We recently published a list of 11 Best NASDAQ Penny Stocks To Buy Right Now. In this article, we are going to look at where Marqeta, Inc. (NASDAQ:MQ) stands against other best NASDAQ penny stocks to buy right now.
The NASDAQ Stock Market is home to some of the world’s largest companies in the world and also hosts several hundred penny stocks. These companies must meet certain requirements to remain listed on the NASDAQ exchange, including the $1 per share minimum share price thresholds, revenue standards, and market capitalization thresholds. If a company fails to meet these requirements, it may receive noncompliance notifications and eventually be delisted. According to a report by Bloomberg, this year’s market rally has boosted many of the struggling stocks, helping some companies regain compliance with NASDAQ’s listing requirements.
Optimism in U.S. Markets
On December 3, Bloomberg reported that Fed Governor Christopher Waller, while addressing a conference in Washington, indicated that he is inclined to vote for a rate cut at the upcoming Federal Reserve meeting on December 17-18. However, Waller emphasized that his decision will depend on the economic data released before the meeting, particularly if it shows an unexpected uptick in inflation.
According to Bloomberg, New York Fed President John Williams in a speech in New York said that the economy is continuing to look strong and inflation is likely moving down toward the Fed’s target. However, he emphasized that the path for monetary policy will be contingent upon incoming economic data. He underscored the uncertainty of the economic outlook, noting, “If we’ve learned anything over the past five years, it’s that the outlook remains highly uncertain.”
In an interview with CNBC on November 15, Nicholas Colas, Co-founder of DataTrek Research, discussed his views on the US stocks and the potential of small caps. Colas recalled how U.S. stocks outperformed global markets during the first Trump administration. Colas acknowledged that current multiples are high, but he is optimistic and believes that multiples can hold or even rise, given the high level of confidence in the US market. Regarding small caps, Colas suggested that they are a great trade for the year-end. The Russell 2000, which tracks small-cap performance, has been flat and lagged significantly behind the S&P 500 over the past three years, and presents an amazing opportunity, given that it typically sees a 20% increase. This underperformance makes small caps reasonable holds for the longer term, as they are due for a rebound.
While the broader market is showing signs of overvaluation, small-cap, and penny stocks have lagged significantly behind over the past few years, creating a compelling opportunity for investors.
Is Marqeta, Inc. (MQ) the Best NASDAQ Penny Stock To Buy Right Now?
Our Methodology
To compile our list of the 11 best NASDAQ penny stocks to buy right now, we used Finviz and Yahoo stock screeners to find the 25 largest companies trading below the price of $5 as of December 4. We then used Insider Monkey’s Hedge Fund database to rank 11 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Marqeta, Inc. (NASDAQ:MQ) is a leading innovator in the global payments industry, providing modern card issuing and payment processing solutions to companies and organizations around the world. The company provides a cloud-based, API platform for card issuing and transactions, allowing businesses to build and embed customized payment solutions directly into their applications. The company serves financial institutions, tech companies, and e-commerce businesses.
Marqeta, Inc. (NASDAQ:MQ) is focusing on expanding its global presence and enhancing its API offerings to capitalize on the growing demand for digital payments. Despite the recent regulatory hurdles, Marqeta, Inc. (NASDAQ:MQ) is poised to capitalize on the growing demand for embedded finance solutions. The company’s strong balance sheet, with $1.1 billion in net cash and virtually no debt, positions it to weather any short-term challenges and invest in its future.
Marqeta, Inc. (NASDAQ:MQ) is also expanding its product pipeline and increasing revenue. In Q3, Marqeta, Inc. (NASDAQ:MQ) reported an 18% year-over-year increase in revenue, with a gross profit margin of 70%. The company’s product pipeline includes new solutions such as Portfolio Migration, Marqeta Flex, and UX Toolkit. These new products will further enhance the company’s competitive position and drive growth in the embedded finance market.
Overall, MQ ranks 2nd on our list of best NASDAQ penny stocks to buy right now. While we acknowledge the potential of MQ to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
