Investors' fears about various economic and geopolitical challenges have exacerbated stock market volatility since the beginning of 2022. The CBOE volatility index (VIX) is up 56.6% year-to-date. Moreover, with speculations around the Fed's next 75 basis point interest rate hike in July, followed by a half-percentage point increase in September, the stock market is projected to remain under pressure.
Given the heightened market volatility, investors should prioritize companies with robust financials and potential growth prospects. Penny stocks are considered attractive investments due to their potential for above-average returns.
Penny stocks VEON Ltd. (VEON) and GEE Group Inc. (JOB) are well-positioned to deliver solid returns. They are also rated Strong Buy in our proprietary POWR Ratings system.
VEON Ltd. (VEON)
VEON offers mobile and fixed-line telecommunications services through its subsidiaries. It provides voice, data, and other telecommunications services via wireless, fixed, and broadband internet access. It serves roughly 220 million consumers under the Beeline, Kyivstar, Jazz, Djezzy, and banglalink brands.
In March, VEON announced the debut of Health Hub, the first completely digital health platform, through its Banglalink mobile operator in Bangladesh. Through this platform, users may access a wide range of cheap digital health services supplied by 'Health Hub' partners such as Bangladesh's premier healthcare providers Daktarbhai, DocTime, and Pulse.
VEON's total operating revenue came in at $1.82 billion for the three months ended March 31, 2022. Its cash and cash equivalents amounted to $1.97 billion. The company's mobile customers grew 3.9% year-over-year to 206 million. In addition, its net cash from operating activities from continuing operations came in at $493 over this period.
The company's EPS is expected to grow 33.3% year-over-year to $0.32 in fiscal 2021. Analysts expect VEON's revenue to increase 6.2% year-over-year to $8.27 billion in fiscal 2022. The stock closed its last trading session at $0.46.
VEON's POWR Ratings reflect this promising outlook. The company has an overall rating of A, which translates to Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
VEON is also rated an A grade for Value and Quality. Within the A-rated Telecom – Foreign industry, it is ranked #7 of 46 stocks.
To see additional POWR Ratings for Stability, Growth, Sentiment, and Momentum for VEON, Click here.
GEE Group Inc. (JOB)
GEE provides permanent and temporary professional and industrial employment and placement services. Industrial Staffing Services and Professional Staffing Services are the two operational segments of the company.
This month, GEE announced that Agile Resources, its technology staffing solutions company, has been named a 2022 winner of Atlanta's Best and Brightest Companies to Work For. This award recognizes companies that demonstrate a focus on employee development and work-life balance.
During the second quarter ended March 31, 2022, JOB's net revenue increased 14.1% year-over-year to $39.63 million. Its operating income grew 84.8% from the year-ago value to $1.18 million. The company’s net income came in at $1.09 million compared to a net loss of $1.74 million. Its EPS amounted to $0.01.
The consensus EPS estimate of $0.02 for the next quarter represents a 300% improvement year-over-year. Analysts expect GEE's revenue to increase 12% year-over-year to $166.77 million in fiscal 2022.
The stock has gained 12.9% over the past nine months to close the last trading session at $0.53.
GEE's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The stock also has an A grade for Value and a B for Growth and Quality. In the A-rated Outsourcing – Staffing Services industry, it is ranked #4 of 19.
In total, we rate GEE on eight different levels. Beyond what we've stated above, we have also given GEE grades for Stability, Momentum, and Sentiment. Get all the GEE ratings here.
VEON shares were trading at $0.46 per share on Tuesday afternoon, down $0.00 (+0.09%). Year-to-date, VEON has declined -73.10%, versus a -18.45% rise in the benchmark S&P 500 index during the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate.
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