Some of the best penny stocks are primed to reach new heights in the first quarter of this year. I expect investor’s risk tolerance to increase amid a broadening market breadth as the valuations of mega caps and large caps may be too rich to be sufficiently attractive. There are definitely some penny stocks to watch if you are looking to buy something ready to explode.

The penny stocks discussed in this article trade at great prices most importantly have bullish upsides and prospects. Caution must always be taken with low market cap companies. However, these companies, I believe, could be winners throughout this first quarter and beyond.

So, here are the best penny stocks for investors to consider.

Grab (GRAB)

Starting off our list of penny stocks to watch is this crazy, strong buy. Grab (NASDAQ:GRAB) is a ride-hailing platform company that’s popular in many eastern and southeastern Asian countries.

Like many penny stocks, GRAB also has a cash flow problem and is burning through the cash on its balance sheet. However, in its most recent quarterly results, GRAB stock appears to have turned a corner. The company is improving its top and bottom lines.

The company reported its first-ever positive Group Adjusted EBITDA. Revenue also saw a substantial year-over-year growth of 61%, driven by growth across all business segments. The loss for the period significantly improved by 71% compared to last year’s corresponding period.

Analysts are also bullish on the company’s prospects for the next twelve months, with Wall Street collectively rating it a “Strong Buy.” This then makes GRAB one of those penny stocks to consider.

Nokia (NOK)

Nokia (NYSE:NOK) was once a leading brand in the mobile phone market. Although it tried its best to maintain relevancy in the early 2010s, the proliferation of smartphones and its inability to compete with names like Apple (NASDAQ:APPL) has necessitated a revamp of its overall branding positioning and key operating segments.

The company today provides mostly network infrastructure products, particularly in the development and deployment of 5G networks. It also offers industrial automation systems through Internet-of-Things (IoT) technologies.

It should be noted that NOK is one of my contrarian picks, as it announced at the end of December last year that it would likely not meet its guidance for net sales or free cash flow.

However, all is not bleak, and I believe that there’s plenty more room in the tank for NOK to shoot higher. Its share is up 0.57% despite withdrawing guidance. Also, its valuation is very cheap when compared to the median of its peer companies.

The company’s EPS is also set to surge more than 7% for FY2024 according to the opinion of 24 analysts who cover the stock. So while the company’s short-term prospects are bleak, on a longer-term basis its trajectory looks headed to the upside, which I believe will overshadow the hiccups it is experiencing in a still challenging backdrop for the broader economy. Of all of the penny stocks to watch we mentioned, we are the most excited about this one.

Senseonics (SENS)

Senseonics (AMEX:SENS) is a medical technology company focused on the development of glucose-monitoring products.

SENS is another one of those cheap penny stocks that investors have turned their backs on in recent times. Its share is down by more than 52% for the past year at the time of writing.

However, there’s also good news on the horizon. SENS said that it expects to report quarterly revenue of around $8 million for Q4’23. This will be a significant top-line increase from the 6.1 million reported in the previous quarter and is reflective of consistent revenue improvements for the company.

On a forward basis, its top-line growth is an expected 41.38%. Wall Street also rates SENS stock as a “Buy” and this consensus rating also comes with an implied 139.42% upside for its share. This then makes it one of those penny stocks that could explode in value for Q1 and FY2024.

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, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.