Will These Penny Stocks Climb From the $1 Trillion Infrastructure Package?
After the Senate passed the infrastructure bill on August 10th, many penny stocks investors are wondering which small caps will benefit. To understand the answer to this, we have to look at the bill with a magnifying glass to see how certain penny stocks could make headway. In an unusually bipartisan vote of 69-30, the Senate voted to approve the $1 trillion infrastructure bill. This bill includes a long list of legislative measures that could have major impacts on a variety of industries.
From a broad perspective, $1 trillion will be spent on items such as: electric grid updating, rail transport, broadband, water systems, public transport, environmental remediation, road safety, and electric vehicles. Because this bill will have such a large impact, its effects would largely be felt for several decades to come. And just looking at this list, we see that certain small caps could benefit such as EV penny stocks, energy penny stocks, ESG penny stocks, and much more.
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While estimates show that this bill could add roughly $256 billion to the federal budget deficit in the next decade, the effects could be well worth the price. And as prudent investors, events like these are riddled with opportunities. So, with all of this in mind, let’s take a look at three hot penny stocks to watch that could benefit from the infrastructure bill.
3 Penny Stocks To Watch As the Infrastructure Bill Passes in the Senate
- Ault Global Holdings Inc. (NYSE: DPW)
- Ideanomics Inc. (NASDAQ: IDEX)
- Globalstar Inc. (NYSE: GSAT)
Ault Global Holdings Inc. (NYSE: DPW)
Climbing by almost 15% in the past month are shares of DPW stock. If you’re unfamiliar, let’s go over what Ault Global Holdings does. Ault is as its name suggests, a holdings company. It works by acquiring and investing in undervalued businesses in the disruptive tech market. In its portfolio, Ault has holdings in industries such as medical, telecom, biopharma, defense/aerospace, industrial, automotive, and more.
Because of its broad reach, there are multiple ways that Ault Global could benefit from the infrastructure bills passing. It’s also worth noting that Ault will be presenting its second-quarter 2021 financial results on Monday, August 16th at midday. In its preliminary report, Ault posted around $62 million in revenue, which is up by a staggering 1,048% over the same quarter in 2020. In addition, it could bring in a positive $44 million in income which is substantially greater than its $1.4 million loss in Q2 2020.
“Our preliminary financial results in the second quarter of 2021 reflect the strength of our lending and trading activities at DP Lending, our financial services subsidiary.
We believe our current lending and investing pipeline is strong and if the market conditions for investing in small-cap stocks remains strong, the future prospects for the Company are extremely promising.
We see strength across all our subsidiaries and expect to allocate additional capital to our lending and investment platform in the third quarter.”
The Founder and Executive Chairman of Ault, Milton “Todd” Ault, III
While there isn’t one way in particular that DPW stock could benefit from the infrastructure bill, its broad market reach could prove beneficial in many different ways. With this in mind, will DPW stock be on your watchlist this month?
Ideanomics Inc. (NASDAQ: IDEX)
Over the past one-year period, shares of IDEX stock have climbed by around 73%. This is a reflection of its placement in both the fintech and electric vehicle industries respectively. Ideanomics operates two distinct divisions within its business. On one hand, its Ideanomics Mobility division works to build the adoption rate of electric vehicles by commercial fleet operators. Within this, it offers vehicle buying services, financing, and electric vehicle-related infrastructure.
While many companies focus on producing EVs, there are only a handful working on building the adoption of the vehicles at the commercial level. On the other hand, IDEXs Ideanomics Capital division invests in breakthrough fintech offerings, that serve to benefit the finance industry substantially. In addition, the company states that it abides by the principles of ESG or environmental, social, and governance, which is a trend of eco-conscious companies and their commitment to such.
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Only a week ago, the company announced that it purchased a 30% stake in Prettl Electronics Automotive for $9 million. This will give it access to sales and distribution rights for Prettl’s charging infrastructure products in the North American market. With over $356 million in cash at the end of March, this looks like a great use of Ideanomics’ capital. And, it will give it access to major charging infrastructure that could be deployed in various public settings. With all of this in mind, is IDEX worth considering for your watchlist?
Globalstar Inc. (NYSE: GSAT)
Up by around 4% at midday, Globalstar Inc. is a communications penny stock working to build its momentum in the satellite comms industry. In its most recent Q2 2021 report, posted last week, Globalstar beat revenue estimates. While it did bring in a quarterly loss of $0.01 per share, it managed to beat earnings expectations by 50%. This involves $30.2 million in revenue, which beat the Zachs consensus estimate by over 10%.
When it first launched in the early 90s, Globalstar worked to provide high-speed communications services through low-orbit satellites. And since then, it has become a trending penny stock across social media. YTD, shares of GSAT stock have surged by a staggering 339% or so, to its current price of $1.50. And with a recent analyst report from B. Riley putting a $3.25 price target on the stock, many believe that it could continue to soar sky-high (no pun intended).
With investments in the communications sector as part of the infrastructure bill, it does look like there are clear benefits for Globalstar Inc. While it may take some time for the company and investors to directly benefit as a result, GSAT stock could be worth watching. Considering all of this, should GSAT be on your list of penny stocks to watch right now?
Can the Infrastructure Bill Benefit Penny Stocks?
With the massive $1 trillion infrastructure bill only a few steps from occurring, many investors are looking for companies that could benefit. And, as a result, investors need to think outside of the box to consider how the bill could affect certain industries and individual stocks.
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But, with a great deal of momentum in the stock market right now, traders do seem excited about the future. With all of this in mind, do you think that the infrastructure bill will benefit penny stocks?
