The technology sector consists of businesses that develop, build, and market consumer electronics, electronic components, and software. Companies in the tech sector may also provide information technology (IT) services such as cloud computing. While the best-known companies are giants like Apple Inc. (AAPL) and Microsoft Inc. (MSFT), there also are tech businesses that are classified as penny stocks. Penny stocks typically trade at $5 per share or less. Investing in penny stocks can be especially risky and may entail higher trading costs. Investors should therefore be careful when considering whether to invest in these or similar securities.
There is no widely-used benchmark for tech penny stocks, and their performance has varied significantly over the past 12 months. However, the Invesco S&P SmallCap Info Tech ETF (PSCT) provides a general indicator for tech penny stocks. PSCT has outperformed the broader market in the past year, providing a 1-year trailing total return of 56.6% compared with 37.2% for the Russell 1000. These market performance numbers and all statistics in the tables below are as of June 10, 2021.
Here are the top three tech penny stocks with the best value, the fastest growth, and the most momentum, respectively.
These are the tech penny stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business's value. A business with higher sales could eventually produce more profit when it achieves, or returns to, profitability. The price-to-sales ratio shows how much you're paying for the stock for each dollar of sales generated.
|Best Value Tech Penny Stocks|
|Price ($)||Market Cap ($M)||12-Month Trailing P/S Ratio|
|Exela Technologies Inc. ( XELA)||1.69||100.0||0.1|
|Ceragon Networks Ltd. ( CRNT)||3.68||300.7||1.1|
|Waitr Holdings Inc. ( WTRH)||2.18||251.6||1.2|
- Exela Technologies Inc.: Exela Technologies is a business process automation company. It offers software and services for accounting, human resources management, and other services.
- Ceragon Networks Ltd.: Ceragon Networks is an Israel-based global innovator and solutions provider of 5G wireless transport. The company provides products and services to help its customers evolve their networks towards 5G wireless technology. Ceragon announced in mid-April that it has named Doron Arazi as chief executive officer (CEO), effective the beginning of July 2021. Arazi, the company's former deputy CEO and chief financial officer (CFO), will succeed CEO Ira Palti.
- Waitr Holdings Inc.: Waitr Holdings is an on-demand food ordering and delivery company. Its online platform connects restaurants to diners and allows users to discover, order, and receive food from local restaurants and national chains. Waitr announced in early May financial results for Q1 of its 2021 fiscal year (FY), the three-month period ended March 31, 2021. The company's net loss widened to $3.7 million from $2.1 million in the year-ago quarter even as revenue rose 15.1%. Other expenses expanded considerably compared to the same quarter a year ago, contributing to the recent quarter's larger net loss.
These are the tech penny stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors pick out growing startups that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
|Fastest Growing Tech Penny Stocks|
|Price ($)||Market Cap ($M)||Revenue Growth (%)|
|TD Holdings Inc. ( GLG)||1.06||102.9||2,650|
|Amesite Inc. ( AMST)||2.77||57.0||861.9|
|Boxlight Corp. ( BOXL)||2.55||144.8||484.0|
- TD Holdings Inc.: TD Holdings is a China-based holding company that engages in the commodity trading business and provides related supply chain management services. Its principal business is commodity trading, primarily of non-ferrous metal products, such as zinc, copper, silver, and gold.
- Amesite Inc.: Amesite is a high-tech artificial intelligence (AI) software company. It offers a cloud-based platform and content creation services for K-12, colleges, universities, and business education.
- Boxlight Corp.: Boxlight is a provider of educational technology solutions. The company offers an integrated, interactive solution suite that includes software, classroom technologies, professional development, and support services. Boxlight announced in mid-May financial results for Q1 FY 2021, which ended March 31, 2021. Its net loss widened to $5.2 million from $2.0 million in the year-ago quarter even as revenue rose 484.0%.
These are the tech penny stocks that had the highest total return over the last 12 months. Stocks with returns in excess of 3,500% have been excluded as outliers.
|Tech Penny Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|DMG Blockchain Solutions Inc. ( DMGI.V)||CA$0.83||CA$136.8||538.5|
|Investview Inc. ( INVU)||0.19||615.1||512.9|
|Galaxy Next Generation Inc. ( GAXY)||0.02||51.4||397.1|
|S&P SmallCap Info Tech ETF (PSCT)||N/A||N/A||56.6|
- DMG Blockchain Solutions Inc.: DMG Blockchain Solutions is a Canada-based cryptocurrency and blockchain company. It provides a platform focused on mining public blockchains and using blockchain technology to address fraud and other issues in supply chains.
- Investview Inc.: Investview provides research, education, and investment tools designed to help individual investors navigate financial markets and take advantage of financial and technical innovations. It offers educational services to instruct investors on equities, options, cryptocurrency, ETFs, and more.
- Galaxy Next Generation Inc.: Galaxy Next Generation is a distributor of interactive learning technology hardware and software. Its products and services allow presenters and participants to engage in a fully collaborative learning environment. Galaxy Next Generation announced in mid-May financial results for Q3 FY 2021, which ended March 31, 2021. The company's net loss narrowed to $2.9 million from $5.3 million in the year-ago quarter as revenue rose 122.6%.
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YCharts. "Financial Data." Accessed June 11, 2021.
Ceragon Networks Ltd. "Doron Arazi to Succeed Ira Palti as CEO of Ceragon Networks." Accessed June 13, 2021.
Waitr Holdings Inc. "Waitr Reports First Quarter 2021 Results." Accessed June 13, 2021.
Boxlight Corp. "Boxlight Reports First Quarter 2021 Financial Results." Accessed June 13, 2021.
eMagin Corp. "eMagin Corporation Announces First Quarter 2021 Results." Accessed June 13, 2021.