While the idea of acquiring the best penny stocks under $3 may appeal to your inner contrarian, you need to first understand the risks. In most cases, shares that trade this low do so for a reason, and typically not a good one. On a psychological note, a security can get too cheap, which wouldn’t be helpful in attracting quality investors.

That said, ChatGPT pointed out a few reasons why individuals prefer the top cheap penny stocks to buy. Primarily, such tradable assets feature the potential for high returns. Since penny stocks trade at low prices, even a small positive price movement can result in substantial percentage gains. Investors who are willing to take on higher risk may be attracted to the potential for outsized returns that penny stocks can offer, stated the chatbot.

Also, a psychological element undergirds high-potential penny stocks under $3. Some investors are drawn to the excitement and speculative nature of this asset category. Technically, penny stocks feature lower trading volumes, resulting in wild volatility that can facilitate robust short-term trading opportunities.

Again, it’s worth repeating that we’re dealing with extreme speculation. If you’re okay with that, below are the top penny stocks for quick gains.

MamaMancini’s (MMMB)

A culinary favorite among folks who are short on time, MamaMancini’s (NASDAQ:MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. According to its public profile, MamaMancini’s product portfolio consists of over 20 products. More importantly, its products are sold in over 45,000 locations nationwide, including well-known retailers such as Sam’s Club, Whole Foods, and Publix.

Frankly, as a speculative wager on the best penny stocks under $3, you’re not going to get much better recognition than this. Not only that, MMMB has performed very well in the charts. Since the beginning of this year, shares popped up nearly 49%. Across the past 365 days, MMMB almost doubled in market value.

Financially, MamaMancini’s three-year revenue growth rate (on a per-share basis) pings at an impressive 36.4%. Also, its EBITDA growth rate during the same period is 15.2%, above 64.54% of its peers. Finally, two months ago, Lake Street’s Ryan Meyers pegged MMMB as a buy with a $4 price target. That would imply over 45% upside potential, making it one of the penny stocks to buy in June.

Silvercorp Metals (SVM)

While even the so-called best penny stocks under $3 present incredible risks, Silvercorp Metals (NYSEAMERICAN:SVM) at least benefits from a relevant business profile. At the time of writing, SVM trades at just under three bucks, barely making the cutoff. A Canadian-based, China-focused precious metals firm, Silvercorp engages in the acquisition, exploration, and development of silver-containing properties. Given the importance of the metal to industry, it’s arguably prudent speculation.

Since the start of the year, SVM slipped 2%. That doesn’t sound too bad on the front of things. However, in the trailing month, SVM gave up over 14% of its equity value. If you’re going to be serious about the top cheap penny stocks to buy, you must accept such volatility as an occupational hazard.

Still, the company carries some redeeming qualities, particularly when it comes to profitability. Per Gurufocus, Silvercorp’s trailing-year net margin lands at 9.84%, above 73.38% of sector players. Also, the company benefits from an Altman Z-Score of 4.46, indicating a low risk of imminent bankruptcy. Lastly, analysts peg SVM as a unanimous strong buy (among three experts). Further, their average price target stands at $6.41, implying almost 117% upside potential. Thus, it’s a great idea for high-potential penny stocks under $3.

Immutep (IMMP)

Based in Australia, Immutep (NASDAQ:IMMP) is a biotechnology firm specializing in the field of cancer immunotherapy. Right off the bat, IMMP ranks among the choppiest names for best penny stocks under $3. It’s not so much that IMMP is an underperformer. Since the Jan. opener, shares gained over 16% of equity value. And in the trailing year, they’re up nearly 3%.

Rather, the valuation swings can turn off all but the most battle-hardened speculators. However, if you enjoy cryptocurrency-like wildness, IMMP could be one of the top penny stocks for quick gains. Per its public profile, Immutep’s technology and acumen bring innovative treatment options to market for patients suffering from cancer and autoimmune diseases. Thus, it commands immense scientific relevancy.

To be upfront, its financials could use some work. Most glaringly, Immutep’s profitability margins sit well in negative territory. At the same time, the biotech does enjoy a cash-rich balance sheet. To close, Maxim Group’s Jason McCarthy pegged IMMP as a buy with a $10 price target. This forecast implies almost 370% upside potential, making IMMP one of the top cheap penny stocks to buy.

Penny Stocks

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.