As 2023 unfolds into a promising, positive year, investors are looking to load up on the next big opportunity. The consensus amongst the market punditry is that value and reasonably priced stocks with company-specific catalysts are likely to thrive in the current economic environment. With an optimistic outlook, it’s time to turn our attention to the best penny stocks to watch, offering potential multibagger returns.
It’s also imperative to consider that low-priced stocks could also plummet to zero. However, selecting the best penny stocks with wide “moats” could tilt the odds in your favor. Allocating 10% to 20% of your portfolio to penny stocks could skyrocket your portfolio. The challenge is to invest in these stocks at appealing valuations and exhibits patience while holding onto these investments.That said, here are seven of the most compelling penny stocks to watch.
|AMS||American Shared Hospital Services||$2.84|
American Shared Hospital Services (AMS)
Source: John Brueske / Shutterstock
American Shared Hospital Services(NYSEAMERICAN:AMS) is a small-cap leading provider of radiation therapy equipment to some of the most prestigious medical facilities. In addition, it’s also in a pole position to effectively ride the wave of growing demand for cutting-edge healthcare equipment. With a strong performance since the start of the year, the firm isn’t showing any signs of slowing down.
While AMS’s latest quarterlies suggest that earnings growth may slow, its management has actively pursued organic growth opportunities that could pay off in the long run. Nevertheless, revenue and free cash flow margin growth has improved by double-digit margins in the past year.
Solid Power (SLDP)
Source: John Brueske / Shutterstock.com
Solid Power (NASDAQ:SLDP)is arguably one of the front-runners in the race to commercialize forever batteries, potentially generating millions in new revenues.It has the backing from automotive stalwarts such as BMW(OTCMKTS:BMWYY), which would significantly accelerate its project. Moreover, it was recently awarded a whopping $5 million in funding from the U.S. Department of Energy, which should help lower the prices of its EV batteries.
On top of that, it will be delivering its EV cells for testing to its automotive partners in the upcoming months.With a massive liquidity buffer of nearly $500 million, the company has the resources to pursue aggressive R&D investments. If it succeeds in commercializing its solid-state batteries, the sky is the limit for SLDP stock.
Cronos Group (CRON)
Cronos Group (NASDAQ:CRON)is a leading Canadian cannabinoid firm with a strong presence in key markets such as Canada, Israel, the U.S., and Germany. It’s grown its business remarkably over the years, with its 5-year average revenue growth at a whopping 125%. Its stock, however, is down in the doldrums, despite closing out last year with a colossal $765 million in cash and $113 million in short-term investments.
Revenues for the firm improved by a healthy 23%, while EBITDA losses narrowed by 50% to $80 million last year. Additionally, operating leverage and cost savings plans will imply impressive improvements in key margins.One of its main competitive advantages is its robust positioning in the Israeli cannabis market. The country imported over33,000 kg of medical cannabis last year, roughly 11,000 kg more than in 2021.
Tilray Brands (TLRY)
Tilray Brands (NASDAQ:TLRY)is a hidden gem in the cannabis sector, with stellar fundamentals, making it an alluring value investment opportunity. The company has consistently delivered positive adjusted EBITDA and will likely achieve positive free cash flow in the current financial year. Moreover, with a strong liquidity buffer of $408.3 million, its financial prowess undeniably renders TLRY stock an appealing prospect.
Furthermore, Tilray has ventured into the realm of craft brewing in the U.S. with its acquisitions of two brewing companies establishing a formidable infrastructure. In addition, its $56 million acquisition of Hexo has added another layer to its core cannabis business in the Canadian market. As TLRY stock has languished at a 55% discount over the past 12 months, investors should watch this remarkable player with enormous potential.
Ammo Inc. (POWW)
Ammo Inc. (NASDAQ:POWW)is a renowned ammunition enterprise catering to retail and government sectors. Over the years, it’s been an incredibly consistent business, generating triple-digit revenue growth in the past five years.
