Earnings season isn’t just for the big-name stocks and tech giants…
While most penny stocks don’t have revenue or a product — you can still find earnings winners.
I’ll share two stocks trading below $20 that you can watch today.
They both announced earnings last week and had a 35% and a 250% gain!
And earnings winners can often run longer than you think — especially if they’re loaded with short sellers…
We could see multi-day runs out of these two so here’s what I’m watching them for this week…
Two Penny Stock Earnings Winners
We are still deep into earnings season and big-name stocks like Arm Holdings plc (NASDAQ: ARM) and Palantir Technologies Inc. (NYSE: PLTR) are crushing it after earnings…
ARM chart: 3-day, 5-minute candle — courtesy of StocksToTrade.com
PLTR chart: 10-day, 5-minute candle — courtesy of StocksToTrade.com
But there are penny stock earnings winners too…
I know it sounds like a myth. But they do exist.
Even if earnings are just the catalyst that sparks a huge short squeeze, it’s worth paying attention to penny stocks that have earnings.
On Friday we had two big runners…
First up we had CleanSpark, Inc. (NASDAQ: CLSK)…
The company announced earnings after hours on Thursday.
While the numbers were good — with revenue growing 165% year over year — the best part was the timing…
CLSK is a Bitcoin mining company. And crypto stocks have been hot recently with Bitcoin bouncing off of $40,000 for the last couple of weeks.
It had a massive gain on Friday climbing to over $48.000, which helped CLSK spike even more…
Before earnings the stock closed at $10.50. After earnings, the stock spiked after hours, gapped up, and ran to a high of $14.59, making a new 52-week high!
CLSK chart: 2-day, 5-minute candle — courtesy of StocksToTrade.com
Since the stock closed near its highs it’s a watch for a weak open red to green move this morning.
Intelligent Bio Solutions Inc. (NASDAQ: INBS) announced earnings on Friday morning.
The company reported 114% revenue growth year over year.
But what really made the stock pop was that it was loaded with short sellers.
Remember this is the massive winner we played the previous Friday when it had a giant Friday short squeeze from $2.41 to $6.99.
Then after four red days in a row, the company announced earnings and blew all the shorts out of the water.
INBS chart: 2-day, 5-minute candle — courtesy of StocksToTrade.com
INBS closed a little weak under VWAP, so this might need a few days to prove it can hold up. If it can, I’ll watch it for a potential day-three surge tomorrow or later this week.
Even though these two earnings winners actually had good numbers — that might not be the case for all penny stock earnings winners.
The earnings announcement can just be the spark that lights a bigger fire…
Even mediocre earnings can lead to short squeezes and breakouts that can create multi-day runners.
Learn why you should focus on multi-day runners here.
Of course, you still need a plan for every trade — this tip might help — you can’t just buy any penny stock with earnings…
But if you combine stocks with earnings that are in a hot sector, are loaded with shorts, and are breaking out to new highs, you could find a winner.
Especially since we saw two big runners — everyone will be looking for the next one!
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Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade