Love them or hate them, penny stocks pull investors in different directions. There are pros and cons to trading in cheap stocks. Low share prices mean attractive buy-in options, and sudden gains can mean sudden profits. Of course, there are the inevitable dips and crashes, and the massive potential that the company you have backed folds altogether.
When looking at this risky market, you can only be guided by analysts, reporters, and metrics. Investors will ultimately have to make the call themselves by putting their money down.
With that in mind, it never hurts to look for those potential wins, and today we’re checking out ToughBuilt Industries (NASDAQ:TBLT).
Penny Stocks to Watch
California’s tools and building accessories company, ToughBuilt Industries, is currently trading for $1.56 USD and up 2% on the day. The current price is on the lower end of the scale for this penny stock, and this could mean an undervalued opportunity.
Mid-January, TBLT stock was selling for $3.63 USD. This high came when TBLT stock almost tripled its value overnight on January 15th. On that occasion, the penny stock soared 186% overnight.
Sudden surges such as this highlight the pros of investing in penny stocks and the question here is: will TBLT stock do this again?
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Menard’s Inc.
The reason for the massive bull run was that the company launched its product within the home improvement chain, Menard’s Inc. Menard’s has more than 300 stores in the US.
According to Market Watch: “Volume spiked to 24.7 million shares at 1 p.m. Eastern, compared with the full-day average of about 328,000 shares.” That is an unprecedented surge in volume.
Similar highs were reached in early December 2018, when ToughBuilt Industries first began trading on the NASDAQ. In between the peaks, the stock has come down—hitting lows of $0.86 USD.
But the overall consensus from analysts at Kyma News is that the TBLT penny stock is showing buy potential of late:
“The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.”
The Bottom Line
Another spike could be just one distribution deal away, and investors clearly delight in this news when it happens.
Bearing that in mind, the decision will always remain in the hands of the investors, but at the low price of $1.56 USD, this penny stock could easily swing skyward again if history is anything to go by.
Featured Image: DepositPhotos © EdZbarzhyvetsky
