Stocks under $5 also known as penny stocks are made up of small companies’ low-priced shares. These are often some of the cheapest stocks you can buy —on Robinhood or elsewhere. They include energy stocks, biotech stocks, and others. Penny trading stocks is a way to invest in those companies that aren’t mainstream.
Over recent years, day trading penny stocks has skyrocketed due to the low barrier to entry in addition to the ability to turn small sums into substantial gains. If you are a savvy investor, then these penny stocks could be a way to quick profits, with risk.
Thanks to commission-free trading apps like Robinhood, investing in stocks priced (“penny stocks”) under $5 hasn’t been easier. The investing app has gained mass popularity lately, especially among young adults. Penny stocks on Robinhood represent just some of your options, but there are some good ones to choose from.
Robinhood offers a variety of products that one can tap in and make money, including gold, cash management, cryptocurrencies, options trading, and, of course, stocks to buy.
In this piece we are going to take at two Robinhood stocks priced under $5
Limelight Network (NASDAQ: LLNW) – One Of The Best Stocks Under $5
Limelight Networks, Inc was founded in June 2001 by Allan M. Kaplan, Michael M. Gordon, William H. Rinehart, and Nathan F. Raciborski. The company has its headquarters in Temple, AZ.
The company focuses on offering technological services and software. It currently employs around 563 employees.
Over the years, the company has managed to establish itself as a leading provider of cloud security, digital content delivery, and edge computing services with the overall goal of empowering customers to provide exceptional digital experiences.
The company’s edge service platform includes intelligent software coupled with unique expert support services that make it possible for current and future workflows.
Limelight Networks, Inc trades as one of the tech stocks on the Nasdaq stock market under the tinker LLNW.
Q3 Financial Results
Recently Limelight Networks, Inc came out with its Q3 earnings report. The company was able to match the $0.01 per share earnings inline with the Zacks Consensus Estimate.
Also, the company managed to register its second-highest revenue in its history in a single quarter.
Limelight Networks, Inc posted revenues of $51.32 million for the third quarter surpassing the Zacks Consensus Estimate by 1.87%. By doing this, the company was able to beat the consensus revenue estimates for the first time in over four years.
The improvement can be attributed to the strategic decision to focus on high-quality edge cloud computing. Initially, the move led to significant net income loss and also resulted in tough times for the stock.
However, the executive team believes that the gamble is finally starting to paying off. The platform’s edge computing-related services rose by 60%, and its quarterly traffic reached its highest point ever.
Reasons Why LLNW Will Make A Great Penny Stock To Buy
Currently trading at $3.98, the tech stock looks set to experience substantial gains and could soon leave the penny stock status if all goes well. The company projects the earnings per share to climb by 500% in the next year, which could be a significant boost on the companys stock.
Also, according to a recent “State of Online Video” report, video viewing through streaming has reached an all-time of 6h48min a week, with the majority of viewers binge-watching shows online. As online viewing grows, so does the expectation for quality experiences.
According to Michael Milligan, the senior director at LLNW, the key to success for content providers is adopting video-enabled edge services to make sure they offer the best user experience to their consumers, and this will help them keep their customers.
”That’s why Limelight has differentiated itself by investing in extending global capacity, delivering the highest quality online video, and enabling innovative interactive viewer experiences.”
As you can see above, LLNW is headed for the good times; therefore, if you are considering trading penny stocks, you should consider buying LLNW shares.
Also, if you check stock news, you will realize that online broker and analysts rate LLNW as one of the top technology penny stocks even though we recognize that LLNW isn’t the cheapest stock, its definitely a growth stock and among the top penny stock to keep an eye on.
LITB (NYSE: LITB)- LightInTheBox Stock Under $1
The idea to launch LITB was conceived when the founders of the company, Liang Zhang and Quji Guo, sought to take advantage of China’s superb manufacturing and supply chain.
Last week, LightInTheBox announced its third-quarter financial results, which were quite impressive and pointed to the good progress the company is making.
In summary, the total revenues regained noticeable growth momentum by increasing by 34.6% year on year to $59.9 million. The gross margin improved by 27.2% from 15.1% to 42.3% compared to the same quarter last year.
The net income was $10 million, which was an improvement of over $27 million after a net loss of $17.8 million that was registered in Q3 2018. Stocks priced lower than one dollar rarely have a net income that comes as a turnaround around like this from a net loss.
And finally, the gross profit was $25.3 million, an improvement of over $18 million compared to the $6.7 million, which was registered in Q3 last year.
Additionally, the adjusted EBITDA improved from a loss $17.3 million in Q3 of 2018 to earnings of $.5 million in Q3 2019, which marked the second positive quarter for the company and highlighted the growth trajectory the company is on. When looking at penny and growth stock, these kinds of metrics are very important.
As we have seen from the financial results above, LITB is a company that is making money. It also has substantial assets and has a growth strategy in place, all of which are crucial ingredients if a penny stock is to become a moneymaker.