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In this article, we will take a look at the 14 hot penny stocks on the move. To see more such companies, go directly to 5 Hot Penny Stocks On the Move.
The US stock market enjoyed huge gains in 2023 first on the back of a tech rally that again pushed tech stock valuations to uneasy levels which also caused many analysts and experts to issue warnings on high valuations and unfounded market euphoria. Then, recently, the Federal Reserve’s fight against inflation started to show signs of success. This led to several stocks making moves and gaining value.
Nvidia’s “Penny Stock Moment”
Some major, stable companies earlier this year posted gains that surprised many and had analysts looking for the real catalysts behind these gains. For example, Kirkoswald Asset Management’s Diana Amoa, according to a report from Bloomberg, called the frenzy around NVIDIA Corp (NASDAQ:NVDA) shares a result of “FOMO.” The analyst said that markets “ don’t know what to do with equities.” Bloomberg called NVIDIA Corp (NASDAQ:NVDA)’s rise after its earnings in May a “penny stock” moment. NVIDIA Corp (NASDAQ:NVDA)’s gains came after the company gave a remarkable guidance on the back of expectations that the popularity of generative applications like ChatGPT would increase demand for NVIDIA Corp (NASDAQ:NVDA)’s chips which are often powering AI software applications.
While Amoa reportedly acknowledged at the time that investors were piling into stocks they think are sustainable, she said that it was hard to say whether valuations were truly based on fundamentals. The analyst said part of the reason behind such huge stock gains was investors’ wish to not miss out on the winners.
The same Bloomberg report also quoted JPMorgan Asset Management’s Phil Camporeale, who said at the time that overall it’s not a good idea to be underweight S&P 500. However, the analyst said at the time that he was advising people to invest in companies that can outlast the tough financial conditions as he believed “there is no way” the Fed would ease up on monetary policies “any time soon.” Time did prove Phil Camporeale’s claim as the Federal Reserve has been consistently raising interest rates and now investors are keenly looking at what the central bank’s move might be, especially after clear signs that inflation is declining in the US.
As investors begin to open their wallets for risky bets amid the start of a bullish tide, penny stocks are gaining attention. Every once in a while we hear in the news how some penny stock went big and surpassed all expectations, leaving investors only hoping that they’d have found this gem before it became famous. For example, a small penny-stock company called Cyberlux Corp. made news earlier this year when it received orders for special drones from the Pentagon to be used in the Russia-Ukraine war. While the stock has gone nowhere it’s always useful to keep in mind the importance of momentum in stock investing. That’s why in this article we will take a look at some penny stocks that are currently on the move. But why is it a good strategy to keep a check on stocks on the move?
A 2010 research paper from AQR Research quoted a study which showed links between positive stock movement, growth rates and long-term growth prospects. Here’s what the paper said:
“So, a firm that has a big positive shock to returns provides a signal to investors that the long-term growth prospects of the firm’s cash flows have improved. Thus, the long-term expected return to the firm will also increase accordingly. This provides a positive relationship between the past return of the firm and its future long-term expected return or discount rate. In other words, momentum. Berk, Green, and Naik (1999) show that economic risk factors can have a persistent effect when firms face growth opportunities and this can give rise to momentum. In a similar model, Sagi and Seasholes (2007) argue that if the market value of the firm increases faster than the revenue of the firm, this will cause a link between growth rates and firm risk, giving rise to a momentum effect where past returns predict future expected returns due to risk.”
Photo by Ruben Sukatendel on Unsplash
For this article, we simply used Yahoo Finance’s stock screener which listed the most active penny stocks as of August 5. The screener lists down penny stocks with the highest share price gains on a single day and high volumes. We sorted the screen based on stock price gains and picked the top 14 penny stocks with the biggest stock price gains and strong volumes.
Hot Penny Stocks On the Move
14. FBEC Worldwide, Inc. (NYSE:FBEC)
Share Price Gains: 25%
FBEC Worldwide, Inc. (NYSE:FBEC) is up about 25% as of the time of this writing on August 5. According to Yahoo Finance this penny stock’s volume as of August 5 stands at 9.76 million. FBEC Worldwide, Inc. (NYSE:FBEC) makes hemp based energy drinks.
13. MineralRite Corporation (NYSE:RITE)
Share Price Gains: 25%
Ferndale, Washington-based MineralRite Corporation (NYSE:RITE) ranks 13th in our list of the hot penny stocks on the move. MineralRite Corporation (NYSE:RITE) is up about 25% as of August 5.
Yahoo Finance’s data shows that MineralRite Corporation (NYSE:RITE)’s average volume over the past three months is 24 million.
12. Capital Financial Global, Inc. (NYSE:CFGX)
Share Price Gains: 25%
Capital Financial Global, Inc. (NYSE:CFGX) has been making moves after it announced in July that it was able to increase its funding capacity due to its new strategic partnership with correspondent lender RCN Capital.
