Technology stocks have risen in prominence over the last few years as blue-chips stars like Apple, Inc. (NASDAQ: AAPL), Facebook (NASDAQ: FB), and Amazon, Inc. (AMZN) have taken priority in most of the financial news media. But if you are looking for companies with true growth prospects, there are many promising technology penny stock companies on the rise that are ready to explode! Here, we will look at some of the best penny tech shares to buy in 2017. All of the stocks on our list will be looking to profit from hot trends such as artificial intelligence, drones, cloud computing, healthcare and cyber security. (Also make sure you checkout my other article to see what biotech stocks you should be following)
Arotech Corp. (NASDAQ: ARTX)
Arotech Corp. is moving forward in two of today’s most important technology trends: virtual reality and drone devices. The company produces training programs in use-of-force simulations for law enforcement and the military. Contract values have been growing for Arotech, and this is expected to continue with its security systems and solutions for the emergency services industry.
Going forward, markets are likely to focus more attention on Arotech’s aircraft and missile systems, in addition to its weapons simulations. These programs are being designed to build on the revenue that are already being generated by its strong positioning in surveillance and military services. Drone technologies have been getting increasing attention in the financial news media and Arotech’s developments in artificial intelligence has pushed the company ahead of most of its small-cap competition.
Revenues have lagged over the past four quarters on falling operating income performances but this has led to declines in the stock that create buying opportunities for growth investors looking for ways to build low-cost exposure to the sector. The company currently shows a market cap
of $93.41 million, and a P/E Ratio (TTM) of -31.30 which is a significant indicator suggesting the company remains undervalued.
Transgenomic, Inc. (TBIO)
Next, we look at Transgenomic, Inc., which saw dramatic gains this year when the company’s ICE COLD-PCR cancer testing agent was officially licensed by LifeLabs. The breakout generated gains of almost 300% in the stock and actually managed to hold onto most of those gains after the initial pullback. This, along with the surges in volume (which were much higher than the historical averages), suggest that the moves are real and that long-term gains in store for Transgenomic.
The company has managed to survive with negative operating income, and investors tripled income levels after the deal with LifeLabs was announced. Going forward, the revenues driven by these deals will be the key indicator of potential stock performance and so investors will be looking at these areas in their assessments over the next several quarters.
Zix Corp. (NASDAQ: ZIXI)
Zix Corp. is an email services provider, with products that help to secure messaging for government entities and corporations. The company has posted some strong innovations in its encryption methods, which help to protect against unauthorized downloading that enable cyber attacks.
Zix has posted sales increases of 65% over the last five years, and if these trends continue we will probably see the stock exit the ‘penny stock’ category very soon. Zix currently has a market cap of roughly $315 million and its earnings-per-share continues to show positive results. The stock’s P/E ratio is elevated at 52 but growing revenues should keep this company on the radar for growth investors.
Rennova Health, Inc. (NASDAQ: RNVA)
Rennova Health, Inc. provides revenue cycle management software and medical diagnostics programs for laboratories. The company currently falls into the micro-cap category, with its market-cap of $7.98 million, and its operating income reports have been somewhat volatile over the last year. Rennova recently offered 12,350 shares of Series H convertible preferred stock, driving valuations down to new lows — and creating new buying opportunities for growth investors.
Going forward, upside growth could be seen on its recent decisions to buy diagnostics company Genomas as well as several hospitals — and this should help to stabilize some of the volatility that has been seen in the stock over the last few months.
Sphere 3D Corp. (NASDAQ: ANY)
Sphere 3D Corp. is a tech company that sells cloud-based data storage to businesses. Its innovations in desktop management and data storage are sold in the US, Asia Pacific, and European regions, and we are seeing positive developments in earnings trends its since inception.
Sideways trading activity in the stock suggests a period of consolidation that could be used as a base for new positions that could benefit from several deal arrangements that are currently in the pipeline. The company’s diversified client base makes it an excellent candidate for a takeover buyout, and so we expect Sphere 3D to start gaining more attention within the market as long as its revenue trends continue to expand.
As always, investors considering these stocks should prepare for potential volatility with market valuations holding at relatively low levels. But if you are a growth investor looking for new opportunities in the sector, each of these companies is well-positioned for further moves higher.