5 Best Penny Stocks To Buy in July 2021 – Week 3

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While penny stocks are inherently riskier as compared to large-cap companies, a lot of traders invest in them hoping to spot the next multibagger. Penny stocks are generally more volatile than the broader markets.

There has been a rally on some of the penny stocks which were targeted by Reddit group WallStreetBets. What’re the five best penny stocks that you can buy in the third week of July.

1. Creatd (NYSE: CRTD)

july penny stock

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.

Earlier this month, the company announced that it has completed the acquisition of Influencer Talent Management Agency, WHE. Creatd expects the acquisition to be immediately accretive to the earnings and forecasts that WHE will generate net revenues between $1.2-$1.5 million over the next 12 months.

Creatd looks like a good penny stock to buy

Commenting on the market opportunity Creatd CEO Jeremy Frommer said “This year alone, brands are expected to spend a total of $8 billion on creator-led influencer campaigns, and $15 billion by 2022.” Creatd stock surged amid the rally driven by Reddit traders. It has since come off the highs. The dip could be a good opportunity to buy this penny stock.

CRTD stock has fallen below the 100-day and 200-day SMA (simple moving average). However, the stock is finding support at the 50-day SMA.  The company has a market cap of only about $43 million and is a microcap company. However, if you are looking at a penny stock to bet on, CRTD could fit the bill. Since the company is very small, we don’t have any analyst target prices for Creatd.

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2. Electrameccanica Vehicles Corp. (NYSE: SOLO)

It’s actually tough to find a penny stock in the electric vehicle industry. The sector saw a rerating last year and Tesla rose 740% to become the largest automaker globally. Meanwhile, in the electric vehicle space also, SOLO is a penny stock worth buying.

solo penny stock

Currently, it is delivering its single-seater electric car branded as SOLO. It has a production capacity of 20,000 cars annually and the model is attractively priced at a base price of $18,500. It has also started accepting pre-orders for the next car eRoadster which sounds similar to Tesla’s Roadster.

SOLO looks like a good penny stock to buy in July

SOLO is down 43% so far in 2021. There has been a sell-off in other electric vehicle names also and both Tesla and NIO are in the red. Looking at the technicals, SOLO trades below the 50-day, 100-day, and 200-day SMA. Its 14-day RSI (relative strength index) of 43.5 is a neutral indicator and indicates neither overbought nor oversold positions.

The outlook for the electric vehicle industry is strong and SOLO looks like a good penny stock to play the industry. With other electric car companies trading at exorbitant valuations, SOLO is a cheaper way to bet on the industry.

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3. Castor Maritime (NYSE: CTRM)

Castor Maritime is a shipping company that has been growing its fleet. Last month it announced the acquisition of a new vessel. “On a fully delivered basis, Castor will own a fleet of 26 vessels, with an aggregate capacity of 2.2 million dwt, consisting of 1 Capesize, 7 Kamsarmax and 10 Panamax dry bulk vessels, as well as 1 Aframax, 5 Aframax/LR2 and 2 MR1 tankers,” it said in the release.

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 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 like a good penny stock to buy in July

CTRM is however looking bearish on the charts and trades below the 50-day, 100-day, and 200-day SMA. Last month, there was a death cross formation in CTRM stock as its 50-day SMA crossed below the 200-day SMA. A death cross is a bearish technical indicator and signals a bear market. CTRM’s 14-day RSI of 32.5 signals that it is getting near the oversold territory. RSI values below 30 signal oversold positions.

Overall, after the recent crash, CTRM looks like a good penny stock to buy and bet on a revival in global trade. Commodity prices and demand are still strong which bodes well for shipping companies like CTRM.

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4. Boqii Holdings (NYSE: BQ)

Boqii Holdings is a Chinese pet-focussed platform with a vision to connect people and pets. The company runs its online sales platform Boqii Mall where pet owners can purchase pet-related things. It also sells on third-party e-commerce platforms. The market for pet care is growing fast and BQ looks like a good penny name to play the industry.

Earlier this month, BQ made a strategic investment in Better Choice Company. “We are happy to be part of Better Choice’s China story. This relationship is part of our relentless efforts in sourcing high quality global brands for our customers,” said Hao Liang, Chairman and CEO of Boqii. He added, “We are set to grow together with our brand partners and empower them with our eco-system in China.”

BQ looks like a good penny stock to buy in July

BQ stock is down sharply from the peaks and the dip looks like a buying opportunity. The stock has been facing resistance at the 50-day SMA and also trades below the 100-day SMA. The 14-day RSI of 45.4 is a neutral indicator.

BQ stock trades at an NTM (next-12 months) EV-to-sales multiple of 1.9x which is less than half of the 4x that it has averaged since the listing. The valuations multiples seem reasonable. Overall, BQ stock looks like a good penny stock in the pet care market.

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5. Sundial Growers (NYSE: SNDL)

sndl penny stock

Sundial Growers is a penny marijuana stock that was targeted by the Reddit group WallStreetBets. SNDL stock is at key technicals levels. It found support at the 200-day SMA and now trades above the level. The next resistance for the stock is the 50-day SMA which is currently at $0.91. If it crosses the 50-day SMA, then it could head towards the 100-day SMA which is currently at $1.

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. Earlier this 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 is a good cannabis stock to buy in July

In its most recent update, the company said that it has $623 million as cash and cash equivalents which is very healthy. It has another $273 million as investments on the balance sheet. The company has been using the surplus cash to invest in other cannabis companies. These investments will help drive shareholder value in the future.

The stock is down sharply from the peaks and the dip looks like a good buying opportunity. SNDL has been investing the money wisely and these investments will add shareholder value in the medium to long term. The core cannabis business should also turn around as cannabis sales in Canada improve from the pandemic lows. Sundial Growers might also consider acquiring a US-based cannabis company to expand its business in the country. Overall, SNDL looks like a good penny cannabis name to buy in July.

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About Mohit PRO INVESTOR

Mohit Oberoi is a freelance finance writer based in India. He has completed his MBA in finance as a major. He has over 15 years of experience in financial markets. He has been writing extensively on global markets for the last eight years and has written over 7,500 articles. He covers metals, electric vehicles, asset managers, tech stocks, and other macroeconomic news. He also loves writing on personal finance and topics related to valuation.