Thinking of buying penny stocks this 2018? There are countless stocks out there and it can be overwhelming to choose which could be the most profitable. Fortunately, we listed the best penny stocks to buy for this year to give you an overview which stocks are best to start to invest.
Good Penny Stocks to Buy 2018
Penny stocks have helped in making fortunes for others, but have destroyed other accounts due to the wild price movements. This is why they say penny stocks an investment that most need to avoid.
However, despite the volatility and its traits, there are still profit opportunities present in penny stocks.
In other words, these opportunities are simply not present in low-volatile blue-chip stocks with small price movements.
Groupon was one of the hottest stocks when it went public back in 2011, at $28 per share. However, its shares fell into penny stock level less than a year later.
Further, its pre-IPO growth rate wasn’t going to last and competition has picked up. Net income peaked in 2012, and sales peaked in 2015.
On the other hand, the company has stepped up to the plate. It set the stage for a better 2018 and beyond. Analysts said that revenue might fall another 7% this year, income is forecasted to improve from 11 cents per share to 19 cents per share. Next year, sales are expected to grow, and per-share profit are forecasted to reach 24 cents per share.
Stein Mart, Inc
Stein Mart’s stock price went from the mid-teens to less than $1.00 per share in the last 5 years. The company offers designer clothing brands “for less” to men and women across the US.
Since Stein Mart is near its all-time low, it still worth considering to buy in the short term. The reason is that the physical presence of its stores have some intrinsic value.
Cannabis Strategic Ventures
Even though the company has a market cap of $42 million, the company is acutely focused in a high-growth area. Because of that, it’s reflected in their stock price.
Cannabis Strategic Ventures moved from $0.05 per share to over $3.00 in less than a month. This was thanks to upbeat announcements and marijuana legislation news.
Since marijuana is recreationally legal in several states, it seems rational that this company could perform well. Cannabis Strategic Ventures specializes in outsourced staffing for the marijuana industry, financial administration, and industry expertise.
Neovasc is a Canadian medical device company. Its specialty is researching, developing, and manufacturing products in the cardiovascular field.
Similarly with Stein Mart, Neovasc has recently traded near its all-time low. That suggest shorts are taking profits or long are finally diving in. Technically, buying the company is an interesting play.
Additionally, 93.1% of users have a bullish sentiment outlook on Neovasc, according to experts.
PDL BioPharma Inc
PDL BioPharma was initially established as a vehicle to acquire rights to, or patents on, highly marketable drugs. They believed that would drive income for its investors.
It worked for some time, but drug developers realized they could do for themselves what BioPharma was doing. That’s why the company had been struggling to acquire drugs and marketing rights at prices that left room for dividends.
In result, its stock has dropped from a value of more than $30 in 2006 to a price of only $3 per share.
On the other hand, as of the most recent quarterly report, BioPharma has more cash in the bank than the market cap. The former is $532 million against the latter of $462 million.
Because these penny stocks to buy are cheap and often move up or down dramatically, they are hard to predict short term trends.
Often, prices can move wildly mainly due to liquidity issues, not because of fundamental reasons about the company. Remember that penny stocks are not for everyone. But if you are interested in investing, these 5 penny stocks to buy are worth the look. If you disagree with the list, you can still find the best penny stocks and how to find them and what to look for.
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