Why Are These Energy Penny Stocks Gaining Attention?
When it comes to finding penny stocks to watch, there are plenty of options to keep investors busy. Although finding penny stocks that have value may seem difficult at first, there are a few steps that every investor should take before creating their watchlist. The first step is to identify what market one wants to invest in. This should involve some careful thought that combines current events with what events could occur in the future. For example, with covid cases rising once again, many investors have been focused on biotech penny stocks. In addition, digital communication penny stocks have also seen a big rise in popularity in the past few months.
Once an investor has chosen an area of penny stocks that has interest, the second step is research. This step may take the longest, but it is the most crucial to seeing potential success. Research involves finding everything one can about a given company. That can include financial statements, balance sheets, press releases and more. With this information, investors should be able to craft a pretty good picture of what a penny stock to watch looks like.
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This can be for both the short term and the long term. With energy penny stocks, in particular, investors have seen renewed bullish interest. This is due to the rising hopes that a covid vaccine will soon come to fruition on a wide scale. If this occurs, investors believe that the travel industry could resume operations. This would of course imply that fuel consumption would move up in the following months. With this in mind, let’s take a look at four energy penny stocks to watch.
Energy Penny Stocks to Watch
- QEP Resources Inc. (QEP Stock Report)
- Borr Drilling Ltd. (BORR Stock Report)
- Westport Fuel Systems Inc. (WPRT Stock Report)
- Energy Fuels Inc. (UUUU Stock Report)
Energy Penny Stocks to Watch: QEP Resources Inc.
QEP Resources Inc. is a company that works by as an exploration and production business primarily focused on both crude oil and natural gas. The company has a heavy interest in the Southern U.S. as well as in North Dakota. Both of these areas are known to have high concentrations of the aforementioned resources.
On November 24th, shares of QEP stock shot up by as much as 16% during intraday trading to $1.78. What’s more interesting is that in the past month, shares of QEP stock have shot up by more than 90%. At the end of October, QEP released its Q3 2020 financial results. In the announcement, the company stated that it generated as much as $329 million in net cash.
CEO of the company, Tim Cutt, stated that “our third quarter 2020 results exhibit both the strength of our core assets and the success of the financial operational decisions we have made over the last two years. Our financial outlook for full-year 2020 has continued to improve and we now expect to spend approximately $340 million of capital and generate more than $200 million in free cash flow at strip prices as we continue to prioritize profitability and financial disciple over production growth.”
With the energy industry seeing solid growth in the past month, QEP stock could be considered a penny stock to watch. It’s also worth mentioning that analysts at Wells Fargo & Company have also placed a $2 price target on the company; 14% higher than the current trading levels.
Energy Penny Stocks to Watch: Borr Drilling Ltd.
Borr Drilling Ltd. Is another energy penny stock to watch. On November 24th, shares of BORR stock shot up by as much as 13.7% during intraday trading. In the past five days, that number shoots up to north of 40%. For some context, Borr Drilling works as an offshore drilling contractor for the oil and gas industry around the world. The company has a large range of offshore rigs as well as drilling equipment.
In early October, the company announced that it had commenced upon three contracts for drilling in Malaysia. Despite the impact of Covid, the company was able to begin progress on the aforementioned contracts. Patrick Schorn, CEO of the company stated that “the commencement of operations of three rigs in Asia and two more to follow in the North Sea is an outstanding achievement, considering the current challenging environment and is a reflection of the professionalism and dedication of our teams.”
This announcement is just one of many that have come in the past six months. While Covid has impacted the energy sector, it seems as though Borr Drilling has managed to keep its business afloat. As covid continues to wreak havoc on the world, many believe that a vaccine could soon bring it to an end.
Energy Penny Stocks to Watch: Westport Fuel Systems Inc.
Westport Fuel Systems Inc. is a provider of clean energy as well as natural gas and hydrogen fuel. The company works as a provider of these products to the automotive industry around the world. One of the aspects that separates Westport Fuel Systems from other energy penny stocks is that it works on the basis of producing cleaner energy supplies for the future.
The company states that it has customers in more than 70 countries internationally that cover Europe, North/South America, and Asia. While it primarily is a fuel company, it also works in the research and development of new fuel-efficient energy. On November 11th, the company announced its Q3 2020 earnings.
In the report, the company posted an earnings per share amount of $0.01. While this may seem small, it is much better than Zacks estimate of a $0.04 loss. Additionally, the company posted around $0.8 million in net income with consolidated revenue of $65 million. Both of these numbers are lower than the same quarter of the previous year, but we do have to account for the effects of Covid on the energy industry.
It’s also worth noting that analysts at HC Wainwright have put a $5 target on WPRT stock; 35% higher than current levels right now.
Energy Penny Stocks to Watch: Energy Fuels Inc.
Energy Fuels Inc. is another energy penny stock but it is quite different from the others on this list. While the aforementioned penny stocks work mostly in the oil and gas sector, Energy Fuels Inc. works in the production of Uranium and Vanadium. It engages in this in various states in the U.S. including Texas, Wyoming, New Mexico, Arizona and Colorado.
At the end of October, the company announced its Q3 2020 financial results for the period ending on September 30th. In the results, the company stated that it ended the quarter with working capital of around $44 million. This represents a 17% increase over the previous quarter of 2020.
Mark Chalmers, CEO of the company, stated that “Energy Fuels made significant strides in the last quarter on our uranium, rare earths, and other initiatives. On the financial front, Energy Fuels was proud to announce on October 6th, that we had paid off all of our debt, and that the company is debt-free for the first time since 2012.”
Having a company with zero debt is quite a remarkable feat and something that should not be ignored by investors. The company has also been working on the production of rare-earth metals, which are used in a wide range of applications. Because of this and other factors, Energy Fuels Inc. could continue to be considered to be a penny stock to watch. What’s more, analysts at Roth Capital have a Buy rating on UUUU stock with a $2.50 price target right now.