Top Penny Stocks To Watch Right Now

tags:RMCF,TSN,UMH,RICK,

Penny stock investing is notoriously risky, which is why many investors are right to worry about penny stock scams. Without knowing what traps to look for, these penny stock scam companies can steal your hard-earned money.

VideoStrategies for Picking Penny Stock Winners

Today, we've done the research for you so you can avoid these scams and safely invest in penny stocks.

You see, penny stocks are attractive because they can offer double-digit or even triple-digit returns in a very short time. For example, Cleveland BioLabs Inc. (Nasdaq: CBLI) skyrocketed from $1.56 at the Thursday, April 13, close to $5.10 on Wednesday, April 19. That's a stunning 227% return in just three sessions (the markets were closed that Friday).

And penny stock scammers try to take advantage of investors looking for those quick gains. If they succeed, you could be left with huge losses.

This deceptive financial behavior is much more widespread than you may think. A July 2014 report from The Wall Street Journal noted how the U.S. Securities and Exchange Commission (SEC) suspended trading for over 1,300 companies between 2012 and 2014 in an effort to crack down on penny stock fraud.

Top Penny Stocks To Watch Right Now: Rocky Mountain Chocolate Factory Inc.(RMCF)

Advisors' Opinion:

• [By Ethan Ryder]

  Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and Tootsie Roll Industries (NYSE:TR) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

• [By Max Byerly]

  Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and Tootsie Roll Industries (NYSE:TR) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Top Penny Stocks To Watch Right Now: Tyson Foods Inc.(TSN)

Advisors' Opinion:

• [By ]

  Tyson Foods (TSN) CEO Tom Hayes wasn't kidding when he told TheStreet he wanted to make another big acquisition soon. 

  But the argument could be made that Wall Street wasn't expecting his latest food purchase. On Tuesday, Tyson Foods said it will spend $850 million to buy the poultry rendering and blending assets of American Proteins, Inc. and AMPRO Products, Inc.

• [By Demitrios Kalogeropoulos]

  Tyson Foods (NYSE:TSN) underperformed the market last month by shedding 16% compared to a 3.6% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

• [By ]

  But what investors are overlooking are the fundamental risks to this logic. Corporate earnings are the lifeblood of the market, keep in mind. Higher oil prices have already translated into higher gas prices, which is a key risk to automakers such as Ford (F) and General Motors (GM) that have pivoted big-time to producing SUVs and trucks. Higher oil prices have already taken a toll on earnings for packaged food giants like Proctor & Gamble (PG) and Tyson Foods (TSN) . Now, each are staring at consumer price increases because it costs more to deliver their products to stores.

• [By Shane Hupp]

  HL Financial Services LLC purchased a new position in shares of Tyson Foods (NYSE:TSN) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 61,568 shares of the company’s stock, valued at approximately $4,506,000.

Top Penny Stocks To Watch Right Now: UMH Properties Inc.(UMH)

Advisors' Opinion:

• [By Joseph Griffin]

  WINTON GROUP Ltd bought a new stake in UMH PROPERTIES/SH SH (NYSE:UMH) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 86,705 shares of the real estate investment trust’s stock, valued at approximately $1,163,000. WINTON GROUP Ltd owned about 0.24% of UMH PROPERTIES/SH SH as of its most recent SEC filing.

• [By Lisa Levin]

  Wednesday afternoon, the real estate shares surged 0.56 percent. Meanwhile, top gainers in the sector included Armada Hoffler Properties, Inc. (NYSE: AHH), up 3 percent, and UMH Properties, Inc. (NYSE: UMH) up 3 percent.

Top Penny Stocks To Watch Right Now: Rick's Cabaret International Inc.(RICK)

Advisors' Opinion:

• [By Joseph Griffin]

  RCI Hospitality (NASDAQ:RICK) was upgraded by research analysts at BidaskClub from a “buy” rating to a “strong-buy” rating in a research note issued to investors on Friday.

Why Habit Restaurants Is One of Thursday’s Big Earnings Winners

When Habit Restaurants Inc. (NASDAQ: HABT) released its second-quarter financial results after the markets closed on Wednesday, the restaurant chain said it had $0.08 in earnings per share (EPS) and $102.9 million in revenue. Consensus estimates had called for EPS of $0.03 on $99.7 million in revenue. The same period of last year reportedly had $0.06 in EPS and revenue of $83.3 million.

