Buy Alert: 3 Top Penny Stocks Trading Below $5
18 Outubro 2021 - 7:56AM
Finscreener.org
A lot of traders and investors
are huge fans of penny stocks. These stocks cost very little and if
they break out upwards, there is a lot of profit for the taking.
While it is true that penny stocks come with their own share of risks, the lure of
exponential gains is a temptation many find hard to
resist.
However, smart analysis and
proper risk evaluation can see investors make good profits in these
stocks. Here are three penny stocks that I have analyzed and think
are decent buys:
Elevate Credit
Elevate Credit (NYSE:
ELVT) is an America-based
company that provides innovative and responsible online credit
solutions to the non-prime consumers of the country and helps them
in securing a brighter financial future. Besides that, this fintech
company is also known for rewarding those borrowers who have good
financial behaviour with many benefits such as lower interest
rates, free financial training, and free credit
monitoring.
Elevate Credit’s business is
risky because it offers credit to people that are ignored by large
financial institutions. That’s why most investors often shy
away from investing in it. However, it is also true that the
ongoing economic scenario in the country and government
interventions have made it favourable for the lenders by reducing
their loan losses and giving them plentiful profits.
At present Elevate Credit is
trading just 5.6 times its earnings which is much lower when
compared to the valuations of similar fin-tech companies. Moreover,
compared to most of its peers Elevate Credit is much more
profitable and therefore seems more reliable. The stock is
currently trading at $3.71 and the average analyst target for the
stock is $4.75, a potential upside of over 28%.
Electrameccanica Vehicles Corp
Electrameccanica Vehicles
(NASDAQ:
SOLO) is a Canada-based company that designs and
makes electric vehicles and is famous for its EV Solo, which is an
all-electric single-seat three-wheeled vehicle. This revolutionary
concept of Solo distinguishes the company from most other EV
manufacturers in the market.
The company markets Solo to urban
residents as a solution for short-distance driving. Additionally,
like most other EV manufacturers, this company also has its own
cargo version of EV that consists of an enlarged trunk and targets
last-mile delivery. The company wishes to ship Solo by the end of
this year and has been taking reservations on the car for
$250.
Electrameccanica also intends to
expand its production line with two additional all-electric
vehicles called Electric Roadster and sporty Tofino that would be
styled like traditional cars. Moreover, recently it has partnered
with Robert Bosch LLC to set up a service network of independent
automotive repair shops for the servicing and maintenance of its
upcoming Solo EVs. The stock is trading at $3.37 and has an average
target price of $9.06, a potential upside of 169%.
Express Inc
Express Inc (NYSE:
EXPR) is an America-based
speciality fashion retail network that mainly caters to young men
and women. The company operates retail outlets in high-traffic
shopping malls, lifestyle centers, and street locations across the
United States and has a chain of 635 stores across the United
States and Puerto Rico.
In the last year, while the
retail sector was struggling with the effects of the COVID-19
pandemic, this company stood out and performed much better than its
peers with its shares surging by more than 480% during the one-year
period. Also, as per its last quarter results, the company has been
profitable and expects its earnings to grow at the rate of 95.9% by
the year-end. As a result, Express can be an intriguing choice for
investors right now. Express Inc closed last week at $4.36 and has
an average target price of $6, a potential upside of almost
37%.
The above-mentioned stocks
despite being in the penny stocks category are performing quite
well and can potentially provide valuable returns to their
investors in the days to come. However, these stocks are not for
every kind of investor due to their inherent risky nature and
should be considered only by those investors who have thorough
knowledge about the market and have a substantial risk
appetite.
Electrameccanica Vehicles (NASDAQ:SOLO)
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