However, its business has been feeling the heat in the past year, following inflationary headwinds due to rising input costs. In curbing the inflationary effects, the firm is gearing up to shift its focus towards adopting cutting-edge technology solutions that could bolster working capital efficiency and operating margins and enhance cash flows.
In an astute strategic move, it acquired GunBroker.com, a thriving gun auction site boasting a staggering seven million unique monthly visitors. It positions the company to mine invaluable data, unlocking a treasure trove of opportunities.
The bearish market conditions and stringent firearms regulations have weighed down POWW stock, with it trading at a highly enticing entry point for long-term investors.
Uranium Energy(NYSEAMERICAN:UEC) is a Texas-based uranium mining business. The firm has two production-ready mining projects located in the U.S. and high-grade projects in Canada. Moreover, the company can capitalize on the massive growth expected in the uranium energy sector with a rock-solid balance sheet.
The uranium energy space is set for explosive growth due to a substantial shortfall between the global requirements and the current output. As I discussed in one of my previous articles, the CEO of Sprott Asset Management, John Ciampaglia, notes a 50 million pound shortfall in the supply and demand for nuclear energy. Hence, with the growing demand for uranium energy rising, UEC is in position to capitalize on this trend and deliver strong returns for investors.
Enel Chile (ENIC)
Enel Chile (NASDAQ:ENIC) is one of the largest utility companies in South America. ENIC is a key player in the Chilean electricity space, providing energy to millions of people in and around the Santiago region. Moreover, the firm is powering through a sustainable future by focusing on green energy methods such as hydroelectric, wind, and solar.
The severe drought in Chile significantly impacted hydrology conditions last year. However, with the improving hydrology conditions and the effects of gas prices being marginalized, the company is well-positioned to weather the storm and emerge even stronger. The improvement in its operating environment is evidenced by its blow-out results in the past couple of quarters. Its EBITDA improved by 40% last year, compared to its Investor Day 2021 estimates.
Hence, for those looking to invest in a forward-thinking utility stock with robust long-term potential, Enel Chile is definitely worth investing in at this time.
On Penny Stocks and Low-Volume Stocks:With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand thatInvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More:Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
|Company Name||LTP||% Change|
|Ortel Communications Ltd||1.15||4.55|
|DCM Financial Services Ltd||4.65||4.49|
|Birla Tyres Ltd||4.7||4.44|
|Dhanuka Realty Ltd||9.45||4.42|
|SDPI||Superior Drilling Products||$0.98|
|Fastest Growing Tech Penny Stocks|
|Price ($)||Revenue Growth (%)|
|Grab Holdings Inc. (GRAB)||3.03||311.5|
|Stem Inc. (STEM)||4.92||194.5|
|Velo3D Inc. (VLD)||1.95||186.1|
- BBBYQ0.300.05% Bed Bath & Beyond Inc.
- MULN0.950.15% Mullen Automotive, Inc.
- QBTS1.250.15% D-Wave Quantum Inc.
- NA2.370.97% Nano Labs Ltd.
- BMR4.962.76% Beamr Imaging Ltd.
- HCMC0.000.00% Healthier Choices Management Corp.
- APRU0.000.00% Apple Rush Company, Inc.
- Ubiquitech Software.
- Mullen Automotive.
- Vaalco Energy.
- The Container Store.
Do penny stocks ever "go big"? Penny stocks can certainly "go big," but the problem is these parabolic moves are usually short-lived. Penny stocks frequently double or triple in price in short periods, but these companies usually have a very bleak 5-year chart.How do you find booming penny stocks? ›
You can find penny stocks on the regular stock exchanges and the OTC Markets. Find securities that interest you, then review their basic data. How long has the company been active?How do I find good penny stocks? ›
- Research the Company. An informed trader is a smart trader. ...
- Look for Volatility. ...
- Look for Volume. ...
- Look for Catalysts. ...
- Listen to What Others Are Saying. ...
