Penny stocks are great opportunities for retail investors to make triple-digit gains in a matter of days, but it can be like finding a needle in a haystack. In order to help Money Morning readers profit, we’re bringing you the five top penny stocks to watch in April 2018.
While a few penny stocks have great growth potential, the truth is that many of these low-cost stocks have very little chance of providing investors with a profit. In an effort to avoid losing your investment, it’s important to identify penny stocks that have strong financials and a good chance for growth.
In order to protect our investments, we follow five rules for investing in penny stocks – take a look at them on the right.
And based on our analysis, these are the five penny stocks to watch right now…
Top 10 Heal Care Stocks To Invest In 2019: BlackBerry Limited(BB)
Yes, that Blackberry Ltd (NYSE:BB). While the company is a ghost of its former glory on the smartphone front, it’s important to remember that the intellectual property and enterprise software potential of this once-dominant tech stock is still quite promising.
Considering that Wall Street has deeply discounted BB stock, that may be the perfect time for aggressive investors to pile in.
The new incarnation of BlackBerry is engaged mainly in software instead of hardware. And its longstanding reputation for the most secure platform out there has made it particularly attractive lately in the age of hacking and malware. This cybersecurity function and enterprise potential make it attractive both as an acquisition target and as a standalone enterprise.
Although revenue is expected to dip this year, it will still come in at more than $900 million, while the company sits on a cash cushion of over $2.4 billion — so let’s not hear uninformed talk of how BlackBerry is going under.
Shares surged from $7 to $14 during one stretch in 2017, and now that it has rolled back a bit it is time to consider buying in once more. There are high hopes that the company will make a name for itself in an age of cybersecurity and increasingly connected devices, or that an acquisition is likely.
It may never get back to its old glory, but a buy-in under $12 a share could very well result in a doubler or even a tripler for savvy investors who stick with BB through 2018.
Top 10 Heal Care Stocks To Invest In 2019: Chevron Corporation(CVX)
Newfield does not pay a dividend, but there are energy stocks in rising trends that do. Of the major companies, Chevron (CVX, $122.31) has many favorable characteristics, including a 3.6% dividend yield.
Chevron’s quarterly earnings have been mostly trending higher since early 2016. Analysts expect that trend to continue with a sizeable jump in their estimates for Q1 2018, due for release later this week.
The company raised its dividend Jan. 31, which is always welcomed by investors. And Chevron’s stock price reacts to crude oil price changes, so the commodity provides additional wind in the stock’s sails.
In early February, despite reporting higher earnings than the quarter before, analysts expected more. The stock tumbled, likely exacerbated by the sudden and steep drop in the broader market when leading technology stocks finally pulled back. Technical indicators suggested that the reaction was overdone as very little money left the stock. In essence, it provided a nice buying opportunity and, with the rally in April, the bulls are back in charge.
A run at the all-time high set in 2014 is not much of a stretch from current price levels. If and when it gets there, we will have to see how it reacts. Continued short-term strength would be a good sign that CVX can rally for much of the rest of the year.
Top 10 Heal Care Stocks To Invest In 2019: Vail Resorts, Inc.(MTN)
You might think it odd that I’m recommending Vail Resorts, Inc. (NYSE:MTN), a company primarily known as an operator of ski resorts, but the truth is, MTN does a lot of business in the summer and hopes to do more.
In the company’s first quarter ended Oct. 31, 2017, the quarter that best reflects its summer business, it lost $103.7 million on $220.9 million in revenue. It’s normal for Vail Resorts to lose money in the first quarter.
However, management was happy with its summer results.
“Perisher performed very well in the first quarter with outstanding conditions in September that led to strong visitation and revenue growth across the business,” stated its Q1 2018 press release. “Whistler Blackcomb’s robust summer business also performed well with strong performance in its world-class mountain biking operations, summer activities and sightseeing.”
As the premier ski resort operator in North America, anything it does in the summer months is gravy. Delivering revenue per available room (RevPAR) growth in double digits at both the hotels it owns and condos it manages, the summer business is more than holding its own.
Top 10 Heal Care Stocks To Invest In 2019: Amazon.com, Inc.(AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) shares are making a move on the $1,500 threshold again, rising above their 50-day and 20-day moving averages to return to levels last seen in late March. President Trump, who has criticized the company and its CEO Jeff Bezos, has quieted his Twitter feed lately and held off on threats to reexamine its relationship with the U.S. Postal Service.
The company will next report results on April 26, after the close. Analysts are looking for earnings of $1.32-per-share on revenues of nearly $50 billion. When the company last reported on Feb. 1, earnings of $2.19-beat-estimates by 36 cents on a 38.2% rise in revenues.
Top 10 Heal Care Stocks To Invest In 2019: Spectrum Brands Holdings, Inc.(SPB)
Spectrum Brands, Inc. (NYSE:SPB) is in the middle of a major transformation that would test the mettle of any mid-cap company.
First, in January, Spectrum announced that it would seek buyers for its global batteries and appliances businesses so that it could focus on its higher margin, faster-growing businesses.
So far, it’s agreed to sell Rayovac batteries to Energizer Holdings Inc (NYSE:ENR) for $2.0 billion. It still is accepting offers for its Remington appliances business.
Then in February, it announced that it would merge with its majority owner, HRG Group Inc (NYSE:HRG), a $10 billion transaction that provides HRG shareholders with greater liquidity and a singular focus.
Finally, on April 26, Spectrum announced weaker than expected earnings and guidance along with news CEO Andreas Rouvé was being replaced after three years in the job.
All in all, it’s been a very turbulent four months for the company.
However, looking at the glass half full, its continuing operations will still make at least $600 million in fiscal 2018. Trading at less than ten times cash flow, SPB stock is cheaper than it’s been since 2011.