13 Best American Penny Stocks to Invest In

6. Marqeta, Inc. (NASDAQ:MQ)

Share Price: $4.13

Number of Hedge Fund Holders: 34

Marqeta, Inc. (NASDAQ:MQ) is one of the best American penny stocks to invest in. On February 17, JPMorgan initiated coverage on Marqeta, Inc. (NASDAQ:MQ), giving the stock an Overweight rating and setting the price target at $6.

The company is scheduled to report Q4 results on February 24. JPMorgan expects 16% gross profit growth for Marqeta, Inc. (NASDAQ:MQ), which is about one percentage point higher than current Street estimates. The research firm also expects the company to guide for mid-teens gross profit growth along with solid adjusted EBITDA generation.

Some investors are worried that Cash App could diversify processors, which may affect Marqeta, Inc.’s (NASDAQ:MQ) business. However, JPMorgan believes that this risk is offset by growth in other parts of the company’s business, especially in Europe and in lending and buy now, pay later services.

Previously, on January 8, Mizuho downgraded Marqeta, Inc. (NASDAQ:MQ) from Outperform to Neutral and cut its price target from $8 to $4.50, citing concerns about rising competition in the payment processing industry.

On January 8, Wolfe Research also downgraded Marqeta, Inc. (NASDAQ:MQ) from Outperform to Peerperform. These updates come as the company’s Cash App Card’s new issuance transitioned to Bancorp, which could affect future growth.

Marqeta, Inc. (NASDAQ:MQ) is a financial technology company that provides a modern open API platform that helps businesses instantly issue cards and process payments.