Welcome to 2024, a fresh start and a time when many of us set new goals. Perhaps one of your resolutions is to improve your finances by investing. If you want to invest but with a modest budget, penny stocks might be your perfect starting point.
What are Penny Stocks?
Penny stocks are low-priced shares of small companies, typically traded for less than $5 each. They offer a unique opportunity for investors with limited funds to participate in the stock market. This affordability means you can buy a large number of shares without breaking the bank, potentially reaping substantial rewards if the stocks perform well.
Penny stocks are known for their volatility and carry higher risks than more established stocks. Unlike well-established stocks, penny stocks can experience extreme price swings. While their low price may seem attractive, it’s important to be aware of the potential downsides.
Related: Best Web3 Stocks to Buy & How to Invest in Web3 Stocks
Top Penny Stocks to Watch in 2024
The NASDAQ, S&P, and Dow Jones all returned 44%, 25% and 14% in 2023. Investing in penny stocks presents an opportunity to gain impressive returns in the stock market. Below are the penny stocks to watch in 2024:
1. Taboola.com Limited (NASDAQ: TBLA)
Taboola is a technology company that powers recommendations across the Open Web using an AI-based algorithmic engine. They partner with websites, devices, and mobile apps to recommend editorial content and advertisements. Taboola.com Limited saw a significant upside of over 20% in the year-to-date for 2023.
Basis of Recommendation: The company has recently entered a new deal with NBCUniversal News Group, which expects to utilize its products across various platforms. This partnership could potentially boost its growth.
2. Adaptive Biotechnologies Corporation (NASDAQ: ADPT)
Adaptive Biotechnologies develops and sells tests to help diagnose and treat cancer. Their tests work by looking for tiny pieces of DNA that are unique to cancer cells. The company’s tests are still in the early stages of development, but they have the potential to revolutionize the way we diagnose and treat cancer. For example, their tests could be used to detect cancer earlier, when it’s easier to treat. They could also be used to develop personalized cancer treatments.
Basis of Recommendation: Adaptive Biotechnologies announced that FDA has approved its new drug in oncology. They also presented positive data from their clinical trials at the American Society of Hematology (ASH) annual meeting. In addition, the company’s unique positioning in the biotech sector keeps it relevant for long-term growth.
3. Grab Holdings Limited (NASDAQ: GRAB)
Grab is a Southeast Asian superapp that provides ride-hailing, food delivery, and other services. They are the leading ride-hailing platform in Southeast Asia with a presence in over 400 cities across eight countries. They have a partnership with Google Cloud to expand their cloud computing capabilities.
Basis of Recommendation: The company’s revenue jumped about 61% year-over-year to $615 million, beating estimates. In addition, Global Management LLC owns substantial ownership in several investments.
4. Opendoor Technologies Inc (NASDAQ: OPEN)
Opendoor is a digital real estate company that buys and sells homes directly from and to consumers. They use an online platform to allow homeowners to request offers for their homes and to buy homes listed on the platform.
Basis of Recommendation: Opendoor Technologies has experienced a remarkable 232% stock gain year-to-date through December 9. The company expects to reach free cash flow breakeven by the first half of 2024. A significant number of institutional investors have investments in Opendoor, signifying strong market confidence.
5. AbCellera Biologics Inc. (NASDAQ: ABCL)
AbCellera is a biotechnology company that uses AI to develop antibody drugs. Antibody drugs are used to treat a variety of diseases, including cancer and autoimmune diseases. AbCellera’s AI platform can quickly identify and develop antibodies that are effective against specific diseases.
Basis of Recommendation: In 2020, AbCellera collaborated with Eli Lilly to develop antibody-based therapies for COVID-19. They also presented positive data from their preclinical trials for new cancer therapy at the AACR annual meeting. Also, CEO Carl Hansen’s focus on strategic partnerships suggests a targeted approach for future growth.
6. Lumen Technologies (NYSE: LUMN)
Lumen Technologies is a telecommunications company that provides communication and data services to businesses and consumers. They are best known for their fibre-optic network, which is one of the largest in the United States. Lumen also offers a variety of other services, such as voice, data, and video conferencing. They’re a major player in the telecom industry, and they’re always working on new ways to innovate and improve their services.