- Get More Knowledge About Penny Stock Patterns. ...
- Consider the Time of Day. ...
- Pay Close Attention to Debt.
|Company||Forward Sales Growth Next Year|
|Alphabet (GOOG, GOOGL)||+11.8%|
|Eli Lilly (LLY)||+19.4%|
|Company and ticker symbol||Performance in 2023|
|Meta Platforms (META)||99.7%|
|Align Technology (ALGN)||54.2%|
|West Pharmaceutical Systems (WST)||53.5%|
- Consumer staples. ...
- Precious metals. ...
- Vodafone Idea.
- Alok Industries Ltd.
- Yes Bank Ltd.
- Dish TV India Ltd.
- Morepen Laboratories Ltd.
- GMR Power and Urban Infra Ltd.
- Jaiprakash Power Ventures Ltd.
- Mangalam Industrial Finance Ltd.
|MMP||Magellan Midstream Partners||Oil and Gas Storage and Transportation|
|O||Realty Income||Retail REITs|
|DUK||Duke Energy||Electric Utilities|
|PSA||Public Storage||Self-Storage REITs|
You are unlikely to get rich trading penny stocks. On the contrary, you are much more likely to lose your money. Penny stocks and OTC stocks have an average negative annual return of 24%. Over 90% of penny stocks fail.Does anyone get rich from penny stocks? ›
Can You Get Rich Buying Penny Stocks? It's not impossible, but it's unlikely that you'd get rich off of penny stocks. These cheap stocks come with high risk, so you're more likely to lose money.What is the hottest stock to buy right now? ›
|BAC||Bank of America Corporation||28.10|
Some professionals recommend that you devote no more than 10% of your individual stock holdings to penny stocks. It's also important to understand your risk tolerance. Generally speaking, the higher your risk tolerance, the more equipped you are to take on the risk that can come with investing in penny stocks.Is Ford a penny stock? ›
Key Takeaways. Many of today's large, well-known corporations once traded as penny stocks, and some still have had quite low stock prices. A few examples of ex-penny stocks are Ford Motor Company and General Motors, Sirius XM Radio, and Blackberry.How long can you hold a penny stock? ›
Experts Might Hold The Stock For 6 Minutes Or Up To 6 Months: If you are a day trader, you may be buying and selling stocks at an average of every five or 10 minutes. But, investors who are looking for long-term plays and do not want to trade much off momentum, might hold penny stocks for as long as six months.
You can verify this by looking at the stock in social media to see what people are writing about. If you see elevated social media activity, then this is a sign of a pump and dump scheme.What stocks are hot this week? ›
|MPC Marathon Petroleum Corp||111.69||+2.98|
|AES AES Corp||22.25||+0.54|
|BA Boeing Co||202.01||+4.75|
|CRM Salesforce Inc||202.21||+4.31|
Price-To-Earnings (PE) Ratios
Keeping an eye on the company's price-to-earnings ratio is important to identify multibaggers. A good indicator of a multibagger stock is when the PE is growing faster than the price of stocks.
|PFHO||Pacific Health Care||$0.92|
- Best online brokers for penny stocks.
- Interactive Brokers.
- TD Ameritrade.
- Charles Schwab.
- Merrill Edge.
- Ally Invest.
Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.What is the Motley Fool's top 10 stocks 2023? ›
- Realty Income.
- Intuitive Surgical.
- U.S. Bancorp USB.
- Taiwan Semiconductor Manufacturing TSM.
- GSK PLC GSK.
- Wells Fargo WFC.
- Roche Holding RHHBY.
- Comcast CMCSA.
- International Flavors & Fragrances IFF.
