In this article we will discuss Penny stocks to buy which can give good returns in future. Diversification, in my opinion, is a fantastic way to protect oneself while investing. Risk tolerance is a vital part of this, and risk-avoidant investments will only result in minimal returns. Penny stocks are an excellent example of this, as they have more significant risks and higher potential profits.
I strongly advise people to familiarise themselves with exchange-traded funds (ETFs) as well as other lower-risk investing vehicles. However, a portfolio must also contain a certain amount of risk, and Penny stocks are a low-cost method to get started with this technique.
Every penny stock I’ll discuss today has been listed on the New York Stock Exchange (NYSE). The Nasdaq and indeed the NYSE would both be controlled. Therefore, participants must produce audited financial reports regularly. As a result, their statements about their company performance can be verified. On the other side, OTC stocks are easier to manipulate.
According to Kiplinger, there’s another reason to be suspicious with OTC penny stocks:
“Like larger exchanges, OTC stocks have listing criteria. To be listed upon that New York Stock Exchange, a firm should have at least 400 shareholders and a market value of $40 million. There are no such regulations in the OTC market.”
Let’s take a look at seven NYSE-listed penny stocks that appear to be particularly promising:
● Gerdau (NYSE: GGB)
● Ion Geophysical Corp. (NYSE: IO)
● Team Inc. (NYSE: TISI)
● Regis Corp. (NYSE: RGS)
● Invacare Corp. (NYSE: IVC)
● Arcos Dorados Holdings (NYSE:ARCO)
● Exterran Corp. (NYSE: EXTN)
Gerdau (GGB)
Gerdau is a steel company based in Brazil with operations in North America and South Africa. It makes rebar, rolled steel, structural steel, including slab steel, among other things.
Right now, there are always reasons to be interested in steel stocks. The much more essential is a significant drive throughout the United States to revive infrastructure.
President Joe Biden announced his plan to spend $2 trillion to fix America’s dilapidated highways and infrastructure earlier in the month. According to President Biden, this funding will repair 20,000 miles of road and 10,000 bridges. Of obviously, this necessitates the use of steel, which bodes well for Gerdau.
Gerdau became particularly impressive throughout the second quarter. On a year-over-year (YOY) basis, the company’s sales increased by 119 per cent in the quarter, and it recorded a 654 per cent increase in gross profit.
In late October, the business will report its third-quarter results. Nobody knows the results, but experts are currently bullish on the firm.
GGB has a solid buy rating and plenty of upside potential relevant to the target pricing. It presently trades for around $5, the top limit of a penny stock, but experts expect it to reach $7.93 shortly.
Given Biden’s infrastructure spending tailwinds, it’s simple to understand why is it that a thriving firm like Gerdau suddenly has a 50 per cent upside potential.
Ion Geophysical Corp.: Company that specializes in geophysical exploration (IO)
Ion Geophysical is a Houston-based oil exploration and production (E&P) company. The firm has lower fixed expenses than comparable oil equities, which is an intriguing feature. Therefore it isn’t required to pay for mining rigs, pipelines, platforms, or most of the other high-cost assets connected with oil drilling. Ion seems to be a data company.
As a result, the story behind an investment in IO stock was that it was a low-cost, well-regarded oil analytics organization.
Ion Geophysical is covered by three experts, including those who think it’s a good investment. Based on their price forecasts, IO shares are pretty appealing. IO stock is now trading at $1.41, while its estimated target price of $4.57 is three times higher. Experts estimate it will now return 224 per cent to investors, in plenty of other words.
Oil producers, ostensibly, seem to be quite interested in Ion Geophysical’s services now that oil prices have risen beyond $85 per barrel.
The pandemic had a significant impact on the firm. Revenue peaked at $56.4 million in Q1 2020, then dropped to $14 million in Q1 2021. Despite this, the corporation remained profitable owing to the absence of assets.
Team Inc. (TISI)
Team Inc., like Ion Geophysical, is an analytics business that services the oil sector. The firm primarily focuses on asset protection and optimization, and that is, it uses analytically empowered services to check and repair assets.
Team Inc., unlike Ion Geophysical, does not only operate in the oil industry, but it works in a variety of industries, including power & manufacturing, aerospace, pulp, paper, and others.
But, at the end of the next day, investors are most concerned with one thing: returns. As a result, Team Inc. is amongst the most appealing penny stocks available. According to experts that cover TISI, the store seems to have the potential to more than treble in price. It has a $10 average target price, and it is presently trading at $2.80.
