The U.S. economy is on the rise, and the stock market is moving with it. Investing in these three undervalued penny stocks can offer high potential returns, particularly for investors seeking significant portfolio growth. These companies offer innovative products, good market positioning and potential for disruptive growth in their respective sectors. Overall, these undervalued penny stocks present compelling investment opportunities for those willing to accept higher volatility in exchange for potentially lucrative returns.
Aker Carbon Capture (AKCCF)
A photo of a person on the peak of a mountain.
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Aker Carbon Capture (OTCMKTS:AKCCF) is a pure-play carbon capture company that is working towards reducing and removing CO2 emissions.
Valued at $6.8 billion in 2023, the carbon capture market is expected to see a CAGR of 19% by 2032. This growth stems from carbon emission reduction regulations, increased investments in control initiatives and a decarbonization focus.
In Q4 2023, Aker Carbon reported revenue of 573 million Norwegian kroner, up an impressive 139% YOY. Aker also increased its order backlog to NOK 2.6 billion, compared to NOK 1.3 billion YOY. It also holds a cash position of NOK 1.1 billion. Looking forward, management hopes to secure contracts to capture 10 million tons of CO2 per annum by 2025. With astonishing financial growth and ambitious expansion plans, Aker Carbon will likely continue to grow.
Additionally, the company was recently awarded a milestone project to test a carbon capture campaign for CO280 Solutions, a leading pulp and paper company. The U.S. pulp and paper industry is a huge emitter of CO2 and a priority market for Aker Carbon to develop. This partnership holds immense growth potential for both parties.
Blink Charging (BLNK)
a blink charging station, BLNK stock
Source: David Tonelson/Shutterstock.com
Blink Charging (NASDAQ:BLNK) is a leading provider of EV charging equipment and services, serving both domestic and international customers. After falling almost 56% in the last year, the stock could be at an oversold level, presenting an intriguing opportunity.
In Q4 2023, Blink Charging reported robust revenues of $42.7 million, marking an 89% increase YOY. While the company has yet to achieve profitability, its operating expenses in Q4 2023 decreased by 16%. It is showing progress towards its target of positive adjusted EBITDA by the end of 2024. Furthermore, after raising $113 million via ATM, Blink Charging strengthened its balance sheet by paying off $45.5 million in promissory notes and accrued interest. These notable financial achievements and the company’s record-breaking Q4 results underscore its promising future.
Adding to its momentum, Blink Charging announced plans to build a new 30,000-square-foot production facility. The facility will streamline production and ramp up manufacturing capacity. This should position the company to meet global demand for EV charging stations — this company is clearly worth more than it’s currently trading at.
IAMGOLD (IAG)
An image of multiple gold bars. Gold prices
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IAMGOLD (NYSE:IAG) owns and operates gold mines in Canada and Burkina Faso. IAG is currently trading at $3.07, up 21.34% YTD. Valued at $198 billion in 2022, the global gold mining market is expected to reach $260 billion by 2030, exhibiting a CAGR of 3.5%.
In Q4 2023, IAMGOLD reported revenue of $297.6 million and EBITDA of $70.2 million. The company also has an available liquidity buffer of $754.1 million, signifying its robust financial position and strong cash flows. Looking forward, management forecasts gold production at all company mines to produce a combined 650,000 to 780,000 ounces in 2024. With strong financial flexibility and strength, IAMGOLD has multiple avenues of both organic and acquisition-driven growth. Furthermore, IAG is one of the notably undervalued penny stocks, thanks to a forward price-earnings ratio of 25.1.
Additionally, IAMGOLD’s Côté Gold asset is expected to begin production this month. If initial gold production commences on time, production from Côté Gold for the year is expected to be between 220,000 and 290,000 ounces on a 100% basis. As the third largest gold mine in Canada, Côté Gold has an expected mine life exceeding 18 years and provides significant opportunities for growth. With healthy production growth and upside visibility, IAMGOLD is well-positioned to benefit from its Côté Gold asset and grow massively.
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On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
