Are You Following Analysts On These Penny Stocks?
This year has gotten off to a strong start already. That goes for penny stocks & blue-chips alike. Many stocks are reaching new 52-week and all-time highs. Meanwhile, the broader markets have weathered the economic storm well. But when it comes down to “following the money,” there’s one part of the market that is red hot right now. Penny stocks and small-cap stocks, in general, have captivated traders, and for good reason. Just look at some of the names we’ve discussed within the last 15 days. Many have actually gone on to leave the penny stock definition behind.
If you think I’m just talking about this because I want you to think small-caps are outperforming, let’s take a look at some figures. I’ll use the Russell 2000 Small-Cap ETF (IWM) as the benchmark for small-cap stocks. Larger-cap, let’s use the S&P ETF (SPY). Since the beginning of 2021, the IWM has jumped as much as 8.8% to new record highs.
While the S&P has also reached new record levels, its2021 climb has only been about 1.6%. Furthermore, we can see today that the large-cap markets have pulled back for a second day in a row. As for penny stocks, the IWM did drop earlier in Friday’s session. However, as of mid-day, the ETF reclaimed most of that morning sell-off. What’s this mean for traders? Well, I’ll let you come to your own conclusion but momentum remains in small-caps heading into the long weekend. With this in mind, here are a few penny stocks analysts have high hopes for. Will they be on your post-holiday list next week?
Penny Stocks To Buy
Exela Technologies Inc.
Analyst: Cantor Fitzgerald
Price Target: N/A
Exela Technologies Inc. is one of the penny stocks we’ve discussed since May of last year, believe it or not. At the time, shares were trading around 30 cents and the company just tweeted an update to one of its previous deals. Fast-forward to now and XELA reached highs of $1.15 this week.
Since our article in December, XELA stock has rallied big. So what exactly does Exela Technologies do and what has transpired over the last few weeks? The company is a business process solution company with operations in several unique markets. This includes healthcare, legal, and ITPS services. It’s work includes the optimization of a wide range of digital platforms that are used by over 4,000 customers across 50 countries. As an end-to-end partner, Exela Technologies provides software and automation services that can be customized to a variety of business models. And with tech in focus right now, Exela Technologies is seeing heightened popularity.
However, as we explained earlier this week, the focus of traders has been more on what the future holds than its prior achievements. Exela even retained UBS Investment Bank to explore strategic alternatives to build shareholder…