Any stock that trades for under $5 is dubbed a “penny stock.” These publicly traded companies are often newer businesses, underperforming businesses, or in dire-straits businesses. As such, many investors don’t want to take on the risks associated with trading in low-priced securities.
But if you do your homework well and back up your choice with a good investment strategy and technical analysis, winners can be found in this market. It has happened many times before and sure can happen again.
Here are some penny stocks worthy of your time.
Penny Stocks to Watch: ARC Document Solutions (NYSE:ARC)
Trading for $1.98 USD on the NYSE exchange, things looked very promising for ARC stock at the beginning of the year. However, since early January, shares have lost roughly 30%.
But don’t despair because this company’s balance sheet shows a company that is in strong financial shape. It owns more than it owes and has $28 million in cash. Last year, ARC Document Solutions reported a $17.8 million operating income and akin to this, has received a ” Strong Buy” rating from Zacks.
This penny stock is considered undervalued at current prices, and belief is ripe from within because the company has been buying back shares on the open market. You don’t see that every day!
ARC Document Solutions helps engineering, construction, and architect professionals. Its services include computer-aided design, digitized blueprints, large format printing, and specialist consultation.
Penny Stocks to Watch: DarioHealth Corp (NASDAQ:DRIO)
DRIO stock tanked towards the end of May. There was no specific company catalyst for the fall but rather the result of a market-wide lull caused by the American/China trade war.
At $0.48 USD on the NASDAQ, this penny stock could be a steal because of DarioHealth’s link with diabetes.
The Isreal-based company gives consumers the ability to perform laboratory tests from their own smartphone. For example, its Digital Therapeutics solution lets users test and monitor blood glucose levels on their mobile phone.
The use for its Dario system for patients with diabetes might spell a big win for DarioHealth. Within six seconds, an individual can test their levels, log their results, and even share the data with their caregivers or doctors.
The market this company is hoping to conquer is huge, and a few operational successes could push this $28 million company to new levels. At the end of May, the company published several studies further demonstrating the benefits of its DTx solution. The overall aim is to help improve life with diabetes and achieve clinically proven results.
What are your thoughts on these penny stocks? Do you have any others on your radar?
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