Stocks continue to roar after Nvidia’s results lifted the market sentiments as it posted another strong quarter. These results from the AI-giant crushed AI criticisers who were advocating that stock overvalued and that AI wave is nothing but a bubble. Well, Nvidia’s results have proved one thing that generative AI is the future and investors should track AI stocks which are currently undervalued. Retail investors need to think that more and more analysts continue to expect soft landing for overall economy. Therefore, we believe that the focus should be on top rising penny stocks to book some hefty profits.
Experts and renowned economists expect that the US might be able to avoid recession and bring the inflation down to target range of ~2%, without increased unemployment. This should bode well for smaller and micro-cap companies such as penny, micro-cap and nano-cap scrips. These are the stocks which get punished as and when markets experience volatility and every investor plan to invest in blue-chip and established companies.
Top rising penny stocks on investors’ radar are the ones which are being tracked regularly so that no buying opportunity gets missed by the investors. Going long on more and more stocks is currently being recommended by several analysts and experts in a soft-landing scenario.
In November 2023 month, a report by Wall Street journal emphasised about how economists remain in confidence about the growing economy and its ability to weather economic recession.
This was more inclined towards top rising penny stocks, which are sensitive to increased borrowing rates. These stocks were trailing S&P 500 in 2023 by a significant margin.
However, experts believe that this is expected to change. Global fund managers say that small-cap stocks should see significant rally in 2024 as there are favourable factors like reduced rates and stable economy.
With this in mind, let us now have a look at top rising penny stocks on investors’ radar.
1. Grupo Televisa S.A.B.
The company which was once the largest organisation in Spanish-speaking world, Grupo Televisa is now being tagged as a leading telecommunication firm in Mexico. Its cable arm, Izzi, has been categorised as a largest pay-television and broadband providers in Mexico region.
It has announced its results for full year and 4Q23. Financials of the company are being adjusted to reflect impact of TelevisaUnivision, Inc. transaction which saw closure on January 31, 2022.
Revenues experienced a fall of 2.3% to Ps.73,767.9 million (Mexican Pesos) in 2023 in comparison to Ps. 75,526.6 million in 2022. This was mainly due to revenue decline in Sky segment. Operating segment income declined 5.4%, equating to ~35.7% margin.
Net income or loss attributable to stockholders of the company came in at a net loss of Ps.10,235.9 million for the year ended December 31, 2023 against a net income of Ps.44,712.2 million for the year ended December 31, 2022.
Unfavorable change of Ps.54,948.1 million implies 1) absence in 2023 of a Ps.56,222.2 million income as a result of discontinued operations which the company recognized in 2022 associated to TelevisaUnivision transaction, 2) a Ps1,703.7 million decline in operating income before other expense, 3) a Ps.51.2 million rise in other expense, net, and 4) a Ps.3,668.4 million unfavorable change related to income tax benefit or expense.
Shares of the company has delivered a return of ~12% in just one month.
2. Compass Therapeutics, Inc.
Compass Therapeutics Inc is clinical-stage biopharmaceutical company, developing proprietary antibody therapeutics which should engage immune system to treat both solid tumors and hematological malignancies.
The company has made strong progress in 4Q throughout its portfolio, and it expects to report top-line data from COMPANION-003 by mid-year and COMPANION-002 in 2H of the year. Talking about CTX-009 (DLL4 and VEGF-A bispecific antibody), the company continues to enroll patients in COMPANION-002, which is the US Phase 2/3 study of CTX-009 in combination with Paclitaxel in BTC.
It has released 3Q and YTD 2023 financial results. FDA cleared IND for CTX-8371, the company’s PD-1 and PD-L1 bispecific antibody, the first StitchMabs® generated bispecific to advance to clinic.
Net loss for 3Q ended September 30, 2023 came in at $10.0 million or $0.08 per common share in comparison to $12.0 million or $0.12 per common share for the same period in 2022.
As at September 30, 2023, cash and marketable securities came at $164 million in comparison to $187 million as at December 31, 2022. This provides the company with anticipated cash runway to 2026. During first 9 months of 2023, it used $28 million of cash to finance its operations.
Stock price of Compass Therapeutics Inc. saw an increase of ~29% in just one month. This comes after Zacks Equity Research upgraded the stock.
3. Angi Inc.
The company is engaged in connecting quality home service professionals throughout different categories, from repairing and remodeling to cleaning and landscaping, with the consumers.
It has released its 4Q results, with revenues of the company coming at $300 million exhibiting impact of change to net revenue recognition for Services, which came into effect on January 1, 2023.
On pro-forma net basis, revenue saw a decline of 16% in 4Q23, exhibiting declines throughout Domestic business. However, this got partially offset by ~21% International growth. Operating income of the company went up by $36 million to reach $8 million and adjusted EBITDA increased 96% to $41 million.
For 12 months ended December 31, 2023, net cash provided by operating activities saw an increase of $48 million to $94 million. FCF increased by $115 million to positive $46 million.
Conclusion
While there are some experts and economists who continue to rejoice equity market’s rally in 2024 and soft landing, there are some analysts who expect recession and hard landing. Now, in this case, what should you do?
Well, we believe that investing in top rising penny stocks on investors’ radar should be considered as macro-economic uncertainties are expected to stabilise and micro-cap stocks are expected to flourish.
That being said, investing in top rising penny stocks comes with its own risks and uncertainties. Therefore, it will be best to invest in the micro-cap stocks which are being recommended by experts and Wall Street analysts.