10 Best Penny Stocks to Buy in September 2021
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
August was a good month for penny stocks and several of these companies, including those which are popular on social media groups, surged in the month. Before that, July wasn’t a good month for penny stocks and a lot of them tumbled in the month.
The SEC defines penny stocks as the shares that trade below $5. Usually, these companies are more volatile than large-cap companies. While penny stocks are inherently riskier as compared to large-cap companies, if picked wisely they can be multibagger. Here are the top ten penny stocks worth looking at in September 2021.
-
Globalstar (NYSE: GSAT)
Globalstar stock has risen almost 500% in 2021 amid optimism over its satellite solutions. The stock surged sharply in the last week of August on reports that Apple might use the company’s technology to enable satellite connectivity in the upcoming iPhone which is expected this fall. 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.”
GSAT looks like a good penny stock to buy in September
However, Morgan Stanley, which is the other brokerage covering this penny stock, has a sell rating and a $0.55 target price. GSAT trades at an NTM (next-12 months) EV (enterprise value)-to-revenue multiple of 37.9x. These are the kind of multiples that we usually associate with high-growth tech companies.
Markets are giving a premium to GSAT stock in hopes that its satellite solutions would gain traction in the coming quarters. The stock has found a strong support near the 200-day SMA (simple moving average) and currently also trades above the 50-day and 100-day SMA. Overall, GSAT looks like a good penny stock to buy and bet on the future of satellite connectivity.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Romeo Power (NYSE: RMO)
Romeo Power listed last year through a SPAC (special purpose acquisition company) merger and currently trades at a discount of over 50% from the SPAC IPO price of $10. The company is a play on the green economy and produces lithium-ion modules for commercial electric vehicles. The company’s recent earnings led to a steep fall as it drastically lowered the 2021 guidance citing cell shortage.
RMO looks like a good penny stock
However, looking at the long-term picture, the outlook for companies in the green economy looks positive. Currently, only four analysts are covering RMO stock. While two of them rate this penny name as a buy one each rate it as a hold and sell. RMO has a median target price of $6.85 which is a premium of 40.7% over current prices. Its highest target price of $12 implies an upside potential of over 146% while the street low target price of $4 is a discount of 18%.
After the surge last year, not many companies in the green energy industry are in the penny stock category. However, after the disappointing financial performance, RMO is now a penny name. That said, it looks like a good stock to buy and bet on the revival in the long term.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Sundial Growers (NYSE: SNDL)
Sundial Growers stock has traded sideways over the last month. It is a penny cannabis company that also has investment operations. Thanks to the massive stock issuance done by Sundial Growers it has plenty of cash on the balance sheet. The company has been using this cash to invest in other cannabis companies. It has been earning a healthy income from these investments and also formed a joint venture to explore opportunities in the sector. The company might also consider buying a US-based cannabis company to get a foothold in the world’s largest economy.
SNDL looks a good penny stock
Overall, SNDL looks like a good penny stock in September. Cannabis stocks have come off their 2021 highs as the euphoria over federal legalization in the US has died down. However, legalization is not totally out of the picture and some lawmakers are pushing to decriminalize marijuana.
Looking at the valuations, SNDL trades at an NTM EV-to-revenue multiple of 14.4x. The multiples are higher than some of the other cannabis companies. That said, the company’s investment business does not fully reflect in these valuations. The management has been smartly deploying the cash that it raised when the stock spiked on Reddit pumping. With SNDL stock down sharply from the peaks, it looks like a good penny stock to buy and bet on the revival in the cannabis industry.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Inuvo Inc. (NYSE: INUV)
Inuvo is a microcap company. Its stock price is below $1 while the market cap is below $100 million. As a boilerplate warning, such stocks are very volatile and it’s much easier to impact their price action. According to Inuvo, it “provides full service solutions to businesses and homeowners looking to streamline their space with audio/visual, security, and networking solutions.” The company has been in business for over two decades.
The stock has been very volatile in 2021. It hit a 52-week high of $2.35 in the first quarter but subsequently tumbled. However, despite the crash, it is still up almost 60% in 2021 which is almost thrice of what the S&P 500 has delivered over the period. Looking at the valuations, the company trades at only about 1x its expected revenues. While the valuations would appear cheap, they should be read in conjunction with the perennial losses that INUV has been posting.
That said, the steep fall from the peaks has made INUV stock attractive. While it’s a speculative bet, it looks like a penny stock worth watching in September.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Ebang 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. The stock came under pressure in July amid China’s crackdown on tech companies and cryptocurrency-related activities. However, the company clarified that its business is not impacted by the crackdown in China.