During the quarter, company-operated comparable restaurant sales increased 1.2% from last year. The gain in company-operated comparable restaurant sales was driven primarily by a 4.5% increase in average transaction amount, partially offset by a 3.3% decrease in the number of transactions.

Looking ahead to the 2018 full year, the company expects to see total revenues in the range of $393 million to $396 million, with comparable restaurant sales growth of 0.5% to 1.0%. The consensus estimates are $0.02 in EPS and $392.61 million in revenue for the year.

Russ Bendel, president and CEO, commented:

We are pleased with our second quarter results, which included a return to positive same store sales growth. We believe our results reflect progress on our key initiatives laid out earlier this year around convenience, quality and innovation. During the quarter, we opened seven new company-operated Habit Burger Grills of which three were drive-thrus. Our franchisee partners also opened two new restaurants, one in Seattle and a second location in China. This keeps us on track to open approximately 30 new company-operated locations in 2018, including approximately 15 drive-thrus, and seven to nine franchise locations.

Shares of Habit Restaurants were last seen up about 21% at $15.03, with a consensus analyst price target of $12.00 and a 52-week trading range of $8.10 to $15.70.

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What to Expect When PayPal Reports Earnings

PayPal (NASDAQ:PYPL) has been on a solid run so far this year, up 20% compared to the broader market's 5% gain. Investors have high hopes that the company can continue its winning ways, following several announcements that it's expanding its ecosystem with the acquisition of a slew of complementary companies�-- snatching up four companies in just five short weeks.

Investors will be looking for additional details when the company reports the financial results for its just-completed 2018 second quarter on Wednesday, July 25, after the market close. Let's review the company's recent results, as well as a few things that will be of interest to investors going into the earnings report.

Image source: PayPal.

Can its solid growth continue?

PayPal's first-quarter results were everything shareholders have come to expect from the payment processor. The company reported revenue of $3.69 billion, up 24% year over year -- and up 22% adjusting for foreign exchange rate differences. This exceeded the high end of the company's guidance and analysts' consensus estimates alike. Net income grew to $511 million, an increase of 33% compared to the prior-year quarter, generating adjusted earnings per share of $0.57, up 29% year over year.

For the second quarter, PayPal forecast revenue in a range of $3.78 billion to $3.83 billion, which would be year-over-year growth of 21.5% at the midpoint of its guidance, or 19.5% on a currency-neutral basis. The company is expecting adjusted earnings per share between $0.54 and $0.56, or growth between 17% and 22% compared to the prior-year quarter.�

For their part, analysts are also expecting the growth to continue, with consensus estimates calling for revenue of $3.81 billion, which would be 21% growth year over year, and adjusted earnings per share of $0.56, up 22% compared to the year-ago quarter.�

More than the top and bottom lines

As important as the revenue and profit metrics are, investors will be looking for additional signs that PayPal's growth trend remains intact. Last quarter, PayPal added 8.1 million new customer accounts, and with that net new actives increased 35% compared to the prior-year quarter. Not only was the company adding new customers, but engagement among existing customers increased. PayPal processed 34.7 payment transactions per account during the trailing-12-month period, an increase of 8% year over year. Investors should look to ensure that those numbers continue to climb.

Another item of interest will be the continuing integration of "Pay with Venmo" among merchants. PayPal has been rolling out a dedicated button that will allow consumers to use Venmo for retail purchases, and the company will almost certainly be providing an update on its progress.

Payment volume is another indicator of the company's ongoing success, topping $132 billion last quarter, up 32% compared to the year-ago quarter, and 27% on a constant currency basis. Keep an eye out for similar high growth on a comparative basis.

Image source: Getty Images.

Shopping spree

Finally, PayPal has been on a massive shopping spree. Since the last earnings announcement, the company has made the following acquisitions:

European small-business payments platform iZettle Commerce-focused AI start-up Jetlore Online-payments distributor Hyperwallet Fraud prevention and risk management platform Simility

Additionally, in a recent interview, PayPal CEO Dan Schulman said the company had a healthy balance sheet and planned to invest up to $3 billion annually to complement its existing set of services. PayPal executives may expand on that theme on the conference call to discuss the results.�

PayPal has been on a roll, and investors will be looking to ensure that it will be able to continue its upward trajectory. Expect for the company to provide plenty for shareholders to digest when the company reports earnings on Thursday.