Finding penny stocks with buy ratings is becoming increasingly difficult. The higher interest rates go, the more risk-averse the markets become. That means that penny stocks, which are riskier by nature, are finding their ratings declining in the current environment.
A few months ago penny stocks with buy ratings that were doing well suddenly found themselves downgraded to a hold rating or worse. That indicates that the already risky world of penny stocks is becoming riskier still.
So, it should come as little surprise that investors are seeking penny stocks with buy ratings through early September. Those equities should have more stability and better chances of price appreciation in what is usually a tough month for equities. That said, let’s dive deeper into those shares.
Nano Dimension (NNDM)
Nano Dimension (NASDAQ:NNDM) stock carries a buy rating and plenty of upside. In fact, it currently carries an average target price of $10.00. That’s enough upside to pique the interest of just about any investor looking for penny stocks with buy ratings.
That said, investors should beware that Nano Dimension is rated by a single analyst.
So, what does the company do? The Israel-based firm provides intelligent machines for fabricating additively manufactured electronics. Additive manufacturing is a term describing technology that creates objects by building them one layer at a time. It is also known as 3D printing.
Nano Dimensions is trying to set itself apart from the pack by focusing on AI, machine learning, and nanoparticles among other advanced fields.
Nano Dimension is full of potential as evidenced by the fact that revenues increased 1,227% in the most recent quarter, reaching $21.5 million. However, the company also reported a $40 million net loss. In other words, NNDM stock will find fewer backers in the current risk-off environment.
HyreCar (NASDAQ:HYRE) is a company in the peer-to-peer car-sharing marketplace. Its stock has a unanimous buy rating from the four analysts with coverage. The business model allows people to rent their vehicles to ridesharing companies like Uber (NYSE:UBER) or Lyft (NASDAQ:LYFT) for example.
HyreCar’s current operations are primarily focused in U.S. urban areas with the greatest population density. The company is appealing to ride-share or delivery drivers who don’t own vehicles and vehicle owners who would like to make some money from their vehicles.
HYRE stock has plenty of upside with a target stock price of nearly 300% upside. Investors should be interested to know that company revenues reached $10.5 million in Q2, up 16% year-over-year. Net loss was a respectable $4.4 million in the quarter. There is reason to be optimistic about that number given that the firm posted a net loss of $9.3 million a year earlier.
MannKind (NASDAQ:MNKD) stock represents a firm that operates in the biopharmaceutical industry. MannKind is developing therapeutics for use in the fight against lung diseases and diabetes.
It doesn’t have a unanimous “buy” rating from the five analysts with coverage. One of those rates it a “hold” and MNKD shares have roughly 50% upside based on their ratings.
MannKind and its stock are underpinned by its single FDA-approved product, Afrezza. Afrezza is a rapid-acting, inhaled insulin powder that treats diabetes.
Afrezza accounted for $10.6 million of the firm’s $18.9 million in revenues in the most recent quarter. The company recorded another $2.1 million from V-Go, a therapeutic the firm recently purchased. MannKind also recognized another $5.9 million in manufacturing services revenues during the period.
That led to a net loss of $29.023 million, however. Investors are keen on MNKD because its inhalation technology is a novel method for therapeutic delivery. Analysts believe the technology could see increasing demand moving forward.
ToughBuilt Industries (TBLT)
ToughBuilt Industries (NASDAQ:TBLT) stock is rated a unanimous buy and has 100% upside based on its target price. Just beware that it only has a single rating currently.
Speaking anecdotally, I can say I have seen its home improvement and construction products increasingly often.
The company sells tools and equipment including tool belts, knee pads, sawhorses and stands. The company is also relatively new, having been founded in 2012. So, it’s trying to disrupt well-established names in an industry where loyalty is hard-won. That said, ToughBuilt is doing a reasonably good job.
Revenues increased 12.8% to $17.9 million in the most recent quarter. Those strong results were tempered by a net loss that reached $7.4 million.
Bullish investors might want to consider ToughBuilt Industries’ strong eCommerce results that included $3.56 million in Amazon (NASDAQ:AMZN) sales in the quarter.
Agenus (NASDAQ:AGEN) stock is another biopharma firm with a unanimous buy rating.
The company is focused on the immuno-oncology sector meaning it develops therapies that leverage the body’s natural defenses to fight cancer.
The company is interesting because it offers a potential therapeutic with efficacy against a particular form of colorectal cancer called microsatellite stable colorectal cancer. That drug, however, is still in Phase 1 trials.
So, Agenus’ potential is balanced by real-world fundamentals including a net loss of $49.235 million on $20.926 million in revenues.
The company has a strong collaborative network that includes leading names such as Bristol Myers Squibb (NYSE:BMY), Gilead (NASDAQ:GILD), and Merck (NYSE:MRK) among others.
NewAge (OTCMKTS:NBEV) stock has massive upside if the single analyst with coverage is to be believed. That’s because the health products firm’s shares trade for 9 cents while carrying a target price of $3.15. That’s an upside of 3,400%.
The company sells a wide range of health products and also offers a brand partnership business model that is similar to many other health businesses.
The reason NewAge offers so much upside is that it has fallen so precipitously. In fact, on Sept. 8 the company announced that its stock had ceased reading on the Nasdaq exchange after filing for chapter 11 bankruptcy.
Thus, it’s super risky but if the company makes a comeback after moving to the over-the-counter market, there’s serious quick money to be made.
Core Scientific (CORZ)
It isn’t difficult to see why Core Scientific (NASDAQ:CORZ) stock carries buy ratings from all seven analysts covering it: The company provides carbon-neutral blockchain infrastructure and software solutions.
It’s the same reason so many cryptocurrencies that rely on proof-of-work protocols have seen investors move toward proof-of-stake protocols. That which is perceived as being greener has more upside.
That said, Core Scientific relies on Bitcoin (BTC-USD) mining for a significant portion of its business. The company mined 3,365 BTC in Q2 and held 1,959 Bitcoin at the end of the period.
On the date of publication, Alex Sirois 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.