Investing in penny stocks can be risky, but there are opportunities to potentially boost portfolio returns with the right picks. While patience and a growth-friendly market are necessary for significant upside over a five-year period, many investors are drawn to the volatility and potential gains of these higher-risk investments.
Three penny stocks worth considering for those willing to take on some risk are Surge Battery Metals (NILIF), VAALCO Energy (EGY), and Savara (SVRA).
Surge Battery Metals is focused on lithium exploration in Nevada, with promising results from its Nevada North Lithium Project. VAALCO Energy, operating in Canada, Egypt, and Gabon, has seen revenue growth and offers a 4% dividend yield. Savara is making strides in the biopharma sector with a focus on respiratory disease treatments, showing promise with its lead candidate in phase 3 trials.
While these companies are in the higher-risk category and should be approached with caution, they have the potential for growth and profitability. It’s important to consider position sizing and risk management when adding these stocks to a portfolio. Keep in mind that the opinions expressed in this article are those of the writer and do not constitute financial advice.