3 Trending Penny Stocks Worth Adding to Your Watchlist
With September getting off to a strong start, investors continue to search for the best penny stocks to buy. Now, that can be difficult given the myriad of factors impacting both penny stocks and blue chips, however, there are ways to avoid this difficulty. The first and most common method is research.
With the power of the internet, everybody has the ability to be the most informed investor out there. But, not everybody knows what to look for. In the simplest terms, there are a few metrics that investors can use to find potentially valuable penny stocks.
How to Find Penny Stocks to Buy
First and foremost are balance sheets. These are financial statements released quarterly by companies to update investors on the companies financial standing. This will show data ranging from debt and revenue to EPS (earnings per share) and assets. Balance sheets are a great way to take a deep dive into how a company is performing.
The next thing to take a look at is what speculative events are impacting the company. This could be anything from upcoming presentations to new products and more. Because penny stocks tend to be highly speculative, any events will likely have some impact on price.
Lastly, traders can glance at social media sites such as Reddit and Twitter to see how popular a stock is. This goes hand in hand with volume, which is a great indicator of whether a stock is trending or not. At the end of the day, using these metrics in combination with a trading strategy can help to put you ahead of the game. With all of that in mind, here are three trending penny stocks to know about right now.
Penny Stocks to Watch in September 2021
- Borr Drilling Limited (NYSE: BORR)
- Exela Technologies Inc. (NASDAQ: XELA)
- Cinedigm Corp. (NASDAQ: CIDM)
Borr Drilling Limited (NYSE: BORR)
Borr Drilling Limited is a penny stock that’s climbed by almost 20% in the past five trading days. If you’re unfamiliar, this company operates as an offshore drilling contractor. It owns, contracts, and operates jack-up rigs for operations in shallow-water areas. In addition, Borr offers its services to integrated oil companies, state-owned oil companies, and independent oil and gas companies. Its fleet consists of 24 jack-up drilling rigs, as of December 31st, 2020.
On August 30th, the company provided its preliminary results for the second quarter of 2021. The company’s total operating revenues grew 13% quarter over quarter to $54.8 million. Its net loss rose because of a $21.7 million decrease in income from equity method investments. However, its adjusted EBITDA grew by $14.4 million quarter over quarter. These are all exciting numbers, and show that Borr Drilling is growing right now.
“We have seen a steady improvement in operations during the second quarter of 2021 with 13 rigs working at quarter-end. Following our significant contract wins year to date, we have added approximately $542 million in revenues to our backlog. In our fleet, we have an additional ten delivered rigs that can be deployed in an improving market, and a further five rigs still to be delivered by the Keppel FELS shipyard.”CEO of Borr Drilling, Patrick Schorn
One day after the announcement was made, BORR stock managed to climb by over 13% in the market. The company’s volume also spiked much higher than its average, showing the fast effect of a report. Keeping this in mind, is BORR stock a contender for your September penny stocks watchlist?
Exela Technologies Inc. (NASDAQ: XELA)
Exela Technologies is an example of a high short float penny stock. This includes more trending stocks like GME stock and AMC stock, which have both received incredible attention in the past year.
Right now its short float interest sits around 20% while shares of XELA stock have pushed higher over the last week. What’s more, you’ve also got analysts getting behind the penny stock. This week analysts at B. Riley placed their bets starting the stock at Buy and gave a $4 price target. Based on current levels, that’s over 50% higher right now.
With a push toward a more digital ecosystem, technologies similar to what Exela offers are into focus. In fact, its recent Q2 figures show strong growth thanks to expanding its digital solutions for small businesses. Exela also began its global products. This includes the e-sign platform DrySign, in India as well as its Digital Mail Room, which was launched in the United Kingdom, France, & Germany over the last few months.
Thanks to the company’s recently completed $150 million offering, the company is armed with fresh capital to focus on strategic growth initiatives. Ron Cogburn, Exela’s Chief Executive Officer, said in a recent PR, “I want to thank our vibrant and global shareholder base, especially the retail investors for showing their continued support and confidence in us as we continue to transform Exela to become a global powerhouse with leading brand recognition in the industries we serve.”
With analysts bullish on the stock, continued focus on companies with higher short interest, and an uptick in daily trading volume, XELA stock could be one to watch heading into September.
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is another trending penny stock that has made consistent gains in the past few weeks. YTD, shares of CIDM stock are up by over 200%, which is no small feat. If you’re unfamiliar, Cinedigm is an entertainment company that owns a large number of distribution rights to movies and TV shows. The company’s content is distributed to brands like the NFL, NHL, Televisa, and more. Its content is also offered on streaming services such as Amazon Prime, Netflix, and Hulu.
On August 24th, the company launched four of its largest channels on The Roku Channel. The shows in question are Real Madrid TV, So…Real, The Only Way Is Essex, and El Rey Network. Senior VP of Revenue Daniel Schneider said, “We are thrilled to help make such a variety of new channels that we know will appeal to each enthusiast audience available on The Roku Channel.”
On September 2nd, Cinedigm reported its 2022 first-quarter financial results. Keeping in mind the fluctuations that occur from balance sheets, CIDM could see heightened volatility in the near future. Considering this information, is CIDM going to make your list of penny stocks to watch?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy, regardless of their status as trending or not, all comes down to research. With the numbers in hand, investors can make better decisions as to whether or not a penny stock is worth it.
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And with hundreds of penny stocks to choose from right now, that decision can be difficult. But, if you put in the time and effort, it can be much easier than previously imagined to make money with penny stocks. Considering this, which penny stocks are you watching right now?