Though there are a few reasons to think Team Inc. is about to take off. Chevron just gave it a multi-year deal (NYSE: CVX). “This contract award is the consequence of a long-term cooperation and track record of effective collaboration,” stated Team Inc. CEO Amerino Gatti. Chevron will benefit from our new Asset Integrity & Digital Group, which will deliver technology-enabled inspection services as well as engineering evaluation solutions.”
Furthermore, the TISI stock was just at the $12 mark, plus oil prices are soaring as you read this.
Regis Corporation : Company that specializes in the construction of buildings (RGS)
Regis is now involved in the management and ownership of beauty salon franchises. It offers branded items. However, its salon brands, like Supercut and Cost Cutter, are far more well-known.
A restructure of the corporation occurred lately. Based on recent quarterly results, it appears that the move has improved the firm. In the second quarter of 2020, Regis earned $60.1 million, and it made $99.1 million in sales in Q2 2021 after the restructuring.
Moreover, losses decreased from $36 million to $26 million within the same period. RGS stock might soar if the pattern continues in future quarterly results.
RGS stock, like most of the other penny stocks on our list, is traded on the New York Stock Exchange and has a lot of potentials. Analysts have set a target price of $5.75 for the stock. It is now trading at $3.07, although it reached a high of $13.60 in late April.
Penny Stocks to Keep Your Eye on for Big wave
● Liquid Media Group (NASDAQ: YVR)
● Zomedica (NYSEAMERICAN: ZOM)
● Sundial Growers (NASDAQ: SNDL)
● Savara (NASDAQ: SVRA)
● Organigram (NASDAQ:OGI)
● Lipocine (NASDAQ: LPCN)
● Zosano Pharma (NASDAQ:ZSAN)
Invacare Corp. (IVC)
Invacare manufactures medical equipment such as manual and motorized wheelchairs, medical beds, personal care equipment, and respiratory treatment equipment.
Several months ago, Invacare stock was substantially more expensive. Beginning in 2021, IVC stock climbed above $10, and this is where the median target stock price suggests it should go. However, like many other companies, it is currently experiencing supply chain challenges.
CEO Matt Monaghan explains how and why the company’s share price has suffered as a result of the uncertainty:
“It’s difficult to determine when the global supply chain chaos caused by the epidemic will calm down. Furthermore, we expect 4Q21 to improve sequentially from the third quarter, but at a slower pace than expected. Increases in our workforce at key sites to enhance throughput, and perhaps a growth in the number of freight carriers to accelerate order fulfilment should help us to lower our present high backlog, resulting in revenue growth and improved adjusted EBITDA.”
So, while this is a recovery play, it has a lot of upside potential and a low-price precedent, making it quite appealing.
Holdings Arcos Dorados (ARCO)
Arcos Amongst whom Holdings is a franchisor and operator of restaurants. McDonald’s (NYSE: MCD) outlets are operated and franchised in Latin America and the Caribbean.
Unlike most other options on this list, ARCO stock is unlikely to triple or even double in value. After all, it’s presently trading at almost under $5 a share, with an investment amount of a little more than $7.
Ten expert ratings are published on the Arcos Dorados website. All of them are “overweight” or “buy” ratings, with three of them being “neutral.”
But even though the potential appears to be excellent, it may be less appealing than the other options on this list. ARCO stock, like McDonald’s stock, pays a dividend. But it makes up for its lack of relative advantage with brand strength. Arcos Dorados declared in late 2020 that it would restart dividend payments in 2021.
The business has been doing well lately. On a year-over-year basis, overall sales climbed by 104.5 per cent in Q2. Furthermore, sales rose by 4.2 per cent over the previous two years.
You may also like to read: Why Invest in Emerging Markets? | Emerging Market ETF
Exterran Corp. (EXTN)
The third Houston-based company on this list is Exterran. That would offer readers a sense of where many analysts expect product and service growth will come from. That seems to be, of course, oil and energy, with Houston serving as the industry’s hub in the United States.
Exterran specializes in contract operations, after-market services, and product sales in the oil, gas, & water power industries. Throughout the epidemic, the firm has remained relatively unaffected. Given the choppy nature of oil demand and pricing for the last year and a half, this may come as a surprise.
This year, the company’s second-quarter revenues climbed dramatically, jumping from $131.1 million to $146.2 million years over year. Losses grew as well, jumping from almost $32 million to some more than $35 million years over year.
Because the firm was just given a large water contract, the area will now account for around 25% of the company’s backlog. Analysts believe its stock has considerable momentum and will double in value based on their target pricing.
Penny Stocks Under $1 : Stocks to Look in December 2021
- Alpha Esports Tech (OTC: APETF)(CSE: ALPA)
- Farmmi Inc. (NASDAQ: FAMI)
- Sundial Growers Inc. (NASDAQ: SNDL)
- Borr Drilling (NYSE: BORR)
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