Are These Top Penny Stocks Worth Adding to Your List in August?
While the broader stock market is down today, there are plenty of penny stocks showing potential. But as always, both penny stocks and blue chips investors should understand the larger trends at play before investing any money into the market. So for that reason, let’s take a closer look at what’s going on in the stock market today.
Despite strong earnings over the past two weeks, investors are still fearful about the trajectory of the pandemic. While trading yesterday was mostly positive, today, that fear and uncertainty seem to be setting in.
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Despite the Dow hitting a record intraday high on Monday, August 2nd, it gave up most of those gains during early morning trading. However, some major blue chips like Robinhood Markets Inc. (NASDAQ: HOOD), had shot up tremendously. By midday, shares of HOOD stock pushed upward by over 16%, indicating solid bullish sentiment.
Why is the Stock Market Down Today?
“We’re going through a couple of transitions right now at the same time. The first one, of course, is this deceleration in growth. We’ve seen this massive lift-off and growth since the pandemic.
Secondly, we have to contend with the Fed and with their transition as well, both on the leadership side and also with respect to policy. And then third, we’ve got the Delta variant as well to consider.”
The Chief Investment Officer at Key Private Bank, George Mateyo
So, while all of these factors could seem disheartening, any change in the market presents an opportunity for investors to take advantage of. Considering all of this, let’s take a look at three penny stocks that should be on your August 2021 watchlist.
Top Penny Stocks to Watch in August 2021
- Opko Health Inc. (NASDAQ: OPK)
- Wilhelmina International Inc. (NASDAQ: WHLM)
- ATI Physical Therapy Inc. (NYSE: ATIP)
OPKO Health Inc. (NASDAQ: OPK)
OPKO Health Inc. is a biotech penny stock that is going up in the market this week. This company creates pharmaceuticals and offers diagnostics in the medical industry. OPKO Health operates BioReference Laboratories, which is a lab testing company that diagnoses, monitors, and treats numerous diseases. The company has a lot of trials for treating diabetes, kidney disease, cancer, and more. OPKO Health also has hGH-CTP, which is a human growth hormone injection in partnership with Pfizer Inc. that has completed Phase 3 of clinical trials.
On July 29th, the company reported its second-quarter business highlights and financial results for 2021. The company announced that its BioReference Laboratories test volume went up 32% year over year. OPKO also entered an agreement with Nicoya Therapeutics to develop and commercialize RAYALDEE in China. RAYALDEE is used for treating secondary hyperparathyroidism in those with stage 3 or 4 chronic kidney disease.
OPKO announced a lot of other updates in this report as well. When it comes to the company’s financials, its revenue from services was $397.2 million compared to $251 million the previous year. Its revenue from products grew as well, going from $29.3 million to $35.7 million. Keeping this new positive information in mind, will OPK enter your list of penny stocks to watch?
Wilhelmina International Inc. (NASDAQ: WHLM)
Wilhelmina International Inc. may not be a company you’ve heard of, however after its gain today, you may want to add it to your watchlist. By morning, shares of WHLM stock had shot up by over 85%, to $8.17. While this no longer makes it a penny stock, it was in penny stocks territory only a day or two ago.
Today’s gain for the company comes as a Form 4 filing showed that the company Retail Ecommerce Ventures (a 10% shareholder), purchased an additional 237,500 shares of WHLM stock. When institutional buys occur like this, we often see subsequent rises in share value for the corresponding companies. These buys underscore confidence at the institutional level, and can therefore provide a basis for investors to feel comfortable about the future of a company.
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A few months ago, Wilhelmina International reported its Q1 2021 financial results. In the results, the company posted revenue of $12 million and a net income of $2.2 million. While this is a decrease over the same period in the previous year, this is understandable considering the effects of the pandemic.
For some context, Wilhelmina operates as a fashion model and talent management company. It represents a long line of A-list models and celebrities and is one of the oldest modeling agencies of its kind. So, while investors should keep an eye on the pandemic to see how it fits into WHLM’s future, it could be worth keeping an eye on.
ATI Physical Therapy Inc. (NYSE: ATIP)
Another decent gainer of the day is ATIP stock, up by around 13% as of 11:45 AM EST. While there isn’t any company-specific news that caused this, unusually high volume and equally unusual options activity sparked this modest intraday gain. It’s worth noting that ATIP stock is highly speculative, however, it could be worth looking into. For that reason, let’s take a closer look at the company.
ATI Physical Therapy is as its name suggests, the owner of a variety of physical therapy locations around the country. It owns 900 offices, serving more than 2.5 million patients. The company primarily focuses on patients with MSK (musculoskeletal) disorders and works with athletes, workplaces, and more. In its Q2 2021 financial report posted in late July, ATIP reported solid growth in demand for its services.
“I would like to thank our nationwide team for their dedication, service, and tireless effort providing the highest quality clinical care to our patients that makes ATI a leader in the large and growing physical therapy industry.”
CEO of ATI Physical Therapy, Labeeb Diab
Financially, ATIP brought in net operating revenue of $164 million, up from $149 million in Q1 2021. In addition, it lowered its net loss from $28.3 million in Q1 2021 to a loss of $5.5 million in this quarter. So, because of its solid financials and constant momentum, ATIP stock could be worth adding to your watchlist in August.
Will August Continue To Be Positive For Penny Stocks?
While August did get off to a great start for both penny stocks and blue chips, fears surrounding the pandemic continue to provide uncertainty about the future.
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However, with so much going on in the stock market, there are plenty of opportunities for penny stocks investors to take advantage of. With all of this in mind, do you think that August will continue to be positive for penny stocks?
