Get Rich Quick With These 7 Hypergrowth Penny Stocks
Building a growth portfolio from scratch can be a complicated job. There is no doubt that identifying good investment options in the vastness of the markets can be a time-consuming task. Besides, if you want to build your low-cost portfolio, you must do good research on the best and most efficient low-cost options. To help you a little with that work, here are seven hypergrowth penny stocks from different sectors that can be attractive for your portfolio. Let’s take a brief look at them.
Pitney Bowes (PBI)
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Pitney Bowes Inc. (NYSE:PBI) is a global mailing and mail service company, providing technology and financial solutions to businesses to manage their shipping and mailing needs. Many investors view it as a penny stock with accelerated growth potential.
However, in terms of its recent financial performance, it had mixed results. Its revenues declined and it posted a loss in earnings per share, primarily due to an intangible asset impairment charge in its Global Ecommerce segment. Despite this, the company showed strength in other areas, such as its increase in domestic package processing and profit margin growth in some segments.
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To support its financial stability and growth, the company secured a $275 million investment in July 2023 to pay down outstanding debt. PBI is also implementing measures to reduce expenses and improve efficiency. In addition, its BOXpoll survey revealed that, despite economic challenges such as inflation, consumers intend to continue shopping online. That fact could benefit the company going forward.
GEE Group (JOB)
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GEE Group (NYSE:JOB), is a company dedicated to connecting companies with the talent they need through recruitment services and human resources solutions. In the third quarter of 2023, it had some important financial news.
JOB’s professional contract services revenue grew 5%, thanks to information technology. However, direct hire revenue declined due to the stronger economy in the prior year. Overall, the company’s total revenue declined 7% due to the prior year’s exceptional performance in direct contracting.
Despite these challenges, GEE is taking steps to reduce costs and maximize shareholder value. It recently partnered with Red Oak Partners to improve its corporate governance and is exploring strategic opportunities for the future.
Irsa Inversiones y Representaciones Sociedad Anónima (IRS)
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Irsa Inversiones y Representaciones Sociedad Anónima (NYSE:IRS) is an Argentinian company that manages real estate assets, such as shopping centers and hotels. Despite its low price per share, it has stood out for its rapid growth, making it interesting for some investors.
As for its financial situation in 2023, IRS recorded a profit of ARS 58,094 million, 22.8% lower than in 2022. On the other hand, rent-adjusted EBITDA increased by 24.9%, thanks to its shopping centers and hotels. However, total EBITDA decreased to ARS 36,000 million from ARS 59,126 million in 2022. In addition, the company sold assets for $163.7 million, reduced its net debt by 67%, distributed dividends and repurchased shares.
The company recently approved a cash dividend of ARS 64,000,000,000, equivalent to 884.69% of share capital available as of October 12, 2023. That indicates a strategy of returning capital to shareholders, which could be an additional attraction for investors.
Canoo (GOEV)
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Canoo Inc. (NASDAQ: GOEV) is an electric vehicle (EV) manufacturing company known for its LDV 130, a versatile and customizable vehicle that can be adapted for different charging uses. Recently, the company reached important milestones in meeting safety and regulatory standards for its LDV.
What makes Canoo especially interesting is its potential for rapid growth, due to its diversified manufacturing strategy and strategic partnerships with Native American communities, such as the recent collaboration with the Pawnee Nation in Oklahoma, to boost the clean energy industry in the region.
As for its financial position, it had $5.0 million in cash at the end of June 2023 but has been able to raise more capital through financing arrangements. Despite reporting losses on an accounting basis, GOEV’s adjusted metrics, such as EBITDA and adjusted net loss, show significant improvement. That suggests improved operating performance. In addition, its financial indicators, such as loss per share, have also improved, indicating a more favorable financial picture.
The company has effectively managed its cash flow, reducing the net use of cash in operating activities and maintaining a stable investment in investing activities.
Mogo (MOGO)
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Mogo (NASDAQ:MOGO) is a company that offers digital payment solutions and financial services. It is currently in the spotlight as a potential hidden gem in the low-cost stock market that could be interesting for your investment portfolio.
As for its financial situation in Q2 2023, Mogo experienced a slight decline in revenue due to its strategic decision to focus on more profitable products. However, its gross profit margin increased to 75%, showing solid profitability. The company has also been working hard to reduce costs, resulting in a significant improvement in its cash flow and a notable decrease in its losses.
In more recent news, Mogo has been expanding its presence in the cryptocurrency world, and its investment in Coinsquare positions it as a major player in Canada’s cryptocurrency investment ecosystem.
In addition, the company is implementing a share consolidation to improve its capital structure and has launched a share buyback program, suggesting the company is confident in its underlying value.
Pixelworks (PXLW)
Source: Apple
Pixelworks (NASDAQ:PXLW), is a company dedicated to making images on your devices, especially smartphones, look spectacular. The interesting thing about this company is its impressive growth. It can be considered a penny stock with promising hypergrowth.
Why? Well, in the second quarter, its revenue was up 37%. How did they accomplish this? By selling visual processors for cell phones to major companies. Those chips make the images on your phones look much better, and that’s something phone companies want.
PXLW is also focusing on mobile gaming, which is booming. It launched the IRX Gaming Experience brand, collaborating with companies like Xiaomi and OnePlus to improve the visual experience in mobile gaming. The company is also working with NetEase (NASDAQ:NTES) on a game called Revelation Mobile, improving the visual quality on mobile so you can enjoy more immersive games.
Leafly Holdings (LFLY)
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Leafly Holdings (NASDAQ:LFLY) is a major player in the cannabis industry. Think of it as the place where cannabis lovers can find everything cannabis related — from the latest strains to nearby stores. This makes them stand out in the cannabis market and is why many people see Leafly as an exciting investment opportunity.
As for its financials in the second quarter of 2023, Leafly had revenue of $10.7 million, although that was down slightly from the previous year. However, Leafly managed to maintain a good profit margin and significantly reduced its operating expenses, showing the company is managing its money efficiently. Although LFLY had a small net loss, its operating performance metric, adjusted EBITDA, showed a positive number — an encouraging sign.
In addition, Leafly received a major award, the “Best Cannabis Tech Platform: B2C,” at the Benzinga Cannabis Awards. That was in recognition of the company’s commitment to becoming the number one place for people to connect with cannabis stores and trusted brands.
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, Gabriel Osorio-Mazzilli 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.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
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