When you’re looking for low-cost investments, penny stocks may be an attractive option. The definition of a penny stock varies, but most feel the category includes equities trading for less than $2, $3, or $5 per share. With them, for essentially the price of a latte, you can procure a whole share of a company. Penny stocks are also higher risk since even small price swings represent a significant percentage of their value. However, they can also be excellent opportunities. Here are six penny stocks on Robinhood you need to check out.
1. Vaalco Energy Inc. (EGY)
Vaalco Energy Inc. is an independent energy company based in Texas, and it focuses on oil and similar energy-related commodities. With oil prices rising, that gives the stock some potential. Plus, production has largely been on the rise.
Another intriguing part about Vaalco Energy Inc. is it offers a relatively strong dividend yield. Generally, it’s near 6.4 percent, and that gives investors another reason to keep this stock on their radar.
2. Polestar Automotive Holding Uk Plc (PSNY)
Polestar Automotive Holding Uk Plc is an electric vehicle manufacturer that’s recently made some headlines. First, the company showed an uptick in deliveries, reaching 15,000 in Q2 2023. Second, for North American vehicles, the company stated the plugs will align with Tesla standards. Additionally, the existing fleet will be Tesla charging station compatible using an adapter.
Most analysts feel that the Polestar Automotive Holding Uk Plc stock has room for growth, with target prices falling in the $6 to $12 range. With the price mainly sitting in the $3 to $5 range in 2023, that means it could have potential.
3. Nokia Oyj (NOK)
Nokia Oyj hasn’t had the best overall year, but with a price target of nearly $6, it has some potential. Even with wireless infrastructure spending slowing, the company has a presence in the fixed-line space, which could help it overcome some challenges others may not weather so easily.
Plus, reduced investment in wireless infrastructure may not last forever. Currently, economic conditions are causing governments to reel back in this arena, but this is primarily leading to project delays, not outright cancelations. Once the landscape is more favorable, Nokia will likely benefit, which means buying in the dip could be worthwhile.
4. Ardelyx Inc. (ARDX)
Biotech is an industry with plenty of potential, and Ardelyx Inc. is an interesting potential investment in that space. The company focuses on developing treatments and therapies for medical conditions where there are significant unmet needs. While it only has one FDA-approved product currently, Ardelyx Inc. has a robust pipeline for further developments.
Plus, while the company’s stock price has been mainly between $3 and $4 for the past several months, its price target is significantly higher. Most analysts feel the price target falls around $7 or $8, and some even believe $12 is a reasonable point.
5. SNDL Inc. (SNDL)
For investors who aren’t opposed to investing in vices, SNDL Inc. could be an opportunity. The Canadian company is a cannabis and liquor distributor in Canada, two arenas that are generally profitable. Plus, the company has had significant revenue growth, so it’s hard to deny its potential.
Over the past two quarters, SNDL Inc. has primarily traded between $1.25 and $1.75. However, its target price is typically around $6. Ultimately, that does mean this penny stock is worth watching.
6. Aqua Metals (AQMS)
Aqua Metals is a metal recycling company that uses proprietary and patented technology. What’s most intriguing about this company is its new lithium-ion battery recycling process, which the company announced earlier in the year is capable of recovering high-purity lithium hydroxide at scale. A new Aqua Metals facility focused on lithium-ion recycling is slated to begin operations in 2024, and the company will effectively combine black mass recycling with lithium refining, creating a single process that reduces waste, lowers costs, and enhances the efficiency of lithium battery supply chains.
While Aqua Metals has spent 2023 largely between $1 and $2 per share, analysts list a price target of $4. While there is some risk, that does mean analysts believe the stock has potential for growth.
Do you know of any other penny stocks on Robinhood people should check out? Share your thoughts in the comments below.
Read More:
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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