The conventional definition of a penny stock is one that trades below $1. However, it’s more common to define a penny stock as any stock that trades for less than $5. These stocks carry significant risk compared to other investments. But they also offer the possibility of an outsized reward. One way to find high potential penny stocks is to look at companies that are making news for positive reasons.  

The allure of penny stocks is that a relatively small investment can lead to a large gain. But retail investors should be aware that institutional investors usually ignore penny stocks. That means even after performing their due diligence, investors will need patience if they expect to see a reward.  

In this article, we look at three high potential penny stocks that are making news that could move the stock above the $5 mark in the next six to 12 months.  

Thorne HealthTech (THRN) 

First up on this list of high potential penny stocks is Thorne HealthTech (NASDAQ:THRN). The company is a pure play in the health and wellness sector. Thorne HealthTech “provides solutions and personalized approaches to health and wellness.” Through its Ongevity platform, the company addresses key areas such as sleep, stress, weight management, and other related areas that affect an individual’s health and well being. 

Thorne primarily serves healthcare professionals, professional athletes, and professional sports and Olympic teams. In June 2023, the company announced that its NanoDrop blood testing device received a Conformite Europeenne (CE) Mark certification and has “successfully fulfilled the European Union’s relevant performance, safety, and product requirements.” 

Unlike some penny stocks, Thorne is generating revenue. In fact, that revenue is increasing on a sequential basis. However, the company is not consistently profitable which may be what is keeping THRN stock from climbing above the $5 mark after falling below that mark in 2022.  

Skeena Resources (SKE) 

Skeena Resources (NYSE:SKE) is next on our list of high potential penny stocks. The company mines for gold, silver, copper and other precious metals in British Columbia’s Golden Triangle region. On June 20, 2023, Skeena updated its Mineral Resource Estimate (MRE) for its 100% owned Eskay Creek gold-silver project in this region. 

Demand for both gold and silver is expected to increase in the coming years and investors are taking notice of companies like Skeena Resources. The mining company’s stock has been above the $5 mark for much of the last year. However, the stock has fallen back into penny stock territory as commodity prices have dropped.   

Some of that drop is likely due to the fact that Skeena is not yet generating revenue from its mining projects. That looks like it could be ready to change. And with analysts giving SKE stock a consensus price target of around $16, this is a penny stock to watch closely.  

Atossa Therapeutics (ATOS) 

Atossa Therapeutics (NASDAQ:ATOS) is a true penny stock as of this writing, trading at 96 cents a share. However, analysts have a consensus price target of $6 for ATOS stock and it’s not hard to see why.  

The biotechnology is focused on developing innovative medicines to treat breast cancer. This remains the leading cause of cancer death in American women. Approximately 280,000 women are diagnosed with breast cancer every year.   

The company has ongoing Phase 2 trials that are testing whether the company’s patented Selective Estrogen Receptor Modulator (SERM) (Z)-endoxifen as “a neoadjuvant treatment, for women with estrogen receptor positive breast cancer.” 

Atossa recently announced it had filled up a pharmocokinetic (PK) run-in cohort of its Phase 2 EVANGLINE study. This is one of three Phase 2 studies in the company’s pipeline. That being said, investors should be aware that Atosssa is still a pre-revenue company. However, if the company continues to show positive results in clinical trials, it’s not hard to see ATOS stock as one of the high potential penny stocks to watch.  

On the date of publication, Chris Markoch 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.