3 Hot Penny Stocks to Buy in Q4 for Promising Potential
Penny stocks are typically companies that are trading below $5 per share. These companies are ones that can be risky to invest in. They offer the chance of getting in early before the stock realizes its significant growth potential, or on the other side, with them being such small companies, they may have liquidity issues and may find themselves with a lack of funding, leading to the company losing investor interest.
These small stocks are very volatile, and investors should be very cautious with these companies due to the fact that the probability of losses is much higher than with robust blue-chip stocks. However, investors shouldn’t altogether avoid penny stocks; they should research the company beforehand and not put up a sizable chunk of their portfolio.
Below, I will discuss three different penny stocks that have been performing very well lately, and investors who are looking to add some more risky companies to their portfolio should definitely consider these.
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Enel Chile (ENIC)
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Enel Chile (NYSE:ENIC), located in Santiago, Chile, is the largest electric utility provider in the country. They produce electricity through many different means, including geothermal, wind, solar and hydroelectric. Enel Chile also participates in the transportation of natural gas resources.
Enel Chile has seen a spike in its share price of approximately 77% over the past year. Due to a number of factors, including that energy needs for the country of Chile are projected to grow by 25% by 2030. They have transitioned well to renewable energy sources, which comprise nearly 80% of their energy generation.
Enel Chile also offers a great dividend yield on an annual basis of 10.61%, with its last dividend payout to investors being on June 8, 2023.
Enel Chile is one of the best performing foreign utility companies so far this year. The company has seen large growth and is projected to keep growing with Chile’s increasing energy needs. It is also attractive to many investors due to its high dividend yield.
Myomo (MYO)
Source: shutterstock.com/MAD.vertise
Myomo (NYSE:MYO) is based in Boston, MA, and produces wearable robotic technology for individuals primarily with neuromuscular disorders. Their flagship product is MyoPro Orthosis, a myoelectric device that fits the arm and hand and helps patients with a range of motion. Myomo distributes its products through medical, surgery and rehab centers.
Myomo is on a considerable momentum streak and has seen its stock price rise by over 300% in this last year. On Nov. 7, they released their earnings results for the third quarter, which stated that total revenue grew by 28% and their net loss shrank by $800,000 compared to the year before. MyoPro orders were up by 20%, and there was an increase of 22% in their patient pipeline within the same time period.
Myomo is developing much-needed technology for individuals with debilitating disorders, and they have investors’ interest due to their positive earnings results and possible future growth potential.
Mama’s Creation (MAMA)
Source: Shutterstock.com
Mama’s Creations (NASDAQ:MAMA), headquartered in East Rutherford, NJ, is a producer of packaged foods and meats. Mama Creations supplies grocery stores and similar distributors with beef, turkey, pasta, sandwiches, and other convenience foods.
In September, they reported earnings for the second quarter of fiscal year 2024. It stated a net loss of $700,000 for Q2 2022 and a net income of $1.7 million for Q2 2023, and with the same period, its total revenue grew by 9%. They also announced the rollout of new snack and dinner entree products as well as a new international deli food platform.
Mama Creation’s has seen over a 200% increase in their share price over the last year due to solid earnings results and their projected promising future.
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 that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More:Penny Stocks — How to Profit Without Getting Scammed
As of this writing, Noah Bolton did not hold (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.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
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