Get Ready for 5-Bagger Returns on These 7 Penny Stocks
Gold prices have surged above $2,200 an ounce, indicating that rate cuts are likely in the near future. While discussing penny stocks for potential 5x returns, it is important to consider the possible policy changes. Expansionary monetary policies tend to benefit equities and other risky assets, making it a good time to remain invested in growth and penny stocks as the Fed prepares for potential rate cuts.
While blue-chip stocks should still be part of a core portfolio, increasing the weight towards high-beta stocks when easy money policies are anticipated can be beneficial. The focus of this discussion is on penny stocks with the potential for 5x returns in the next 36 months.
In addition to market factors, the mentioned penny stocks are considered undervalued and represent companies with strong fundamentals and positive catalysts. This presents significant upside potential in these investment opportunities.
One such penny stock to consider is Bitfarms (BITF), a company involved in Bitcoin and crypto mining. Another company worth mentioning is Cronos (CRON), which has shown a 25% return in the last 12 months and is believed to be undervalued. With discussions surrounding potential federal legalization of cannabis in 2024, there is room for growth in the U.S. cannabis industry, which is expected to reach $71 billion by 2030.
Cronos also boasts a healthy cash buffer and is expanding into new markets like Germany and Australia in the medicinal cannabis segment. Overall, these penny stocks offer multibagger potential and should be considered for investment opportunities.