Ebang looks a good penny stock to buy
Ebang stock has gained 11% over the last month and has recouped some of its 2021 losses. The stock has crossed above the 50-day SMA which is a bullish indicator. If it can sustain above the level, it would indicate technical bullishness. The stock however still trades below the 100-day and 200-day SMA. Its 14-day RSI (relative strength index) is 53.5 which is a neutral indicator. Overall, EBON looks like a good penny stock to play the blockchain industry.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Gold Resources Corporation (NYSE: GORO)
Gold Resources Corporation is a precious metal miner having operations in Mexico. It holds a 100% stake in six mines in Mexico which could have high-grade silver and gold deposits. The company posted revenues of $90.6 million in 2020 but analysts expect them to rise 40% this year to $127 million. Its revenues are further expected to rise to $136 million next year. The outlook for gold and silver prices looks bullish in the medium term even as there are concerns that the eventual rate hike by the Federal Reserve will put pressure on prices.
GORO looks a good penny stock to buy
GORO trades at an NTM EV-to-revenue multiple of 0.7x which looks reasonable. The stock has tumbled almost 50% so far in 2021 and the crash looks like a good buying opportunity.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Teekay (NYSE: TK)
The company provides transportation services for oil and gas whose demand has rebounded amid the sharp recovery in the global economy. The stock has been trading flat over the last month but is up 28% for the year. The demand for oil tankers is expected to rebound as the global economy continues its momentum.
TK is a penny stock worth looking at
Looking at the technicals, TK stock is facing a strong resistance near the 200-day SMA. It also trades below the 50-day and 100-day SMA. The stock needs to cross above the 200-day SMA to signal an uptrend. Talking of valuations, the stock trades at 0.6x its book value which looks cheap.
Teekay is a good penny stock to play the revival in global oil demand. Notably, the OPEC+ (Organization of the Petroleum Exporting Countries) has upwardly revised the 2022 oil demand forecast. Higher global oil demand would mean more tanker demand which will help propel sales at shipping companies like Teekay.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Castor Maritime (NYSE: CTRM)
Castor Maritime is another play on the revival of the global economy. The company has been adding to its fleet. While some analysts have been apprehensive about the growth as it has been fuelled by frequent capital raises, the company justified the acquisitions in its second-quarter earnings release.
In the second quarter, it posted a net income of $6.5 million as compared to a loss in the corresponding period last year. The company has been benefiting from higher charter rates as well.
In its earnings release, CTRM said “Strong demand for dry bulk transportation services has resulted in robust freight rates, with the upward momentum expected to be sustained by the tight vessel supply and historically low newbuilding orderbook.” It added, “Following our timely acquisitions, Castor is well positioned to take advantage of this strong market with a dry bulk fleet consisting of 18 vessels, on a fully delivered basis. At the same time, most of our newly acquired tanker vessels are in either term or pool employment ensuring a high utilization for that part of our fleet.”
CTRM looks like a good penny stock to buy in September
CTRM stock has gained 8% over the last month and is up almost 23% for the year. If the momentum in the global economy continues, it would mean more gains for CTRM investors. The stock trades at 18x its trailing EBITDA which looks reasonable.
Looking at the technicals, the 50-day SMA was a resistance for CTRM. However, it has managed to cross above the trendline. If it can sustain above the 50-day SMA, it would indicate technical bullishness.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
Zomedica (NYSE: ZOM)
Zomedica is a penny stock from the pet care industry that could be worth betting on. The company is commercializing its Truforma product which is a pet care diagnostic devise. The company forecasts that the market opportunity for companion animal diagnostics is expected to reach $2.8 billion by 2024. The market for pet care is expanding fast and has only received an impetus during the COVID-19 pandemic.
The stock looked weak in August after its earnings disappointed markets. The sales of Truforma in the second quarter were similar to the first quarter which the company blamed on the development partner. It expects the assays to be available soon which would help buoy sentiments.
ZOM looks a good penny stock
Since ZOM is working on commercialization, the risk is much lower than clinical-stage companies. If ZOM can be successful in making Truforma successful, the company can be a multibagger. The product can transform the animal diagnostic market as it can reduce the time for test reports.
Overall, after the massive crash from the peaks, ZOM looks like a penny stock worth looking at in September.
67% of all retail investor accounts lose money when trading CFDs with this provider.
-
MannKind Corporation (NYSE: MNKD)
MannKind Corp. stock has gained almost 50% in 2021 and still looks like a penny stock worth looking at. The stock has come off its 52-week highs and the fall looks like a buying opportunity. The company is working on developing inhalable insulin called Afrezza. The market for diabetic care is growing fast which would bode well for MannKind.
The stock trades at an NTM EV-to-sales multiple of 14.7x which does not look high. Since Afrezza is already approved, it lowers the risk which is associated with clinical-stage biotech companies. Overall, MNKD stock looks like a good penny stock in the clinical industry.
Buy MNKD Stock at eToro from just $50 Now!
