The 10 Best Penny Stocks

A penny stock's unpredictability is well-known. Investors must be knowledgeable in technical analysis in order to profit from the erratic price swings that these companies are capable of making. However, investors' initial concern when examining many of these small- and micro-cap stocks is, "Why should I buy this stock in this company?"

Investors need to think about a few additional questions in order to respond to that one, such as:

Are these firms promoting an improved mousetrap or just another mousetrap?

Does the business have a sound business plan that may make it appealing for a well-known firm in the sector to acquire it? Is the business in a growth industry right now?

The ideal penny stock is one that enables you to say "yes" to each of those inquiries. These penny stocks exhibit the technical indicators that suggest actual increases and have the ability to delight investors in the ensuing weeks and months. We have chosen 10 penny stocks that appear to fit these requirements and that you ought to think about purchasing right away.

1 - Chesapeake Energy (OTCMKTS: CHKAQ)

Chesapeake Energy (NYSE: CHK) - Which way you anticipate the price of oil and gas will move will largely determine whether you decide to purchase Chesapeake Energy. The business suffered during the previous recession and was left with a debt of approximately $10 billion. Although many experts anticipate higher oil and gas prices through 2019, a small firm like CHK would gain more from an increase than some of the giant oil corporations. The fact that CHK's stock has seen a 15% gain for 2018 while oil prices have risen to almost $70 lends credence to that claim. According to some analysts' predictions, those prices might reach $120 by the end of 2019, which would result in a significant price increase for CHK.

In addition, the business recently disclosed that it was selling off certain assets to cut its debt by around $2 billion, and its second-quarter earnings report demonstrated that it had a workable strategy in place to make up for the revenue it would lose from selling those assets.

Results in their most recent earnings report were conflicting. Earnings decreased significantly year over year; the firm reported a loss of $40 million ($0.04/share) vs. a profit of $470 million ($0.47/share) the prior year. Furthermore, overall sales decreased from $2.281 billion to $2.255 billion?however, their adjusted profits per share of $0.15 above the $0.14 consensus expectation. The stock was trading just below its simple moving average (SMA) at the moment of writing, and if it gets support, it may be set to rise over its year-high, which was reached in early July.

About Chesapeake Energy

In order to produce oil, natural gas, and natural gas liquids from subterranean reservoirs, Chesapeake Energy Corp., an independent exploration and production firm, acquires, explores, and develops assets. The projects in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming are the main emphasis. On May 18, 1989, Aubrey K. McClendon and Tom L. Ward created the business, which has its headquarters in Oklahoma City.

Current Price $3.05

Consensus Rating N/A

Ratings Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

2 - Mid-Con Energy Partners LP (NASDAQ: MCEP)

Mid-Con Energy Partners LP (NASDAQ: MCEP) - The hazards faced by small-cap firms operating in the oil and gas industry are shown by Mid-Con Energy Partners. Stock in this corporation reached a high of $27 per share in 2013. But when the oil price collapsed from 2014 to 2016, Mid-shares Con's also fell precipitously, entering the domain of penny stocks. It was once offered for as little as $0.73 a share. The stock has been unable to gain momentum, hovering at approximately $1.75 per share despite higher oil prices.

However, despite sales expected to remain below $60 million through 2019, the stock has increased by more than 42% for the year. It needs to be clarified if such projections take into consideration rising oil costs.

Mid-Con might be a solid long play in the penny stock market if petroleum surges from its current price of roughly $70 per barrel. Mid-stock Con's price was stable in the 20s while oil was selling at $120 per barrel.

Information about Mid-Con Energy Partners

Oil and natural gas assets are acquired, owned, developed, and produced by Mid-Con Energy Partners, LP, across North America. The majority of the company's holdings are situated in Oklahoma and Wyoming, in the Mid-Continent, Big Horn, and Powder River Basin regions of the United States. As of December 31, 2019, it has 25.6 million barrels of oil equivalent in total estimated proven reserves (MMBoe). The general partner of Mid-Con Energy Partners, LP, is Mid-Con Energy GP, LLC. The business was established in 2011 and had its corporate office in Tulsa, Oklahoma.

Current Price $5.52

Consensus Rating N/A

Ratings Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

3 - Advantage Oil and Gas Ltd. (NYSE: AAV)

Advantage Oil and Gas Ltd. (NYSE: AAV) - Advantage Oil and Gas is an appealing option for investors searching for an oil and gas company with a greater track record. The firm reported lower top and bottom line results compared to the same period last year, which put negative pressure on the stock. However, the company's profit margin for the first quarter was 29%, which was much higher than the sector average of 6.1%. Due to the factors that are boosting demand for Canadian oil, like the Iran sanctions and anticipated production problems in South America, this profit does not seem to be slowing down. In fact, economists anticipate that the whole Canadian oil sector will earn a $1.4 billion profit in 2018.

