Good Penny Stocks to Buy Now
Penny stocks are shares of small public companies that trade for less than £1 in the UK and below $5 in the US per share. Is there a penny share list for retail traders to watch now?
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Many people think penny stocks are risky to invest in due to their high volatility and low liquidity. Well, that’s partly true, but remember, great risk often comes along with huge potential upside.
In reality, shares of some of the biggest market cap companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. Today, you’ll spend around $190 and $150 respectively to buy one share.
Another example is Advanced Micro Devices (AMD). This stock traded for less than $2 per share in 2016. If you put $100 into AMD at that time, that position would be worth $6,100 in 2023.
There are a handful of hidden gems among the numerous penny stocks. Here we outline 3 great penny stocks to watch based on their recent performance.
*Market data as of Nov, 28.
iQIYI is currently one of the largest online video sites in the world, with nearly 6 billion hours spent on its service each month and over 500 million monthly active users.
In Q3 2023, the company’s revenue was up 7% year over year. It posted an operating income of $102.4 million and an operating income margin of 9%, compared to 4% in the same period in 2022.
Nordic American Tankers is an international tanker company focusing on operating Suezmax crude oil tankers.
The company has done very well so far this year. In Q2 2023, the average time charter equivalent rate for the company was $39,300 per day per ship, 96% higher on a year-on-year basis. Further, considering the current macroeconomic and geopolitical conditions coupled with tight supply of ships, the company might take advantage of rising oil prices.
Cronos Group is among the most undervalued cannabis penny shares to buy. Cronos reported healthy revenue growth of 22% on a year-on-year basis to $24.8 million. The company has also launched the Peace Naturals brand in Germany. In the coming quarters, Europe will support acceleration in growth.
Penny stocks represent a volatile and risky part of the stock market, so to find out a good penny stock is essential. Companies with a sound business model, attractive valuations and long-term growth potential are likely to provide positive returns to investors.
Like any stock, however, positive results are never guaranteed with penny stocks. Therefore, it’s best to balance your portfolio with other ranges of markets, such as forex and CFD.
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