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DailyBubble News

3 Penny Stocks That Won’t Be Penny Stocks Much Longer

Investing in blue-chip stocks may not be the most exciting option, but it can be very rewarding in the long run. These stocks have a history of creating value over time, showing the power of compounding. On the other hand, investing in growth and penny stocks can be more thrilling due to their higher volatility. However, this excitement comes with a higher level of risk, so it’s important to have a well-diversified portfolio.

As we approach the new year, there are expectations of multiple rate cuts globally. Lower interest rates not only support economic growth but also have a positive impact on asset markets. I anticipate that the S&P 500 index will continue its uptrend in the coming year. If overall market sentiment remains bullish, there could be significant price movements among penny stocks.

In this article, we will discuss three penny stocks that have the potential to soar in 2024 and move out of the penny stock category. While investing in these stocks carries a high level of risk, the fundamentals and business outlook for these companies are positive.

One such stock to consider is IAMGOLD (IAG). After experiencing a significant correction, Tilray (TLRY) stock has been trading sideways for the past seven months. Despite the volatility, I believe that this cannabis penny stock is deeply undervalued and is poised for a breakout rally.

Tilray has made several acquisitions to establish itself as the fifth-largest craft beer brewer in the U.S. With the craft beer market expected to grow at a CAGR of 7.2% through 2030, Tilray is well-positioned to benefit from this diversification. Additionally, the company has been delivering strong results in the cannabis business, with Canadian and International cannabis revenue showing significant growth. Tilray has also projected positive adjusted free cash flow for the financial year 2024.

Given these positive developments, TLRY stock appears to be oversold. I expect to see strong performance in the upcoming quarters, which could trigger a significant rally in the stock.

It’s important to note that the opinions expressed in this article are those of the writer and do not reflect any positions held by them in the securities mentioned. Faisal Humayun, the writer of this article, is a senior research analyst with expertise in credit research, equity research, and financial modeling.

Overall, investing in penny stocks can be risky but potentially rewarding. It’s essential to conduct thorough research and analysis before making any investment decisions.

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