There are a lot of penny stocks out there. But not all of them are poised to reward investors. Most of them are considered as penny stocks for valid reasons. However, the following are three penny stocks with great long-term potential.
Penny Stocks to Watch
Cowen Group, Inc. (NASDAQ:COWN)
Cowen Group, Inc. (NASDAQ:COWN) is a financial institution based in New York. Through its subsidiaries, the company provides investment management, research, and comprehensive investment banking services. (Source: Cowen Group, last accessed August 19, 2015.)
With a team of experts from various industries, the company provides in-depth research for healthcare, technology, media and telecommunications, consumers, energy, metals and mining, aerospace and defense, transportation, and real estate.
Currently trading close to $5.50, the stock price has climbed more than 36% since last year. The company has a market cap of $600 million with $1.87 earnings per share (EPS), which is much higher than the industry’s average of 18 cents per share.
The company has 110 million shares outstanding with a 10-day average volume of 1.546 million shares. This indicates a relatively liquid stock compared to other penny stocks.
During the second quarter of 2015, sales rose 12% year-over-year to $124.4 million from $111.2 million in the previous year, mainly because of strength in the investment banking business sector. Meanwhile, the company was able to increase assets under management to $13.2 billion.
Over the past few years, the company has been able to increase assets under management which resulted in more revenues. All told, I expect that these facts could translate to a higher stock price in coming months.
Also Read: Top Penny Stocks to Watch in 2015
AU Optronics Corp. (NYSE:AUO)
AU Optronics Corp. (NYSE:AUO) is one of the world’s leading providers of optoelectronic solutions. The company engages in the innovation, development, production, and sale of thin film transistor liquid crystal displays and other flat panel displays. (Source: AU Optronics Corp, last accessed August 19, 2015.)
The company has a broad global operation across Taiwan, Mainland China, Japan, Singapore, South Korea, the United States, and Europe. The company currently has about 45,000 employees.
In July, AU reported their financials; the company recorded $0.15 earnings per share (EPS) for the second quarter, and earned $2.99 billion in sales—lower from the previous year due to weaker demand and intensifying competition within the industry.
There are currently 25 analysts that cover AU Optronics Corp. stock. Among those, seven have a “Buy” rating, thirteen have a “Hold” rating, and five have a “Sell” rating. Interestingly, ss of July 31st, there was short interest totaling 21.34 million shares—a decline of 48.7% from the July 15th total of 41.61million shares. (Source: Street report, last accessed August19, 2015.)
Also Read: 3 Top Penny Stocks to Watch in August 2015
Orexigen Therapeutics, Inc. (NASDAQ:OREX)
Orexigen Therapeutics, Inc. (NASDAQ:OREX) is a biopharmaceutical company focused on the treatment of obesity and related disorders. Their well-known product is “Contrave,”which is approved in the United States by the United States Food and Drug Administration (FDA) and is being commercialized there by the company’s North American partner, Takeda Pharmaceuticals. (Source: Orexigen, last accessed August19, 2015.)
The company’s market capitalization is $437.63 million. Currently, shares of Orexigen Therapeutics are trading at $3.49 per share.
According to the company’s latest financial report, they recorded ($0.18) EPS for the quarter, and earned $5.20 million during the quarter. The business’s revenue was up 506.8% on a year-over-year basis. (Source: Orexigen, last accessed August 19, 2015.)
Notably, the company’s shares were the receiver of an important decrease in short interest in July. As of July 31st, there was short interest totaling 33.48 million shares—a decrease of 4.5% from the July 15th total of 35.45 shares, signaling growing optimism over the company’s prosperity.
In the current month, there are seven analysts that are closely monitoring the company’s operations. Five of them rated the company a “Buy”, with two rating it a “Strong Buy.” (Source: Yahoo Finance, last accessed August 19, 2015.)