Such projections have helped Advantage get a future price objective of $5.90. Now, as of Dec 2022, the stock is selling at around $3.10.

About Advantage Oil & Gas

Natural gas and liquids are developed and produced by Advantage Oil & Gas Ltd. It concentrates its operations on Progress, Wembley, Glacier, and Valhalla, all in Alberta. The company's headquarters are in Calgary, Canada, and it was established on January 2nd, 1997.

Current Price $2.50

Consensus Rating N/A

Ratings Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

4 - Castle Brands (NYSE: ROX)

Castle Brands, ROX (NYSE) - It's possible that the market has already established a floor for Castle Brands' shares. There are grounds to believe the stock may be due for a run if that is the case. First, it features two standout product lines: the Dark & Stormy cocktail, created with Gosling brand Black Seal dark rum and ginger beer, and Jefferson bourbon, which remains to be the cornerstone of their whiskey lineup and had a 20% rise in sales in 2018. Although their profits have grown over the last several years and their revenue has continued to rise, their gain is still poor. 166 million shares of the corporation are now outstanding, which might put some negative pressure on the price. However, insiders of the firm control 30% of the outstanding shares, indicating that management is optimistic about the future of the business.

In the future, Castle Brands will be a candidate for purchase. However, because of the stock's narrow trading range, it seems that if it were to break, it would move higher.

About

Current Price 0.00

Consensus Rating N/A

Rating Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

5 - Sportsman's Warehouse (NASDAQ: SPWH)

Sportsman's Warehouse (NASDAQ: SPWH)- With same-store sales increasing by 3.4% during the first quarter of 2018 and a trailing P/E ratio of 11.5, which is much lower than the S&P 500, Sportsman's Warehouse is sending out strong technical signals that it is underrated. Analysts are, however, a bit doubtful about their sales figures. Despite the fact that the business was profitable in its most recent financial report, its profits per share (as determined in accordance with GAAP standards) remained constant from year to year at $0.15. If a company's revenue growth is outpacing its profit growth, it may be an indication that it is raising costs, which might explain why it hasn't been expanding at the same rate as the specialized retail industry. Nevertheless, the business anticipates solid sales and EPS figures for the balance of 2018, which should maintain the stock's current increase.

The stock has surpassed its simple moving average in large part as a result of its excellent earnings announcement, and there is still space before it reaches its 52-week high. The share price is 7 times the expected EPS for the following year.

Information about Sportsman's Warehouse

The distributor of outdoor sports equipment in the United States is Sportsman's Warehouse Holdings, Inc., and its subsidiaries. It provides both clothing items, such as camouflage, jackets, caps, outerwear, sportswear, technical gear, and work wear, as well as camping goods, including backpacks, camp necessities, canoes and kayaks, coolers, outdoor cooking facilities, sleeping bags, tents, and tools. The firm also sells waders, hiking and work boots, socks, sports sandals, technical footwear, trial, and casual shoes, and fishing rods, as well as bait, electronics, flotation devices, fly fishing supplies, lines, lures, reels, equipment, and small boats.

Additionally, the company's retail locations provide cleaning, bore sighting, scope installation, fishing-reel line winding, and technician services for archery, in addition to issuing hunting and fishing permits. Also, it sells a variety of private label and specialty cosmetics under the Sportsman's Warehouse, Killik, Yukon Gold, Vital Impact, Rustic Ridge, and Killik brands. On May 26, 2022, the business had 126 locations open. With its corporate headquarters in West Jordan, Utah, Sportsman's Warehouse Holdings, Inc. was established in 1986.

Current Price $9.33

Consensus Rating Hold

Rating Breakdown 1 Buy Rating, 2 Hold Ratings, 0 Sell Ratings.

Consensus Price Target $13.20 (41.5% Upside)

6 - Limelight Networks (NASDAQ: LLNW)

Limelight Networks (NASDAQ: LLNW) - Any choice to purchase Limelight Networks must be founded on your perception of where streaming content is going in the future. By developing Content Delivery Networks (CDNs), Limelight enables businesses to guarantee effective, adaptable performance and content accessibility. Industry researchers predict that by 2021, 71% of all internet traffic will be carried by CDNs. From the 52% they had in 2016, it is a huge gain. The desire for buffer-free streaming material is mainly responsible for this. The CDN can help in this situation. However, there is a danger to the industry's customers from companies like Facebook and Netflix, which want to build their own CDNs to have control over their internet traffic and speeds. For the time being, however, that danger is to be decreasing, which is good news for Limelight, whose revenue rose 14% in the first half of 2018. The stock just crossed its 50-day SMA and is now as of Dec 2022 trading at roughly $4.85 per share.

