Since the Great Recession rocked global markets in 2008 and 2009 stocks and penny stocks to watch alike have largely rebounded. New all-time highs have been reached while the price-to-earnings ratios of many S&P 500 companies are increasingly expensive, often prohibitive to many investors.
So where do these investors turn when they’re looking for penny stocks that haven’t already exploded in value over the last decade? After all, it’s very difficult to find good long term deals in the market when even smaller S&P 500 companies are showing market caps near $1 billion.
In case you're new to Penny Stocks Investing and trading penny stocks, it essentially involves investing in stocks of those companies that trade with a LOW share price, often less than $1. An extremely low share price allows an investor to hold thousands of shares for a relatively small amount of invested capital.
Since this business involves investing in a company's potential, it requires considerable investing experience.
Small-capitalization stocks, and Penny Stocks alike have been hit particularly hard in the market’s rapid volatility over the past couple months. Investors see the Coronavirus’ fallout threatening this sensitive group, which tends to see its performance suffer more than larger companies in recessions.
With that being said, now might be a great time to take advantage of the best penny stocks to buy for literal pennies on the dollar!
The Top Penny Stocks for 2020 Are:
1. Aerotech (NASDAQ: ARTX)
Aerotech is a defense design and manufacturing company that is capitalizing on two of the biggest growing industries next year: Drones and Virtual Reality. The difference between Aerotech and other companies in this space is it services 80% of the growing global aviation industry.
It's price per share is trading at around $2.99 as of November 2020.
You can find out more about ARTX market cap, and trading volume here
They primarily create technology for the military and law enforcement. A recent award for interactive law enforcement training systems has lead the stock to rally this quarter to an all time high of $4.20 followed by a correction to $3.66.
We expect this to be a hot stock when they announce fourth quarter earnings early next year, after reporting a strong increase in operating income for the third quarter compared to the previous period, from $357,000 to $1.8 million.
With a year-over-year growth in debt of 69.78%, NA's debt growth rate surpasses 83.32% of about US stocks. As for revenue growth, note that ARTX's revenue has grown -12.04% over the past 12 months.
2. Mueller Water Products, Inc. (NYSE: MWA)
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Mueller Water Products, Inc. is the leading fire hydrant maker in the U.S. Having sold over 3 million fire hydrants, Mueller Water Products, Inc. is doing pretty good with one fire hydrant running $1000.
For the fiscal year ended 30/09/2019 MUELLER WATER PRODUCTS' revenues increased by 5.68% on the stock market.
Although hydrants last for decades, the same cannot be said of the gaskets and seals. In this scenario, replacing a worn out hydrant is the best option.
With 10- 20 million fire hydrants in the US, Mueller boasts of an extensive supply base (3 million), which makes them good stocks to buy. Besides, the company receives low commodities prices. This, to a large extent, increases its profit margins.
3. Valeant Pharmaceuticals Intl Inc (VRX)
Although it experienced problems that saw its stock reduce by 82% over the last 12 months, Valeant Pharmaceuticals Intl Inc (VRX) is one of the best penny stocks to invest in since its price per share is quite low. This is a great long term penny stock to watch with a relatively high trading volume.
At the moment, Valeant Pharmaceuticals is one of the few biotech industries that trade so affordably. Recently, the company gained over 35%, in just three trading days. The price per share now sits at around $24 per share.
Its affordability has served as a beckoning signal to many investors who seem to respond positively to the call. In fact, the company offers one of the cheapest stocks.
With all the risk in trading penny stocks comes a lot of potential opportunity. After all, getting in on the ground floor of a company before its stock price explodes is the dream of many casual investors, and penny stocks are one of the primary ways to accomplish that. Check out our latest article on penny stocks to watch under 1 cent
This is a company that supplies air transport and food processing industries with solutions and materials respectively. Thanks to low gasoline prices, many people prefer to travel by air; this spells big business for this company that designs, manufactures and services airport ground support, besides providing other services.
The modern lifestyle has increased demand for food packaging. JBT's input in the production of packaging is cheap, which translates into high-profit margins.
PLong term Investors out there wondering how to invest in penny stock should make a deal with JBT, one of the best-performing penny stocks to buy now and the best cheap stocks to buy now.
5. Northern Dynasty Minerals Ltd. (NYSE: NAK)
This Vancouver based company specializes in U.S. mineral exploration.
The new administration has set out a pro-mining agenda, especially with the former Exxon Mobil CEO Rex Tillerson nominated for Secretary of State.
6. Hecla Mining Company (NYSE:HL)
In a time of political and economic uncertainty the oldest minerals stock on the exchange is a place where investors could turn.
Hecla Mining Company (founder 1891) specializes in precious minerals mining and has reported record silver reserves for 10 years in a row.
NOW is a great time to take advantage of this cheap penny stock in November.
Conclusion
Traders and investors looking for how to invest in penny stocks can buy stocks from one or more companies highlighted above. The good thing these companies are offering good stocks to buy at the moment.
As we mentioned, penny stocks to watch are notoriously risky. So tread with caution.
That said, there is certainly the opportunity to discover undervalued and under-reported companies before they take the markets by storm.
Additionally, stocks like these are too small for most big, institutional investors to get involved in. Many of them are restricted from investing in smaller companies while others just don’t feel it’s worth their time.
Moreover, analysts tend to ignore stocks like this. That can be a double-edged sword: For one, other low-level investors are less likely to jump on a stock simply because it hasn’t received any coverage anywhere else. However, it makes doing your research on a company even more difficult.
Would loved to own these penny stocks that yield high dividend.
Hi John
It’s all based on the company and their market price. If a startup company is in a niche market with potential, their share offering could be relatively low to lure investors.
Cheers
BTGI looks like a high revenue OTC. Constant revenue will eliminate the debts in coming years.
Interesting content, DATI is not only funding and advising start-ups but also provides investors with a hedge against their own private equity.
Why do you have BABA listed as a penny stock? Just had an angry client come in asking why his shares were so expensive.
Who an d how do I buy penny stock
I ordered a program said it was for penny stocks, yet all they show are stocks from 3.50 to 15.00 way out of my range.
seen your webinar. Incredible!!!!
im interested in learning more about penny stock income.