3 Penny Stocks Under $10 that Could Give Your Portfolio a Boost
January 24 2022 - 5:42AM
Finscreener.org
People often assume that stocks
trading below $10, also known as penny stocks, are fundamentally weak. Nothing could be
farther from the truth. The fact is that there are some hidden gems
in the under $10 space.
All it takes is a discerning eye
to identify great buying opportunities in this category. There’s no
denying that stocks in the under $10 category face several
headwinds. They could be running obsolete business models or they
could be newcomers trying to make their mark or they have run into
tough weather in the short-term. Here are three great stocks under
$10 to consider.
ADMA Biologics
ADMA Biologics (NASDAQ:
ADMA) is an end-to-end
commercial biopharmaceutical company which develops and markets
specialty plasma-derived products for the prevention and treatment
of infectious diseases.
In Q3 of 2021, the company
reported total revenues of $20.7 million, an increase of
over 101% compared to the year-ago period. It recorded positive
gross profit for the first time ever. The EPS loss of 13 cents a
share was the lowest recorded in the company’s
history.
Clearly, the penny stock is on
track to improve its financials and has a razor-sharp focus on the
same. ADMA has said that it has the potential to hit profitability
“no later than the first quarter of 2024”. It also said that it
aims to have at least 10 plasma collection sites operational, with
FDA licensing, by the end of 2023.
This stock could be a buy before
it announces its numbers for Q4 2021 and the whole year for 2021.
The stock is currently trading at $1.3. Analysts have given it an
average target of $5.58 which is an upside of almost
330%.
Village Farms International
This cannabis grower is an
agricultural producer that also produces tomatoes, bell peppers and
cucumbers. The company reported revenues of $72.4 million in Q3, an
increase of 68% compared to the same period in
2020.
What makes Village
Farms (NASDAQ:
VFF) interesting is that it already has a hedge
built into its business. Its produce division (with greenhouse
facilities in Canada, Mexico and the US) was responsible for $41.2
million of total sales.
Further, Village Farms’ marijuana
subsidiary Pure Sunfarms has reported 12 straight quarters of
positive EBITDA. It also acquired Balanced Health Botanicals, a
cannabis-related company. In November 2021, the company announced
that it had acquired 70% of private company ROSE LifeScience (a
cannabis producer) for $36.7 million.
The penny stock has taken a hit
in 2021, going from $11.82 on January 1, 2021 to $5.6 on January
20, 2022. However, analysts are bullish on the stock, and have an
average target of $16.38 on it. This could mean a potential upside
of almost 200% on Village Farms. It certainly merits a closer
look.
Akoustis Technologies
This company develops, designs,
manufactures and sells radio frequency (RF) filter products for the
mobile wireless device industry in the United States. It works with
single-crystal piezoelectric materials, a very important component
in the smartphone and table segments.
In its December 2021
presentation, Akoustis Tech
(NASDAQ:
AKTS) said it is transitioning from seven years of
development to commercialization. It says its addressable market
size will have grown from $4.3 billion in 2019 to $6.9 billion in
2024. Its targeted customers include names like Samsung, Ericsson
(NASDAQ: ERIC),
Nokia (NYSE:
NOK), Huawei, ZTE, NEC and Corning (NYSE:
GLW).
In November, the company reported
adding a new mobile customer in Asia. In 2021, it has also engaged
with three RF component companies for the development of multiple
5G and WiFi XBAW coexistence filters for mobile
devices.
Akoustis shipped out “four new 5G
small cell network infrastructure filters to our tier-1 customer,
received three design wins, received order from 2nd small cell
network infrastructure customer, announced two CBRS design
wins.”
The stock closed on January 20 at
$5.4. Analysts have given it an average target of $14.88 which
represents a potential upside of over 160%.
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