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Best Penny Stocks to Invest in Right Now

 

For investors, penny stocks have two sides.

On one side there is instant wealth and market-crushing gains, which would make anyone a millionaire.

On the other side, there is possible fraud, pump and dump schemes, bankrupt companies, and massive losses.

This makes you wonder, are penny stocks worth the investment and the risk?

Investing in penny stocks is not for everyone, really.

This is not an investment for people who are risk-averse. Only reliable penny stocks that are expected to pay good returns in the future should be purchased, and with thorough due diligence 

 

How to Determine What Qualifies as a Top Penny Stock?

For a penny stock to qualify as a "great" one, there are certain qualities that it must have.

  • The company should have strong fundamentals and quality management.
  • They should have a solid balance sheet, growing revenues and earnings as well as a competitive edge against their industry rivals.
  • Having inside ownership is always a plus because it shows that the management has an interest in the company. This lessens the chances of financial gimmickry.

On the other hand, a typical red flag is having excessive debt without sufficient revenue to cover the liabilities.

Moreover, the industry in which the company belongs should also be expanding rapidly.

The companies which are developing breakthrough technologies are quite promising. These entrepreneurial firms are poised for changing the status quo, which means they will end up surviving the bad times.

Top 5 Penny Stocks to Invest in

GlobalStar

GlobalStar has a market capitalization of $600.9 million and provides mobile satellite voice and data services all over the world.

The company also offers two-way voice and data products, for individuals as well as for businesses in remote areas.

The growing sector of the application of these firms' products is in search and rescue.

The company is based in Covington, LA and serves the rural villages, industrial and commercial sites, ships and residential areas where the communication infrastructure is either very minimal or completely nonexistent.

  • GlobalStar does not compete with terrestrial networks. Rather, it complements them. It sells access to its systems and regional telecom service providers.

It is a good idea to choose this penny stock as an investment since this company would benefit from population growth and the rising affluence of consumers in remote areas within the emerging markets. The company also boasts a profit margin of around 52.7% and their quarterly revenue growth is about 8.6%. Earnings are also expected to rise over the years and are projected to hit 15% on an annualized basis.

 

Torchlight Energy Resources

 

Torchlight has a market capitalization of $105.3 million. This company is engaged in the exploration and development of oil and gas in the US.

Torchlight Energy Resources is a company that is based in Plano, Texas and it has interests in four oil and natural gas projects in high producing shale fields in Oklahoma and Texas.

  • This is the ideal penny stock to buy for those who are looking for a stock in the energy sector but are concerned about its volatility.

The company has recently also completed a $6 million debt financing facility and will be using the funds for drilling three new oil wells in West Texas, in the Orogrande Basin Project.

One must wonder why this company stands out from its competitors.

  • This is because it can make opportunistic yet methodical and sustainable investments in Eagle Ford and Permian Basin projects in Texas.

These deposits are amongst the most promising ones in the entire world. The expectation for the earnings growth on an average for this company for a year is more than 66%.

 

Denison Mines

 

Denison Mines has a market capitalization of $306.8 million.

It is a company involved in Uranium exploration, development, and production.

  • It is well known for its profitable projects in Elliott Lake in the Athabasca Basin area of northern Saskatchewan, Canada and in the Blind River.
  • They have diversified into minerals as well, such as potash and coal.
  • The company is also involved in offering environmental and decommissioning services.

It is a Toronto-based firm that holds key uranium deposits and is growing steadily. It has recently acquired an additional 24% interest in the Wheeler River Project in Northern Saskatchewan, making their total interest around 90% now.

Since climatic change seems to be worsening by the day, it has compelled developing as well as developed nations to look for alternative and renewable energy resources. This makes this company a very good prospect.

On average, this company expects that its growth and earning in the upcoming year would be more than 33%.

 

Conformis

 

Conformis is a medical technology firm with a market capitalization of $173.8 million.

They are involved in the manufacturing of customized knee and hip replacements, which are made specifically for different patients.

The company is based in Billerica, Massachusetts and uses 3D imaging technology along with the latest manufacturing processes to form specialized shape and size needs for implants.

This is a great stock to invest in if you are looking for promising penny stocks since it is a highly innovative company with a unique concept.

Moreover, their products have shown superior outcomes clinically, as compared to the regular implants. The medical devices company is booming, and companies that have a unique product and breakthrough technologies will be able to gain the most.

On average, the expectation for earnings, according to experts, is more than 42% for this year and is expected to grow by more than 23% in 2020.

 

Zynerba

 

This company is based in Devon, in Pennsylvania and can be considered as a blue-chip drugmaker.

Their market capitalization is $136.5 million.

There is a new rush in the medical marijuana industry fueled by the escalating legalization of marijuana in the US and other countries.

While the stock market has seen growth in marijuana-related penny stocks, this one stands out amongst the rest.

  • Zynerba a pharmaceutical company that is developing some unique treatments for both adults and children, especially for epilepsies, which makes it direct competition for Big Pharma.
  • This industry, the biotechnology sector, is one of the most promising for most investors.

Zynerba is quite a good company to invest in with cash in hand of more than $59 million and enough resources to make this company profitable. The expectation for earnings from this company is expected to be more than 21% over the next year.

 

Now that you know some of the best penny stocks to buy right now why not get to investing? 

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