The coronavirus pandemic is wreaking havoc across the world, death tolls are rising at an alarming rate and stock markets experiencing wild swings that are making investors nervous. Millions of workers have been laid off and businesses are shutting down as every country has had no choice but to enforce a lockdown. Despite all the terrible consequences caused by COVID-19, it has opened up opportunities to buy penny stocks with good fundamentals that should survive the coronavirus crisis.
Below we have put together a list of five penny stocks worth watching over the coming months – make sure to perform your own research before investing and don’t trade with money you can’t afford to lose.
EVRI – Everi Holdings Inc
Everi Holdings Inc. provides technology solutions for the casino gaming industry in the United States, Europe, Canada, the Caribbean, Central America, and Asia. The company operates in two segments, Games and FinTech. This stock has weakened more than 60% since March 2020 and according to the rules of technical analysis, the “bearish” trend of this stock is still very strong. Despite this situation, this stock could make a very big jump in the next several weeks and this stock should be on the watchlist of every trader who follows penny stocks. Total revenues in 2019 were $533.2 million, growing by 13% from 2018. The management of this company believes that Everi Holdings Inc will drive long-term revenue growth and improved profitability in the upcoming years.
OGI – OrganiGram Holdings Inc
OrganiGram Holdings produces and sells cannabis and cannabis-derived products in Canada. This company offers cannabis flowers, cannabis oils, and pre-rolls for adult recreational consumers under several brands. This stock has weakened more than 30% since March 2020 and according to the rules of technical analysis, the “bearish” trend of this stock is still very strong. According to analysts, the legal cannabis industry is expected to advance and it may even hit the $200 billion mark by the end of the decade. It is also important to mention that this stock has lost nearly two-thirds of its value over the prior 12 months. This sharp sell-off had little to do with internal operations or financial performance of OrganiGram during this period. Total revenues in 2019 were $60.4 million, growing by 534% from 2018. If you’re looking to invest in the cannabis industry, OrganiGram is probably a great choice because this stock is cheap for a high-level cannabis company with solid fundamentals.
Fluent Inc. FLNT
Fluent, Inc. provides data-driven digital marketing services primarily in the United States. The company also offers customer acquisition services by operating digital marketing campaigns, through which the company connects its advertiser clients with consumers. This stock has weakened more than 30% since March 2020 and according to the rules of technical analysis, the “bearish” trend of this stock is still very strong. Despite this situation, this stock could make a big jump in the next few weeks. Total revenues in 2019 were $281.7 million, growing by 13% from 2018. It is also important to mention that EBITDA was $11.5M (14% of revenues) while adjusted net income rose to $6.12M from a year-ago $5.99M.
ZIXI – Zix Corporation
Zix Corporation provides email encryption, data loss prevention (DLP), threat protection, archiving, and bring-your-own-device mobile security solutions for the healthcare, financial services, insurance, and government sectors primarily in the United States. The price of this stock has advanced from $3 above $5 in less than three weeks but despite this, Zix Corporation boasts over 20,000 customers, and a cloud app that is used by 30% of US banks. Yes, it is true that the price of this stock could fall again but according to some predictions, this stock could be above $8 after coronavirus passes.
ORBC – ORBCOMM Inc
ORBCOMM Inc. provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally. This stock has weakened more than 50% since the beginning of the 2020 year and according to the rules of technical analysis, the “bearish” trend of this stock is still very strong. Total revenues in 2019 were $272 million, falling by 1.49% from 2018. Despite this, the management of this company believes that ORBCOMM will drive long-term revenue growth and improved profitability in the upcoming years. According to analysts, the company expects to see stable services revenue based on the fact that its products and services track refrigerated trucks and containers that carry 60% of the world’s food supply. Amid the worsening COVID-19 pandemic, there’s clearly a high demand for grocery stores, one of few businesses benefitting from the current crisis.