Have you ever heard the term “penny stocks” and wondered what all the buzz was about? Maybe you’ve stumbled upon some tips about the best penny stocks to buy or found lists of penny stocks to watch. If you’ve ever been curious about investing in these low-priced shares, you’re in the right place. We’ll dive into the world of cheap stocks, breaking down what they are, their risks, and their opportunities. Then we cover a list of penny stocks to watch after recent moves in the stock market today.
So, What Are Penny Stocks, Anyway?
Penny stocks are like the wild west of the investment world. They’re typically shares of smaller companies that trade for less than $5 a pop. These are not your blue-chip stocks but often small businesses with big dreams. You might find them on exchanges like the NYSE and NASDAQ, but many linger in the over-the-counter (OTC) market, where regulations are a bit looser.
Risks? Yeah, There Are a Few…
While the allure of big returns can be enticing, don’t let the excitement cloud your judgment. Penny stocks are volatile creatures. A small price change can lead to wild swings in percentage terms, and finding buyers might not always be easy. Information? Sometimes, it’s hard to come by, as these small companies don’t always have the extensive reporting that big corporations do.
Let’s not forget about potential fraud. Ever heard of “pump-and-dump” schemes? Yep, they’re a real thing. Plus, you might be dealing with young or struggling businesses that don’t have a proven track record. So, when thinking about making a list of penny stocks to buy, approach with caution and maybe have a chat with a financial professional.
Opportunities? They’re There, Too
But hey, it’s not all doom and gloom. Penny stocks can be gold mines if you strike at the right time. Some folks have made serious money by getting in on the best cheap stocks early. And because they’re affordable, you don’t need to break the bank to start investing. Want to diversify your portfolio? Penny stocks offer that opportunity, especially if you’re interested in emerging industries. Imagine being part of the next big thing!
Looking for Penny Stocks to Buy or Watch? Here’s Some Advice
If you’ve got a thirst for the thrills of penny stock investing, doing your homework is key. Read up on financial news, follow expert analysis, and don’t hesitate to seek professional advice tailored to your goals. Keep an eye on broader trends that might influence specific sectors, and while it might be tempting to chase those rocketing growth stocks, sometimes focusing on solid fundamentals and clear growth potential can lead to more sustainable gains. Now let’s dive into this list of penny stocks to watch.
List Of Penny Stocks To Watch
- Aeye Inc. (NASDAQ: LIDR)
- Trust Stamp Inc. (NASDAQ: IDAI)
- Eos Energy Enterprises Inc. (NASDAQ: EOSE)
AEye Inc. (LIDR)
Shares of AEye Inc. continued bouncing back in the stock market on Tuesday. The company develops adaptive, high-performance lidar solutions for its clients. Not many things have been released by the company in terms of recent news headlines other than its second quarter financials. AEye beat EPS estimates but missed sales expectations for the quarter.
“AEye has taken a significant step forward this quarter in our path to commercialization in the automotive market,” said Matt Fisch, AEye CEO.
“We’ve achieved major in-vehicle test milestones with three prestigious industry players, including NVIDIA and two global automotive OEMs; AEye has solidified a production-ready supply chain with Continental to deliver an ADAS product at a price well below $1,000; and we have been named a finalist for two automotive series production awards, with a strong pipeline of OEM RFQs representing a sizable revenue opportunity.”
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Excitement stemming from the tech sector and autonomous driving has promoted interest in companies like AEye. Even though shares have slipped from recent highs, the penny stock sits much higher than where it was in May.
Trust Stamp Inc. (IDAI)
The identity technology company provides AI-powered trust and ID services across several sectors. Recently, the company announced a patent allowance by the USPTO titled “Systems and processes for lossy biometric representation.”
The company uses a “proprietary process to establish control of one or more third-party accounts as a primary or secondary identity authentication factor and is intended to complement Trust Stamp’s AI-generated Irreversibly Transformed Identity Token (IT2) technology.”
Earlier this month, T Stamp also received a patent titled, “Systems and Methods for Privacy-Secured Biometric Identification and Verification.” There was also plans for a patent to be issued for “Systems and Methods for Identity Verification Via Third Party Accounts,” which was announced this week.
In the recent round of earnings, Trust Stamp reported better EPS than its previous year’s Q2, although sales were down much greater than the same period last year. CEO Gareth N. Genner explained, “As we refocus on SaaS sales and deliveries through our Orchestration Layer platform, we continue to carefully manage expenses and have reduced selling, general, and administrative expenses by $1.85 million , or 32.49%, for YTD 2023, compared to YTD 2022. Not all of our cost rationalizations fully impacted the first two quarters, and we are continuing to implement efficiencies during fiscal 2023 resulting in additional savings that we will primarily redirect to building the Orchestration Layer sales team. We have also significantly strengthened our balance sheet by raising $7.47 million in equity capital during Q2 2023.”
What do analysts think about IDAI stock? The most recent outlook from Maxim shows the firm maintains a Buy on the penny stock. It also has a $5 target price for its IDAI stock forecast.
EOS Energy (EOSE)
EOS Energy develops zinc-based energy storage systems. With clean energy stocks remaining a focus in the last few weeks, the penny stock has seen an uptick in activity and stock price. Its Znyth battery is designed as a direct competitor to lithium-ion batteries.
Recent earnings have also helped give EOSE stock a boost. While it missed earnings per share and sales estimates, commentary from management seems to have boosted sentiment. Eos Chief Executive Officer Joe Mastrangelo said, “We have made significant progress on our transition to Z3 and I am very pleased with the initial output and performance of the semi-automated line. We are seeing clear advantages with Z3’s cycle time, performance consistency, and system simplification. Being able to run discrete manufacturing processes in the first half of the year has resulted in valuable learnings which we believe will result in both time and capital efficiencies as we develop our state-of-the art manufacturing line and begin to scale our production.”
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Earlier this month EOS also saw a bit of insider buying in August. Director Alexander Dimitrief picked up a few thousand shares at an average price of $2.1282. In July, CEO Mastrangelo purchased nearly $70,000 worth of EOSE stock at an average price of $2.23.
