10 Best Penny Stocks to Buy in August 2021

July wasn’t a good month for penny stocks and many of the popular penny stocks saw a sell-off in the month. What’re the 10 best penny stocks that you can buy in August 2021?

By definition, penny stocks trade below the $5 price level. These stocks are risker than large companies and are much more volatile. Also, it is easier to influence their price action as compared to large companies.

1. Exela Technologies (NYSE: XELA)

Business process automation company Exela Technologies is a good penny stock to buy in 2021. It’s a global company and has operations in 50 countries. It has 4,000 clients including over 60% of Fortune 100 companies. The stock has gained 89% so far in 2021 but is down sharply from its 52-week highs of $7.82. The steep fall in XELA stock makes it a penny stock worth watching in August.

The stock has been bogged down by its high debt but Exela has been using the spike in its stock to issue new shares and intends to use the funds for deleveraging. Last month, the company provided a business update and said its Digital Mailroom and DrySign offerings delivered a record new user addition in the second quarter. It said, “DMR and DrySign continued to grow in the preceding 90 days with DMR delivering a growth rate of 99% in its SMB customer base and DrySign delivering a growth rate of 144% in its user base, as compared to the prior period.” The stock surged sharply after the news.

Exela looks a good penny stock to buy in August

Exela stock trades above the 50-day, 100-day, and 200-day SMA (simple moving average) which is a bullish indicator. Its 14-day RSI (relative strength index) of 50.9 is a bullish indicator. The stock trades at an NTM (next-12 months) EV-to-EBITDA of 7.3x which is way below its peers. The company’s revenues fell in the last two years and it also has a huge debt pile. As the company works to revamp growth and deleverage the balance sheet, its multiples might expand. Overall, XELA looks like a good penny stock to buy in August.

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2. Globalstar (NYSE: GSAT)

Globalstar is a US-based provider of satellite solutions for businesses and individuals. The company offers customizable Satellite Commercial IoT Solutions, equipment monitoring, and fleet asset tracking connectivity for mobile and field personnel. The stock is up four-fold in 2021 but is down 54% from its 52-week highs.

B. Riley’s analyst Mike Crawford finds GSAT a good penny stock. “Globalstar and its sponsors, after years of development, support, and patience, are at long last starting to realize a return on satellite system and spectrum assets, making 2021 an excellent time, in our opinion, to buy GSAT,” it said in its note.

The analyst believes that GSAT would now start monetizing its 2.4 gigahertz S-Band spectrum in the US and its 2.4-megahertz international spectrum. It assigned a target price of $3.25 on the stock and said that the company has “moved through the high-risk portion of its history and is now poised to start generating returns.” The bullish forecast from a well-known brokerage triggered a buying spree in GSAT stock.

Looking at the technicals, GSAT trades at its 100-day SMA. If it crosses above the 50-day SMA, it will next face resistance at the 50-day SMA which is currently at $1.49. The stock’s 14-day RSI of 42.9 is a neutral indicator. The stock currently trades at an NTM EV-to-revenue multiple of 23.7x.

On the face of it, the multiples look high. However, the company is in the process of monetizing its spectrum and the earnings and profitability will improve in the future. The strong growth outlook makes GSAT a penny stock worth buying in August.

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3. Ebang International Holdings (NYSE: EBON)

Ebang International Holdings is a penny blockchain technology company and looks like a good way to play the industry. The company provides application-specific integrated circuit (ASIC) chip design capability. Many feared that China’s crackdown on cryptocurrency mining in the country will take a toll on EBON. But the company issued a statement saying that the crackdown has no direct or immediate impact on its business.

EBON looks like a good penny stock to buy in August

EBON stock has crashed from its recent highs and trades below the 50-day, 100-day, and 200-day SMA.  The stock’s 14-day RSI is 40 which is getting near oversold levels. If you are looking at a penny blockchain stock, EBON looks like a good bet. While it’s a risky name, the rewards are also commensurate.

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4. Teekay (NYSE: TK)

Teekay stock fell almost 19% last month and is now up only about 26% for the year. The company provides transportation services for oil and gas whose demand has rebounded amid the sharp recovery in the global economy.

Teekay has fallen below its 200-day SMA. It also trades below the 50-day and 100-day SMA. Its 14-day RSI of 38.6 is getting near oversold levels. Teekay is among the largest energy shipping companies globally and should benefit from the higher energy demand in the medium term. It has scheduled its second-quarter earnings for later this week. It trades at a trailing EV-to-sales multiple of 3.6x and has a price to book value multiple of 0.58x. Teekay looks like a good penny stock to buy and bet on further revival in global energy demand in 2021.

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5. Creatd (NYSE: CRTD)

Creatd is the parent company of Vocal Platform and develops tools for creators. In a business update last month, the company said that it has reached a milestone of over 30,000 subscribers for its Vocal+ platform. It also confirmed the second-quarter revenue guidance of $1 million and said that revenues are expected to be between $1.6-$1.8 billion in the third quarter.

CRTD stock fell 9% last month. The stock looks weak on the charts and is facing resistance at its 50-day SMA. The stock also trades below the 100-day and 200-day SMA.  The 14-day RSI is 47.7 which is a neutral indicator. CRTD trades at an NTM EV-to-sales multiple of 7x and is making losses. However, its top line is growing fast. Analysts expect the company’s revenues to rise 481% to $7.05 million in 2021.

