Despite the recent surge in the S&P 500 index and the beginning of a new bull market, penny stocks have experienced varying performances. While not all lagging equities have entered “bull market mode,” investors may want to consider these promising penny stocks. As macro concerns subside, these stocks have the potential to participate in the market’s recovery in the coming months. Additionally, sector and company-specific catalysts could propel these stocks too much higher prices over the long term.
In this article, let’s take a look at three penny stocks that might be worth considering right now.
American Lithium (AMLI)
American Lithium (NASDAQ:AMLI) is positioning itself in the growing lithium sector, driven by the global shift towards electric vehicles. This transition is expected to drive long-term lithium demand and potentially lead to higher prices. AMLI has obtained permits for drilling near Quelccaya, marking a significant progress for the company. The support from Peru’s new government and the exploration potential in the Macusani Plateau make AMLI an attractive low-priced opportunity in the lithium market.
Additionally, American Lithium stands out as a volatile but promising player in the lithium market. Notably, the company recently made an investment in Surge Battery Metals, acquiring a 9.7% stake. This strategic partnership enables AMLI to further explore and develop the Nevada North Lithium Project, a claystone project with significant potential for a large-scale, high-grade deposit.
To a greater extent, AMLI boasts two compelling lithium projects: the TLC Lithium Project in Nevada, near Tonopah, and the Falchani Lithium Project in Peru, which ranks as the world’s sixth-largest lithium deposit.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) is an emerging player in the battery stocks sector, focusing on solid-state batteries. Although this type of battery commercialization is not expected until 2026, the stock appears undervalued and presents numerous potential catalysts. Investing in this technology at an early stage may be high-risk, but successful outcomes could yield substantial returns, potentially 10x or 20x.
Additionally, Solid Power is on a path to commercializing solid-state batteries with the support of automotive leaders like BMW. The company expects to deliver EV cells for validation testing to automotive partners this year. Its strong financial backing and partnerships with industry giants like Ford contribute to its solid position in the market.
Solid Power is making strides in solid-state battery technology, set to surpass traditional lithium-ion batteries in safety and energy density. With upcoming automotive qualifications and ongoing enhancements in electrolyte production and cell performance, investors anticipate successful commercialization. However, the company’s current expenditure outweighs its earnings, making profitability dependent on achieving commercial milestones—a risky endeavor.
Nauticus Robotics (KITT)
Nauticus Robotics (NASDAQ:KITT) is at the forefront of combining two disruptive trends: robotics and artificial intelligence. With a team of experienced ex-NASA engineers, they have developed AI-powered robots designed for oceanic operations. These robots form a “robotic navy” and are deployed in various offshore industries for tasks such as maintenance, data collection, and manipulation. Nauticus utilizes acoustic communication networking to control and coordinate these versatile robots.
Nauticus Robotics combines AI and robotics for subsea technology. They secured a contract with Petrobras to test their AUV (autonomous underwater vehicle) in Brazil. The company aims to tap into the $2.5 trillion ocean economy and revolutionize offshore projects. Despite a decline since its debut, analysts expect KITT stock to grow over 150% in the next year, trading above $2.
On the date of publication, Chris MacDonald 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.
