Penny Stock Sleepers: 7 Under-the-Radar Gems Ready to Launch

Stocks to buy

Penny stocks to buy understandably offer many enticing attributes, not least of which is the potential for tremendous returns. Of course, the emphasis is on the word “potential.” That doesn’t mean guaranteed – not by a long shot.

Indeed, let’s talk about the dangers of this market subsector. While the low price of these securities tend to make them move on little (or even no) news, the opposite is also true. So, for example, if you put $10,000 into a 2-cent stock and it drops to 1 cent, guess what? You now have a position worth only $5,000.

That can be devastating for many investors who are lured into the arena on the promise of quick riches. Riches can happen, don’t get me wrong. However, you’re more likely to lose than to win statistically. Therefore, tight money management is an absolute must. If you can handle the heat, these penny stocks to buy might be right for you.

Lilium (LILM)

Source: T. Schneider / Shutterstock.com

A specialist in the field of electric vertical takeoff and landing (eVTOL) aircraft, Lilium (NASDAQ:LILM) understandably ranks among the most popular penny stocks to buy. That’s evidenced by the consensus moderate buy view among Wall Street analysts. Further, the average price target calls for a rise to $2, which implies roughly 52% upside potential.

So, what’s not to love? It’s volatile. Sure, LILM stock gained about 12% of equity value recently. With that, it’s up over 33% in the trailing 52 weeks. However, since making its public market debut, shares have lost 88%. That’s not a great sign for the company obviously. At the same time, it’s not as if the eVTOL sector is lighting up the board.

Further, another risk factor to keep in mind is that Lilium is a pre-revenue enterprise. That said, there is anticipated financial momentum. For fiscal 2024, covering experts believe that Lilium will post a loss of 59 cents per share, an improvement over last year’s loss of 77 cents.

Most importantly, in fiscal 2025, they project revenue of $56.99 million. It’s risky but that’s the compelling nature of penny stocks to buy.

BlackSky Technology (BKSY)

Source: Andrzej Puchta / Shutterstock.com

Based in Herndon, Virginia, BlackSky Technology (NYSE:BKSY) falls under the scientific and technical instruments category. Per its public profile, BlackSky provides geospatial intelligence, imagery and related data analytic products and services and mission systems. These systems include the development, integration and operation of satellite and ground systems for government and commercial customers in North America and other international markets.

As part of the burgeoning space economy, it’s easy to see why BKSY is one of the penny stocks to buy. Financially, while the company has been all over the map in terms of earnings performance, it’s been known to knock some balls out of the park. For example, it delivered earnings per share of one cent in the third quarter of last year. In contrast, the expected target was a loss of 12 cents.

For fiscal 2024, experts anticipate a loss of 33 cents per share on revenue of $110.76 million. That’s a big step forward in terms of the top line, which was only $94.49 million in 2023. For those that can handle volatility risk, BKSY should be on your radar.

Avino Silver & Gold (ASM)

Source: Phawat / Shutterstock.com

Operating in the basic materials sector, Avino Silver & Gold (NYSEAMERICAN:ASM) features a business that’s self-explanatory. It engages in the acquisition, exploration and advancement of mineral properties. Primarily, it explores for silver, gold and copper deposits. The former two assets naturally carry monetary policy implications as they’re traditionally considered inflation hedges. The latter is a key metal to target if the global economy improves.

One factor that makes ASM a robust candidate for penny stocks to buy is the fear trade. With economic concerns juxtaposed with geopolitical flashpoints, investors have much to fret about. Gold can help but gold is also inconvenient to own. If you have a security like ASM stock, however, you can potentially enjoy secondary exposure to the yellow metal.

Even better, for fiscal 2024, analysts anticipate that EPS will hit four cents on revenue of $59.53 million. That’s up from a breakeven year in 2023 and sales of $43.89 million. Looking out to fiscal 2025, EPS could rise to 7 cents on sales of $69.03 million.

Hookipa Pharma (HOOK)

Source: Gorodenkoff / Shutterstock.com

Operating in the broader healthcare space, Hookipa Pharma (NASDAQ:HOOK) falls under the biotechnology umbrella. Per its corporate profile, Hookipa is a clinical-stage enterprise that is developing immunotherapeutics targeting infectious diseases and cancers based on the company’s proprietary arenavirus platform. Its lead infectious disease product candidate is HB-200 for the treatment of pembrolizumab, which is in a Phase 2 trial.

