Best Technology Penny Stocks for Q4 2020
The technology industry consists of companies that design, manufacture and sell consumer electronics, electronic components and applications. Companies in the tech field may also provide information technology (IT) facilities, such as cloud computing. Although the best-known firms are giants like Apple Inc. ( AAPL) and Microsoft Inc. (MSFT), there are many tech businesses that are categorized as penny stocks. Penny stocks typically sell at $5 per share or less. Examples include Support.com Inc. (SPRT), an online customer service site, and the immunotherapy provider Advaxis Inc. (ADXS). Investing in penny stocks can be extremely dangerous, especially at a time when the stock market is still highly unpredictable. Investors should also be careful when deciding whether to invest in those or similar securities.
There is no commonly used benchmark for technology pennies stocks, and their success has differed greatly over the last 12 months. However, the Invesco S&P SmallCap Info Tech ETF (PSCT) offers a general measure of tech penny stocks. In the past year, PSCT substantially underperformed the wider market, delivering a 1-year trailing cumulative return of-2.7 percent compared to 15.9 percent for the Russell 1000.
These are the top 3 technology penny stocks with the highest valuation, the quickest earnings growth and the most traction. Both estimates are as of 16 September 2020.
Best Value Technology Penny Stocks
These are the emerging penny stocks with the lowest 12-month trailing price-to – earnings (P / E) ratio. Since earnings can be returned to owners in the form of dividends and buybacks, a low P / E ratio indicates that you pay less for each dollar of profit generated.
|Best Value Technology Penny Stocks|
|Price ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Future FinTech Group Inc. (FTFT)||2.19||91.4||0.8|
|Pivot Technology Solutions Inc. (PTG.TO)||CA$2.55||CA$97.5||4.8|
|Quarterhill Inc. (QTRH.TO)||CA$1.84||CA$213.8||8.7|
Future FinTech Group Inc.: Chinese business Future FinTech Group runs an e-commerce blockchain network and other financial technology growth activities.
Pivot Technology Solutions Inc.: Pivot Technology Solutions is a Canadian company that acquires and incorporates IT-enabled businesses. Via multi-vendor procurement and deployment strategies, Pivot uses its acquired companies to satisfy the needs of its customers. On 9 September, the company announced that it had entered into an arrangement whereby Computacenter plc and its affiliate would purchase all outstanding shares of Pivot with an equity valuation of approximately CA$105.8 million (USD$80.4 million).
Quarterhill Inc.: Quarterhill is a Canadian Internet service provider focused on networking to computers and sensors. The business caters to consumers for industrial applications such as coal , oil and gas, and manufacturing. In August, Quarterhill posted a 68.2 per cent fall in the year-over-year net sales (YOY) for Q2. The business generated net sales of CA$9.5 million (USD$7.2 million) for the quarter following a loss registered in the same period a year ago. The net gain was attributed in part to the selling by Quarterhill of the VIZIYA asset maintenance software business.
Fastest Growing Technology Penny Stocks
These are the technology penny stocks with the fastest YOY earnings per share (EPS) rise in the last year. Increasing profits demonstrate that a company’s market is rising and produces more revenue that can be reinvested or distributed to shareholders.
|Fastest Growing Technology Penny Stocks|
|Price ($)||Market Cap ($M)||EPS Growth (%)|
|Photon Control Inc. (PHO.TO)||CA$1.48||CA$154.8||2,840|
|Cheetah Mobile Inc. (CMCM)||1.91||267.0||349.0|
|Wirecard AG (WCAGY)||0.47||116.2||50.3|
Photon Control Inc.: Photon Control is a Canadian corporation providing fiber optic measuring services. The company produces and develops optical sensors and other instruments to monitor location and temperature and services customers in the semiconductor and wafer manufacturing industries. Photon Control announced on 16 September that it had entered into a distribution agreement with Woowon Technology Co. This relationship allows the industry access to the South Korean market, which is the world’s second-largest semiconductor sector, accounting for about 20 % of the global chip market overall.
Cheetah Mobile Inc.: Cheetah Mobile is a Chinese online and mobile app company. The company specializes in designing and running internet browsers and protection apps, computer devices, memory-saving tools and related services.
Wirecard AG: Wirecard is a German online payment and processing firm. Builds on-line payment applications, electronic funds transfer, fraud prevention, and related services. On 25 August, the company announced that the Munich District Court had opened insolvency proceedings in respect of Wirecard properties. Wirecard’s stock values and assets plummeted financially in the face of fraud allegations this summer, and billions of dollars were missing.
Technology Penny Stocks with the Most Momentum
These are technology penny stocks that have had the largest average return over the last 12 months.
|Technology Penny Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|BrainChip Holdings Ltd. (AZKLF)||0.40||629.7||788.9|
|Kontrol Energy Corp. (KNR.CX)||CA$3.85||CA$115.1||541.7|
|Quisitive Technology Solutions Inc. (QUIS.V)||CA$0.62||CA$119.5||376.9|
|Invesco S&P SmallCap Info Tech ETF (PSCT)||N/A||N/A||-2.7|
BrainChip Holdings Ltd.: BrainChip is an Australian holding company offering neural computation technology solutions through artificial neural networks, applications, and computer hardware solutions. The business represents clients in the United States and Australia.
Kontrol Energy Corp.: Kontrol Energy provides energy auditing and appraisal services, catering to private, business and industrial customers. The corporation is headquartered in Canada. On 11 September, Kontrol Energy announced the release of BioCloud, a wall-mounted tool that senses and alarms the presence of COVID-19 in the air.
Quisitive Technology Solutions Inc.: Canadian business Quisitive Technology Solutions is a new media consultancy firm. The business offers consulting services related to cloud migration, application and web network creation, blockchain technologies, and other related fields.