Penny stocks can be a great investment opportunity. We can take advantage of trading low priced stock options to make profitable investments like buying the future Apple stocks, Amazon stocks or Facebook stocks at lower prices. I’ve identified few penny stocks that are likely to perform very well in the next two years.
I believe that diversification is an excellent strategy to protect oneself when investing. One important aspect of that is risk tolerance. Simply chasing the safest, most risk-avoidant investments is going to lead to one thing: low returns. That’s where penny stocks come in with higher risks, but potential for higher rewards.
I absolutely suggest investors understand and consider exchange-traded funds (ETFs) and other lower-risk investment vehicles. But it’s also necessary to include a degree of risk in a portfolio. Penny stocks are a relatively inexpensive way to approach this strategy.
A few weeks ago, I wrote an article about penny stocks listed on the Nasdaq exchange. Those shares are much more vetted than over-the-counter (OTC) listings.
The same is true of the New York Stock Exchange (NYSE), which is where all of the penny stocks I’ll write about today are listed. Both the Nasdaq and NYSE are centralized, and participants must file periodic audited financial reports. Thus, it is possible to verify their claims regarding their business performance. OTC stocks, on the other hand, are much easier to manipulate.
Here’s another reason to be cautious with OTC penny stocks, according to Kiplinger:
“The major exchanges also have listing requirements; OTC stocks don’t. For example, a company must have at least 400 shareholders and a market value of at least $40 million to get a listing on the New York Stock Exchange. The OTC market makes no such requirements.”
With that in mind, let’s look at these seven NYSE-listed penny stocks that look particularly promising:
Fastest Growing Tech Penny Stocks
These are the tech penny stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors pick out growing startups that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
| Fastest Growing Tech Penny Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($M) | Revenue Growth (%) | |
| Future FinTech Group Inc. (FTFT) | 2.34 | 164.0 | 1,610 |
| PowerBand Solutions Inc. (PBX.V) | CA$1.22 | CA$226.8 | 1,050 |
| Artificial Intelligence Technology Solutions Inc. (AITX) | 0.04 | 143.8 | 784.9 |
Source: YCharts
- Future FinTech Group Inc.: Future FinTech Group is a China-based blockchain e-commerce company. The company provides an online shopping platform, incubator for blockchain-based applications projects, and a cross-border e-commerce platform.
- PowerBand Solutions Inc.: PowerBand Solutions is a Canada-based automotive technology provider. The company provides a cloud-based auction and finance portal platform for transactions among consumers, dealers, funders and manufacturers. For Q2 2021, the company reported that its net loss narrowed YOY as revenue rose. . PowerBand attributed the revenue performance to industry acceptance of its DRIVRZ lease origination software, which is driving strong sequential growth.4
- Artificial Intelligence Technology Solutions Inc.: Artificial Intelligence Technology Solutions provides mobile electronic services, including AI and robotics solutions. The company offers after-market upgrades for electronics, audio, and video for automobiles, boats, and recreational vehicles.
Tech Penny Stocks with the Most Momentum
These are the tech penny stocks that had the highest total return over the last 12 months. Stocks with returns in excess of 3,500% have been excluded as outliers.
| Tech Penny Stocks with the Most Momentum | |||
|---|---|---|---|
| Price ($) | Market Cap ($M) | 12-Month Trailing Total Return (%) | |
| Extreme Vehicle Battery Technologies Corp. (ACDC.CX) | CA$0.26 | CA$102.7 | 2,450 |
| DMG Blockchain Solutions Inc. (DMGI.V) | CA$1.06 | CA$174.7 | 1,080 |
| Netlist Inc. (NLST) | 4.83 | 1,085 | 955.9 |
| Russell 1000 | N/A | N/A | 35.1 |
| S&P SmallCap Info Tech ETF (PSCT) | N/A | N/A | 67.4 |
Source: YCharts
- Extreme Vehicle Battery Technologies Corp.: Extreme Vehicle Battery Technologies is a Canada-based blockchain and battery technology company. The company provides battery management systems for the electric vehicle and energy storage solution markets. On Sept. 14, the company announced that its common shares had become eligible for electronic clearing and settlement through the Depository Trust Company in the U.S. The company’s shares are available on the OTCQB Exchange under the ticker CRYBF.5
- DMG Blockchain Solutions Inc.: DMG Blockchain Solutions is a Canada-based cryptocurrency and blockchain company. It provides a platform focused on mining public blockchains and using blockchain technology to address fraud and other issues in supply chains.
- Netlist Inc.: Netlist builds and sells memory subsystems. The company provides products to the server, high-performance computing and communications markets. The company also designs custom semiconductor logic devices, which are integrated into its memory subsystems. For Q2 2021, ended July 3, the company reported net income of $27.8 million compared with a net loss in the prior-year quarter. Net sales grew about 500% YOY. Strong product sales and the execution of a comprehensive licensing agreement with SK hynix Inc. drove this growth.6
The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
Conclusions
Best Penny Stocks to Invest in 2021 are Low Price Traded Companies with Rising stock price, but still not enough information is found about the company, if the company is new in stock exchange. Best penny stocks can be explored by knowing about the Latest Technology companies, which are having potential for Future growth, Best Penny Stock Trading Broker.