4 Stocks Under $5 With Strong Growth Potential

NYSE: HMY | Harmony Gold Mining Company Limited News, Ratings, and Charts

HMY – Many penny stocks hold solid upside potential, but they come with higher risk. Hence, one must be judicious when betting on such stocks. With this in mind, we believe the strong growth attributes of Harmony Gold Mining Company (HMY), VAALCO Energy (EGY), Stealth Gas (GASS), and Blueknight Energy Partners (BKEP) may help them deliver significant returns in the coming months. Read on for some details.

As a result of the  stock market’s impressive rally  over the past year, most stocks are now overpriced or trading at high valuations. In this scenario, it is very difficult  to find stocks trading below $5 that still have plenty of upside.

Growth stocks in particular have outperformed over the past year, as evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 32.8% gains. However, investors’ concerns over the overvaluation of many of these stocks and a rotation away from growth to value have been causing a price correction among these stocks lately. This is evidenced by SPYG’s 8.1% decline over the past month. Thus, we think it wise to invest in low-priced growth stocks that are fundamentally sound.

Harmony Gold Mining Company Ltd. (HMY), VAALCO Energy, Inc. (EGY), Stealth Gas, Inc. (GASS), and Blueknight Energy Partners GP (BKEP) are all trading under $5 currently but they may not be available at these price levels for long. These companies have a history of revenue and earnings growth and we think they are well-positioned to grow further.

Harmony Gold Mining Company Ltd. (HMY)

HMY is a gold exploration and mining company. The company has operations in South Africa and Papua New Guinea primarily. HMY has gained 9.1% over the past year to close yesterday’s trading session at $4.32.

HMY  recently completed the acquisition of Mponeng mine and Mine Waste Solutions. Since assuming full ownership of these assets, they have produced more than 3,220 kilos of gold.

HMY’s trailing-twelve-month revenue grew at a CAGR of 17.2% over the past five years. The company’s trailing-twelve-month EBITDA grew at a CAGR of 24.7% over the past three years.

HMY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

It has an A grade for Growth, Value, and Momentum. In the B-rated Miners – Gold industry, it is ranked #16 of 46 stocks.

In total, we rate HMY on eight different levels. Beyond what we stated above we also have given HMY grades for Sentiment, Stability, and Quality. Get all the HMY ratings here.

VAALCO Energy, Inc. (EGY)

EGY focuses on exploring and producing natural gas and crude oil. The company  has operations primarily in West Africa. EGY has returned 87.9% over the past year to close yesterday’s trading session at $3.25.

The company  recently completed the acquisition of a 27.8% working interest in Etame Marin block, offshore Gabon. The acquisition comes as an addition to a 31.1% interest  already held by EGY, essentially doubling its  total production and reserves in the area.

EGY’s  trailing-twelve-month revenue grew at a CAGR of 0.6% over the past three years. Its  trailing-twelve-month EBITDA grew at a CAGR of 5.5% over the past three years. Also,  EGY’s EPS is estimated to grow 2% per annum over the next five years.

It’s no surprise that EGY has an overall rating of B, which equates to Buy in our POWR Ratings system. EGY has an A grade for both Growth and Sentiment and B for both Momentum and Quality. In the 95-stock Energy – Oil & Gas industry, it is ranked #2.

Click here to see the additional POWR Ratings for EGY (Value and Stability).

Stealth Gas, Inc. (GASS)

GASS is involved in providing marine transportation services to Liquefied petroleum gas (LPG) producers and users. The company has worldwide operations. GASS’  stock price has increased 14.2% over the past year and its last closing price was $2.74.

The company recently completed the delivery of the Eco Blizzard, which is a 11,000 cbm newbuilding LPG vessel. GASS  has also sold its oldest vessel called the Gas Pasha, which was built in 1995.

The company’s trailing-twelve-month revenue has grown  at a CAGR of 0.5% over the past five years. Its  trailing-twelve-month EBITDA has grown  at a CAGR of 2.6% over the past three years.

GASS is expected to see  2.6% revenue growth  in both 2021 and 2022. The company’s EPS is estimated to grow 18.2% in 2021 and 5.1% per annum over the next five years.

Under POWR Ratings, GASS has been accorded a B rating for Stability. In the 52-stock Shipping industry, it is ranked #12.

Beyond what we stated above we also have given GASS grades for Sentiment, Momentum, Quality, Growth, and Value. Get all the GASS ratings here.

Blueknight Energy Partners GP (BKEP)

BKEP is primarily involved in providing transportation, storage, processing, and related services to producers and marketers of crude oil and asphalt products. The company has operations mainly in the United States. BKEP has gained 147.5% over the past year to close yesterday’s trading session at $2.50.

The company  recently completed the sale of its crude oil pipeline and trucking segments for $132 million. The company will now focus on operating as a pure-play terminal company.

BKEP ’s trailing-twelve-month revenue has grown at a  CAGR of 11.2% over the past five years. Its  trailing-twelve-month EBITDA has grown at a CAGR of 0.7% over the same period. The company’s EPS is estimated to grow 100% in 2021 and 4% per annum over the next five years.

It’s no surprise that BKEP has an overall rating of Bm which translates to a Buy in our POWR Ratings system. BKEP has an A grade of A for both Growth and Value and B for both Sentiment and Quality. In the B-rated MLPs – Other industry, it is ranked #4 of 12 stocks.

Click here to see the additional POWR Ratings for BKEP.

The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

How to Ride the 2021 Stock Market Bubble

5 WINNING Stocks Chart Patterns

K.I.S.S. for the March Stock Market

 


HMY shares were trading at $4.47 per share on Tuesday morning, up $0.15 (+3.47%). Year-to-date, HMY has declined -4.49%, versus a 3.95% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaryaman Aashind


Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
HMYGet RatingGet RatingGet Rating
EGYGet RatingGet RatingGet Rating
GASSGet RatingGet RatingGet Rating
BKEPGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investor Alert: Healthy Pause for Stock Market

This recent pullback very much looks like a “healthy pause” for the stock market as the S&P 500 (SPY) comes off recent highs. What is the cause of the pause? How long will it last? What happens afterwards? And how to make money in this market? Steve Reitmeister will answer all these questions and more in his latest market commentary below...

3 Gold Stocks to Buy Poised for Success

With expected interest rate cuts, surging gold jewelry demand, and ongoing geopolitical conflicts, gold prices have hit record highs this year. Thus, it could be wise to buy fundamentally sound gold stocks Centerra Gold (CGAU), Gold Fields (GFI), and Kinross Gold (KGC), which are well-poised for success. Keep reading…

3 Internet Stocks Poised up for Rapid Growth in April

The internet industry thrives thanks to expanding usage, its transformative impact on work and communication globally, advancements in 5G, and its widespread integration into daily life. Hence, it could be wise to consider adding internet stocks ATRenew (RERE), Chegg (CHGG), and 1-800-FLOWERS.COM (FLWS) to one’s portfolio for growth. Read on...

TXN vs. INTC Earnings Alert - Which Chip Stock Will Surge Ahead?

Growing applications of chips across diverse end-use sectors and emerging digital technologies will shape the growth trajectory of the semiconductor industry and create several opportunities for industry players. So, let’s analyze Texas Instruments (TXN) and Intel (INTC) to determine which of these chip stocks will surge following their first-quarter earnings. Read more...

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

Read More Stories

More Harmony Gold Mining Company Limited (HMY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All HMY News