Top Penny Stocks to Watch in February 2019
As February 2019 kicks off, it’s hard to believe that the stock market has made such massive strides in rebounding from December’s disaster. The past few months have been a rocky road of high volatility. But last month was the best January for S&P 500 performance since 1987, and the also the best single month for gains since October 2015. That said, the starting point for January’s rally was exceptionally low – more than 15% below the S&P 500’s September all-time high. Given the market’s relief rally that we saw in January, it’s no surprise that some penny stocks have also done exceptionally well of late. Here, we give you the all-new February 2019 edition of our popular Top Penny Stocks to Watch. (For last month’s, see: Top Penny Stocks to Watch in January 2019.)
What are Penny Stocks?
Penny stocks are generally defined as small-to-micro-cap (low market value, or capitalization) stocks trading for under $5 per share. They’re not usually our first choice for trading and investing. But many penny stocks see spectacular gains that are very hard to resist.
What are the Top Penny Stocks in February 2019?
As always, we chose our top penny stocks based on three main criteria.
- Currently trading under $5 per share
- Relatively high trading volume (for a penny stock)
- Exceptional stock performance across a number of different time frames
The chart above shows the prices of our five picks as well as their one-year returns as of the market close on Friday, 2/1/2019.
For February, two of our picks are the same as they were in January. This is only because these two continue to show superior strength against other penny stocks and the rest of the market. The two continuing top stocks are:
- CRMD: CorMedix | Price: $1.98 (as of 2/1/2019 market close) | 1-Year Performance: +324.80% (as of 2/1/2019 market close)
- RIBT: RiceBran Technologies | Price: $3.36 (as of 2/1/2019 market close) | 1-Year Performance: +148.89% (as of 2/1/2019 market close)
And the new picks for February are:
- TPNL: 3Pea International | Price: $4.72 (as of 2/1/2019 market close) | 1-Year Performance: +551.03% (as of 2/1/2019 market close)
- REFR: Research Frontiers | Price: $2.59 (as of 2/1/2019 market close) | 1-Year Performance: +168.39% (as of 2/1/2019 market close)
- RUBI: the Rubicon Project | Price: $4.50 (as of 2/1/2019 market close) | 1-Year Performance: +134.38% (as of 2/1/2019 market close)
What Companies are Behind These Penny Stocks?
Continuing on our list from January, CorMedix is a small biotech company with around $212 million in market capitalization. The company develops and markets therapeutic products for the prevention and treatment of infectious and inflammatory diseases.
Another continuing top performer, RiceBran Technologies has a market cap of around $89 million. The company is focused on food products. Specifically, RiceBran Technologies is involved in the production, processing, stabilization and preservation of rice bran for global consumers.
Our first new pick for February, 3Pea International has had a whopping 551% gain in the past year. By far our top performer, the company’s market cap is around $197 million. 3 Pea International provides prepaid card products and processing services under the PaySign brand name.
Research Frontiers has the smallest market cap on this month’s list – only around $67 million. The company is involved in nanotechnology, developing and licensing its patented SPD-SmartGlass technology.
Rounding out our list, the Rubicon Project was also featured in our Top Penny Stocks to Watch in November 2018. The company is an online advertising technology firm with a $223 million market cap.
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke