3 Penny Stocks That Can Beat the S&P 500 In the Next Decade
August 27 2021 - 04:05PM
Finscreener.org
Penny stocks are a popular choice among retail traders as you
can invest in these companies with a small amount of capital,
diversifying your portfolio in the process. Generally, stocks that
have a price of below $5 are called penny stocks.
While most penny stocks are micro or small-cap companies, here
we try to analyze companies that have a higher capitalization and
the potential to generate wealth at an exponential rate in 2021 and
beyond. Finscreener’s penny stock
screener will also allow you to shortlist companies on the
basis of several metrics. So, let’s see which lower-priced stocks
should be on your radar right now.
Trivago
Valued at a market cap of $1 billion, Trivago (NASDAQ: TRVG) is
a stock that is poised to make a comeback once the world economy
reopens. An online travel platform, Trivago saw its sales fall from
$838 million in 2019 to $248.9 million in 2020. Now, Wall Street
expects Trivago to increase sales by 19.3% to $353 million in 2021
and by 73% to $610 million in 2022. Its bottom-line is also
forecast to improve from a loss per share of $0.82 in 2020 to
earnings per share of $0.03 in 2022.
Trivago stock has already gained 51.6% in the last year but is
also trading 46% below its 52-week high. In the second quarter of
2021, Trivago sales were up 493% year over year at 95.5 million
euros but were also down 57% compared to Q2 of 2019. Investors
should note that the company managed to surpass its own guidance
and report an adjusted EBITDA profit of 4.3 million euros in the
June quarter. The qualified referrals which is basically the number
of clicks on Trivago’s platform to its bidding partners more than
tripled to 73.4 million but were down 44% compared to the same
period in 2019.
International travel restrictions are hampering overall recovery
but this is expected to remain a near-term headwind for Trivago and
investors.
HEXO is poised for a comeback
A cannabis giant, HEXO (NYSE: HEXO) stock
is trading at a price of $2.56. It’s in fact down over 94% from
record highs making it a top bet for contrarian investors. HEXO has
been on an acquisition spree in 2021 which has also meant the
company has to raise capital to fund organic growth and cash
burn.
In the company’s fiscal third quarter of 2021 ended in April,
HEXO’s sales were $22.7 million which is similar to the year-ago
period. But it narrowed its operating loss to $16.1 million from
$25.6 million in the prior-year period.
HEXO recently acquired Redecan which is Canada’s largest
privately-owned cannabis company. Redecan will be highly accretive
to HEXO’s top-line as its Q1 sales rose 146% year over year to
$24.7 million while net income stood at $6.9 million.
HIVE Blockchain
The final penny stock on my list is HIVE Blockchain Technologies
(TRADEGATE:
HBF), a company
valued at a market cap of $1.19 billion. HIVE mines
cryptocurrencies and is up 470% in the last three years. The price
of HIVE stock is closely tied to the price of Bitcoin making it
highly volatile. In case you are bullish on the cryptocurrency
market, it makes sense to place your bets on HIVE stock right now
to derive market-thumping gains. HIVE is also trading 42% below its
weekly high and its stock is priced at $3.16.
trivago NV (NASDAQ:TRVG)
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