One penny stock that shows promise is Revolution Beauty Group (LSE: REVB). Revolution is a beauty and personal hygiene business that sells multiple brands directly to consumers and through wholesalers. The company’s shares have fluctuated over the past year, currently trading at 24p, but reaching over 100p in 2022.
Revolution has faced challenges with boardroom politics and the stake in boohoo, a fast-fashion business. Institutional investors are cautious due to leadership uncertainty and pending full-year results for February 2024.
Despite concerns about boardroom instability and competition in the beauty market, forecasts suggest Revolution could have its first profitable year since going public in 2021. The company also has a strong balance sheet and a growing geographic footprint and wholesale relationships.
The beauty market continues to grow, offering potential for Revolution’s expansion. Considering recent events and market trends, I see potential for the stock to rise. I plan to purchase a small number of shares at the current price and monitor the company’s performance. I am optimistic that Revolution’s potential will be realized, and I am hopeful that boardroom issues are resolved.