7 of the Best Penny Stocks for Any Portfolio

penny stocks - 7 of the Best Penny Stocks for Any Portfolio

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The recent unemployment claims in the U.S. have hit another post-pandemic low. That’s bullish news for the economy. And it’s bullish news for quality penny stocks as well.

Let me clarify what I mean by penny stocks. These aren’t tiny stocks that trade for pennies like the junior mining stocks of the 1970s and 1980s. Or the odd pump-and-dump stocks that were all over the markets before 2008 washed them all away.

The penny stocks here are quality companies with real businesses and market caps that are in the 9- to 10-digit range. They’re fundamentally, low-priced, small-cap stocks.

And this is an ideal market for this sector. When growth accelerates, small companies can grow faster than larger stocks simply because it takes less growth to move them higher.

Before these stocks start making headlines, this is a good time learn about them and think about adding one or more to your portfolio.

  • ConforMIS (NASDAQ:CFMS)
  • Hudson Technologies (NASDAQ:HDSN)
  • HIVE Blockchain (NASDAQ:HVBT)
  • Sify Technologies (NASDAQ:SIFY)
  • CBAK Energy Technologies (NASDAQ:CBAT)
  • Biolase (NASDAQ:BIOL)
  • TransGlobeEnergy (NASDAQ:TGA)

Best Penny Stocks: ConforMIS (CFMS)

a doctor looks at a tablet

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Penny stocks are usually niche players. Their road to riches lies in either a better mousetrap that eventually dominates its segment and then management navigates it into other segments, or a bigger player sees the company as a good addition and buys it.

CFMS is a growing player in the personalized joint replacement implant market. It predominantly works with knees and hips. And like everything else in this digital world, CFMS uses technology to develop personalized joint replacements in about 6 weeks.

This is great for insurers and hospitals (as well as patients, of course) because there’s a great chance the devices will function properly and need less recovery and rehab time. And they might well last longer.

With a graying population expanding for the next decade as baby boomers come of retirement age, hip and knee replacements will grow as well.

CFMS has a $294 million market cap and shares are up 134% year-to-date. Some of this gain came after its Q2 numbers blew away revenue and earnings estimates in early August.

The stock has an A-rating in my Portfolio Grader.

Hudson Technologies (HDSN)

Ice full in empty freezer of a refrigerator makes refrigerator work harder and broken.

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Refrigerants. They’re not exactly something that comes to mind, at least not until summer weather hits.

But in this world of delivery services, refrigeration is crucial all along the supply chain — warehouses, trucks, trains, shipping centers, wholesalers and retailers. More than 15% of world energy consumption comes from refrigerants. And refrigerants have more than 4,000 times more global warming potential (GWP) than CO2.

HDSN understands this and focuses its business on reclaiming older, more polluting refrigerants and optimizing cooling system to be as efficient as possible.

With a market cap of just $145 million, this penny stock has an expanding market as climate change continues. It’s a great pick as an ESG stock or a merger candidate.

HDSN is up 210% year-to-date yet trades at a current price-to-earnings ratio of 30x.

The stock has an A-rating in my Portfolio Grader.

Best Penny Stocks: HIVE Blockchain (HVBT)

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.

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Cryptocurrencies are having a moment. When Bitcoin (CCC:BTC-USD) launched in 2014, there were high hopes for the borderless, non-governmental fiat currencies. And Bitcoin and other cryptos caught on for a while.

But that ardor faded until a couple years ago, when new digital wallets and trading platforms started popping up. And currencies again began to flourish, especially with younger generations of investors who have joined the crypto ranks rather than the precious metals routes of old.

HVBT is the first publicly trader cryptocurrency mining company. It focuses on BTC and Ethereum (CCC:ETH-USD) mining. It also claims that it only uses green power to run its mining operations.

Obviously, this is a very timely stock, which is why it has a $1.1 billion market cap. HVBT is unique in the crypto penny stocks sector because other crypto players are looking to create bank accounts, wallets and trading platforms. So, if you’re looking to diversify your crypto mining exposure, HVBT is growing in popularity.

