NEW YORK (TheStreet) - The S&P Small Cap 600 Index registered gains of 9.8% in the past three months as compared to a 6.4% gain recorded by the S&P Index. The current market volatility has thrown up an abundance of penny stocks to suit speculative investors, with many priced below $5. Although investors prefer safe and stable stocks when markets gyrate, they also can consider these penny stocks for potential reward.
Based on average estimates of analysts polled by Bloomberg, these five stocks have potential upsides ranging from 29% to 205%, with an average of 61% of analysts issuing buy ratings.
The stocks are listed in ascending order of upside potential.
5. SiriusXM Radio (SIRI) is a satellite radio company. It broadcasts more than 135 satellite radio channels of commercial-free music and other services to over 21 million subscribers in the U.S. The company syndicates content from some of the biggest names in entertainment, as well as from professional sports leagues, major colleges, and providers of national news and talk shows.Of the 12 analysts covering the stock, 75% recommend a buy and 16.7% suggest a hold. Analysts' average 12-month price target for the stock is $2.28, about 28.9% higher than the current price, according to Bloomberg. For the third quarter of fiscal 2011, SIRI reported total revenue of $763 million, up 6% from the same quarter last year. Adjusted EBITDA rose 16% to $197 million. Net income was up 54% at $104 million, while free cash flow increased 22%. The company's subscriber base grew 7% year-over-year to 21.3 million. Net additions for the quarter were 364,004, up 41% from the third quarter of 2010. The self-pay subscriber base reached an all-time high of 17.5 million, growing 7% year-over-year. In October, SIRI launched an expanded channel lineup, such as new music, comedy, sports as well as Sirius XM Latino, a suite of Latin channels. For fiscal 2012, SIRI anticipates revenue growth of 10% to over $3.3 billion and adjusted EBITDA of 20% to $860 million. In December, the company announced that it will launch Tiesto's Club Life Radio, the 24/7 commercial-free music channel featuring music by superstar DJ Tiesto.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV