Are These Top Retail Penny Stocks Worth Watching Right Now?
Retail penny stocks have remained some of the most popular choices for all types of investors over the past year or so. While the pandemic did curb in-person retail sales, many companies quickly began promoting e-commerce and online shopping. And with people at home more than ever, online shopping quickly grew by a sizable amount in that time.
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This week, retail stocks and penny stocks, in addition, are in focus as some major retailers post their quarterly earnings. Throughout the year, the SPDR S&P Retail ETF (XRT) is up by more than 50%, which is a solid amount, and reflects the positivity around the retail sector. In the week of August 16th, big box stores such as Walmart Inc. (NYSE: WMT), Target Corp (NYSE: TGT), Lowe’s Corp. (NYSE: LOW), and Home Depot Inc (NYSE: HD), will all report their quarterly earnings.
“We expect 2Q retail earnings to be characterized by strong comps on a two-year basis, improved cadence in July and a positive overall revision to 2021 earnings estimates. That said, quarterly topline momentum continues to moderate while gross margin pressures are rising…later-cycle signs which typically are not favorable for retail stock performance.”
Analysts at JP Morgan
So, as we enter another interesting week for trading penny stocks and blue chips, let’s take a look at three retail penny stocks to watch right now.
3 Retail Penny Stocks to Watch Now
- Boxlight Corp. (NASDAQ: BOXL)
- Ambev ADR (NYSE: ABEV)
- Borqs Technologies Inc. (NASDAQ: BRQS)
Boxlight Corp. (NASDAQ: BOXL)
In the past five days, shares of BOXL stock have shot up by over 15% and YTD by over 50%. While Boxlight may not be a traditional retailer, it does sell interactive tech products. Boxlight’s offerings are aimed at the education and business market, where it provides products such as the Clevertouch and Mimio devices. In addition, it offers its full suite of software, interactive displays, collaboration tools, and more.
At the end of last week, Boxlight announced its Q2 financial results for 2021. In the report, revenue increased by a staggering 497% to over $46 million. In addition, its customer orders increased by almost ten-fold (986%) to around $76 million. At the end of the quarter, Boxlight stated that it had roughly $48 million in backorders, $7.4 million in cash, and over $26.7 million in working capital. And moving forward, the company expects to continue increasing its revenue in the third quarter to over $60 million.
“For the first half of 2021, we generated $124 million in orders, $80 million in revenue, and $7 million in adjusted EBITDA. We are fulfilling our commitment to rapid growth and improved profitability. Our vision is to become the industry leader, and we made significant strides toward reaching that goal during the second quarter.”
Michael Pope, CEO of Boxlight Corp.
Considering this major improvement in almost all of its numbers, BOXL stock could be worth keeping an eye on.
Ambev ADR (NYSE: ABEV)
Ambev is a company that we’ve been covering throughout the pandemic for its continued business improvements and forward-thinking. In the past twelve months, shares of ABEV stock have increased by around 30% to its current price of just over $3. If you’re unfamiliar, Ambev is a producer and distributor of many of the most popular beverages in the world.
This includes Budweiser, Bud Light, Stella Artois, Canada Dry, Pepsi, and much more. A few months back, Ambev made an exciting announcement that it will be receiving 1,000 new electric vehicles for delivery purposes. With over 5,300 trucks in its fleet, the company has the potential to be a leader in the renewable revolution. It also states that it plans to have at least half of its fleet completely renewable-based within the next two years.
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In its recent Q2, 2021 conference call, Lucas Lira, the Chief Financial and Investor Relations Officer stated that “Net revenue grew a little over 36%. EBITDA grew by 24%. Normalized profit grew nearly 116%, while operational cash flow remains unabated and grew about 2%. In addition, our financial performance in the second quarter was boosted by BRL 1.6 billion in tax credits.”
Considering that alcohol sales tend to perform well in all economic conditions, ABEV stock looks like it could be worth watching. And with this exciting Q2 report, the company continues to be on many investors watchlists.
Borqs Technologies Inc. (NASDAQ: BRQS)
Borqs Technologies is another non-traditional retail penny stock, but one that could be worth paying attention to. The company specializes in software and products made for the IoT (internet of things) marketplace. This includes Android-based smart devices and cloud products. As a producer of this type of technology, Borqs has a direct correlation to the retail tech industry.
Last week, the company announced a strategic collaboration and investment into Zippie to work on blockchain-based autonomous payments. For some context, Zippie is a producer of payment platforms that utilize blockchain. This includes sending and receiving money, where the company expects to be connected to more than 3 billion bank accounts around the world by the end of this year. While this agreement was only made a few days ago, it should be exciting to see what comes of it.
In addition to this, the company states that it recently formed a joint venture to produce an almost 2 million sq. ft 5G industrial park based in Huzhou, China. This is another big move made by Borqs to secure its place in the future of this side of the tech industry.
So, while it may not be a retail penny stock in the traditional sense, Borqs looks like it could have a lot going for it moving forward. Whether this is enough to warrant its addition to your penny stocks watchlist, however, is up to you.
Which Retail Penny Stocks Are You Watching?
With retail stocks in focus ahead of major earnings announcements this week, many investors are looking for the best retail stocks to buy.
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Considering that there is so much going on in the stock market right now, it can be difficult to keep up with every detail. However, with the right commitment to research and understanding where value could be, finding the best penny stocks to buy can be easier than previously imagined.
