Penny Stocks: Orion Energy Systems is Surging with Further to Climb

Penny stocks

Selling for less than $3 at present, Orion Energy Systems Inc. (NASDAQ:OESX) is a small-cap play in lighting and energy management. Shares under $5 are classed as penny stocks, which are often highly volatile and risky investments.

But often, cheap stocks lead to potential short-term gains, quick profits if you will, and Orion is on the radar today for that exact potential.

Orion Energy Systems Inc: Penny Stocks Growing

Orion manufactures and sells lighting and energy management systems. Year to date, the time to buy OESX was actually around March or April. Specifically, since April 1st, these shares have gone on one long bull-run; climbing over 211% in just over two months.

But there is still potential for more profits ahead, according to Investopedia:

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“[H]ealthy buying interest and a stair-step rally pattern predict even higher prices, with the next resistance level situated at the 2015 breakdown through support at $4.00.”

Investopedia is not the only publication to call bullish trend on this penny stock. Data on MarketScreener says of three analysts covering the stock, all are bullish, giving a mean consensus of ‘OutPerform’ and a price target of $3.92 USD.

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Why the Bullish Outlook?

But why all the movement on this penny stock? Well, it seems the company’s investments in national accounts is paying off. Though we don’t know who it is exactly, a “major national account” has increased its business with Orion Energy Systems, and this has sent OESX stock soaring. The company’s press release also detailed the monetary value of this customer’s expansion:

“Orion anticipates additional revenue of $35 million under the contract, which is dependent on the customer’s issuance of purchase orders. The contract builds upon an earlier letter of intent for Orion to provide approximately $11 million in turnkey LED lighting retrofit services, most of which were completed in Orion’s fiscal 2019 fourth quarter ended March 31st, 2019.”

The company’s expanse of business is causing investors to take notice. In the penny stocks realm, shares often dip or skyrocket on hype, so be careful out there. Orion looks like a bright spark, but as with many cheap shares, there is always risk attached.

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Featured Image: DepositPhotos © catalin205

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