Penny Stocks to Watch: DHX, Sportsman’s Warehouse, and Limelight

Penny Stocks

We’re checking out three penny stocks that could make returns in kind to investors. From retail to entertainment, you never know where the next big hitter will come from.

Let’s dig in!

Penny Stocks to Watch: Sportsman’s Warehouse (NASDAQ:SPWH)

Sportsman’s Warehouse is an outdoor sporting goods retailer. It operates across 23 US States. This stock is a hold stock at its current value of $4.72.

Across 2018, this penny stock has reached highs of $6.99 and lows of $3.28. At its current price, it is averaging those two price points.

But the company is showing growth with a 3.4% same-store sales increase in Q1. And though SPWH stock has fallen nearly 20% in the last two months, it still trades “at just 7x next year’s consensus EPS.”

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There is potential here, and those who aren’t giving up on brick and mortar stores just yet may sit well with Sportsman’s Warehouse.

Penny Stocks to Watch: Limelight Networks (NASDAQ:LLNW)

Limelight Networks stock has seen highs of $5.46 in 2018. So at its current price of $3.40, down 2%, it could represent an opportunity. The company has a market cap of $384.89 million and is a relatively smaller fish in its sector but is steadily making good progress. 

In the first half of 2018, “revenue has risen 14% with non-GAAP EPS more than doubling.”

According to investorplace.com:

“LLNW looks rather expensive on a P/E basis, but margins are thin and EV/EBITDA multiples are favorable. With a recent pullback to $4.03, a continuation of the recent trend should drive upside in the stock.

Limelight is in a position to continue its double-digit revenue growth through the rest of 2018 and into 2019. If it does this, the LLNW penny stock may breach the $5 mark once again.

Penny Stocks to Watch: DHX Media (TSX:DHX)

This stock is currently on the upside of a very ugly downside in 2018. Stocks dropped 35% so far this year, and the company has faced debt concerns nor has it met earnings report expectations.

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Dropping to lows of $1.13 CAD in September, DHX looked set to truly crumble, but some clever decisions are turning this company around. With a market cap of $438.33 million CAD and selling for $3.29 at the time of writing, there’s much to hold onto here.

The company’s portfolio is a strong one. It now owns the Peanuts intellectual property, after striking a deal with Iconix Brand Group (NASDAQ:ICON). It then sold 39% of Peanuts to Sony, which helped to reduce debt and gave it a partnership with a high-quality brand. The company also has TeletubbiesInspector GadgetYo Gabba Gabba!, and YouTube content provider WildBrain

But looking at DHX this year, it’s hard not to see the risk in this penny stock. That mighty decline to $1.13 CAD is very poignant. Though the upside is well underway, maintaining that climb will be tricky.

Featured Image: Depositphotos/© franky242