3 Tech Penny Stocks to Watch Right Now
Tech penny stocks have become some of the best performers of the past year. Whether a combination of pandemic-related tech needs or the entrance of more innovative products, there are a few reasons why these penny stocks are seeing solid momentum.
As we move into the last month of the Spring and even closer to tax-day, the market has a tendency to consolidate as the public gets ready to pay up. However, investors both new and old recognize that volatility like this can be used as a short-term financial tool, especially when considering that there are so many penny stocks under $5.
“The usual explanation [for the fluctuating market during tax season] is that investors withdraw money to pay taxes. The good news is that the market tends to rebound immediately in the two weeks after [Tax Day], with several sectors showing notable gains.”
CNBC correspondent, Bob Pisani
When creating a penny stocks watchlist for 2021, we should consider what sectors will offer the most upside potential?
In the past few years, the technology industry has seen massive growth. This is mostly due to increased societal demand as well as the growth in technological capabilities. The competition that naturally occurs with tech also fuels more innovation. With large companies rapidly acquiring smaller ones in order to remain competitive, penny stocks have seen massive price volatility this year. This volatility can be in use as an advantage if you have the right trading education to back it.
Investors have been generating watchlists based on emerging technologies and are including low-cost penny stocks that have forward potential. This still requires a basic understanding of the fundamentals that drive competition in the technological sector. For these reasons, let’s take a look at three tech penny stocks to watch right now.
3 Tech Penny Stocks to Watch Right Now
- Clear Channel Outdoor Holdings Inc. (NYSE: CCO)
- Vislink Technologies Inc. (NASDAQ: VISL)
- Ocean Power Technologies Inc. (NASDAQ: OPTT)
Clear Channel Outdoor Holdings Inc. (NYSE: CCO)
With the slow recovery from the COVID-19 pandemic, businesses can finally see a light at the end of the tunnel. A catalyst to recovery can be marketing strategies that help brands stay relevant and let customers know they are reopening. Clear Channel Outdoor Holdings Inc. (CCO), one of the largest outdoor advertising companies, does just that. For this reason, it can also be considered a reopening penny stock.
It currently has over 5,800 employees and international operations in the US, Caribbean, Europe, Singapore, and Latin America. Additionally, it has access to over 500,000 print and digital displays in 31 countries. This illustrates that its platform is both expansive and well integrated.
With its growing digital marketing department, as well as data-based solutions, it is now helping its customers navigate these uncertain times. It comes as no surprise that it has seen nearly 200% growth in the past year, with an increase of 19% in the past week alone.
Bolstered by the countrywide gradual reopening, businesses have never been more ready to rally and recover. On April 27th, CCO announced that it partnered with Resorts World Las Vegas, offering brands the opportunity to reach millions. It will do this through its over 135,000 square feet of digital signage.
“Las Vegas has long been the premier meetings and conventions destination, consistently providing world-class facilities and services to help brands and business travels connect. We are excited to be the epicenter of the meetings industry and once again show the world that Vegas Means Business.”
Kate Wik, the Chief Marketing Officer for the Las Vegas Convention and Visitors Authority
Taking this into consideration, CCO could definitely be one to keep in mind when it comes to generating your watchlist.
Vislink Technologies Inc. (NASDAQ: VISL)
Vislink Technologies (VISL) is another tech penny stock under $5 that has its hands in the collection, management, and distribution of high-quality live video and data. The company, based out of New Jersey, has regional offices in both Massachusetts and California but has grown internationally to the UK, Dubai, and Singapore. It has a strong foundational portfolio of intellectual property (IP) that includes both radio and self-organizing wireless network technologies for mobile services.
Its recent “Connected Edge” strategy, announced in February of 2021, has shifted its goal to edge computing. This is an effort to further expand its capabilities. These capabilities extend to sporting events, military contracts, satellite communications, and first responder networks. It’s no wonder that in November 2020, it was named one of the fastest-growing technology companies in North America.
Over the past year, VISL stock has increased by over 1300%, with a huge growth spike seen in February. During February of this year, shares of Vislink Technologies reached as high as $5.06. As of April 26th, shares of VISL stock are up by around 102% YTD. Having seen an immense increase of 29% in the past week, should VISL be on your penny stock watchlist?
Ocean Power Technologies Inc. (NASDAQ: OPTT)
When considering a penny stock for your watchlist, we also want to account for companies that are forward-thinking. Right now, renewable energy is the focal point for those looking to capitalize on the growth of a budding industry. Ocean Power Technologies does just this by providing renewable energy remotely, a concept that is just now being commercialized.
Currently, OPTT is able to provide real-time data communications, as well as hundreds of megawatts of electric power to offshore oil fields using submarine cables. This energy is generated from wave power using a variety of proprietary technologies. On April 22nd, OPTT announced the deployment of its PB3 PowerBuoy product in Chile to support the country’s transition to clean energy.
This technology uses a smart oceangoing buoy to capture and convert energy generated from waves to clean electricity in North and South America, Europe, and Asia. Currently, its services are marketed publicly and privately to offshore oil and gas, defense and security, science and research, and communications.
CEO and President of OPTT stated, “We are proud of the work performed to deploy the PB3 PowerBuoy® for EGP and to help bring new clean energy solutions to Chile.” This past year shares have grown from a price of $0.40 to a high of $5.84 (an increase of around 1400%) back to $2.67 as of April 27th.
In the past 12 months, shares of OPTT stock have shot up by around 580%. With this high volatility, OPTT might be worth writing down and maybe even adding to your penny stock watchlist for May.