleased to have this opportunity to begin providing our innovative, high-quality, conventional and special purposed electric vehicles to the Caribbean market.”

The past one-month of momentum with ADOM stock has been high to say the least. On June 10th, ADOM’s stock price was at $0.25 per share on average. Now on July 9th, the company’s stock price is over $0.38 per share. ADOM’s volume is also much higher than its market average right now.

There are a few possible explanations for this. The market for electric vehicles is rapidly growing at the moment. We’ve all seen how companies like Tesla Inc. (NASDAQ: TSLA) have gone up significantly in the past year or so. This momentum affects smaller EV companies like Envirotech as well. Whether this makes ADOM a part of your watchlist right now, is up to you.

Kosmos Energy Ltd. (NYSE: KOS)

Kosmos Energy Ltd. is an oil and gas penny stock that is increasing in value right now. The company’s primary focus is deepwater oil and gas exploration and production. Its assets are all based in the Atlantic Margins, in places like Ghana, the U.S. Gulf of Mexico, and Equatorial Guinea. This company’s one-year growth has been very significant in scale. Kosmos Energy released an operational update on July 5th. The company provided insight on its production, development, and exploration processes at the moment.

“Kosmos had a solid second quarter, generating positive cash flow which reduced net debt by around $100 million, driven by higher sales volumes, strong operational performance in Ghana and improving realized oil prices. We continue to see momentum build across our producing hubs with new wells drilled in Ghana and the U.S. Gulf of Mexico during the quarter and the arrival of the rig for development drilling in Equatorial Guinea.”

Chairman and CEO Andrew G. Inglis

One year ago, KOS stock was at $1.55 per share. Now the company’s stock price has reached more than $3 per share. The oil and gas sector has been a big hit in 2021, with many companies from this sector being mentioned on our site recently. With oil and gas penny stocks on the rise, will this company make it on to your watchlist?

2 More Penny Stocks to Watch Right Now 

6. Gaucho Group Holdings Inc. (NASDAQ: VINO) 
7. Alset Ehome International Inc. (NASDAQ: AEI)

Which Penny Stocks Are On Your Watchlist?

With so many penny stocks to choose from in 2021, making a decision can be a difficult task. However, with the right information at hand, every investor can be as informed as to the best traders out there.

[Read More] Penny Stocks to Buy Now? Why Reddit Traders Are Watching These 10

One thing to keep in mind is that information will always set apart the pro traders from those just starting. But, with a dedication to researching every company on your watchlist, you can be just as informed as the best investors out there. With this in mind, which penny stocks are on your watchlist?

https://www.entrepreneur.com/article/376956