CRTD looks like a good penny stock to buy in August

CRTD stock has fallen almost 70% from its 52-week highs. The steep fall has made it looked even attractive now. If you are looking at a high-growth penny stock, CRTD would fit the bill.

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6. Digital Ally (NYSE: DGLY)

Digital Ally is a micro-cap company. It supplies digital security products to event security teams, law enforcement agencies, and commercial fleet companies. The stock rose sharply last year but has looked weak in 2021 and is down almost 40% in the year. It now trades near the 52-week lows and the sharp drawdown from the peaks make DGLY a penny stock worth looking at.

DGLY trades at a trailing EV-to-sales multiple of only 1.4x which looks reasonable. In June, the company announced a new business unit to look at the opportunities in the healthcare market. “This business initiative is part of the Company’s strategic plan to diversify its product and service offerings to address larger target markets that have significant growth prospects. Digital Healthcare’s goal is to create recurring sources of revenue, expand its profit margins, achieve sustainable positive cash flow and fuel future growth,” it said in its release.

DGLY looks like a risky bet among penny stocks. However, given its high short interest, it could be a short squeeze candidate. Looking at the charts, DGLY trades below the 50-day, 100-day, and 200-day SMA which is a bearish indicator. However, it is among the prime candidates for a short squeeze.

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7. Sundial Growers (NYSE: SNDL)

Sundial Growers is a penny marijuana stock that was targeted by the Reddit group WallStreetBets. The company also has an investment vertical along with the cannabis company. It has completed the acquisition of Spiritleaf cannabis retail network in a cash and stock transaction. Last month, it also announced that it has increased its commitment to SunStream Bancorp Inc to 538 million Canadian dollars. The joint venture is looking at opportunities in the cannabis sector.

SNDL looks a good penny stock

Sundial Growers stock has traded sideways over the last month. The stock has fallen below the 200-day SMA. It also trades below the 50-day and 100-day SMAs which is a bearish indicator. However, after having fallen sharply from its peaks, SNDL looks like a penny cannabis stock worth looking at. The stock has been consolidating at current levels and its upcoming earnings release could help improve sentiments. The company had posted a positive EBITDA in the previous quarter on higher income from its investments.

If you are looking at a penny cannabis company with a strong balance sheet, SNDL looks like a good bet. The stock is a good way to play the massive cash on the balance sheet as well as a turnaround in the core cannabis business.

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8. China Natural Resources (NYSE: CHNR)

China Natural Resources is engaged in the exploration of lead, silver, and other metals in the Inner Mongolia Autonomous Region of China. The company is also exploring opportunities in the Chinese healthcare sector. The company is also involved in copper trading.

Last month it agreed to acquire Precise Space-Time Technology Limited for $16.1 million. “We believe Precise Space-Time Technology’s business is highly synergistic with our strategic business objectives in the mining and healthcare sectors. We are excited about the possibilities of leveraging Shanghai Onway to effectively reduce environmental impacts and preserve local water quality standards during mining operations,” it said in its release.

CHNR stock is up 5% so far in 2021 but is down 61% from its peak. Among other factors, China’s crackdown on its tech companies seems to be impacting the stock’s price action. However, after the steep fall, CHNR looks like a good penny stock to buy.

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9. Castor Maritime (NYSE: CTRM)

Castor Maritime is a shipping company that has been growing its fleet. The outlook for the shipping industry is positive amid the strong economic environment. Meanwhile, markets have been concerned about the massive dilution in CTRM as it has been issuing shares to finance the vessel acquisitions. The company would own a fleet of 26 vessels on a fully delivered basis.

The company has been growing fast and in the first quarter of 2021, it posted revenues of $7 million which were 159% higher than the corresponding period in 2020. Its EBITDA also increased 189% to $2.6 million over the period.

CTRM looks a good penny stock for August

CTRM stock has fallen steeply from its highs and the crash looks like an opportunity to buy this penny name. if the momentum in the global economy continues, shipping companies like CTRM would be among the beneficiaries.

After the crash, CTRM has fallen below the 50-day, 100-day, and 200-day SMA. However, it is getting near the oversold levels and has a 14-day RSI of 35.9.

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10. Senseonics (NYSE: SENS)

Senseonics looks like a good penny stock to buy in August 2021. The company produces the Eversense CGM (continuous glucose monitoring) system which is an implantable device and could revolutionize the diabetic care market. The market for diabetic care is expanding fast.

Currently, the Eversense CGM has to be implanted every 90 days. The company has applied with the FDA to increase the life to 180 days. If the FDA grants the approval, it will help lift SENS stock.

SENS looks like a good penny stock to buy

SENS is making revenues and expects to generate revenues between $12-$15 million this year. While most of the company’s revenues are coming from Europe, US markets are also expected to contribute significantly to its topline. The CGM market is expected to rise at an annual pace of 12.7% between 2020 and 2027 according to Grand View Research. It forecasts the market to reach $10.4 billion by 2027. The successful commercialization of Eversense could make SENS stock a multibagger.

SENS stock trades above the 100-day and 200-day SMA. However, it has been facing resistance near the 50-day SMA. If the stock can break above the 50-day SMA also, it would signal an uptrend.

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