Are you looking for $1 stocks? Well, you’ve come to the right place. This article focuses on three promising stocks priced at around $1 apiece. Although $1 penny stocks can be risky, careful due diligence paired with sound portfolio allocation generally leads to scintillating returns.
Methodologically, I started by looking at companies that I’m familiar with. I then examined their updated fundamentals while observing a few quantitative metrics to ensure market-based alignment. Lastly, I applied a rules-based technical screening process to phase out overbought or short-seller-targeted stocks.
An honest research study admits to its limitations. In this instance, I admit the following limitation: my picks are exceptionally risky. However, their key variables suggest they are poised for upside movement. Here is a breakdown of each stock.
Platinum Group Metals (NYSE:PLG) is a precious metals exploration firm. The company’s primary project is the Waterberg mine in Namibia, which has yet to deliver revenue. However, preliminary studies suggest that Waterberg is a force to be reckoned with.
Many market participants are concerned by Waterberg’s substantial cost outlay, which partially explains why PLG stock has shed more than 90% of its market value since its inception. The mine remains in pre-construction and a capital expenditure cycle of around $874 million is expected, clearly communicating the risks involved for shareholders. However, Waterberg is estimated to deliver an after-tax internal rate of return of 20.7% with a mine life of more than 40 years. Moreover, Waterberg is set for substantial profit margins due to the region’s high-quality minerals and skilled labor force.
It’s impossible to value Platinum Group Metals at this time, but something tells me that PLG stock will surge once the miner reaches commercial production. Additionally, Platinum Group Metals is partially owned by a platinum powerhouse called Impala Platinum (OTCMKTS:IMPUY), allowing it sustainable access to capital.
PLG stock trades around $1.3 per share. Don’t underestimate this PGM penny stock!
i-80 Gold (IAUX)
Gold bars and Financial concept, studio shots. Costco's gold bars, cost stock
Source: Misunseo / Shutterstock.com
i-80 Gold (NYSE:IAUX) is a Nevada-based gold mining company. Although it is a revenue-generating firm, its mine development journey is at an early stage. i-80 is leveraging a skilled management team to build numerous open-cast and underground mines in the highly lucrative Nevada region.
Gold spot prices have surged by nearly 20% year-over-year, handing i-80’s income statement a helping hand. Nevertheless, i-80 Gold’s fourth-quarter results illustrate robust internal operations. The miner’s revenue grew by about 1.22x year-over-year, reaching $19 million.
Although i-80 delivered scintillating fourth-quarter revenue, it slumped to an earnings per share loss of 7 cents. However, as previously mentioned, i-80 is scaling up its operations, so I’m not concerned about its bottom line at this stage.
Mining investors usually emphasize a stock’s price-to-book ratio as a resource firm’s asset base is easy to measure, meaning IAUX stock is well-aligned as it sports a price-to-book ratio of merely 0.88x. Moreover, IAUX recently ticked above its 10-day moving average, suggesting a momentum trend is en route.
The question now becomes: Is IAUX a buy? Priced at around $1.25 per share means it won’t break the bank. Additionally, IAUX has robust fundamentals and quality quantitative metrics. I’m bullish here!
PEDEVCO (PED)
miniature oil barrel and oil well figures on top of stack of money
Source: Shutterstock
If you’re looking for a speculative oil and gas stock, this is probably it.
PEDEVCO’s (NYSE:PED) latest full-year results suggest it has a revenue base of $30.8 million. Most of PEDEVCO’s income derives from its operations in the Permian and Denver-Julesburg Basins, where it applies advanced technology to maximize productivity. Moreover, PEDEVCO’s production is increasing at scale as the firm delivered 1,427 barrels of oil equivalent per day in 2023, a 43% increase from its previous financial year.
Oil and Gas prices have recovered in recent months. For example, crude oil futures have ticked up by nearly 15% since the turn of the year, driven by short supplies and a northern winter. Although winter has ended, global geopolitical risk could dent the oil and gas supply outlook, handing relevant commodity prices a boost. Moreover, a softening labor market paired with a drop in broad-based inflation provides PEDEVCO input cost advantages going forward.
In essence, I think PEDEVCO has numerous tailwinds. Additionally, PED stock has a stunning price-to-book ratio of only 0.91x. As such, I consider this stock relatively undervalued.
On the date of publication, Steve Booyens did not hold (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.
Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for institutional equity research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary – University of London. Furthermore, Steve has passed all CFA Levels and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve’s articles on InvestorPlace form an interesting juxtaposition between mainstream opinion and objective theory. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.
