3 Smart Penny Stocks with Huge Potential

Stocks to buy

When it comes to investing in top penny stocks, a word of caution.

Do your due diligence before buying. Make sure it has volume. And know upfront that you can lose a lot of money.

Sure, some penny stocks turned out to be massive success stories, like Apple, Ford Motor, and Monster Beverage. Find a similar success story like those top penny stocks, and you stand to make a fortune. However, you have to be willing to do the research to find them in a sea of duds.

As always, I like to add this US SEC disclaimer to all penny stock articles. “Penny stocks are low-priced shares of small companies. Penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock should be prepared for the possibility that they may lose their whole investment.”

That being said, here are some top penny stocks that I believe could have huge potential.

BioLine RX Ltd. (BLRX)

Source: motorolka / Shutterstock.com

The last time I mentioned BioLine RX (NASDAQ:BLRX), it traded at $1.17 on May 4. At the time, it had just announced its application confirmation, FDA acceptance of its APHEXDA. The new drug for stem cell mobilization for autologous transplantation in multiple myeloma patients has a PDUFA target date of Sept. 9. That’s when the U.S. FDA will decide upon treatment approval. Today, as we near that PDUFA date, the BLRX stock is up to $1.69 a share and could surge even higher.

Even better, the company just announced the initiation of Phase 2 clinical trial in first-line metastatic pancreatic cancer. There’s hope for success, with metastatic cancer being a fatal disease for which current treatments offer only limited benefits. Results from this study are also expected later this year, as well. With optimistic success, BLRX could be exposed to a potential $7.4 billion global pancreatic cancer market by 2032.

SoundHound AI (SOUN)

Source: Tada Images / Shutterstock

The last time I mentioned AI-related stock, SoundHound AI (NASDAQ:SOUN), it traded at around $3 a share. Now, after testing a high of $5.11, it’s consolidating around $3.58, handing us another opportunity to go long.

At the moment, the company is working with the auto industry which could help place voice assistants into most vehicles. In fact, after finding that 50% of all drivers “would be likely or very likely to use an in-car voice assistant with Generative AI capabilities,” the company launched SoundHound Chat AI for Automotive, as noted in a company press release.

Also, thanks to what the company called “an incredible surge in demand for conversational AI,” which I have mentioned before, the company recently saw a 56% increase in revenue year over year. It’s worth noting that SOUN was added to the Russell 2000 and Russell 3000 Indexes recently.

Sunworks (SUNW)

Source: Shutterstock

Another top penny stock to consider is Sunworks (NASDAQ:SUNW), a $66.4 million solar stock that’s gaining momentum. Over the last few days, the stock exploded from about $1.10 to $1.80 and could see higher highs.

As the world fights climate change, SUNW is ramping up spending on solar. According to the International Energy Agency, the world’s annual pace of solar installations is expected to quadruple in about eight years, as noted by PV Magazine.

Plus, the IRA (Inflation Reduction Act) offers tax credits to companies involved in solar power installations. The Defense Production Act is encouraging solar panel production as a way toward clean energy. Numerous other countries have been busy in the investment and promotion of solar energy use.

Penny Stocks

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.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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