Penny Stocks To Watch This Week
According to the standard definition of penny stocks, we’re talking about shares of companies trading for $5 or less. Today we take this a step further and focus entirely on penny stocks under $1. They tend to be highly volatile and can shift direction in the stock market minute-by-minute.
As I’m sure you have figured out, the exciting part about these types of stocks is that small price movements equate to more meaningful percentage changes. Case in point, a stock at $0.40 only needs to move four cents to see a 10% change in value. That same shift in price won’t equate to much if you’re looking at stocks like Apple or Google.
For traders, the important thing to keep in mind is risk tolerance. What’s the potential downside compared to the possible upside if a trade works in your favor? In the stock market today, companies like Heart Test Laboratories (NASDAQ: HSCS) are a singing example of what can happen when cheap stocks under $1 take off. As of Friday’s close and Monday’s premarket session, HSCS stock was sitting firmly below the $1 threshold.
However, one analyst update triggered a massive breakout in the penny stock. Ascendiant Capital initiated coverage with a Buy rating and a $3.30 price target. The move that came shortly after these details surfaced saw HSCS stock jump as high as $2.45.
Do all stocks under $1 perform like this? No, and many end up moving in the opposite direction. This article looks at a handful of low-priced stocks making a move early in the week.
Hot Penny Stocks To Watch
Boxlight Corp. (BOXL)
Shares of Boxlight Corp. have finished out their trading days green more times than red. The latest string of bullishness in education technology stocks. If you recall, in several articles, we discussed companies like Genius Group (NYSEAMERICAN: GNS), which hit the ground running at the end of January. Not only has Genius news focused on companies “fighting against illegal trading activity,” it may have also rubbed off on some of the EdTech stocks in the market recently.
Boxlight provides interactive technology solutions for business and education customers. Its Clevertouch, FrontRow, and Mimio brands give customers different ways to collaborate. No significant headlines have come from the company in quite some time. But before the end of the year, it did announce that it earned a place on the Christian School products 2022 Top POroduct of the Year for its Mimio K-12 EdTech solutions suite.
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With earnings season heating up, BOXL stock could be on the radar to see if it continued growing while also meeting analyst expectations. Despite the third quarter being the “strongest to date,” according to CEO Michael Pope, the numbers missed sales expectations. Boxlight expects Q4 revenue to come in at $48 million and an adjusted EBITDA of $2 million. Full-year revenue is pegged at $227 million with an adjusted EBITDA of $18 million.
Troika Media (TRKA)
Troika Media has been one of the cheap penny stocks to watch this year. TRKA stock started the year trading around 11 cents. Since then, it has climbed as high as $0.21. The most significant focus for traders right now is on Troika’s situation with Blue Torch Finance.
Last month, the two companies entered a further limited waiver of certain events of default under an original March 2022 finance agreement. There are currently “good faith” negotiations between the companies to amend the deal and mitigate events of default. According to the amended filing, the Limited Waiver expires this month if it isn’t terminated sooner by Blue Torch.
Considering the timing, it could be something helping to spark speculation in the stock market this week for TRKA stock.
Iveda Solutions Inc. (IVDA)
Even though technology stocks, in general, have faced an uphill battle recently, that doesn’t mean all of tech should be ignored in the short term. Iveda Solutions stock has bounced back from recent lows with increasing volume this week. The AI video and sensor tech company continues trading higher weeks after its recently $1.5 million project.
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This month, Iveda announced it will begin a project for its Utilis Smart Pole technology in Taiwan. The $1.5 million projects sees the company bring video surveillance, AI-based video analytics, and smart power & sensors to Kaohsiung, Taiwan.
David Ly, CEO and founder of Iveda explained that “Integrating smart street poles with multiple functional benefits will open doors for safer and sustainable modern development and construction of our cities and communities. As the supplier of Utilis, Iveda is enabling Kaohsiung to be at the forefront of true smart city innovation, they will be a showcase both nationally and globally.”
Pros & Cons Of Penny Stocks Under $1
Pros of buying penny stocks under $1:
- They can offer higher potential returns, as the stocks are priced low and even a small price increase can result in significant profits for investors.
- They provide opportunities for investors to invest in emerging or undervalued companies.
- A large number of penny stocks can be bought for a relatively small investment, providing diversification opportunities for investors.
Cons of buying penny stocks under $1:
- They carry a higher risk, as these stocks are often issued by companies with limited operating histories, fragile financial conditions, and limited liquidity.
- They are often subject to high volatility and can experience significant price fluctuations in a short period of time.
- There is a higher likelihood of fraud, as some penny stocks are promoted through misleading or fraudulent tactics, such as pump and dump schemes.
- It can be difficult to find reliable information and analysis on these stocks, as they are not well-covered by analysts and financial media.
However, if you know how to manage risk and handle volatility, trading penny stocks can be a rewarding experience.
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List Of Penny Stocks To Buy For Under $1
- Boxlight Corp. (NASDAQ: BOXL)
- Troika Media (NASDAQ: TRKA)
- Iveda Solutions Inc. (NASDAQ: IVDA)
