4 Penny Stocks to Watch With Tech Earnings Season in Full Swing
With earnings season in full swing, which penny stocks are investors watching right now? Well, to answer that question, we have to take a deep dive into what earnings will mean for the market, and which companies could benefit.
After Tesla (NASDAQ: TSLA) reported over $1 billion in revenue during Q2 2021, many believe that the FAANG stocks (Facebook, Amazon, Apple, Netflix, Google), will follow suit. And while this will be undoubtedly positive for other tech stocks (tech penny stocks included), it may be symbolic of bullish sentiment around the stock market as a whole.
In relation to tech, the head technical analyst at Oppenheimer, Ari Wald, states that “from a bottom-up viewpoint, it goes beyond a few mega-cap stocks. We think it’s broader than that. In terms of more top-down macro perspectives, we like the sector because it provides pro-cyclical exposure. We think we’re still midcycle bull market and it’s a sector that doesn’t require rising interest rates and rising commodity prices as do other reflationary cyclical sectors.”
So, with these earnings well on the way, here are four penny stocks that could benefit.
4 Penny Stocks to Watch With Earnings Season Upon Us
- Exela Technologies Inc. (NASDAQ: XELA)
- Dyadic International Inc. (NASDAQ: DYAI)
- SINTX Technologies Inc. (NASDAQ: SINT)
- NovaBay Pharmaceuticals Inc. (NYSE: NBY)
Exela Technologies Inc. (NASDAQ: XELA)
Up by as much as 20%, today during early trading are shares of XELA stock. Exela Technologies is a penny stock that we’ve discussed frequently in the past few months. This is due to its constant trending status and sizable intraday movements. Today, Exela made an exciting announcement that its Digital Mailroom and DrySign offerings posted high user growth.
During the second quarter of this year, these two products delivered an almost 100% growth rate in its SMB customer base. Suresh Yannamani, the President of Exela, states that “We’re excited to see the accelerating growth in our SMB solutions and all the positive feedback we are getting across our user base. We are adding thousands of new users each month to our customer base and creating a new Exela marketplace.”
The company states that it is working to move into both Germany and France in the upcoming third quarter. For some added context, Exela is a provider of BPA software or business process automation products. Its customers include more than 60% of Fortune 100 companies across 50 countries globally. Considering its market position and this exciting update, will XELA stock be on your watchlist?
Dyadic International Inc. (NASDAQ: DYAI)
If you haven’t heard of Dyadic International Inc., you’re probably not alone. However, after a sizable 28% gain at midday on July 27th, many investors are paying attention to DYAI stock. While it did make an exciting announcement today in early morning trading, let’s first take a look at what the company does.
Dyadic is a biotech penny stock working on biopharmaceutical gene expression platforms based on the fungus Thermothelomyces heterothallic. It utilizies this C1 microorganism platform to develop biologic vaccines and drugs at a low cost. The company states that it can produce human and animal vaccines, antigens, monoclonal antibodies, and other therapeutic proteins.
Today, it announced a technology transfer licensing agreement with Rubic Consortium, based in South Africa. The agreement will allow for the development and commercialization of vaccines for distribution on the African continent. And, the deal will also include C1 Covid-19 vaccine coverage for African countries that otherwise would not have access.
“Global health professionals have long known of the varying levels of health services available around the world. However, the Covid-19 global pandemic has specifically highlighted inequities in vaccination rates.”Michael Tarnok, Chairman of the Board
While this is a big deal, it is also predicated on the potential of this vaccine gaining approval. However, with this in mind, DYAI stock could be worth watching.
SINTX Technologies Inc. (NASDAQ: SINT)
Another big gainer of the day so far is SINT stock, pushing up by around 17% at midday. For those unfamiliar, SINTX is a developer of silicon nitride products for use in both medical and non-medical applications. Today, it announced the shipping of its first order for FleX SN-PEEK Composite. This product is in use for orthopedic implants and utilizes both silicon nitride and Zeniva PEEK supplied by Solvay.
Dr. Sonny Bal, President, and CEO of SINTX stated that “the shipping of our new FleX SN-PEEK product is a huge milestone for SINTX, and we couldn’t be more excited. We’re continuing to leverage the osteogenic and antipathogenic properties of silicon nitride for biomedical applications and believe this is a superior product that has many benefits.”
The field of biomaterials is quite small, but because of that, SINTX has been able to earn a big name for itself. For this reason, SINT stock could be worth keeping an eye on as we move into the next few months.
NovaBay Pharmaceuticals Inc. (NYSE: NBY)
Shares of NBY stock rocketed higher by around 17% at midday on no major news. While this is common, we can take a look at NBY’s underlying business model to see why it may have done so. Last week, NovaBay announced a partnership with Harrow Health’s ImprimixRX to promote its prescription drug known as Avenova. This is a clinically tested antimicrobial solution for managing chronic eye conditions.
In its Q1 2021 results, NBY posted over $1 million in revenue for Avenova, hitting a new record for this product. And, it ended the quarter with around $10.5 million in cash on hand.
“Our focus on the OTC channel is paying off as Avenova direct-to-consumer quarterly revenue exceeded $1 million for the first time with unit sales setting a new record. The OTC channel accounted for approximately 79% of Avenova revenue for the quarter, up from 51% for the prior-year period.”CEO and President of NovaBay, Justin Hall
It seems as though NovaBay is putting a great deal of emphasis on this product, and hopefully, that will pay off for the company in the long term. With this in mind, will NBY stock be on your penny stocks watchlist moving forward?
Why Earnings Season Matters for Penny Stocks
With some of the biggest names in the stock market posting their earnings today, many penny stocks investors are paying attention. Although it may not seem like a big deal for other companies, often, large-cap stocks can set the tone for how the small-cap market will perform.
And with expectations extremely high for the current earnings season, investors are hoping for solid numbers today. Considering this, which penny stocks are on your watchlist right now?