Using TipRanks’ Stock Screener Tool, we have identified the 2 Best Canadian Penny stocks to buy in the week of June 24-28. These stocks have a Strong Buy consensus rating from analysts and could potentially offer significant share price appreciation in the next twelve months. In Canada, a penny stock is defined as a company whose shares are trading at less than C$5 per piece.
Investing in penny stocks comes with its own set of advantages and disadvantages. Investors with a high risk-return appetite may find penny stocks appealing, as they have the potential to generate substantial returns due to their volatile nature. Let’s take a closer look at the two penny stocks we have selected.
Lithium Ionic Corp. (TSE:LTH) is a Canadian mining company based in Ontario. The company is involved in the exploration and development of lithium in the Bandeira Lithium Project in Minas Gerais state, Brazil. Lithium Ionic Corp. aims to become a near-term producer of high-quality, low-cost lithium concentrates to support the growing electric vehicle (EV) transition and battery supply chains. Despite being a pre-revenue company, Lithium Ionic Corp. has shown improvement in its financial performance, with a narrowed net loss in the first quarter of FY24 compared to the prior year quarter.
Analysts are optimistic about the future of Lithium Ionic Corp. stock, citing the high demand potential for lithium. With a Strong Buy consensus rating on TipRanks and a price target of C$3.42, there is a significant upside potential of 545.3% from current levels, although year-to-date shares have declined by 69.7%.
Green Impact Partners (TSE:GIP) is focused on creating a sustainable, clean energy world by specializing in renewable natural gas (RNG) projects across North America. In the first quarter of FY24, the company reported a decrease in revenues and a loss per share, primarily due to lower revenue from its Energy Product Optimization Services. Despite these challenges, Green Impact Partners has a positive outlook, with a Strong Buy consensus rating on TipRanks and an average price target of C$10.58, indicating a potential upside of 234.8% from current levels. Year-to-date, GIP shares have decreased by 28.3%.
In conclusion, investing in penny stocks requires a certain level of risk tolerance. The two penny stocks highlighted here have the potential to deliver solid returns, as suggested by analysts’ optimistic outlook. Investors interested in exploring attractive penny stocks should conduct thorough research before making any investment decisions.