HVBT is up 53% year-to-date, but it has a current P/E of 40x.

The stock has an A-rating in my Portfolio Grader.

Sify Technologies (SIFY)

A digital illustration of the telecom industry.

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India-based companies are historically hard to invest in. The local Indian market is hard for non-native investors to get into, and few Indian companies list in the U.S. or other markets.

SIFY is an India-based information and telecom communications company that has been listed in the U.S. since 1999. It was a key company in getting online and building out e-commerce. Today it’s involved in taking these services into the cloud.

The interesting thing now is the fact that SIFY is still in the penny stocks realm. Its $667 million market cap reflects the fact that it’s an India-first player that doesn’t have much exposure outside of its massive local market. But that’s changing.

SIFY is up 183% year-to-date and U.S. investors are seeing the potential.

The stock has an A-rating in my Portfolio Grader.

Best Penny Stocks: CBAK Energy Technology (CBAT)

Battery and wire installed on electric system of eco car engine.

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They used to be called batteries. But nowadays, it’s all about energy storage devices. And they come in all sorts of sizes to keep electricity moving for everything from power tools to utilities.

Today, the big demand is coming from electric vehicles. Beyond the U.S., the biggest market is China, where CBAT is located. Given this, you would expect CBAT stock to live beyond the penny stocks realm.

The reason we find it here is that most of its revenue comes from its utility and industrial-scale uninterruptible power sources (UPS). This is a crucial market as governments and companies turn to renewable energy sources and upgrade their older lead-acid batteries.

CBAT sells it products in the U.S. and globally, as well as in China. And it’s upping its game in the electric vehicle sector as well.

The stock has a $522 million market cap and it has been giving up its recent massive gains. It is down 46% year-to-date. You can attribute the decline in CBAT to the Chinese government’s threats regarding U.S.-traded Chinese companies. But the stock is still up more than 205% in the past year. Plus, CBAT’s current P/E is 8x.

The stock has a B-rating in my Portfolio Grader.

Biolase (BIOL)

an image of a tooth among various dentistry implements. dental stocks to buy

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There have been some pretty impressive strides in dentistry in recent years. From more convenient teeth whitening systems to better tools for cleaning, restoring and rebuilding teeth and gums.

BIOL has developed approved equipment that uses a combination of lasers and water for a number of different procedures, from surgical to aesthetic. And one of its key selling points is, its equipment aids in faster and less painful dental visits. It also sells an at-home tooth whitening kit that uses light, as well as an in-office whitening treatment that takes just 20 minutes.

BIOL has already sold more than 41,000 units in more than 90 countries, so this is more about gaining traction than proof of concept. And the company started in 1984 in France and moved its operations to California in 2006.

BIOL stock is up 44% year-to-date, but it’s literally a penny stock trading at about 70 cents a share, with a $101 million market cap.

The stock has a B-rating in my Portfolio Grader.

Best Penny Stocks: TransGlobe Energy (TGA)

miniature oil barrel and oil well figures on top of stack of money

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With energy prices rising, there have been a lot of stories on the revival of oil and natural gas companies after a devastating 12-plus months of semi-lockdown conditions around the world. And much of that coverage has been U.S.-based players from penny stocks to major multinationals. But in this current market, it’s the exploration & production (E&P) companies that do best, since their fortunes are driven by oil prices.

They have a fixed cost of getting oil out of the ground. And when prices rise, it means their margins rise as well. That’s the kind of market we’re in right now.

TGA is a Canada-based E&P with operations in Alberta, Canada and various fields in Egypt. It’s a small company with a $132 million market cap, but this is a great time to be pumping oil. TGA stock is up 104% year-to-date, but energy demand will continue to rise for months to come. Think of this one as a leveraged short-term speculation that may be volatile but could pay off well.

The stock has a B-rating in my Portfolio Grader.

On the date of publication, Louis Navellier has no positions in the stocks in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (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.

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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


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