- Anheuser-Busch InBev BUD.
|Growth stock||Year-to-date return (as of May 10 close)|
|Apple Inc. (ticker: AAPL)||33.8%|
|DexCom Inc. (DXCM)||8.2%|
|Fortinet Inc. (FTNT)||37.1%|
|Tesla Inc. (TSLA)||36.8%|
The best recession stocks include consumer staples, utilities and healthcare companies, all of which produce goods and services that consumers can't do without, no matter how bad the economy gets.
|Name||Price||Analyst Price Target|
|XRX Xerox||$13.93||$15.33 (10.05% Upside)|
|IBM International Business Machines||$126.76||$147.38 (16.27% Upside)|
|CVX Chevron||$154.56||$188.78 (22.14% Upside)|
|EOG EOG Resources||$110.40||$146.35 (32.56% Upside)|
Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, has the most expensive stock in the world, with shares trading at over $400,000 each. Berkshire Hathaway's market capitalisation is over $640 billion, making it one of the giant companies in the world.What is the stock market prediction for 2024? ›
Stocks expected to rise over next year
Through the first quarter of 2024, analysts expect the S&P 500 to climb 8 percent, to 4,289 from 3,970.99 when the survey closed on March 24. That follows a year of optimism in 2022, when each quarterly survey predicted that the market would be higher in a year.
“The bear [market] is almost over, and a new exciting bull market awaits in the second half of 2023,” he said, pointing to potential in technology stocks in particular.How do you pick penny stocks before they explode? ›
- Where to Look for Penny Stocks. ...
- Share Price and Valuation. ...
- Beware of Dilution. ...
- Rule #1 — Look For Stocks That Are Already Spiking. ...
- Rule #2 — Look for Potential Breakouts That Are Reaching New Highs. ...
- Rule #3 — Bet on Price Action. ...
- Rule #4 — Do Your Research.
|1.||I O C L||89.15|
|2.||Union Bank (I)||69.30|
|3.||IDFC First Bank||68.00|
|4.||I R F C||32.00|
|WETG||WeTrade Group Inc.||0.059|
|SVFD||Save Foods Inc.||1.2|
|TLRY||Tilray Brands Inc.||2.77|
- Gerdau S.A. (NYSE:GGB)
- Lufax Holding Ltd (NYSE:LU)
- Olaplex Holdings, Inc. (NASDAQ:OLPX)
- Nokia Oyj (NYSE:NOK)
- Banco Santander, S.A. (NYSE:SAN)
- Itaú Unibanco Holding S.A. (NYSE:ITUB)
- Ferroglobe PLC (NASDAQ:GSM)
- Verastem Inc.
- Freeline Therapeutics.
Can you make money on penny stocks? It is possible to make money with penny stocks. Then again, it's technically possible to make money with any type of stock. Successful investors usually focus on the potential for their stock picks, regardless of price, to gain value over the long term.What is the best penny stock advice website? ›
Penny Stocks (PennyStocks.com) is the top online destination for all things Micro-Cap Stocks. On PennyStocks.com you will find a comprehensive list of Penny Stocks & discover the best Penny Stocks to buy, top penny stock news and micro-cap stock articles. 2023 is expected to be a huge year for penny stocks.Which stock is best to buy for beginners? ›
|Bajaj Finserv Ltd.||Finance|
|Infosys Ltd.||Information Technology|
|Jubilant Food Ltd.||Food Services|
|Penny Stock||Code||Price(as of 10th Feb)|
|Venator Materials||NYSE: VNTR||$0.64|
|Pharma-Bio Serve||OTCMKTS: PBSV||$0.91|
|Akebia Therapeutics||NASDAQ: AKBA||$0.8|
|Company||Forward Sales Growth Next Year|
|Alphabet (GOOG, GOOGL)||+11.8%|
|Eli Lilly (LLY)||+19.4%|
|TSM||Taiwan Semiconductor Manufacturing Company Limited||100.95|
In addition to Amgen, Inc. (NASDAQ:AMGN), other Fast Money stocks that are widely held by elite hedge funds include Tesla, Inc. (NASDAQ:TSLA), UnitedHealth Group Inc. (NYSE:UNH), and Microsoft Corporation (NASDAQ:MSFT).