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Best Penny Stocks to Buy Now
The markets have been on a roll lately, with hopes that inflation is waning and there will not be any unexpected rate hikes going forward. The S&P 500 has entered the bull territory, rising more than 15% year-to-date (YTD). The tech, mostly AI stocks, have been the top performers. However, as sector rotation kicks in with recovery, there are cheap stocks, usually less than $5, which can perform well in the near future. So, let’s look at some of the best penny stocks to buy now, which can prove to be worthwhile.
June 26, 2023
Comstock Holding Companies (CHCI)
The company is engaged in commercial property management, operating primarily in Washington, D.C. It offers a wide range of services, from construction management to property and asset management, collecting steady fees. Once the commercial real estate situation improves, this can be a worthwhile contrarian bet, thus making it one of the best penny stocks to buy now.
Fundamental and Technical Analysis
- The stock is currently trading at 4.57 times its earnings (Yahoo Stats), providing significant upside potential.
- Its price/sales ratio, too, seems good enough at 0.91 against the sector median at 4.60 as per Seeking Alpha metrics.
- The price technicals reveal that the stock has been trading below its 200 DMA for over a month now, with an RSI of around 45 in the daily timeframe.
- The stock currently trades at $3.93, below its 50 and 200 DMA, which stand at 4.24 and 4.40, respectively.
- The price breaking out of the downward channel and sustaining above its significant 50 and 200-day moving averages would help the buyers to take charge.
Brandywine Realty Trust (BDN)
BDN is an NYSE-listed real estate investment trust. It operates around the suburban and urban markets in the United States. It focuses on a portfolio consisting of mixed-use properties and office properties. The company has 13 million sqft of office space, primarily in Philadelphia (75%) and Austin (19%).
Fundamental and Technical Analysis
Here are some fundamental and technical aspects that make it one of the best penny stocks to buy now.The company’s balance sheet seems solid, with the next debt maturity not until October 2024, as it has refinanced its debt.
- Its forward price-to-earnings multiple stands at an attractive 5.71.
- The price-to-book ratio (mrq) at 0.49 makes the stock undervalued against the sector median of 1.42.
- The price/sales ratio on a trailing twelve months basis stands at 1.61 against its sector median of 4.60, making it preferable.
- The company’s payout ratio is quite high at 65.80%, which makes its 5-year dividend growth rate 2.25% with a forward dividend yield of 16.78%, making it suitable for consistent income.
- The stock currently trades at $4.42, above its 50 DMA of $3.99. It has risen around 30% from its recent low in May, and the RSI above 60 indicates bullish momentum in the stock.
- The price rising above its next resistance at $4.88 would help the stock as the buyers would be looking to take control.
FAQs
Financial metrics such as P/E, price/sales ratio, debt-equity ratio, current ratio, and profit margins are some measures for ascertaining the company’s fundamentals.
Yes, it helps to ascertain the price direction and momentum, which proves beneficial while investing.
There is a concept called sector rotation in which stocks of a particular sector rise more during a specific period. Thus, you can look for penny stocks in that specific sector during such times.
No, there is inherent risk involved while investing in stocks. Hence, proper due diligence must be done before investing in penny stocks.
The volatile and speculative nature and low liquidity in such stocks make them quite risky.