About Limelight Networks

Within the Americas, Europe, the Middle East, Africa, and the Asia Pacific, Limelight Networks, Inc. offers content delivery networks and associated services. The business runs private, international networks with significant access to last-mile broadband network providers, distributed computing resources, live and on-demand video delivery services, and online video platforms that manage and integrate sophisticated video delivery.

Additionally, it provides edge-computing services, cloud security services that protect against illegal content access and harmful website assaults, and cloud storage services. The business also offers expert services, as well as other infrastructure services, including transit, hardware, and rack space services. Firms in the media, entertainment, gaming, technology, software, enterprise, retail, and other industries are served by it. Tempe, Arizona, serves as the company's headquarters. It was established in 2001.

Current Price $0.00

Consensus Rating Buy

Rating Breakdown 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target $6.50

7 - Plug Power (NASDAQ: PLUG)

Plug Power (NASDAQ: PLUG) -

Repeating the same thing again while expecting a distinct outcome is the definition of insanity. Therefore, the fact that Plug Power is doing something novel to increase shareholder value for its stock should cheer investors. The inventor of hydrogen fuel cells seeks to change the perception that renewable energy has consistently struggled to return on investment.

Last year, Plug Power agreed to work with Amazon, and in May, the company teamed up with FedEx. Along with the agreement they already had in place with Walmart since 2014, this was added. Why are these agreements important? Companies like Amazon are keen to employ an alternate power source to boost the forklifts' manufacturing pace so that downtime is kept to a minimum.

They are still losing money, but their revenue is increasing (it increased by 90% year over year in the first quarter of 2018), and their stock is attempting to cross above its SMA, suggesting that they could be about to make a breakthrough.

The Plug Power

For logistics and supply chain applications, on-road electric cars, the stationary power sector, and other uses in North America and abroad, Plug Power Inc. provides end-to-end clean hydrogen and zero-emissions fuel cell solutions. It works to create a complete green hydrogen ecosystem, which includes the creation, storage, and distribution of green hydrogen as well as energy generation through portable or fixed applications. The business offers proton exchange membrane (PEM), fuel cell and fuel processing, and fuel cell/battery hybrid innovations, as well as infrastructure for producing, storing, and dispensing hydrogen and green hydrogen.

The business provides GenDrive, a hydrogen-fueled PEM fuel cell structure that powers material handling electric vehicles; GenFuel, a system for delivering, producing, storing, and dispensing liquid hydrogen; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive, GenSure, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines, as well as GenSure, a stationary fuel cell system.

Additionally, it offers GenKey, an integrated turnkey solution for making the switch to fuel cells; ProGen, a fuel cell stack and engine technology used in mobile and stationary fuel cell systems as well as engines in electric delivery vans; and GenFuel Electrolyzers, which are hydrogen generators designed for producing clean hydrogen. A direct product sales staff, original equipment manufacturers, and dealer networks are used by the corporation to market its goods. Strategic partnerships with Edison Motors, Phillips 66, Phillips, Airbus, Lhyfe, Apex Clean Energy, BAE Systems, and Universal Hydrogen Co. are also in place. With its corporate headquarters in Latham, New York, the business was established in 1997.

Current Price $14.02

Consensus Rating Buy

Ratings Breakdown 13 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.

Consensus Price Target $27.09 (93.2% Upside)

8 - DHX Media (NASDAQ: DHXM)

DHX Media (NASDAQ: DHXM) -

Content is king in the realm of digital media. And it could make investors a little more upbeat when they think about DHX Media. This year, the stock has taken a beating. Nevertheless, it could have hit bottom after plunging 35%. Right now, it is trading close to its simple moving average. By purchasing the intellectual property of Peanuts, the firm has made some strides toward cementing its position as the biggest independent collection of children's material in the world. In addition to Yo Gabba Gabba, Inspector Gadget, Strawberry Shortcake, and Teletubbies, this is added to its portfolio. They bought Peanuts and then immediately sold 39% of their stock to Sony. This not only decreased their debt but also provided them with a solid partner to lean on. DHX Media would undoubtedly be a sector play. There are possibilities as more people try to cut the cord and switch to digital and streaming media.

Regarding DHX Media

For traditional and specialized terrestrial and cable/satellite television broadcasters across the globe, DHX Media Ltd. creates, produces, distributes, transmits, and licenses television and film programming. Content Business, DHX Television, and Consumer Products Represented are the three divisions under which the corporation works. It offers animation programs, production services, and a concentration on children's, young adult, and family films.

Additionally, the business pre-sells upcoming series as well as original broadcast rights, program bundles, and reuse rights to current series to specific broadcasters and other content organizers. Additionally, the business utilizes its own brands as well as those of third parties in the toy, gaming, clothing, publishing, and other sectors. The business also holds broadcast rights for the television channels Family Channel, Family Jr., T�l�magino, and Family CHRGD.