Capital Financial Global, Inc. (NYSE:CFGX)’s volume as of August 5 was 30.19 million, according to Yahoo Finance.
11. Digital Locations, Inc. (NYSE:DLOC)
Share Price Gains: 28%
5G internet and wireless communications company Digital Locations, Inc. (NYSE:DLOC) ranks 11th in our list of the hot penny stocks on the move. Digital Locations, Inc. (NYSE:DLOC) has gained about 28% as of August 5.
10. Drone Guarder, Inc. (NYSE:DRNG)
Share Price Gains: 35%
Security and surveillance products company Drone Guarder, Inc. (NYSE:DRNG) is one of the hot penny stocks on the move. Drone Guarder, Inc. (NYSE:DRNG) is up about 35% as of August 5. Drone Guarder, Inc. (NYSE:DRNG)’s volume as of August 5 is over 9 million.
9. Tupperware Brands Corporation (NYSE:TUP)
Share Price Gains: 35%
Kitchen products and storage containers company Tupperware Brands Corporation (NYSE:TUP) ranks 9th in our list of the hot penny stocks on the move.
In its Q4 earnings call, Tupperware Brands Corporation (NYSE:TUP)’s management said the following about its 2023 outlook, and its business in China and Korea:
“So we are carrying good momentum into 2023. While still small, B2B sales grew strongly in the double-digits in China last year despite difficult conditions out there and we look for another strong year in 2023. In fact, the number of our markets reporting B2B activity in 2022 was 22 markets. In total, we added 50 retail chain customers around the world. As you may imagine, selling products into retail chain is a very different proposition from operating a direct selling distribution model. As such, we are building a new consumer-facing company within our legacy direct-selling consumer push company. Perhaps, no better showcase for our growth strategy was the success we had in Korea last year. Korea is among the most advanced markets in the process of building an omni-channel ecosystem.
In 2022, Korea surpassed Indonesia, our third largest market in the Asia Pacific region, behind China and Malaysia. In total, Korea grew 16% last year in constant currency as core sales increase in middle single-digits and B2B expansion, particularly in TV shopping added over 10 percentage points to growth. We are learning from this success and are sharing best practices in many markets around the world throughout this 2023. While it’s still early days, these initiatives help validate that our growth strategy to expand the consumer access to our products beyond the direction of distribution channel. Third, the new product introductions. We had many successful product introductions over the past couple of years that really gained traction last year.”
8. Tempo Automation Holdings, Inc. (NASDAQ:TMPO)
Share Price Gains: 49%
Electronics company Tempo Automation Holdings, Inc. (NASDAQ:TMPO) ranks 8th in our list of the hot penny stocks on the move. In May Tempo Automation Holdings, Inc. (NASDAQ:TMPO) posted Q1 results. GAAP EPS in the period came in at -$0.28. Revenue in the quarter fell about 28% year over year to $2.8 million.
For the full year Tempo Automation Holdings, Inc. (NASDAQ:TMPO) now expects its revenue to come in the range of $11.0 million to $13.0 million. Adjusted EBITDA in the period is expected to be negative $12.5 million to $10.5 million range.
In March Tempo Automation Holdings, Inc. (NASDAQ:TMPO) jumped after the company said it will acquire Optimum Design Associates, Inc. and Optimum Design Associates Pty. Ltd. Optimum Design makes circuit boards.
Financial details of the deal were not disclosed.
Insider Monkey’s database of 943 hedge funds shows that 7 hedge funds had stakes in Tempo Automation Holdings, Inc. (NASDAQ:TMPO).
7. Fomo Worldwide, Inc. (NYSE:FOMC)
Share Price Gains: 50%
Fomo Worldwide, Inc. (NYSE:FOMC) offers business incubation services to emerging companies. Fomo Worldwide, Inc. (NYSE:FOMC) was up about 50% as of August 5. This penny stock’s volume stands at over 10 million as of August 5. Over the past three months its average volume is 21 million.
6. BlackStar Enterprise Group, Inc. (NYSE:BEGI)
Share Price Gains: 50%
BlackStar Enterprise Group, Inc. (NYSE:BEGI) provides financial services, such as merchant banking to crypto-equity companies and blockchain entrepreneurs for securities, tax, and commodity issues. BlackStar Enterprise Group, Inc. (NYSE:BEGI) ranks 6th in our list of the hot penny stocks on the move since it’s up 50% as of August 5.
According to Yahoo Finance BlackStar Enterprise Group, Inc. (NYSE:BEGI)’s average volume over the past three months is about 28 million. As of August 5 BlackStar Enterprise Group, Inc. (NYSE:BEGI)’s volume is 40 million.
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Disclosure: None. 14 Hot Penny Stocks On the Move is originally published on Insider Monkey.