November witnessed robust job growth in the US economy, as employers added 199,000 jobs. This surge surpassed the expected 180,000 net job gains, dropping the unemployment rate from 3.9% to 3.7%. A significant contributor to this job growth? The return of autoworkers and actors as the resolution of labor disputes in key sectors infused a sense of stability and economic confidence. Moreover, this economic strength is highly likely to influence various sectors, all the way into penny stocks. For investors seeking to capitalize on these rosy factors with some risk in their portfolio, these penny stocks with catalysts in the next 30 days are the ones to watch for high potential of significant returns.
Aegon Limited (AEG)
Aegon Limited (NYSE:AEG) is a Dutch business focusing on providing customers insurance, savings, retirement plans, and livelihood services. The company has had a successful 2023, currently valued at $5.61 and growing 17.36% year-to-date.
For context, the financial services industry brought $25.5 trillion in revenue in 2022. Looking ahead, experts forecast that the industry will grow to $58.7 trillion by 2031 at a 9.7% CAGR. Given its Dutch roots, Aegon does not hold the largest market share in the United States. However, the company is well-positioned to capitalize on the global Dutch market.
In Q2 2023, $3.26 billion in revenue declined year-over-year. Despite this, AEG saw increases in net income and EPS, reporting $67 million and $0.03, respectively, both of which grew over 130% year-over-year. Even more promising, financials are projected to recover in Q3 and Q4 2023.
The largest catalyst with AEG comes from updates with sales growth in two key regions in Brazil and the Netherlands. Notably, the division of life insurance has seen a recent breakthrough with tapping into Brazil’s market. As for the U.S. market, increases in United States strategic assets and asset management are reported to have “continued commercial momentum and increased capital generation.” With asset management contributing one of the largest business sectors for Aegon, earnings are expected to receive a boost through this division.
Overall, successful business decisions and widespread increases in services will push AEG’s stock value higher. While it’s a penny stock, it’s a penny stock with catalysts on the horizon.
PENN Entertainment (PENN)
The American entertainment company, PENN Entertainment (NASDAQ:PENN) is strategically expanding its presence in the gambling industry. To date, the company has been the operator of integrated entertainment, sports content, and casino gambling.
Looking ahead, the company is actively establishing new regional casinos that provide a robust foundation for future growth. In a 10-year partnership with ESPN, PENN is integrating betting features into ESPN’s media and Fantasy Football apps. These features will allow users to initiate bets, transfer slips to ESPN Bet, and complete transactions effortlessly.
That said, as of writing this article, PENN stock is down around 10.48% to $23.86 in the past six months. This decline puts the stock in an attractive position for investors looking to capitalize on the sports betting sector. Encouragingly, the media & entertainment market size is expected to grow at a 7.80% CAGR from $27.72 billion in 2023 to $40.36 billion by 2028.
Recovering financials are evident. While the company recently announced quarterly revenue at $1.62 billion, which marked a 0.34% decline year-over-year, this still beat revenue consensus estimates by 0.20%. Diluted EPS of -$4.80, although down year-over-year, further beat Wall Street estimates.
Accordingly, Yahoo! Finance analysts noticed PENN’s future growth potential and every analyst rated it as a buy. This new contract primes PENN for an explosion with the stock currently undervalued and poised for growth potential.
Rocket Lab USA (RKLB)
Rocket Lab USA (NASDAQ:RKLB) is a space manufacturing company that provides launch services, spacecraft design services, and components manufacturing to companies worldwide.
Currently, RKLB is priced at $4.80. Impressively, the stock grew 10.85% in the last month alone. Yahoo! Finance reports 8 analysts having a mean 12-month price target to be $7.66, with the range spanning from as low as $5.00 to as high as $10.00.
From a company-level, Rocket Lab’s financials are strong. With a revenue of $67.66 million in the recent quarter, they experienced a growth of 7.30% year-over-year, beating analyst estimates by 0.15%. Additionally, diluted EPS has also beat analyst expectations by 14.67%.
The U.S. aerospace and defense industry is forecasted for continued growth. In fact, the industry is expected to grow from $755.24 billion in 2022 to $1047.07 billion in 2026 at a CAGR of 8.5%.
Notably, Rocket Lab has secured a launch services agreement that will see the deployment of the Korea Advanced Institute of Science and Technology’s (KAIST) Earth observation satellite, NeonSat-1. The launch will take place from Rocket Lab Launch Complex 1 in New Zealand, showcasing the company’s global reach and commitment to advancing space exploration.
KAIST’s partnership development will serve as a long-term growth catalyst for RKLB on top of the recovering financials. Understanding the risks involved, this makes my list of penny stocks with catalyst potential.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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