5 Penny Stocks To Buy Right Now

Last Updated August 18th 2021
7 Min Read

While multiple penny stocks can give investors superior returns in the near term, here are the ones that look most promising to buy now.

5 Penny Stocks To Buy Right Now

  1. Quantum(QBT)
  2. 7Digital (7DIG)
  3. 88 Energy (88E)
  4. GSTechnologies (GST)
  5. Active Energy Group (AEG)

1. Quantum(QBT)

A crypto mining company

Quantum (QBT) is one of the most promising penny stocks to buy now, and for a good reason. The company is invested in crypto mining, and this market is on a major rebound at the moment.

Prices of major cryptocurrencies are up by over 50% in just a matter of weeks. The topmost crypto, Bitcoin, is now trading at close to $50,000 after testing lows of $29k back in June.

With prices of cryptocurrencies rising, companies involved in mining, such as Quantum, stand to experience a jump in revenues for the remainder of 2021. Besides its investments in crypto mining, other aspects of this company look set to record growth going into the future.

The company has other investments in the blockchain space that could see its value grow exponentially going into the future. 

Blockchain is set to be the next frontier of the web, and companies that come up with innovative solutions in this space will thrive. Quantum is leveraging the power of A.I. and quantum computing to try and come up with the next generation of blockchain solutions.

If it succeeds and comes up with some breakthrough solutions that could revolutionize the future, it could be a high potential stock to hold long-term. Betting on it now could be akin to betting on Amazon or Google in the 1990s.

The company is involved in other high potential sectors too. For instance, Quantum Blockchain is heavily invested in the theme parks business. 

While the theme park business took a hit due to the COVID-19 pandemic, it is set to rebound now that things are getting back to normal.

With the potential for revenue growth on this front, so is the potential for this stock to appreciate in value in the short term.

Looking at its charts, this stock looks pretty attractive to invest in at current prices. Quantum is currently trading at the 200-day moving average support level. 

It bounced off this support a couple of times in August, indicating that sellers don’t have the momentum to push it lower.

With its core fundamentals getting better, as shown above, Quantum is likely to keep gaining from this point going forward.

Its risk-reward level is much better than most other penny stocks and even some big cap stocks

2. 7Digital (7DIG)

Trading at the bottom 

7Digital (7DIG) is another penny stock that looks very interesting at current prices. One factor that makes this stock stand out is that it is trading at multiple month lows. 7Digital has been bleeding for months. However, since July, the selling momentum seems to have slowed down.

This means anyone who gets in at current prices is either buying at the bottom or very close to it. It presents a low-risk, high-reward opportunity for investors.

However, it is not just its price action that gives this stock a high potential for growth going into the future. Its core fundamentals look pretty good too.

7Digital recently announced that it had entered into a partnership with Muzooka. The partnership will allow 7Digital to include artist assets in its music data. 

According to 7Digital CEO Paul Langworthy, the partnership will help the company give its customers higher quality services in everything from gaming, automotive, fitness, and even in B2B music.

Essentially, this deal has helped the company deepen its presence in the music industry, and that is good for its long-term value appreciation. Besides a better customer experience, it will help differentiate the company’s products in the crowded music streaming market. 

This is good for its long-term value growth and will likely reflect its share price in the short to medium term.

Prospects for this company’s market share and revenue growth offset some of the risks that are quite evident in its balance sheet.

One of the risks that this stock has is negative cash flows. It also has a very low current ratio, standing at 0.57. This means it does not have enough current assets to cover its short-term liabilities. 

However, these are issues that are already factored in the current price. As such, with the potential for a high increase in revenues and gaining a broader market, it stands a good chance to gain in the short term.

Essentially, it’s pretty much like all other penny stocks. The risk is high, but the potential gains could easily see it outperform the market by a considerable margin.  

3. 88 Energy (88E)

Oil is still big business

Long term, oil demand is on the decline. However, in the short term, demand for this commodity is likely to remain high.

Demand is primarily on the rise now that the major economies are reopening again after a year of economic disruptions. This means oil companies stand to record strong growth in the short to medium term. 

88 Energy (88E) is uniquely positioned for growth because it exploits oil in the US. This is one of the world’s largest markets for oil and gas. 

Besides the positive broader market environment, this stock’s internal factors paint a picture of a company that offers a good risk-reward for investors.

From its charts, 88 Energy has been in a bearish reversal for the better of August. It is now trading close to the 50-day moving average support.

Considering that high oil prices could help drive up revenues in the short term, a price level close to a major support level could be a good entry point. 

Unlike most penny stocks, 88 Energy books look pretty good too. The company has a quarterly revenue growth rate of 5,610.10%. This is an indicator of strong demand for its products. 

On top of that, it has a current ratio of 0.99. This is generally considered safe and means the company has enough liquid assets to cover its short-term liabilities.

This is especially important for this company because it sells a product whose price is highly volatile. 

As such, without a good current ratio, a sharp drop in oil prices could bankrupt a company. This stock presents a good return and a relatively low risk of value depreciation for a commodities penny stock.

4. GSTechnologies (GST)

Stability and growth

GSTechnologies (GST) has been volatile over the last couple of weeks. Nonetheless, overall momentum since late July is up.  

Recently, the stock pushed through the 100-day moving average resistance. Despite correcting shortly after, it is holding above this resistance. It’s an indicator that buying momentum is on the rise.

If it holds above this 100-day moving average, the upside potential is pretty huge. This stock can deliver strong value appreciation in such a scenario.

Besides the technicals pointing to growth, broader market factors point to potential growth.

The market for ICT services such as networking is growing globally. The networking market is expected to grow at an average of 5.6% up to 2024. This means market players with a sizeable market presence, such as GSTechnologies, will record growth. 

The company’s books, while not the best, look pretty good too. It has a current ratio of 2.74, which means it has more than enough resources to cover its short-term liabilities.

Strong market growth, a good entry price, and industry growth make GST one of the most stable penny shares to buy now.

5. Active Energy Group (AEG)

An energy sector innovator

Active (AEG) is a high-potential UK penny stock to buy now, and for a good reason. In the last couple of months, the company has had a series of good news related to its innovativeness.

The most important of them being news that the company was looking to build its 2nd US CoalSwitch™ facility in Maine. 

CoalSwitch™ is created using biomass and has the potential to become a replacement for coal in power plants. This, while retaining jobs, and without adding extra cost to energy providers. 

This is a big deal because it aligns the company with the global goals towards energy sustainability goals. It is also likely to drive up its product demand amongst companies looking to shift from using coal without strain their finances.

It’s a factor that will have an impact on its revenues in the short to medium term. By extension, it could have a huge impact on the stock.

The stock price is at an exciting level too. AEG has been bearish for months, but selling momentum seems to have declined in August. 

This is a good indicator that the bottom is in or close by for this stock. Given that its CoalSwitch™ plant could add significantly to its revenues, a potential bullish reversal is highly likely. 

Based on these factors, AEG is easily one of the best UK penny stocks to have in a diversified stock portfolio today. 

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