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Though the Wall Street has been rallying lately, the damage caused by the coronavirus outbreak in the past month is unforgettable. The pandemic put an end to the longest bull run in America’s history, leading to indiscriminate selloffs.
Some small-cap stocks probably have lost so much that those ended up being tagged as penny stocks in the past month. Notably, a penny stock refers to a small company's stock that normally trades at less than $5 a share.
Has Wall Street Bottomed?
Market pundits have diverse opinions on this. However, Morgan Stanley’s chief U.S. equity strategist Mike Wilson believes that for stocks and investors, the worst is behind us. Valuations are most attractive since 2011, per Wilson. He added that the current stock market level is a good entry point for a six to 12-month horizon, as quoted on MarketWatch.
After a month’s turmoil, Wall Street appears to be riding on risk-on trade sentiments slowly. In the past five days (as of Apr 8), the S&P 500 has gained about 11.2% on signs of a slowdown in coronavirus cases. The small-cap index Russell 2000 — one of the hardest-hit in the Wall Street massacre — also added about 10.9% over the period.
Then there is an infinite QE by the Fed, a zero-rate policy and about $2-triliion government measures to boost Wall Street investors’ sentiments. The situation opens the opportunity to buy some well-positioned stocks at throw-away prices.
Why Penny Stocks?
Many retail investors might be facing cash crunch amid the virus-induced lockdown. A survey from Bankrate showed last year that just 40% of Americans could pay an unexpected $1,000 financial emergency. So, with COVID-19 dealing a blow to businesses and in turn ticking up the unemployment rate, cash issue should be kept in mind before making an investment decision at the current level.
So, why not target a few penny stocks that offer good prospects? In order to do so, we have selected a few penny stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and are available for more-or-less $5.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for current-year earnings for these companies have jumped at least 20% in the past four weeks. These stocks also boast a forward P/E that is less than the S&P 500 ETF (17.7x).
The Zacks Rank #2 company provides data-driven performance marketing services. The Zacks Consensus Estimate for its current-year earnings has moved up 66.67% over the past four weeks. The forward P/E of the stock is as low as 7.40x. The stock hails from a favourable Zacks industry (placed at the top 31% of total 250+ industries in the Zacks universe).
StarTek Inc. — $2.95
The Zacks Rank #2 global provider of process management services and owns and operates branded vertical market Internet web sites comes from a favourable Zacks industry (top 26%). The Zacks Consensus Estimate for its current-year earnings has risen 36.84% over the past four weeks. The forward P/E of the stock is 10.96x.
Build-A-Bear Workshop is the only national company providing a make-your-own stuffed animal interactive retail-entertainment experience. The Zacks Consensus Estimate for its current-year earnings has gone up 22.2% over the past four weeks. The forward P/E of the stock is 11.36x. The stock has a Zacks Rank #1.
PFSweb Inc. —$3.13
The Zacks Rank #1 provider of transaction management services for both traditional commerce and e-commerce companies hails from a favorable Zacks industry (top 25%). The Zacks Consensus Estimate for its current-year earnings has moved 113.3% north over the past four weeks. The forward P/E of the stock is 9.59x.
Telenav Inc. —$5.10
The Zacks Rank #2 provider of location-based services, including voice guided navigation, on mobile phones belongs to a favorable Zacks industry (top 12%). The Zacks Consensus Estimate for its current-year earnings has climbed 31.7% over the past four weeks. The forward P/E of the stock is 16.52x.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
5 Top-Ranked Penny Stocks Worth Buying Now
Though the Wall Street has been rallying lately, the damage caused by the coronavirus outbreak in the past month is unforgettable. The pandemic put an end to the longest bull run in America’s history, leading to indiscriminate selloffs.
Some small-cap stocks probably have lost so much that those ended up being tagged as penny stocks in the past month. Notably, a penny stock refers to a small company's stock that normally trades at less than $5 a share.
Has Wall Street Bottomed?
Market pundits have diverse opinions on this. However, Morgan Stanley’s chief U.S. equity strategist Mike Wilson believes that for stocks and investors, the worst is behind us. Valuations are most attractive since 2011, per Wilson. He added that the current stock market level is a good entry point for a six to 12-month horizon, as quoted on MarketWatch.
After a month’s turmoil, Wall Street appears to be riding on risk-on trade sentiments slowly. In the past five days (as of Apr 8), the S&P 500 has gained about 11.2% on signs of a slowdown in coronavirus cases. The small-cap index Russell 2000 — one of the hardest-hit in the Wall Street massacre — also added about 10.9% over the period.
Then there is an infinite QE by the Fed, a zero-rate policy and about $2-triliion government measures to boost Wall Street investors’ sentiments. The situation opens the opportunity to buy some well-positioned stocks at throw-away prices.
Why Penny Stocks?
Many retail investors might be facing cash crunch amid the virus-induced lockdown. A survey from Bankrate showed last year that just 40% of Americans could pay an unexpected $1,000 financial emergency. So, with COVID-19 dealing a blow to businesses and in turn ticking up the unemployment rate, cash issue should be kept in mind before making an investment decision at the current level.
So, why not target a few penny stocks that offer good prospects? In order to do so, we have selected a few penny stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and are available for more-or-less $5.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for current-year earnings for these companies have jumped at least 20% in the past four weeks. These stocks also boast a forward P/E that is less than the S&P 500 ETF (17.7x).
Fluent Inc. (FLNT - Free Report) —$1.51
The Zacks Rank #2 company provides data-driven performance marketing services. The Zacks Consensus Estimate for its current-year earnings has moved up 66.67% over the past four weeks. The forward P/E of the stock is as low as 7.40x. The stock hails from a favourable Zacks industry (placed at the top 31% of total 250+ industries in the Zacks universe).
StarTek Inc. — $2.95
The Zacks Rank #2 global provider of process management services and owns and operates branded vertical market Internet web sites comes from a favourable Zacks industry (top 26%). The Zacks Consensus Estimate for its current-year earnings has risen 36.84% over the past four weeks. The forward P/E of the stock is 10.96x.
Build-A-Bear Workshop Inc. (BBW - Free Report) —$1.36
Build-A-Bear Workshop is the only national company providing a make-your-own stuffed animal interactive retail-entertainment experience. The Zacks Consensus Estimate for its current-year earnings has gone up 22.2% over the past four weeks. The forward P/E of the stock is 11.36x. The stock has a Zacks Rank #1.
PFSweb Inc. —$3.13
The Zacks Rank #1 provider of transaction management services for both traditional commerce and e-commerce companies hails from a favorable Zacks industry (top 25%). The Zacks Consensus Estimate for its current-year earnings has moved 113.3% north over the past four weeks. The forward P/E of the stock is 9.59x.
Telenav Inc. —$5.10
The Zacks Rank #2 provider of location-based services, including voice guided navigation, on mobile phones belongs to a favorable Zacks industry (top 12%). The Zacks Consensus Estimate for its current-year earnings has climbed 31.7% over the past four weeks. The forward P/E of the stock is 16.52x.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>