7 Top-Rated Penny Stocks to Buy Despite the Downturn


  • Each one of these seven penny stocks to buy has strong long-term prospects.
  • Assertio Holdings (ASRT): Pharmaceutical company trading at super-low forward multiple.
  • Companhia Energetica de Minas Gerais SA (CIG): Brazilian utility provider, steady company with low valuation.
  • Gran Tierra Energy (GTE): Shares have plunged too far following election results in Latin America.
  • Integrated Media Technology Ltd (IMTE): Display technology and NFT firm, very volatile but an interesting “moonshot” type of play.
  • Permianville Royalty Trust (PVL): Oil and gas royalty trust; if you’re bullish on energy prices, there’s big potential upside.
  • SKYX Platforms (SKYX): Early-stage company with room to run, if it key product finds big success.
  • Uranium Energy Corp. (UEC): Uranium producer that could skyrocket if the world “goes nuclear” in order to lower emissions/beat rising fossil fuel prices.
Penny Stocks to Buy - 7 Top-Rated Penny Stocks to Buy Despite the Downturn

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Given the stock market’s performance lately, adding penny stocks to buy (i.e. stocks trading for under $5 per share) to your portfolio may at first glance sound like not the right move. However, today’s market conditions have created a situation where there are many great penny stocks to buy.

“Great” in two ways. First, “great” in terms of their fundamentals/prospects. Each one of them earns an “A” rating in my Portfolio Grader. Second, “great” in terms of current valuation. Still down big due to market volatility, you can buy each of them today at favorable prices.

Add in the “high-risk, high-potential upside” dynamic and penny stocks, and many of these names could wind up being big winners for your portfolio.

So, what are the penny stocks to buy today? Consider these seven, a mix of low-priced, small-cap names across a variety of sectors. Each one is worth making a buy-and-hold position.

ASRT Assertio Holdings $2.88
CIG Companhia Energetica de Minas Gerais SA $1.97
GTE Gran Tierra Energy $1.0314
IMTE Integrated Media Technology Ltd. $2.2093
PVL Permianville Royalty Trust $3.1299
SKYX SKYX Platforms $2.3039
UEC Uranium Energy Corp $3.29

Assertio Holdings (ASRT)

Healthcare professional in green scrubs standing with arms crossed.
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Based in Lake Forest, Illinois, pharma firm Assertio Holdings (NASDAQ:ASRT) produces a variety of treatments. Indocin (rheumatoid arthritis), Cambia (migraines), and Zipsor (acute pain relief) are just a few of its products.

Right off the bat, ASRT stock differs from many other penny stocks. Year-to-date, it’s up 31.88%. Over the past twelve months, it’s more than doubled in price. Still, don’t let its strong recent portfolio discourage you. It still has substantial runway.

How? At today’s valuation (9.63x earnings), investors are overly discounting future results. Although there’s an expected earnings drop next year, it’s not to the extent to justify today’s super low valuation.

Sell-side consensus calls for Assertio to earn 29 cents per share in 2023. Not bad for a stock trading for $2.88 per share today. With big upside if future results indicate current ones are not “one and done,” consider it a buy.

This stock earns an “A” rating in my Portfolio Grader.

Companhia Energetica de Minas Gerais SA (CIG)

ESG stocks: Solar energy panels are arranged in a green field under a sunny sky.
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It may have a very long corporate name, but Companhia Energetica de Minas Gerais SA (NYSE:CIG) has a pretty straightforward business.

In a nutshell, it’s the utility company for the Brazilian state of Minas Gerais. CIG stock is a good example of why “low-priced stock” doesn’t necessarily mean a small or medium-sized enterprise. Rather, this is a large enterprise that happens to trade for under $5 per share, and therefore is in penny stock territory.

Although it’s what can sometimes be a very volatile economy (Brazil), it’s in a relatively stable industry. As a result, it’s possible investors have overreacted. That is, they’ve priced it as if it’s going to be a bumpier ride than it will likely be in actuality. With a history of paying out very large special dividends, whether through return of capital, or a further move higher, CIG stock could produce strong returns.

This stock earns an “A” rating in my Portfolio Grader.

Gran Tierra Energy (GTE)

oil stocks: stacks of oil barrels
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Looking for penny stocks to buy in the energy sector? Gran Tierra Energy (NYSEAMERICAN:GTE) is one that belongs at the top of your list. An exploration and production (E&P) company, Gran Tiera focuses primarily on E&P projects in Latin America.

