Is This The Best Penny Stock To Watch in October?
Sometimes a small investment in penny stocks can end up generating enormous returns for an investor. More often than not, it is a result of diligent research. An investor needs to study the market in order to look for the best penny stocks and then make an investment.
For instance, there might be certain penny stocks that have been beaten down. But then these cheap stocks can manage to make a turnaround due to sound business decisions. Here is a look at one company that investors debate which list of penny stocks to put it on; buy or sell.
Penny Stock To Watch
The company in question is Plug Power Inc (PLUG Stock Report) and it has been a disappointment for investors for around two decades now. However, things now appear to be changing (possibly for the better). The penny stock has gained 100% over the course of the year so far and is currently trading at $3.
However, it is still down by 38% over the past five years. Plug Power’s management has put forth an ambitious plant to take the company back to growth and profitability over the next few years. If they can achieve that then the upside could be significant for investors.
The company has targeted EBIDTA of $200 million and revenues of $1 billion within the next five years. That being said, the question remains whether management is going to be successful.
Penny Stocks To Buy (Or Sell)
Analysts expect Plug Power to generate $236 million in revenues this year. But it is a tall order to almost increase it by three-fold over the next five years. The company is still burning through a lot of cash. It also still has a mountain of debt to take care of. In 2019 alone, it is supposed to make an interest payment of $17 million.
Analysts believe that for a company that quadruples its sales in 5 years, it should not find it difficult to increase its EBIDTA 10 fold. If that happens, then it could be one of the top penny stocks to watch.