SCORPIO TANKERS Inc
3.1050
2.14%
3.1050
2.14%
3.0200 4.9300
52 weeks
52 weeks

Mkt Cap 697.48M

Shares Out 224.63M

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5 Stocks Under $5 Making Headlines

5 Stocks Under $5 Making Headlines - PLANET PAYMENT NASDAQ:PLPM, Scorpio Tankers Inc. NYSE:STNG

Penny stocks typically don’t cost a penny anymore. Companies trading as high as $5 per share are now considered “penny stocks,” and for good reason. These stocks lack the stability and performance reliability of those with a bigger market cap.

With that said, buying a fiver doesn’t have to be like buying a lottery ticket or pulling the lever on a slot machine; while penny stock investing is some of the most speculative investing you can participate in, there are some small-cap names out there that have a higher chance of performing well than others.

Here are five names that have been featured in some particularly positive Benzinga Pro headlines in the last month or so.

This payment processing service provider recently spiked higher following its addition to Louis Navellier’s “Ultimate Growth List.” Its shares have risen 57 percent year-to-date. Ladenburg Thalmann analysts initiated coverage on the company in July with a Buy rating. Planet Payment reports earnings August 3 after hours.

Related Link: 8 Things You Have To Do Before You're 25 For A Secure Retirement

This oil transportation company recently had Deutsche Bank reiterate it as a Top Pick with a Buy rating and a $9 price target, which implies about 90 percent upside. Scorpio reported Q2 results at the end of July, beating EPS consensus estimates. The stock is up about 9 percent since its earnings report.

Here’s a stock that gets a lot of love from the Vetr crowd, which crowdsources stock ratings. Back in June, the Vetr crowd said it was 100 percent bullish on Sirius XM, believing the stock could return almost 14 percent. Well, at that time, this would have meant a target price of about $4.45. With the stock trading at around $4.22 as of Tuesday afternoon, that still implies about 5 percent upside. While the company had a small miss on the top and bottom line when it reported Q2 earnings recently, it raised both its subscriber growth and revenue guidance for the year.

Groupon grabbed the attention of traders and investors everywhere after a blockbuster of a Q2 earnings report at the end of July. With a smaller-than-expected loss and a huge revenue beat bolstered by a raise in fiscal year guidance, the shares have appreciated about 35 percent since then. Earlier in July, Groupon was upgraded to Overweight by analysts at Piper Jaffray, and Goldman Sachs analysts recently said the company was making positive steps toward full-year profitability.

Receiving a Buy rating is a notable feather in the cap for any stock, but when it's accompanied by a price target that implies 243 percent of upside, folks tend to give it a second look. Such was the case for OncoSec when Rodman & Renshaw analysts initiated coverage on the stock with a $6 price target. Throw in a Q3 report of a much slimmer loss than expected and positive data from its preliminary ImmunoPulse cancer treatment findings, and it's no wonder the shares have gained 5 percent since the start of summer, even reaching a high of $1.95 during the last trading day of July.

All the stocks listed above are risky, and are not for those without a substantial risk appetite. Small-caps can present an enticing reward, but should most often be left for investors who aren’t primarily concerned with the preservation of their capital.

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DateFirmActionFromTo
Jul 2016Ladenburg ThalmannInitiates Coverage onBuy
Dec 2014Lake Street CapitalInitiates Coverage onBuy
Apr 2013Barrington ResearchInitiates Coverage onOutperform

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