We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.

Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.

Penny Stock of the Day: T1 Energy Inc. (NYSE: TE)

Today’s penny stock pick is the U.S.-based company focused on building an integrated domestic supply chain for advanced solar modules and battery storage solutions, T1 Energy Inc. (NYSE: TE).

T1 Energy Inc. provides energy solutions for solar and batteries in the United States and Norway. It also manufactures and sells photovoltaic solar modules. The company was formerly known as FREYR Battery, Inc. and changed its name to T1 Energy Inc. in February 2025. T1 Energy Inc. is headquartered in Austin, Texas.

Website:  https://www.t1energy.com/

Latest 10-K report:  https://ir.t1energy.com/static-files/50d17afc-55fb-420d-9012-875a60afae60

Analyst Consensus: As per TipRanks Analytics, based on 3 Wall Street analysts offering 12-month price targets for TE in the last 3 months, the stock has an average price target of $6.67, which is nearly 49% upside from current levels.

Analysts | Source: TipRanks.com

Potential Catalysts / Reasons for the Hype:

  • The company is expected to benefit from the Inflation Reduction Act (IRA), including Section 45X tax credits for U.S.-made components, supporting domestic content advantages and energy security.
  • The surging electricity needs from AI infrastructure drive solar and storage solutions; T1 positions itself as an enabler with scalable U.S. production.
  • The company inked a $75 million multi-year agreement to supply Nextracker’s patented steel module frames for T1 Energy’s 5-GW G1_Dallas solar manufacturing facility, a deal poised to redefine domestic solar production and energy security.
  • TE’s partnership with Corning to source hyper-pure polysilicon and wafers has accelerated its “Made in America” supply chain.

On analyzing the company’s stock charts, there seem to be multiple bullish indications…

Bullish Indications

#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out a symmetrical triangle pattern, which is marked as purple color lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.

TE – Daily Chart

#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.

#3 Price above MAs: The stock is currently above its 50-day and 200-day SMA, indicating that the bulls have currently gained control.

#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.

#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink color dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week SMA, indicating that the bulls are gaining control.

TE – Weekly Chart

#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, the ideal buy level for TE is above the price of $4.60.

Target Prices: Our first target is $6.10. If it closes above that level, the second target price is $7.50.

Stop Loss: To limit risk, place a stop loss at $3.70. Note that the stop loss is on a closing basis.

Our target potential upside is 33% to 63%.

For a risk of $0.90, our first target reward is $1.50, and the second target reward is $2.90. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers 2x to 3x more potential upside than downside.

Potential Risks / Red Flags:

  1. The company has a history of net losses. As of December 31, 2024, TE had an accumulated deficit of $725.2 million.

    TE – Consolidated Statements of Operations

  2. The near-term U.S. trade policies, tariffs on Asian imports, and investigations (like the Section 232 inquiry on polysilicon) create volatility.
  3. Corporate Insiders placed Informative Sells of Shares Worth $1.9M in the Last 3 Months.

    Insiders | Source: TipRanks.com

  4. The company’s recent million equity raise diluted shares by issuing over 22 million at $3.25.
  5. The company has geolocation concentration risk. As of 2024, a substantial portion of TE’s manufacturing facilities and installations were in Texas. The company expects much of its near-term future growth to occur in Texas, further concentrating its operational infrastructure.
  6. Despite being a loss-making company, the executives are being paid significant compensation.

    TE – Executive Compensation

As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!

Happy Trading!

Trades of the Day Research Team

READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.

Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.

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