Additionally, it licenses its brands, including Twirlywoos, Caillou, Johnny Test, In the Night Garden, Strawberry Shortcake, Teletubbies, Yo Gabba Gabba!, Peanuts, and Yo Gabba Gabba, in addition to music publishing and retransmission rights. Halifax Film Company Ltd was the company's previous name; in March 2006, it was renamed DHX Media Ltd. Halifax, Canada, serves as the corporate headquarters for DHX Media Ltd.

Current Price $1.11

Consensus Rating N/A

Rating Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

9 - Arotech Corporation (NASDAQ: ARTX)

Arotech Corporation (NASDAQ: ARTX) -

Arotech is a suitable example of a penny stock in the military sector, which may sound odd. Although it has a market worth of $88 million, it works in several nations and includes some of the prominent names like General Electric and Honeywell among its rivals. The company has a forward P/E ratio of 13, which may be inexpensive in terms of fundamentals if it can start to accelerate its development. They made $98.72 million in sales in 2017, approximately $5 million less than they did in 2014. And given that the business was established in 1990, it has taken a while for them to get to where they are. The business had a gain of 17 cents per share in 2017. According to predictions, their earnings per share would rise to 18 cents in 2018 and up to 26 cents in 2019. This excitement may be largely attributed to the Trump administration's anticipated increase in military spending.

The stock of Arotech has increased by around 12% year to date. The stock is close below its 20- and 50-day SMAs at the current price of $3.40.

Regarding Arotech

Products for military and security are offered globally by Arotech Corporation. In order to teach military, law enforcement, defense, rescue services, and other employees in engineering, use-of-force training, and operator skills, the company's Training and Simulation division develops, produces, and promotes multimedia and interactive digital solutions. It also makes water-activated lifejacket lights for use in commercial aircraft and marine applications. In September 2003, the business changed its name from Electric Fuel Corporation to Arotech Corporation. The business is headquartered in Ann Arbor, Michigan, and was formed in 1990.

Current Price $3.00

Consensus Rating N/A

Rating Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

10 - mCig Inc (OTCMKTS: MCIG)

mCig Inc. (OTCMKTS: MCIG) - The cannabis business, one of the most sensitive industries, is where our list of the ten best penny stocks concludes with a pure speculative bet. Investors should consider whether they anticipate that the present movement toward legalizing marijuana will materialize throughout all 50 states before making a decision on mCig. Since mCig is a firm that specializes in building marijuana growth facilities, they aid in the development of the greenhouses and other infrastructure required by farmers to manufacture their products. There are now strict restrictions on how many licenses may be granted in a given state. The potential of mCig is driven by this. However, numerous states that have legalized marijuana have already begun to ease their regulations, creating competition and bringing down the cost of marijuana. This has led to the closure of several marijuana-growing operations.

However, mCig might be an interesting choice if you're just considering a short-term play. In the fiscal year 2017, the firm recorded profits of $4.78 million, up from $1.72 million in 2016. And they made $1.53 million in profit. The business has already made over $6 million in sales in 2018. That's a wonderful trend, but the stock price?which is currently around $0.25 per share and is down approximately 28% for the year?has not yet caught up with it.

About BOTS

Operating as a holding company, BOTS, Inc. The business manufactures and sells vaporizers, e-cigs, and supplies. Cultivating, Production and Distribution; retail trade; media and innovations; agriculture; and corporate make up its operating segments. The CMD sector creates modular structures and greenhouses with features that help farmers of cannabis and other plants. Distributors of e-cigarettes, vaporizers, and cannabidiol products are part of the Retail Sales category. The market for cannabis and cryptocurrencies is served through the Media and Technologies segment's advertising services. Industrial hemp plantings and land acquisition are both included in the agriculture section. The company's headquarters are in San Juan, Puerto Rico, and it was established on December 30, 2010.

Current Price $0.03

Consensus Rating N/A

Rating Breakdown 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.

Consensus Price Target N/A

All penny stocks are not created equal. Startups make up some. Some are well-known businesses that have persevered during difficult times. Some are minor participants in well-established fields. As an investor, it's crucial to keep in mind that there is a cause why their stock is now selling at a low price. Penny stocks might be a tempting addition to your portfolio if you comprehend why and are prepared to bear the risk associated with hoping for a payoff that might not come true.

The following are some suggestions for choosing the ideal penny stocks for your portfolio:

Do your research. Fly-by-night businesses that claim to be the newest "hot stock or industry" abound in this sector. It is wise to wait if the fundamentals don't support the claims.

Consider limiting your attention to industries in which you have expertise. It will be simpler to differentiate between competitors and impostors as a result.