At present, it has operations in Colombia and Ecuador. For those aware of the recent Presidential election results in Colombia, this could at first be cause for alarm. After all, Colombia’s president-elect is not only socialist, but critical of the oil industry to boot.

However, putting politics aside, the market (in its sending down of GTE stock by 36.1% in the past month) may be overreacting a bit to this development. So far, there’s little to suggest election results in Colombia mean “game over” for this company. Instead of letting this scare you off, take advantage, while shares still trade for 2.47x earnings.

This stock earns an “A” rating in my Portfolio Grader.

Integrated Media Technology Ltd. (IMTE)

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There’s no denying Integrated Media Technology Ltd. (NASDAQ:IMTE) belongs in the “moonshot” category of penny stocks. The Hong Kong-based company has been involved in a variety of high-growth yet risky industries. Its main business is in providing “glasses-free” 3-D display technology.

Yet over the past year most of the attention surrounding it has been around its move into the non-fungible token (NFT) space. The excitement surrounding its NFT catalyst has cooled off considerably. Trading for $38.48 per share last spring, IMTE stock has fallen nearly 90%, to around
$2.209 per share.

While there’s been limited news on it recently, as it continues to score well under my Portfolio Grader metrics? It’s worth taking a closer look. Developments with either its display technology unit, or its diversification into NFTs could spark a recovery. Even a partial could mean a move to prices well above today’s levels.

This stock earns an “A” rating in my Portfolio Grader.

Permianville Royalty Trust (PVL)

Black oil barrel that reads "oil" on the side in a pool of oil with other barrels
Source: Shutterstock

As its name suggests, Permianville Royalty Trust (NYSE:PVL) is an oil and gas royalty trust. It takes the cash flow from oil & gas interests it holds Louisiana, New Mexico, and Texas, turning them over to shareholders in the form of distributions.

During this year’s boom times for oil, this has meant high yield, and higher prices, for PVL stock. Despite a big slide starting in may, so far this year it’s up around 63.7%. Pulling back in tandem with oil prices, if you missed out on the energy sector’s big moves in early 2022, now may be your chance to play catchup.

There’s still a lot out there suggesting that oil and gas prices are going to stay high for quite some time. This could enable Permianville to sustain its current distribution rate of 8.88%. It could also enable shares to recover from their recent slide.

This stock earns an “A” rating in my Portfolio Grader.

SKYX Platforms (SKYX)

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Formerly known as Sky Technologies, SKYX Platforms (NASDAQ:SKYX) changed its name just last month. However, don’t view this fact as a red flag. Name changes with penny stocks can be seen as a warning sign.

Yet in the case of SKYX stock that may not be so. The company is at work on game-changing technology: a safer, smarter way to connect ceiling fans and hanging light fixtures to the electrical outlet. In time, its products could find success. This could translate into big revenue growth for this early-stage company.

It’s down massively since it went public last February. Trading for as much as $16 per share after its debut, it’s now at around $2.3 per share. Following its trip to penny stock territory, you may want to consider it a speculative buy. Even just a bit of positive news could fuel a big move for shares.

This stock earns an “A” rating in my Portfolio Grader.

Penny Stocks to Buy: Uranium Energy Corp (UEC)

A photo of a uranium mine
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The big jump in oil and gas prices has increased the push for cheaper and greener energy alternatives. Nuclear energy has long been a high-potential fossil fuel alternative. That’s why Uranium Energy Corp (NYSEAMERICAN:UEC) zoomed in price earlier this year.

UEC stock bolted from around $2.50 per share, to as much as $6.60 per share, due to crude oil’s “to the moon” move. Since then, though, the stock has given back these gains. At present, it’s trading for around $3.29 per share.

This all comes despite the fact there remains a strong chance nuclear energy, and in turn demand for uranium, will go up in the years ahead. This could translate into big revenue, and big share price appreciation, for UEC stock. Now, while excitement for uranium stocks has fallen to the back burner, may be the perfect time to initiate a position.

This stock earns an “A” rating in my Portfolio Grader.

On the date of publication, Louis Navellier held a LONG position in UEC. 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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/7-top-rated-penny-stocks-to-buy-despite-the-downturn/.

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