May 5, 2020 (MicroSmallCap via Comtex) — We know that the technology sector is always evolving and that many investors look to benefit from the latest innovation. And in 2020, that innovation is 5G technology. While there are many mega-cap companies involved in this revolution, investors should take note of the different 5G penny stocks available. After all, just because they’re cheap stocks doesn’t mean they don’t have a potential upside.
Here are four 5G penny stocks trading up on May 5.
4 5G Penny Stocks Trading Up: MicroVision, Inc. (NASDAQ:MVIS)
Based in Redmond, Washington, MicroVision, Inc. develops laser scanning technology for 3D sensing, image capture, and projection. The company is recognized as one that will not just fuel the 5G revolution but will help others work more efficiently throughout it. (5G decreases latency, which then allows MicroVision’s services to run better).
On May 5, MVIS stock is up around 47% at $1.62, as of 1:10 PM EDT. This makes for a substantial jump early in the trading week and makes it one of the biggest gainers among the 5G penny stocks discussed in this article.
As the company prepares to release its Q1 2020 results this week on May 7, we think back to when it released its fourth-quarter and full-year 2019 results in March. Highlights from Q4 2019 include a significant jump in revenue, going from $1.8 million in the same quarter in 2018 to $4.6 million in 2019. However, revenue for full-year 2019 did drop, from $17.6 million for full-year 2018 to $8.9 million in 2019.
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More recently, MicroVision disclosed that it had received a NASDAQ global market listing deficiency notice. Note, however, that this was a notice of deficiency, not of imminent delisting.
4 5G Penny Stocks Trading Up: Casa Systems, Inc. (NASDAQ:CASA)
Another company that has found itself trading up on Tuesday, thus securing a spot on our list of the day’s top 5G penny stocks, is Casa Systems.
An American company, Casa Systems is working towards advanced ultra-broadband 5G solutions for cable, mobile, fixed, and converged service providers. Since 2019, the company has been working alongside Sprint to create small cell systems. These systems assist the low bandwidth usage that is necessary for the development of 5G technology.
On May 5, CASA stock is up 0.35% at $4.215, as of 1:20 PM EDT.
On April 30, the company reported its Q1 2020 financial results, highlighting revenue of $83.6 million and a gross margin of 51.0%. Casa Systems also noted that GAAP net income came in at $1.2 million, while adjusted EBITDA was $3.7 million.
“Our first quarter 2020 performance was above our internal expectations,” said CEO Jerry Guo. Mr. Guo highlighted that results came from executing its strategy of increasing growth by growing its customer base in its cable business, in addition to expanding its addressable market to new companies.
4 5G Penny Stocks Trading Up: Communications Systems, Inc. (NASDAQ:JCS)
Communications Systems, Inc. is a Minnetonka, Minnesota-based company that, through its subsidiaries, manufactures and sells connectivity infrastructure products and services for broadband networks in North America. It’s also a company that many will likely look to when they are building out 5G communications.
On May 5, as of 12:58 PM EDT, JCS stock is up 2.53% at $5.35; this is enough to add it to our list of Tuesday’s 5G penny stocks moving higher.
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At the beginning of March, Communications Systems reported its Q4 2019 and year-end financial results. Highlights from the report include that Q4 consolidated sales from continuing operations increased by 17.1% to $15.4 million. Consolidated operating income from continuing operations in the quarter was $1.2 million.
4 5G Penny Stocks Trading Up: ASE Technology Holding Co., Ltd. (NYSE:ASX)
The last company that investors will see among Tuesday’s top 5G penny stocks is ASE Technology Holding Co., Ltd.
Based in Taiwan, ASE Technology Holding is a semiconductor packaging and testing company, as well as an EMS provider. Sources have stated that Apple (NASDAQ:AAPL), a significant player in the technology sector, has potentially selected ASE Technology to be its supplier for its mmWave 5G iPhone and iPad antennas. Such speculation is even more of a reason to keep an eye on this 5G penny stock.
On May 5, ASX stock is up around 1.4% at $4.35, as of 1:59 PM EDT.
At the end of April, the ASE 2020 earnings call transcript was posted, with Ken Hsiang, the Head of Investor Relations, noted a 16% decline quarter-over-quarter in consolidated net revenue ($97.4 billion), but a 10% improvement Y-O-Y.
Takeaway
Whether you’re interested in the evolutions of the technology sector or not, we have to acknowledge that 5G technology is the next big tech thing in our world. Chances are, as time goes on, more investors will start looking at 5G companies. And while volatile, 5G penny stocks are cheap with many possible advantages—just make sure you do your research before making any decisions.
Featured image: PixaBay
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