Penny stocks tend to be on the riskier side of public equity investing. With low volume, cheap pricing, and other operational factors, penny stocks surge and fall rapidly compared to standard stocks. But, for well-informed investors, penny stocks to make you rich represent an opportunity to capture massive gains for cheap.
When evaluating penny stocks, operational opportunity and long-term viability are critical factors. Avoid getting caught in a “pump and dump” scheme by closely assessing whether the company’s products are viable. At the same time, ensure the firm has long-term potential. Two of the stocks on this list meet those criteria. The third is riskier. Still, recent news combined with its dirt-cheap share price makes it a potential big winner in the penny stock space.
Grab Holdings (GRAB)
This Southeast Asian “everything app” may have inspired Musk’s lofty goals for X, but Grab Holdings (NASDAQ:GRAB) is already firmly entrenched in target markets. Grab Holdings beat the bearish trends this year with more room to soar. GRAB stock is up by more than 15% since last year, although recent market-wide volatility put a damper on its trajectory. Still, following an impressive second-quarter earnings report, the stock has recaptured its momentum and is drawing increased attention from analysts.
In the second quarter, Grab reported an EPS loss per share of $0.03, a positive surprise compared to the anticipated larger loss of $0.05. The company also posted $567 million in revenue, surpassing estimates of $546.12 million. Furthermore, Grab has raised its revenue guidance for 2023, projecting it to fall within the range of $2.2 billion to $2.3 billion. Additionally, the company has increased its EBITDA guidance for the year.
Anthony Tan, Grab’s Group Chief Executive Officer, expressed his satisfaction with the results, saying, “We had a strong set of results for the second quarter […] more people are using Grab today than ever before, as we achieved our highest Monthly Transacting Users to date.”
Investors interested in institutional inertia should look at the stock’s unusual call volume activity and analyst expectations. Earlier this week, daily call contract purchases hit 21,353. That’s a huge increase of the stock’s average daily call option volume (around 4,000), indicating big moves ahead for Grab Holdings. Likewise, analysts at Barclays, Citigroup and JPMorgan Chase upgraded their assessments this month – making this penny stock one to grab quickly.
Image Protect (IMTL)
Image Protect (OTCMKTS:IMTL) is a riskier penny stock play that could pay massively if the stars align in investors’ favor. IMTL is a media company focused on crypto, microcap investing and similar segments. The stock rarely trades beyond $0.02 per share, making it a true penny stock. While it’s been beaten down amid ongoing crypto controversy, something is stirring below the surface that could mean big things for this penny stock.
Image Protect recently began filing a series of acquisition documents to acquire a new subsidiary, although the company remains unnamed. In the papers, Image Protect’s PR team refers to the new subsidiary as “a five-year-old, established firm with popular products and services [that] anticipates the immediate expansion of its customer base and revenue.”
Issuing an equally vague statement, the Image Protect CEO said, “In my opinion this is the single most significant development in the history of Image Protect, and we are looking forward to this next announcement and growing the Company’s revenues. In addition, I firmly believe that current and future shareholders will be very excited about the new direction the Company is now taking.”
It’s tough to guess how the acquisition will pan out, given the lack of information. But with this penny stock trading at a fraction of a penny, there’s little risk compared to the potential upside for investors.
Taboola (TBLA)
Under-the-radar penny stock Taboola (NASDAQ:TBLA) is having a strong year, but early investors can still capture upside. Shares are up 30% since January, with most of the stock’s surge coming since May.
Even if you’re unfamiliar with Taboola, you’ve likely encountered its product on popular online platforms including CNBC, Business Insider, Apollo Asset Management’s (NYSE:APO) Yahoo and more. Taboola lets websites leverage and monetize traffic by showcasing a variety of ads. At the same time, it offers a unique advertising platform for businesses seeking increased exposure. With over 15,000 advertisers on board and a reach of nearly 600 million daily active users, Taboola has significantly influenced online advertising.
Notably, Taboola recently announced an exclusive multi-year expansion partnership with Advance Local. The partnership enhances engagement and capitalizes on emerging marketing opportunities. Scott Lawrence, Senior Director of Programmatic Strategy at Advance Local, recently discussed the collaboration. He told investors, “Taboola has been an excellent partner over the past eight years, and we value their support in keeping our readers engaged with high-quality content while assisting local media companies with innovative business solutions. We look forward to the future and welcome Taboola’s partnership in our mission to promote quality journalism.”
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
