Business Software and Services Penny Stocks Showing Signs of Breaking Out: BZWR, TLSS, GXXM, GAXY

Penny stocks offer some of the best investment opportunities for investors with a high-risk tolerance. While these stocks trade for pennies, a price rise to a few dollars results in one of the biggest paydays for investors.

Penny stocks of companies offering business software and services are some of the bests, given the tremendous opportunities for growth amid strong demand. For starters, the business software and service segment is growing at a compound annual growth rate of 11.9%, with the market valued at over $400 billion affirming solid investment opportunity in the sector.

The ever-growing demand for enterprise software and services across various IT infrastructures makes the following penny stocks some of the best.

Business Warrior Corporation on the Move on Robust Revenue Growth

Business Warrior Corp (OTCMKTS:BZWR) is one of the penny stocks showing signs of breaking out after a long period of consolidation. The provider of a cloud-based lending platform for success and long-term business growth boasts of proprietary software that helps small business owners prioritize daily decisions to strengthen their edge in the respective field. In addition, the software is designed to enhance customer acquisition.

While operating in a new enhanced business model focused on sustainable growth and strong recurring revenue growth, the company is fresh from delivering solid quarterly results; revenue from the three months ended February 28, 2023, was up 19% year over year to $877,281 as operating expenses declined 31%.

The robust revenue growth comes from the company’s flagship product PayPlan eliciting strong demand as a lending software for loan origination, loan management and credit services. The software stands out in empowering lenders to build a thriving loan business. As Business Warrior Corporation continues to sign new clients on the flagship app, it is poised to register consistent recurring revenue growth.

Focus on consistent recurring revenue allows the company to create long-term relationships with clients while also providing a more predictable revenue stream. While the current recurring revenue model comes with a lower profit margin at the beginning, that should change going forward. As the company acquires new clients and strengthens its customer base, it should register a faster path to profitability backed by strong revenue growth year over year.

That said, Business Warrior Corporation is trading at a discount, given the strong revenue growth rate. While trading for pennies, there has been an uptick in traded volumes in recent months, signalling a buildup in buying pressure. The buildup comes from investors noting the company’s solid underlying fundamentals that affirm long-term prospects and growth metrics.

Transportation and Logistics Systems Improving Financials

Transportation and Logistics Systems, Inc. (OTCQB:TLSS) is a penny stock worth paying attention to as the company offers a suite of logistics and transportation services. The company has made a name for itself in offering e-commerce fulfilment, last-mile delivery and two-person home delivery across the United States. The strong demand for the company’s services was the main catalyst behind the solid first-quarter results.

Revenue in the first three months of the year was up 344% to $5.6 million, primarily driven by the acquisition of JFK Cartage Inc, Freight Connections and Severance Trucking. Net loss in the quarter shrunk to $1.75 million from $2.15 million delivered in the same period last year.

Thanks to the acquisitions, Transportation and Logistics Systems delivered a 53.7% improvement in its gross profit margin to 35.2%, affirming it is on the path to being profitable. The fact that the company is already undertaking cost-saving measures and integration efforts to improve bottom-line results underscores its long-term prospects as a penny stock worth paying attention to.

GEX Management in a Robust Growth Phase

GEX Management, Inc. (OTCQB:GXXM) has already broken out, rallying by more than 100% after a long period of consolidation. The break out has come on huge turnover of traded shares in the aftermath of the management consulting company affirming it has made significant progress in its Phase III Hypergrowth strategy.

The new strategy involves building a proprietary AI-powered technology platform and product base that complements enterprise consulting suite offerings. The new strategy is expected to drive revenue growth and market share gains by revolutionizing the way the company offers consulting services to clients.

The efforts are already bearing fruits, with revenue from consulting services increased by 150% to $890,478 last year. As the company moves to offer more targeted and personalized business solutions to clients, it should attract more clients resulting in further revenue growth. By offering real-time insights and analytics to customers, it should make it easy for businesses to make informed decisions unlocking a new growth opportunity.

Galaxy Next Generation Improving Fundamentals

Galaxy Next Generation (OTCQB:GAXY) is another penny stock worth paying attention to as it remains highly undervalued. The company has made a name as a provider of interactive learning technology solutions that allows people to engage in a fully collaborative instructional environment.

Its diversified product portfolio includes private label interactive touchscreen panels and numerous national and international branded peripheral and communication devices. The solutions are currently on sale in over 20 resellers in the US, targeting the commercial and educational market.

The company is already fresh from securing a new contract worth $200,000 from a Northeast Ohio school district. The contract will see the company supply G2 Bell, paging, Intercom and Clock BPIC hardware to five schools.

The company’s balance sheet shows signs of improvement amid the strengthening of revenue streams that saw revenues in the first three months of the year increase to $657K from $430K. The company registered a $900K improvement in operating expenses at the back of sales growth. Net loss improved to $1.5 million from $3 million in the previous quarter. The improvements are already making headway on the balance sheet, which has increased by over 87%.