Investors seeking high-growth opportunities often turn their attention to penny stocks, which may have the potential to deliver substantial returns. The three potential high return penny stocks listed in the article possess the ingredients for explosive growth.
The first company on this list of high return penny stocks is a leading biopharmaceutical company. It recently received European approval for its breakthrough treatment for patients with chronic kidney disease.
The second one is a prominent player in the liquified petroleum gas (LPG) market with secured contracts and strategic vessel sales. Its focus on fleet deployment optimization and a healthy balance sheet demonstrates its dedication to sustainable growth.
However, the third company is a fintech company which is investing in technology. This includes natural language processing and an open-source model platform, highlights its commitment to providing superior customer experiences and staying at the forefront of industry advancements. Investors with an appetite for growth can keep a close eye on these dynamic companies as they embark on an upward trajectory.
Akebia Therapeutics (AKBA)
Akebia Therapeutics’ (NASDAQ:AKBA) recent activities and performance signify the company’s potential to grow decisively over the long term.
The company announced that the European Commission had granted marketing authorization for their drug Vafseo. In the U.S. it is referred to as Vadadustat. The commission is approving it as a treatment for symptomatic anemia associated with chronic kidney disease in adult patients on dialysis. Akebia plans to bring Vafseo to market in Europe later this year. Also, the company is actively seeking a partnership with a company that understands the complexity of the European dialysis market to support the launch.
Notably, Akebia reported positive top-line results from the FOCUS study. The study evaluated the efficacy and safety of Vadadustat in hemodialysis patients. The data showed that Vadadustat met the primary and secondary efficacy endpoints paving the way for its approval.
Finally, Akebia is collaborating with the University of Texas Health to evaluate Vadadustat as a potential treatment for acute respiratory distress syndrome (ARDS). The company plans to design and initiate a well-controlled study in a broad ARDS patient population with hopes to enroll patients this year. With so much going right for Akebia at the moment it is no wonder how they made this list of high return penny stocks.
StealthGas (GASS)
StealthGas (NASDAQ:GASS) experienced a seasonally strong quarter during Q1 2023 for LPG trading. It continued its strategy of prioritizing fixing its ships on time. Because of this, the operational utilization of the fleet increased to a staggering 97.3% due to a reduction in spot market days and only a single vessel undergoing drydock.
Financially, StealthGas reported voyage revenues of $38.1 million, a 6% increase compared to the previous year. Despite having a smaller fleet, income from operations after operational expenses saw a 19% enhancement to $9.7 million. Its net income more than doubled to $16.9 million, resulting in an EPS of 44 cents for the quarter. The company maintained a healthy balance sheet with liquidity of $92.6 million and announced a $15 million share buyback program.
Further, the LPG market showed positive growth, with increased U.S. and Middle Eastern exports. Importers such as India, China, Korea and Japan also increased their LPG imports. Interestingly, market rates for LPG shipping saw healthy growth, increasing between 4% and 15% depending on the size and location.
FinVolution (FINV)
FinVolution (NYSE:FINV) experienced healthy growth in Q1 2023. This growth demonstrates the company’s ability to attract borrowers and expand its customer base, which bodes well for its long-term growth prospects.
Notably, FinVolution has cumulatively invested over 2 billion in Chinese Yuan, or nearly $276 million, in technology over the last five years. By exploring areas such as data tools, natural language processing and AI technologies, the company aims to improve its data analysis capabilities. These investments in technology enhance FinVolution’s ability to provide better user experiences, improve operational efficiency and stay at the forefront of technological advancements.
Further, FinVolution’s plans to build an open-source model platform for intelligent marketing and customer service operations signify a long-term focus on improving the efficiency and effectiveness of its operations. It is resulting in enhanced customer service, targeted marketing campaigns and overall business growth.
Finally, FinVolution remains focused on its proprietary technologies. It includes the Octopus system for borrower acquisition and the Magic Mirror technology for credit risk assessment. These technologies enable the company to reduce borrowing rates, attract high-quality borrowers, optimize loan matching processes and achieve better-than-expected funding costs.
On the date of publication, Yiannis Zourmpanos did not hold (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.