Despite the volatile S&P 500 Index performing half-heartedly in the last few months, several of 2015’s best penny stocks are showing healthy gains which could make you large profits.
Penny stocks don’t always have the best reputation, primarily as a result of their high risk. But a smart investor knows that you can’t generalize when it comes to financial markets.
Of course, you should be careful to always do your research before thinking about investing in penny stocks. For those of us adventurous enough to take a high risk in order to reap the rewards, here are five penny stocks that might be surging in value soon.
Penn West Petroleum Ltd. (NYSE:PWE)
Penn West Petroleum Ltd. (NYSE:PWE) is an explorer and producer of oil and natural gas resources. The company is engaged in acquiring, exploring, developing, exploiting and holding interests in petroleum and natural gas, along with other properties and related assets. Founded in 1979, the Calgary-based company portfolio includes both unitized and non-unitized oil and natural gas production.
The company has certainly been hit hard by the oil price collapse. Penn West’s market cap is $396.74 million. Down from $7.88, its share price is a steal at $0.60. Why? Because the company has sold assets and engaged in good managerial practices to cut expenses, drastically improving its negative cash flow balance. Once oil prices rebound, this penny stock is likely to go up.
Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. (NASDAQ:PLUG) is a provider of alternative energy technology, with a particular focus on designing, developing, commercializing, and manufacturing fuel cell systems for the off-road industrial market. The New York-based company is engaged in the sale and development of fuel cell products, and aims to replace lead-acid batteries in industrial trucks and material handling vehicles.
The company is currently trading at $1.73, down from a 52-week high of $5.48 with a market cap of $301.93 million. The negative price movement since November 2014 has largely bottomed-out. Moreover, the company looks poised to surge on the back of its strong fundamentals. Plug Power nearly tripled its revenue between 2013 and 2014, and is on track to post another increase between 2014 and 2015.
Bombardier Inc. (OTCMKTS:BDRBF)
Bombardier Inc. (OTCMKTS:BDRBF) is a Canadian multinational aerospace and transportation company. The company has been experiencing a financial downturn, but its share price appears to have found its bottom. The Quebec-based company is currently undergoing major internal changes, most important of which is the appointment of a new Chief Procurement Officer.
Bombardier’s market cap is $2.71 billion. The company is likely undervalued at $0.93, down from its 52-week high of $4.25. The transportation aircraft industry, however, is poised to expand, as Iran will be needing dozens of new aircraft and other emerging economies are looking to update their fleets.
Frontier Communications Corporation (NASDAQ:FTR)
Frontier Communications Corporation (NASDAQ:FTR) is a U.S.-based provider of voice, data, and video services to residential, business, and wholesale customers. The company is primarily engaged in providing services to rural areas, along with small and medium-sized U.S. towns and cities.
Frontier’s market cap is $3.63 billion, and after seeing its stock dip this summer, it appears to be rising after finding its bottom resistance. The company reported higher than forecasted in the second quarter of 2015. Earnings per share were $0.03, a cent higher than estimates. Frontier’s revenue was $1.4 billion in this period. The company also raised its full-year 2015 cash guidance to $825-$855 million, up from $785-$825 million.
Oclaro, Inc. (NASDAQ:OCLR)
Oclaro, Inc. (NASDAQ:OCLR) is a U.S.-based manufacturer that sells optical components. After losing value earlier this year, the company has shown impressive growth since February. Oclaro is currently trading at $2.71 a share, which is close to its 52-week high of $2.93. The company is well-positioned to take advantage of the explosion in fiber optic development, as more and more sectors of the economy are demanding higher internet speeds.
Oclaro has a market cap of $298.4 million, and is comparatively undervalued for what it does. Getting a hold of a few shares before the company’s value shoots up might be the smart move.