Penny stocks are typically defined as stocks with a low share price of less than £1 and a total market capitalization of less than £100m. Despite their low price, some penny stocks have caught the attention of free-site writers for potential growth in the years to come.
Jupiter Fund Management is one such penny stock that offers actively managed strategies to UK and international clients in equities and fixed income. While the company has faced challenges due to the cost-of-living crisis, its current valuation of less than eight times forecast earnings and a 6.2% dividend yield make it an attractive investment opportunity for some. Although a quick turnaround may not be expected, buying now could prove lucrative in the long run once confidence returns to the market.
Michelmersh Brick Holdings, the UK’s largest specialist brick manufacturer, is another penny stock that has piqued the interest of investors. With the housing shortage in Britain creating a demand for new homes, the company’s production of clay bricks and pavers positions it well for future growth. Despite facing challenges such as high inflation and interest rates, Michelmersh Brick Holdings has shown strong growth potential with expectations of increased revenue and profits in the coming years.
Topps Tiles, a company that runs a network of depots and websites selling tiles and flooring materials, has also faced challenges in the current economic climate. However, with a solidly profitable business and a dividend yield of 8.4%, the company remains a strong player in the market. With a strong online presence and a significant market share in the UK, Topps Tiles is well-positioned for future growth in the long term.
While penny stocks may come with risks, these companies have shown resilience and potential for growth in their respective industries. Investors looking for long-term investment opportunities may find these penny stocks worth considering for their portfolios.