There’s no denying that penny stocks with high potential carry incredibly big risks. At the same time, that’s why they’re so appealing. Typically, you can’t enjoy blistering rewards without taking on significant danger.
It’s like anything in life. The greatest adrenaline rush you’ll likely receive is during incidents that legitimately threaten to end you. When you escape the Grim Reaper? That’s a feeling that’s indescribable. At the same time, the consequences of getting it wrong are severe.
Apply that to the market. Yes, these ideas can turn your greenback into gold. But you better be prepared for extremely volatility. If that’s you, check out these penny stocks with high potential.
Stacks of pennies representing penny stocks. Nano-Cap Penny Stocks
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Based in Burlington, Massachusetts, Desktop Metal (NYSE:DM) falls under the computer hardware category. Per the public profile, Desktop manufactures and sells additive manufacturing technologies for engineers, designers and manufacturers. It serves multiple industries, including automotive, aerospace, healthcare, consumer products, and heavy industry, among others.
Now, to be completely upfront, DM stock is wildly speculative. Recently, shares closed at only 56 cents. For the year, it’s down 23%. Regarding its financial performances, Desktop is hit or miss. Between the second quarter of last year to Q1 2024, the company’s average quarterly surprise came out to 0.82% below breakeven.
In the trailing 12 months (TTM), net loss landed at $322.73 million on revenue of $188.98 million. Right now, the quarterly revenue growth (year-over-year) comes in at 1.7% below parity. For fiscal 2024, covering experts anticipate a 1.9% decline in sales to $186.03 million.
So, why bother with Desktop? In the following year, revenue could potentially rise to $207.8 million, up 11.7%. Further, analysts rate shares a moderate buy with a $1.05 price target, implying 87% upside potential. It could be one of the penny stocks with high potential.
Gold Resource (GORO)
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Headquartered in Denver, Colorado, Gold Resource (NYSEAMERICAN:GORO) falls under the basic materials segment, as you might imagine. Per its corporate profile, Gold Resource engages in the exploration, development and production of gold and silver projects in Mexico and the U.S. The company also explores copper, lead and zinc deposits.
Fundamentally, the fear trade has driven gold and silver prices to either record highs or multi-year highs. Although some near-term economic data caused volatility, the long-term trend seems bullish for precious metals. There’s a lot to be concerned about in the geopolitical realm and that makes GORO cynically attractive.
In the TTM period, Gold Resource incurred a net loss of $19 million on sales of $85.2 million. To be fair, circumstances haven’t been great, with the quarterly revenue growth coming in at 40.1% below parity. Further, consensus fiscal 2024 sales calls for a decline of 9.4% to $88.55 million.
Still, the high-side target lands at $105.3 million. That could be more realistic given the underlying fear trade. Therefore, GORO ranks among the penny stocks with high potential.
Akoustis Technologies (AKTS)
Page of newspaper with words penny stocks. Undervalued Penny Stocks
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Based in Huntersville, North Carolina, Akoustis Technologies (NASDAQ:AKTS) operates in the communication equipment sector. According to its public profile, Akoustis designs, develops, manufactures and sells radio frequency (RF) filter products for the mobile wireless device industry. Among its services are engineering review and backend packaging.
Financially, the company’s bottom-line performance isn’t impressive in the least. In the past four quarters since Q1 2024, the average negative surprise came out to 22.55%. Over the last 12 months, Akoustis incurred a net loss of $76.91 million on revenue of $29.86 million. Although it may be a while before the enterprise is profitable, it has been steadily growing its top line.
For fiscal 2024, experts anticipate a loss per share of 70 cents on sales of $28.84 million. That’s a relatively modest improvement from last year’s results of a loss of 88 cents with a top line of $27.12 million. However, fiscal 2025 sales could rise to $38.27 million, implying almost 33% expansion. Combined with its relevant business, AKTS may be one of the penny stocks with high potential.
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.
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.
