It’s super-easy to look for large-cap stocks – those names that seemingly everyone knows, or FAANG stocks that get plenty of attention from both analysts and retail investors. But if you want to stand out from the crowd and find some bargains with some penny stocks, then this one’s for you.
Penny stocks don’t necessarily cost a penny – I don’t think I would be that interested in buying them if they only cost a copper coin. But a true penny stock is anything that’s priced at less than $5 per share. That means that you can pick up plenty of shares of any of these names, for not very much money.
Of course, there are some caveats. Penny stocks tend to be more volatile than more so-called “established” stocks, so you have to be comfortable with your risk tolerance. Many times penny stocks are either in their early stages, which means they may not be even making a profit yet. Or they could be companies that fell on hard times and are looking to bounce back.
If you’re a retail investor you can probably find plenty of advice about volatile penny stocks on social media, which is fine if that’s the game you want to play. But if you’re looking for solid penny stocks that are highly rated by my Portfolio Grader, then these are some good names to consider right now.
| ARDX | Ardelyx | $3.06 |
| ADMA | ADMA Biologics | $3.50 |
| AMS | American Shared Hospital Services | $3.23 |
| PBYI | Puma Biotechnology | $4.33 |
| BBAR | Banco BBVA Argentina | $4.50 |
| EPOW | Sunrise New Energy | $3.26 |
| GERN | Geron | $2.80 |
Ardelyx (ARDX)
I’m not the only one who likes biotech company Ardelyx (NASDAQ:ARDX) at this price.
Wall Street is waiting for the Food & Drug Administration to give final approval for Ardelyx to start selling tanapanor under the brand name Xphozah to treat kidney disease.
Tanapanor is a well-known quantity – Ardelyx already sells it as a treatment for irritable bowel syndrome, bringing in a cool $20 million a year in revenue. But if and when the FDA gives final approval for Xphozah, Ardelyx is expected to bring in hundreds of millions of dollars in annual revenue.
ARDX stock is up more than 270% in the last six months, and analysts are already projecting more gains down the road. The consensus price target for Ardelyx is $6.87, meaning ARDX stock still has a 128% runway to riches and glory.
ARDX stock has an “A” rating in the Portfolio Grader.
ADMA Biologics (ADMA)
ADMA Biologics (NASDAQ:ADMA) is another healthcare stock that has plenty going for it. The company uses plasma-derived treatments for patients who suffer from compromised immune systems.
The company is well on its way to achieving its goal of having 10 plasma collection centers online by the end of the year. It recently announced FDA approval for a facility in Hammond, Louisiana, which would be its eighth.
ADMA collects and ships plasma to its plant in Boca Raton, Florida, for cleansing and processing before its repackaged and shipped out for delivery. The plasma is used in treatments for people who are medically immunocompromised.
ADMA stock is up 43% in the last six months, and analysts give it a price target of $5.13. That indicates potential gains of 47% are still likely.
ADMA stock has an “A” rating in the Portfolio Grader.
American Shared Hospital Services (AMS)
You won’t find American Shared Hospital Services (NYSEAMERICAN:AMS) on the major indices, but that’s OK.
AMS stock trades on the NYSE American exchange, which is for small-cap companies. That’s where it belongs as AMS has a market capitalization of just $20 million.
Despite the lack of resources, there’s a world of potential here. American Shared Hospital Services leases medical equipment to hospitals and medical centers in the U.S. and overseas. Its products include equipment for radiosurgery, proton beam radiation therapy, intensity-modulated radiation therapy and image-guided IMRT.
Earnings results in the third quarter showed that AMS brought operating income of $448,000, which increased from $186,000 in the same quarter a year ago. Total revenue of $4.83 million was a gain of 17.8% from the previous year.
AMS stock is up 11% so far this year. It has an “A” rating in the Portfolio Grader.
Puma Biotechnology (PBYI)
California-based Puma Biotechnology (NASDAQ:PBYI) develops treatments for cancer. The company focuses on licensing drug candidates that are going through initial clinical testing, or have completed those trials, and develops them for commercial use.
Its drugs are involved in dozens of trials around the world, including tests for patients with breast cancer, small-cell lung cancer, prostate cancer, colorectal cancer, and more.
Earnings for the third quarter included $57.1 million, of which nearly all was generated by sales of its Nerlynx cancer drug. Wall Street had expected revenue of $50.47 million for the quarter.
PBYI stock is up 80% in the last year and has an “A” rating in the Portfolio Grader.
Banco BBVA Argentina (BBAR)
Banco BBVA Argentina (NYSE:BBAR) wasn’t always a penny stock. Just five years ago it was trading at more than $20 per share. As the third-largest Argentinian bank, it seemed to be in a solid position, but a severe monetary crisis beginning in 2018 badly devalued the Argentine peso and BBAR stock never really recovered.
Still, there’s some potential here. BBAR stock is actually up 24% since the beginning of the year. The company is doing a solid job with its earnings reports, bringing in $85.71 billion in revenue in the third quarter when analysts expected only $34.44 billion.
Banco BBVA Argentina also pays a dividend of 20 cents per year, which equates to a dividend yield of nearly 4.4%. That’s a great bonus for anyone looking for a highly-rated penny stock.
It seems that BBAR stock is finally ready to start bouncing off its lows. It has an “A” rating in the Portfolio Grader.
Sunrise New Energy (EPOW)
Chinese green energy company Sunrise New Energy (NASDAQ:EPOW) is heavily involved in the electric vehicle space through its manufacture and sale of graphite anode material used in lithium-ion batteries.
The company’s stock is up 20% so far this year, driven primarily by gains achieved in January when the company announced it won a contract to supply 40,000 metric tons of graphite anode to an unidentified Chinese EV manufacturer. The deal was part of a cumulative $700 million in new contracts the company won recently.
Sunrise says that its sales in the second half of 2022 were $27.5 million, an increase of nearly 1,300% from a year ago. Full-year 2022 revenues were $37.8 million, which was a 410% increase from a year ago.
The company says it’s been able to increase capacity at its Guizhou Province plant to 20,000 metric tons per year.
Lithium and EV batteries will remain in high demand, which bodes well for EPOW stock. Sunrise has an “A” rating in the Portfolio Grader.
Geron (GERN)
Geron (NASDAQ:GERN) has high hopes for drug candidates in its pipeline. It had a successful phase 3 clinical trial with its Imetelstat medication, which would be used to treat lower-risk myelodysplastic syndromes.
Geron stock is having an up-and-down start to 2023, rising as high as 40% but then failing to hold on to its gains. So far this year GERN stock is up 12%, which is OK, but there’s the potential for much, much more.
Geron is conducting more studies to see if Imetelstat can be used for other uses, including refractory myelofibrosis or other types of disorders. The company thinks that Imetelstat sales could be as much as $3 billion annually by 2030.
That kind of potential is hard to ignore. GERN stock has an “A” rating in the Portfolio Grader.
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, Louis Navellier did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article held GERN and ADMA. The research member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
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