The single biggest attractive feature of penny stocks is that by definition these stocks trade below $5 each. That makes it possible for investors to buy a large number of shares for a relatively low investment. Now, if the stock in question makes a significant upward move, the investor stands to make a hefty profit.
Over the years, many investors have made money with penny stocks that way. However, the trick lies in identifying the right stock to buy and that requires diligent research. On that note, here is a quick look at two penny stocks which have generated significant gains in the year so far.
This Penny Stock is Up Over 300%
One of the penny stocks that has been in the middle of a scorching run for most of 2019 is Digital Turbine Inc (APPS Stock Report). The company has a unique business that is engaged in connecting mobile operators, original equipment manufacturers, and publishers with advertisers. It has also managed to rope in clients like Uber, Dominos, Facebook and departmental store giant Target among others.
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The company has done impressively well this year. APPS stock is up by as much as 322% so far and made a new high this morning. That makes it one of the best penny stock performances of the year so far.
On August 5, the company published its Q 2020 financial results. Its earnings, as well as revenues, managed to beat estimates handsomely. In addition to that, the revenue for the full year 2020 is projected to soar by 26.4%. Therefore, the performance of the stock so far this year does not really come as a surprise.
Workhorse Group is Up 842% YTD
Little known electric delivery vehicle maker Workhorse Group Inc (WKHS Stock Report) had found itself in the limelight earlier this year. We reported on this case after it became the leading contender to take over General Motors’ production facility at Lordstown. After the news came to light, thanks to United States President Donald Trump, WKHS stock soared for months as investors believed that the company could be on to something big.
The possibility of bagging a $6.3 billion contract with the Postal Service also stoked the bull run for the stock.
However, it is now believed that the company might not actually have the money to finance a deal. In the latest quarter, the company recorded only $6000 in sales and soon enough the stock plunged by as much as 35%.
Needless to say, the stock is still up more than 600% so far in 2019.