If you have some spare change in your pocket, it might be worth considering investing that money in penny stocks with good upside potential. The penny stocks on this list are each worth less than $1 as of writing, and many of them could be multibaggers if the stars align favorably. However, investing in penny stocks exposes you to significant downside risk, so it’s important to be cautious. Treat it like a lottery ticket – only invest what you can afford to lose.
I have not included any stocks that undergo significant dilution or have unsustainable losses. Biotech stocks are also excluded from this list due to their inherent risk. These factors should help manage the downside risk for the penny stocks on this list, even though they are speculative plays. Here are seven penny stocks below $1 that show potential:
1. Hyperfine (HYPR)
Hyperfine’s Q1 results indicate steady progress in gaining acceptance for its portable MRI tech, with $3.3 million in revenue and 25% growth year over year. The launch of Hyperfine’s latest artificially intelligent software in January was a major milestone, enhancing image quality and stroke detection. With a focus on building clinical evidence, Hyperfine has potential in markets like stroke and Alzheimer’s. The stock is down around 35% in the past year, but if its MRI tech gains traction, there is upside potential.
2. PEDEVCO (PED)
PEDEVCO Corp is priced at 98 cents and is showing improvements in profits. Analysts expect EPS to grow by 15.3% to 6 cents for the full year. With no long-term debt and significant acreage in promising basins, PEDEVCO has the potential for real returns for shareholders. The company’s strategy of focusing on becoming a top operator in the Permian Basin could pay off if executed correctly.
3. Realbotix (XBOTF)
Formerly Tokens.com, Realbotix is a blockchain company making a push into AI and robotics. The company aims to provide AI-based “companionship” robots, tapping into the growing demand for such products. The market could reward Realbotix with a richer valuation multiple if they succeed in this space. Investors should keep an eye on the company’s progress and management’s actions.
4. Curry’s (DSITF)
Curry’s electronics stores are showing signs of improvement, with sales up about 2% in the most recent four months. The company’s operations in Scandinavia and the UK and Ireland are stabilizing, with earnings expected to meet analysts’ estimates. Tight cost control and higher margins should help drive profits going forward, making Curry’s a potential investment for those interested in tech gear retailers.
5. Goodness Growth Holdings (GDNSF)
Goodness Growth is a cannabis company that saw solid revenue growth in Q1, beating Wall Street’s forecast. The company is also making progress with its “FIRE” strategy, focusing on adult-use sales in Maryland. While there are concerns about investments in other markets, the stock is up 259% in the past year, indicating potential for recovery.
6. Pacific Health Care Organization (PFHO)
Pacific Health Care operates in the healthcare industry, overseeing various medical organizations. The company saw a 7% increase in total annual revenue in the first quarter of 2024, with positive margins. PHCO’s balance sheet remains sound, with no long-term debt obligations and profitable operations. The company is well-equipped to navigate the healthcare industry and deliver returns for shareholders.
7. QuoteMedia (QMCI)
QuoteMedia provides financial data and software tools, with potential for growth once the broader economy cooperates. While revenue declined slightly in Q1 year over year, the company maintains solid finances and continues to invest in new software capabilities. With the means to improve results and handle rising costs, QuoteMedia could see a turnaround in the coming quarters.
In conclusion, investing in penny stocks can be risky but rewarding if done cautiously. It’s important to research and monitor these stocks closely before making any investment decisions.