Penny stock investing offers investors exceptional returns. Many are depressed names that move violently on significant news or volume. Many such companies exist, but only a few are worth watching. Investors take interest in companies with certain metrics. These top 10 penny stocks with correct metrics perform better over time.
This article discusses some of the best penny stocks to trade in the market today. Additionally, we offer reasons why the company may become active in the future. As always, penny stocks offer defined risk parameters with exceptional upside potential.
Top Retail Based Penny Stocks
A narrative exists in the market today that retail is dead. Some believe that brick and mortar stores will eventually disappear. This is a case of only the strong survive. Companies that defy this belief are set up for much higher prices, as discussed here.
J. C. Penney Company, Inc. (NYSE : JCP) sells merchandise through department stores. At one point, this stock was a darling of Wall Street. In the recent past, management detailed turn around strategies. Investors liked this news and bid the price higher.
Furthermore, the stock trades just under $5 with a heavily daily trading volume over 15 million shares. The stock shows short interest at an elevated 37%. The company quietly grew earnings-per-share (EPS) over the last 5 quarters 15%. Any positive news from the sector, company, or analyst could be the catalyst for an dramatic move to the upside.
Sears Holdings Corporation (NASDAQ : SHLD) operates as an integrated retailer in the United States. This top 10 penny stock continues exploring strategic alternatives. Management does this to unlock shareholder value. This stock traded as high as $100 in the past, showing true upside potential.
Additionally, this name has tremendous short interest over 15%. The trading volume of over 2 million shares daily allows investors for easy entry and exits. This company is over 100 years old, and needs to be on penny stock investor’s watchlist.
Top Oil And Gas Penny Stocks To Watch
Penny stocks involved in oil and gas offer significant rewards. Many times, they are one oil strike or one financing move away from exploding to the upside.
Sanchez Energy Corporation (NYSE : SN) an independent exploration and production company, focuses on the acquisition and development of U.S. onshore unconventional oil and natural gas resources. This company shows insider ownership of almost 10%. Additionally, it grew sales almost 100% over the past 5 years. Trading just above $3, it shows a significant discount to the target price of $6.
Ultra Petroleum Corp. (NASDAQ : UPL) engages in the acquisition, exploration, development, operation, and production of oil and natural gas properties. This firm shows an impressive 67% gross margin on its sales. Furthermore, it shows a steady capital structure, keeping shares outstanding constant. Showing steadily increasing sales quarter over quarter of 9%, this company is ripe for growth and upside movement.
Denbury Resources Inc. (NYSE : DNR) operates as an independent oil and natural gas company in the United States. This top 10 penny stock shows tremendous EPS growth quarter over quarter of 100%. Additionally, it trades an impressive 9 million shares daily. This company shows strong value metrics as well. It has a price-to-sales (P/S) ratio of under 1. This means that investors are paying less than $1 for ever $1 of sales generated by the company.
Top Biotech Penny Stocks To Watch
Many biotech companies trade as penny stocks, as they have unproven products. However, if one of their products becomes widely accepted, the stock skyrockets. Many are heavily shorted, causing tremendous upside rewards. Additionally, if a company proves its worth, a larger company is like to buy it for a premium.
Pacific Biosciences of California, Inc. (NASDAQ : PACB) designs, develops, and manufactures sequencing systems to resolve genetically complex problems. This stock traded as high as $17 in the past. Accompanied with 10% short interest, this name certainly offers dramatic upside potential. The company is in a strong position of solvency, showing a quick ratio over 3.5.
Neuralstem, Inc. (NASDAQ : CUR) a clinical stage biopharmaceutical company, focuses on the research and development of nervous system therapies based on its proprietary human neuronal stem cells and small molecule compounds. This company is becoming hot as it shows EPS growth quarter over quarter of almost 100%. Additionally, it shows a current ratio of 8, ensuring company solvency. The stock holds a price target of $26. This is a significant premium to its current trading price, making this company a top 10 penny stock to watch.
Celldex Therapeutics, Inc. (NASDAQ : CLDX) a biopharmaceutical company, focuses on the development and commercialization of several immunotherapy technologies and other cancer-targeting biologics. Cancer focused companies are lovely by investors. These companies aim to discover a first of its kind cure, which is very lucrative. Furthermore, this stock shows analyst coverage from reputable firms such as Jefferies and Wedbush. Currently, the company has at least 3 drugs with completed phase II testing. This is normally a sticking point for firms. In contrast, CLDX has a number of drugs ready for the next phase of testing.
Top Penny Stocks to Watch Under $1
Some investors believe penny stocks must be under $1 to qualify. However, this significantly reduces their odds of success. Nonetheless, this section will identify the top penny stocks to watch trading under $1. These picks offer the most dramatic percentage returns given their nature.
Curis, Inc. (NASDAQ : CRIS) a biotechnology company, engages in the discovery and development of drug candidates for the treatment of human cancers in the United States. The company is growing sales and EPS each quarter at rates over 30%. Additionally, it shows health cash amounts showing a current ratio over 5. It shows a tremendous universe of analyst coverage, hinting that this company can become a player in the game. Finally, it trades at a large discount to its $5.50 price target.
Egalet Corporation (NASDAQ : EGLT) a specialty pharmaceutical company, develops, manufactures, and commercializes treatments for patients with pain and other conditions. This company created patented time release pain treatment. Furthermore, the company used the success of this drug to create two others. It expanded on its first success and now offers different methods of administering the drug. This strategy is clearly working. Consequently, the company shows sales growth over the past 5 years over 90%.
Is Penny Stock Investing Right For You?
In conclusion due diligence is needed to profit in this space. These top 10 penny stocks to watch provide a starting point for interested parties. Additionally, holding a number of these stocks dramatically increases the odds of success. All penny stocks are not guaranteed to explode. However, when one does, it often generates enormous returns large enough to show extreme out performance.