Turn Pocket Change into Profit: 3 Penny Stocks Ready to Pop
There are plenty of penny stocks ready to pop. However, we have to remember that penny stocks are extremely risky, and can be costly in the end. So, one, never risk more than you can afford to lose on any penny stock. That’s even if you believe it’s a “sure thing.”
Two, don’t just buy any penny stock out there. Make sure you do your due diligence.
Three, take some advice from the SEC. “Penny stocks may trade infrequently — which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
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As long as you understand the risks, and won’t risk the house, here are just a few of the top penny stocks ready to pop.
Adverum Biotechnologies (ADVM)
Source: Mongkolchon Akesin / Shutterstock.com
One of the top penny stocks ready to pop is Adverum Biotechnologies (NASDAQ:ADVM). A clinical-stage gene therapy, ADVM has a strong focus on developing cures to restore vision and prevent blindness.
At the moment, it is evaluating ixoberogene soroparvovec (Ixo-vec) as a one-time IVT injection for patients with neovascular or wet age-related macular degeneration, as noted on its site.
And it is seeing success. In fact, the company just presented positive results from a Phase 2 trial that more than doubled its stock. We could see that happen again with the company expected to present its 26-week interim analysis in the middle of this year.
What’s interesting about ADVM’s treatment for wet AMD is that, so far, it is “showing potential for best-in-class efficacy and over 90% of subjects having no or minimal inflammation with our go-forward local prophylactic regimen,” as noted in a company release.
We should also note that the wet AMD market — which includes 20 million people just in the U.S.– could be worth about $14.4 billion by 2030, according to ResearchandMarkets.com.
Nerdy (NRDY)
Source: fizkes / Shutterstock.com
By now, you’ve heard about the artificial intelligence (AI) boom. You’ve seen stocks like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) explode higher. And you know the unstoppable AI boom could be worth about $2.7 trillion by 2032.
And while we can always buy Nvidia or even AMD at their current highs, we can look at an AI penny stock, like Nerdy (NYSE:NRDY).
The company is using artificial intelligence to transform the way people learn. In fact, according to the company, its “purpose-built proprietary platform leverages technology, including AI to connect learners of all ages to experts.”
Even better, earnings have been solid for this up-and-coming AI penny stock. Revenues were up nearly 32% year over year to $55.1 million from $41.8 million. It posted a record quarterly gross profit of $39.2 million a 33% increase year over year.
Gross margins were also higher at 71.3% from 70.5% year over year. With guidance, NRDY expects first-quarter revenues to be in the range of $51 million to $53 million. For the full year, it anticipates a revenue range of $232 million to $246 million, or 24% growth at the midpoint.
Even better, in January, Goldman Sachs raised its price target to $3.25, keeping a neutral rating on the stock. Most recently, JP Morgan reiterated its buy rating, with a $5 price target.
American Lithium (AMLI)
Source: Olivier Le Moal/ShutterStock.com
We can also look at beaten-down lithium penny stocks like American Lithium (NASDAQ:AMLI).
Last trading at 72 cents, it plummeted with most other lithium names on oversupply issues. However, with speculation that lithium prices may be bottoming out, coupled with bullish lithium company CEOs, the future may be brighter for AMLI.
For example, as I mentioned earlier this week, “Australian lithium company Pilbara (OTCMKTS:PILBF) just said it’s seeing buying interest again.
Even Rio Tinto CEO Jakob Stausholm is bullish on lithium, noting, “Ideally, you will need more battery capacity, so it’s not just batteries for EVs but also stationary batteries. So, the world will have more batteries, I have no doubt about that. And therefore, you need more lithium,” he said, as quoted by US News & World Report.
Even better for AMLI, the company just tripled the estimated value of its Falchani lithium projects in Peru. As noted by Seeking Alpha, “The company said Falchani’s estimated value has tripled from the previous forecast to $5.11B and that the project would have a potential operating life of 32 years.”
Penny Stocks
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
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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