Penny stocks are risky and are known for crashing and burning fast. Most of these stocks are unstable and attract a lot of speculations and shifts in the market.
But for those who don’t mind the risk, there are some great gems among thousands of subpar penny stocks to buy that can be a strategic investment strategy.
These three penny stocks have performed tremendously in the past couple of weeks and, for keen analysts, are poised to outperform market expectations. The performance of these penny stocks is favored by the prevailing market, political, technological and economic conditions that guarantee their upward movement in the foreseeable future.
Now, let’s cover why these are the smartest penny stocks to buy right now, what industry trends prop them and what Wall Street analysts think of their future performance.
VAALCO Energy (EGY)
VAALCO Energy (NYSE:EGY) is a fast-rising Texas-based oil and gas company operating in West and North Africa and parts of North America. The company has seen tremendous growth over the last couple of years as Russia-Ukraine war triggered a global oil supply shortage and a sharp demand incline.
The company has ramped up its production since 2022, witnessing a YOY growth of 20% in 2023 and reporting a revenue jump of 25% in its most recent quarterly earnings report. With a current yield of about 3.99% and its earnings per sharing topping at seven cents per share in 2024 from two cents in 2022, VAALCO Energy proves to be one of the best penny stocks to buy right now.
Although it has recently graduated from a penny stock by surpassing $5, it is quite an affordable deal to ignore. And with almost three Waltsreet analysts offering a 12-month average price forecast of $8.92, you should consider placing your money on this one.
VAALCO Energy is set to thrive, with the prevailing geopolitical conditions seeing a shift from Russian oil to Western-produced energy, the company has a real potential to thrive.
The recent acquisition of Svenska Petroleum Exploration has also seen an increase in the company’s production capacity, and ability to meet the increasing demand for Westen energy.
SoundHound AI (SOUN)
SoundHound AI, Inc (NASDAQ:SOUN) is an AI-enabled voice and speech recognition company investing in providing personalized customer experience across all industries. The company provides an AI-powered technology that trains in natural language, understanding which enables companies to utilize the existing data, as well as automate personalized responses to customers.
Sound Hound’s penny stocks have been one of the hottest in the market for the past year, surging over 89% YTD. The company has also seen an astounding Q1 sales revenue increase of over 73%, hitting a record 11.9 million, surpassing market estimates by $1.49 million.
With the company’s shares now trading just under $4, the projected tech trends favor tremendous growth and expansion of its operations. With AI titans such as Nvidia (NASDAQ:NVDA) throwing their weight behind the company and almost all industries accepting AI to improve customer service, SoundHound AI has a real potential to grow.
NeXalin Technology, Inc (NXL)
NeXalin Technology, Inc (NASDAQ:NXL) is a fast-rising pharmaceutical technology company investing in technologies to treat mental health conditions. The company’s transcranial alternating current stimulation technology utilizes a non-invasive treatment method that uses a patented frequency waveform to stimulate a positive response in the patient’s brain.
The company has witnessed tremendous growth since this new technology was approved by the FDA. While NeXalin’s stock trades at just above $2, it is the most bullish penny stock to buy right now.
Recently, it secured a patent for Alzheimer’s deep-brain stimulation device, a non-invasion treatment procedure that will revolutionize the treatment of Alzheimer’s disease. While the announcement came with an almost 50% surge in the company’s stock prices, the company has the potential to grow, having developed a strategic lead in the non-invasive brain treatment technology. NeXalin is definitely one of the most promising penny stocks to buy this year.
On the date of publication, Joel Lim 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.