Notably, Hookipa enjoys a collaboration with Gilead Sciences (NASDAQ:GILD). This effort focuses on preclinical research programs to evaluate potential vaccine products for the treatment, diagnosis or prevention of the hepatitis B virus. Hookipa features variable earnings performances. However, in Q1 2024, it posted EPS of 11 cents against an expected loss per share of 10 cents.

For fiscal 2024, experts project a loss per share of 34 cents on revenue of $55.47 million. That’s a massive improvement over last year’s loss of 86 cents per share on sales of only $20.13 million. Therefore, it could be one of the worthwhile penny stocks to buy. Do note, though, that HOOK is volatile, losing 46% in the past 52 weeks.

Knightscope (KSCP)

Source: Sundry Photography / Shutterstock.com

An enticing (albeit extremely risky) idea for penny stocks to buy, Knightscope (NASDAQ:KSCP) deserves a look for anyone with some pocket change they want to use rather than throwing it in the wishing fountain. Specializing in autonomous security robots (ASRs), Knightscope could potentially change the game regarding security and law enforcement. Essentially, the company deploys robots as front-line security patrol operators.

This directive features myriad advantages over the traditional deployment of human officers. First and foremost, Knightscope addresses the safety concern. In a volatile situation, it’s usually better to send a robot in because it’s replaceable. Second, robots being non-human can sidestep the sometimes tricky situation involving security forces and community interactions.

Financially, Knightscope’s performances are all over the map. However, in fiscal 2024, analysts anticipate the stats to tighten up. The company could generate a loss of 19 cents per share on revenue of $15.9 million. That’s a big improvement over last year’s results of a loss of 34 cents on sales of $12.8 million. Again, it’s risky but Ascendiant’s Edward Woo rates it a “buy” with a $4.25 price target.

Arqit Quantum (ARQQ)

Source: Shutterstock

Based in London, U.K., Arqit Quantum (NASDAQ:ARQQ) falls under the infrastructure software category. According to its public profile, the company provides cybersecurity services through satellite and terrestrial platforms. It offers QuantumCloud, a Platform as a Service (PaaS) that allegedly creates unbreakable software encryption keys. Thus, it’s a marriage of two compelling industries: cybersecurity and quantum computing.

Naturally, ARQQ makes an enticing case for penny stocks to buy due to the underlying relevance. It’s not just about burgeoning interest in anything quantum related. Rather, the threat of digital hacks and breaches is only rising. It seems like every year, some major enterprise or organization suffers a significant compromising of its data, impacting both the business and its customers.

Cynically, then, Arqit benefits from a potentially permanent bullish narrative. How does that translate on paper? For fiscal 2024, experts believe the company will post a loss per share of 12 cents on revenue of $20.04 million. Last year, the company’s results sat at a loss of 33 cents on sales of $693,000.

Matinas BioPharma (MTNB)

Source: PopTika / Shutterstock.com

Headquartered in Bedminster, New Jersey, Matinas BioPharma (NYSEAMERICAN:MTNB) also falls under the biotechnology umbrella. According to its corporate profile, Matinas is a clinical-stage enterprise that identifies and develops pharmaceutical products using its lipid nanocrystal (LNC) platform technology. This innovation allows for the delivery of small molecules, nucleic acids, gene therapies, vaccines, proteins and peptides.

Currently, the company’s lead product candidate is MAT2203, an oral formulation that is currently in Phase 3 clinical trials for the treatment of aspergillosis and cryptococcosis. The drug candidate also aims to prevent invasive fungal infections in patients due to immunosuppressive therapy. Analysts rate shares a consensus moderate buy with an 80-cent price target, implying almost 364% upside potential.

Of course, with such a massive profit target, you’ve got to expect wild volatility. And that’s the case with MTNB stock. Since the start of the year, shares lost 25% of equity value. In the past 52 weeks, they’re down nearly 61%.

Still, if the clinical trials evolve successfully, MTNB could be huge. It’s one of the penny stocks to buy (or at least to watch).

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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

Articles You May Like

Don’t Miss These 3 Tech Rockets With Limitless Upside
3 Space Stocks to Buy Now: May 2024
QCOM Forecast: Why Qualcomm Stock Is Giving Off Strong Buy Vibes for 2024
Want an Extra $12K Per Year? Put 100K in These 7 Dividend Stocks.
Delta Air Lines Stock Outlook: Expect DAL to Keep Flying High Through the Summer