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 hosting. While the best-known companies in the tech sector are giants like Apple Inc. (AAPL) and Microsoft Inc. (MSFT), there also are tech businesses that could be classified as penny stocks. Penny stocks typically trade at $5 per share or less. Some examples are Support.com Inc. (SPRT), an eBusiness infrastructure and software firm, and hydrogen fuel cell developer Plug Power Inc. (PLUG). Due to the COVID-19 crisis, markets are very volatile, especially penny stocks, so be very careful when investing right now.
Here are the top 3 technology penny stocks with the best value, the fastest earnings growth, and the most momentum. Each has dramatically outperformed the broader market this year. The numbers in the tables below are as of March 18.
Best Value Technology Penny Stocks
These are the technology penny stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Technology Penny Stocks|
|Price ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Weidai Ltd. (WEI)||1.25||88.1||1.3|
|Micro Focus International PLC (MFGP)||4.90||1,636||1.3|
|Cheetah Mobile Inc. (CMCM)||2.14||298.1||1.7|
- Weidai Ltd.: Weidai is a China-based company that offers auto-backed financing solutions for small- and micro-enterprise owners. The company provides secured and unsecured loan services, as well as an online platform that connects borrowers with potential lenders.
- Micro Focus International PLC: Micro Focus International is a U.K.-based global infrastructure software company. The company provides enterprise application software, as well as tools to build, operate, secure, and analyze enterprises. Micro Focus International announced earlier this week that, in response to the macroeconomic uncertainty due to the spread of COVID-19, it plans to retract its final dividend for the fiscal year (FY) that ended October 31, 2019.
- Cheetah Mobile Inc.: Cheetah Mobile is a China-based holding company that develops mobile enhancement software and applications. The company operates an internet browser and offers internet security, memory saving, power optimization, mobile games, and photo collage applications. Cheetah Mobile announced in February that Google has disabled the company's accounts on Google Play Store, Google AdMob, and Google AdManager, making it difficult to attract new customers and generate revenue. Google said some of Cheetah's apps were not compliant with its policies.
Fastest Growing Technology Penny Stocks
These are the technology penny stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Technology Penny Stocks|
|Price ($)||Market Cap ($M)||EPS Growth (%)|
|Nokia Oyj (NOK)||2.53||14,220.0||223.5|
|GoPro Inc. (GPRO)||2.29||357.2||195.5|
|Cheetah Mobile Inc. (CMCM)||2.14||298.1||182.2|
- Nokia Oyj: Nokia Oyj is a Finland-based global communications company that provides network and Internet protocol infrastructure, software, and related services. The company announced earlier this month that Pekka Lundmark has been appointed President and Chief Executive Officer (CEO). He succeeds Rajeev Suri, who stepped down after more than a decade as President and CEO of Nokia and Nokia Siemens Networks.
- GoPro Inc.: GoPro develops and manufactures wearable and gear-mountable cameras as well as related accessories. The company also offers mobile applications and software that allow users to edit, manage, and share their photo and video files.
- Cheetah Mobile Inc.: See above company description.
Technology Penny Stocks with the Most Momentum
These are the technology penny stocks that had the highest total return over the last 12 months.
|Technology Penny Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|SeaChange International Inc. (SEAC)||2.61||96.3||86.4|
|Intellicheck Inc. (IDN)||4.36||69.9||65.2|
|Smith Micro Software Inc. (SMSI)||3.86||152.4||62.2|
|S&P 500 (SPY)||N/A||N/A||-14.1|
- SeaChange International Inc.: SeaChange International develops software related to the management, storage, and distribution of digital video, particularly for telecommunications companies and television operators.
- Intellicheck Inc.: Intellicheck develops wireless technology and identity systems for various applications, including mobile and handheld access control, and security systems for the government, military, and commercial markets.
- Smith Micro Software Inc.: Smith Micro Software is a software company that specializes in wireless solutions for mobile systems, including connectivity and data traffic. The company announced in February that it has acquired the operator business of Circle Media Labs Inc.
Micro Focus International PLC. "Update on COVID-19 in regards to dividend and AGM," Accessed Mar. 19, 2020.
Cheetah Mobile Inc. "Cheetah Mobile Provides Updates on Google Collaboration," Accessed Mar. 19, 2020.
Smith Micro Software Inc. "Smith Micro Acquires Operator Business from Circle Media Labs, Inc.," Accessed Mar. 19, 2020.