The macroeconomic headwinds, including geopolitical issues, high inflation, and the Fed’s monetary policy tightening, have worried investors, leading to heightened volatility in the market. This is evident from the CBOE Volatility Index’s 28.4% year-to-date returns. However, the S&P 500’s significant gains since mid-June indicate a new bull market, according to Ned Davis Research (NDR).
A note from NDR stated, “The percentage of stocks at 21-day new highs, [the] percentage of stocks at 63-day new highs, and the percentage of stocks above their 50-day moving averages, are higher than not only bear market rally medians, but the new bull market medians as well.”
Moreover, the stock market has notched the best month since November 2020, in July. Many now believe the 2022 bear market is finally over, although it’s too soon to be sure.
With trends in the market seemingly indicating that the return of the bull market is near, we think investors should scoop up penny stocks Assertio Holdings, Inc. (ASRT), GEE Group, Inc. (JOB), and Hill International, Inc. (HIL) which could soar in the near term.
Assertio Holdings, Inc. (ASRT)
Specialty pharmaceutical company ASRT provides medicines in the areas of neurology, hospital, and pain and inflammation. Its pharmaceutical products include INDOCIN, CAMBIA, Zipsor, SPRIX, and Otrexup.
On August 8, 2022, Dan Peisert, ASRT’s President and CEO, said, “We are actively evaluating multiple asset acquisitions with an eye toward growing and diversifying our portfolio to take advantage of further operating leverage opportunities.”
Moreover, earlier this year, ASRT and the leading patient access solution, BlinkRx, announced their partnership to support professionals and patients undergoing treatment with the Otrexup drug. Also, ASRT expects this collaboration to support its strategy of leveraging its digital platform and virtual engagement to serve patients better.
ASRT’s total revenues increased 38.5% year-over-year to $35.13 million for the second quarter ended June 30, 2022. Its non-GAAP earnings came in at $13.42 million, compared to a loss of $6.99 million in the year-ago period. Also, its non-GAAP EPS came in at $0.28, compared to a loss per share of $0.16 in the prior-year period.
For 2022, analysts expect ASRT’s revenue to be $132.90 million, indicating a 19.7% year-over-year rise. In addition, the company’s EPS is expected to increase by 1,433.3% year-over-year to $0.40 in 2022. It surpassed EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 205.6% to close the last trading session at $3.82.
ASRT’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Also, the stock has an A grade for Value and Sentiment and a B for Growth and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #12 out of 173 stocks. Click here to see the additional POWR Ratings for Momentum and Stability for ASRT.
GEE Group, Inc. (JOB)
JOB provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two segments- Industrial Staffing Services and Professional Staffing Services.
JOB’s net revenues increased 14.1% year-over-year to $39.63 million for the second quarter ended March 31, 2022. Its non-GAAP net income came in at $2.24 million, compared to a loss of $1.74 million in the previous-year period. In addition, its non-GAAP EBITDA came in at $3.44 million, up 68.9% year-over-year.
Analysts expect JOB’s revenue to increase 6% year-over-year to $43.94 million in the quarter ended September 2022. Its EPS is estimated to increase 300% year-over-year to $0.02 for the same period. Over the past year, the stock has gained 9.8% to close the last trading session at $0.53.
JOB's overall A rating translates to a Strong Buy in our proprietary POWR Ratings system. The stock has an A grade for Value and a B for Growth, Sentiment, and Quality.
Within the A-rated Outsourcing - Staffing Services industry, it is ranked #4 out of 19 stocks. Click here for the additional POWR Ratings for Momentum and Stability for JOB.
Hill International, Inc. (HIL)
HIL provides project and construction management and other consulting services primarily for buildings, transportation, environmental, energy, and industrial markets. It primarily serves the United States federal, state, and local governments; other national governments; and the private sector.
On August 9, 2022, Raouf Ghali, HIL’s CEO, said, “Demand for Hill’s services is accelerating across our end markets and geographies, with an emphasis on U.S. infrastructure projects.”
He added, “New business development activity is robust. We believe that we are well-positioned to capitalize on industry and end market opportunities and look forward to the balance of 2022 with great optimism.”
HIL’s total revenue came in at $105.73 million for the fiscal second quarter ended June 30, 2022, up 4.1% year-over-year. Its adjusted operating profit came in at $6.25 million, up 88.6% year-over-year. Furthermore, its adjusted EBITDA came in at $6.53 million, up 70.9% year-over-year.
Over the past three months, the stock has gained 34.2% to close the last trading session at $1.65.
HIL's overall A rating translates to a Strong Buy in our POWR Ratings system. It has a B grade for Growth and Quality.
HIL is ranked #4 out of 89 stocks in the B-rated Industrial – Services industry. Click here to check additional ratings for HIL (Value, Momentum, Stability, and Sentiment).
ASRT shares fell $0.05 (-1.31%) in premarket trading Wednesday. Year-to-date, ASRT has gained 75.23%, versus a -12.75% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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