Basis of Recommendation: Lumen Technologies reported adjusted EBITDA that beat analyst estimates in its Q3 2023 earnings report. They also have a partnership with Microsoft to offer Azure cloud services to Lumen’s customers. The appointment of Dr. Satish Lakshmanan as Chief Product Officer is expected to steer the company’s product portfolio towards innovative solutions.
7. FLJ Group Limited (NASDAQ: FLJ)
FLJ Group Ltd is a diversified industrial holding company with operations in a variety of industries, including manufacturing, distribution, and logistics. They’re based in Hong Kong, but they have operations all over the world. FLJ Group is a relatively small company, but they’re growing rapidly. They’re a good example of a diversified holding company, which means that they have a portfolio of businesses in different industries. This can help to make the company more resistant to economic downturns, as one industry may do well while another is struggling.
Basis of Recommendation: FLJ Group reported strong third-quarter results, with revenue and earnings per share both exceeding analyst expectations. They also announced a share buyback program of up to $100 million. In addition, the company’s acquisition of Alpha Mind Technology Limited could enhance its market position.
8. Fisker Inc. (NYSE: FSR)
Fisker Inc. is an American electric vehicle (EV) startup company that was founded in 2016. They’re based in Los Angeles, California. Fisker has not yet released any vehicles for sale, but they have two models in development: the Ocean SUV and the PEAR personal luxury car. The Ocean is expected to be released in late 2022, and the PEAR is expected to be released in 2024. Fisker is a relatively new company, but they have a lot of experience in the automotive industry. The company’s founder, Henrik Fisker, is a well-known car designer who previously worked for BMW and Aston Martin.
Basis of Recommendation: Fisker has a partnership with Magna International to manufacture the Ocean SUV. They also reported that they had over 3,000 vehicles as of September 30, 2023. With significant business progress in vehicle production and deliveries, Fisker is positioning itself as a strong player in the EV space. The delivery growth and market expansion highlight the company’s potential.
9. SenesTech, Inc. (NASDAQ: SNES)
SenesTech is a Canadian biotechnology company that develops and manufactures diagnostic tests for animal diseases. The company’s principal product is the IDEXX SenesTest, a rapid test for bovine Leukemia Virus (BLV). SenesTech also markets other diagnostic tests for cattle, horses, and sheep.
Basis of Recommendation: An exclusive distribution agreement with Fruit Tree Limited and potential expansion into Mainland China could significantly boost its market presence. The company’s shares have been gaining traction, reflecting growing investor interest.
10. Overseas Shipholding Group (NYSE:OSG)
Overseas Shipholding Group (OSG) is a leading provider of energy transportation services, delivering crude oil and petroleum products throughout the United States and the world. Founded in 1948 and headquartered in Tampa, Florida, OSG has a long history of navigating the ups and downs of the shipping industry.
Basis of Recommendation: This company is a key player in the oil transportation sector and has shown remarkable stock performance, with an increase of about 67% year-to-date for 2023. The growth is attributed to the thriving tanker industry and strategic corporate maneuvers, including share repurchases.
Frequently Asked Questions on Penny Stocks
The specific stocks to buy depend largely on your investment goals, risk tolerance, and market conditions. It is advisable to focus on sectors showing growth potential, like technology, renewable energy, and healthcare.
The “best” penny stock for the future can vary greatly based on current market trends, individual company performance, and overall economic conditions. Generally, look for companies with strong fundamentals, such as solid financial health, innovative products or services, and competent management teams.
Penny stocks can be volatile, making it impossible to recommend one. It is important to diversify your portfolio, do your due diligence, and beware of the hype.
Conclusion: Best Penny Stocks to Buy Now
Investing demands resilience, patience, and a keen eye for detail. As you decide to put your money in the stock market, do so with an open mind and a strategy. Diversification, regular market analysis, and staying informed are key. Remember to invest what you can afford to lose, and always keep learning. The more you know, the better your chances of spotting those hidden gems.
Finally, a word of caution. This article is not professional financial advice. It is meant to inform and inspire, not substitute for expert guidance. If you are unsure or new to investing, it is wise to consult a financial advisor. They can help tailor your investment strategy to your personal goals and risk tolerance.
