Top Penny Stocks That Investors Are Bullish On
When making a list of penny stocks to watch, using analyst input can be a valuable tool. Now, it should not be the only factor used when picking penny stocks, however, it can help to push you in the right direction. In addition, looking for the biggest gainers in a given period can also help when making a penny stock watchlist.
After these steps are done, it’s best to consider the other aspects that go into finding the best penny stocks to watch. This includes both fundamentals and speculation.
Fundamentals include the concrete details about a company that can impact its share price. This information is found in a company’s balance sheet, which is required to be released every quarter. Additionally, this could also be any corporate financings, or other financial information announced about a company.
Now, speculation is anything else that will impact a share price. This includes news, any announcements, or even a press release. Most investors lean toward using speculation as the main driver of price. This is because, with penny stocks, speculation will always lead to larger intraday price swings than any other contributing factor.
Penny Stocks to Watch Right Now
So, while this is not a complete list of all the things that affect the price of a given security, it should help to point you in the right direction. With this in mind, here are three penny stocks to watch.
- Energy Focus Inc. (NASDAQ: EFOI)
- Hudson Technologies Inc. (NASDAQ: HDSN)
- Aehr Test Systems (NASDAQ: AEHR)
Energy Focus Inc. (NASDAQ: EFOI)
Energy Focus Inc. is a producer and provider of sustainable LED lighting solutions. This includes the production of LED lamps with a focus on energy efficiency. It also provides its EnFocus LED lighting control platform which allows existing and new buildings to transform their lighting capabilities. Additionally, its patent-pending UVCD technology products, which were announced last year, offer effective lighting solutions for buildings, facilities, and residential homes.
The company states that it has installed more than 900,000 of its lighting products across the country. More recently, the company announced a new range of UV-C disinfection products. This announcement came as the company also states that it will be presenting its first-quarter 2021 financial results on May 13th. On April 16th, the company announced that it had partnered with Batteries Plus Bulbs to offer its products for distribution in more than 700 stores across the U.S.
“Batteries Plus Bulbs and Energy Focus are committed to bringing the very best sustainable, and affordable lighting products to facilities of all types and sizes. Energy Focus is dedicated to developing and democratizing high-quality, human-centric lighting for the mass market.
With Batteries Plus Bulbs nationwide coverage, many more lighting contractors and end-users will get to know and purchase our durable, reliable, and innovative products. We look forward to developing and expanding a long and mutually beneficial partnership with Batteries Plus Bulbs.”
Wanda Adams, Vice President of Business Development for Commercial Lighting for Energy Focus
Considering all of this, will EFOI be on your penny stock watchlist?
Hudson Technologies Inc. (NASDAQ: HDSN)
Similar to EFOI, Hudson Technologies works as a provider of sustainable tech solutions. However, it works in the chilling and refrigeration industry. It provides innovative products such as its proprietary RefrigerantSide Services, which allow for increased operating efficiency and cost savings.
Because refrigerant is one of the most environmentally harmful compounds out there, companies are looking for an alternative, eco-friendly solutions. In addition to the product mentioned above, Hudson offers SMARTenergy OPS which is a cloud-based software for managing continuous monitoring and fault detection in real time. Lastly, it sells refrigerants and offers reclamation services for both commercial and industrial air conditioning and refrigerating needs.
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Yesterday, on May 5th, Hudson Technologies reported its first-quarter 2021 financial results. While it did report a 7% decrease in its revenue of $33.8 million, this is understandable due to the Covid-related shutdowns.
Despite this, the company was able to grow its margins from 23% in Q1 2020 to 27% in Q1 2021. And, it managed to more than halve its net loss from $2.9 million in the first quarter of last year to $1.1 million or $0.02 EPS in this quarter. Lastly, it ended the quarter with more than $32 million in total cash and a revolving loan facility.
Brian Coleman, CEO of Hudson Technologies, stated that “as we kick off the 2021 selling season, we are optimistic that we’ll begin to see a broader reopening of the economy, and specifically a return to facilities such as schools, office buildings, and other venues that represent the end markets for many of our customers.” While it isn’t necessarily a pure-play reopening penny stock, it will without a doubt benefit from fewer economic restrictions. Whether this puts it on your list of penny stocks to watch, however, is up to you.
Aehr Test Systems (NASDAQ: AEHR)
Last on the list is California-based, Aehr Test Systems. Aehr is a provider of test systems for optical and memory integrated circuits. To date, it has installed more than 2,500 of these systems around the world. These products are in use in a variety of markets including automotive and mobility, among others.
With a worldwide shortage of circuit boards right now, many companies are scrambling to find supply. This has led to vastly increased demand over the past few months. While AEHR only produces testing equipment for these circuits, it still has an active role in the market. Last month, Aehr reported its Q3 fiscal results for the 2021 year. In the results, net sales came in at around $5.3 million, with a non-GAAP loss of $464,000 or ($0.02) EPS.
Gayn Erickson, CEO of Aehr Test Systems stated that “our bookings of $8.0 million during the third quarter is our highest bookings quarter in over a year and includes two customer orders for our FOX-XP test cells. One of these orders is from an existing customer for a partially populated FOX-XP multi-wafer test and burn-in system and multiple WaferPark Contractors to begin volume production of their high-performance silicon photonics devices.”
While this may be a lot of technical jargon, the company continues to be a major player in the semiconductor space. With this in mind, AEHR stock could be worth watching.
Are These Top Penny Stocks On Your Watchlist?
When it comes to adding penny stocks to your watchlist, finding ones that align with your investing strategy is key. In addition, knowing your portfolio goals will always be the best way to ensure your profit targets align with the companies you are interested in.
Considering all of this, there are hundreds of penny stocks out there. And with so many increasing in value due to the pandemic slowing down, the hopes are that the market will continue to attract attention. With all of this in mind, are these top penny stocks on your watchlist?