Investing in undervalued penny stocks is always going to be about the same few things.

Most investors are attempting to find cheap, short-term plays with reasonable catalysts in their favor.

Searching for undervalued penny stocks isn’t analogous to engaging in long-term investing and shouldn’t be treated similarly. It should be about calculated risk and never with an amount that can cause real harm. 

That said, I think there are a few clear sectors that look strong currently and some that are emerging again after faltering. These undervalued penny stocks could make the rest of your year. 

Nordic American Tankers (NAT) 

Nordic American Tankers (NYSE:NAT) is among the undervalued penny stocks to consider because it has stayed within a price range of $3-4 this year and is expected to be in the range of $4-6.

It doesn’t offer investors 10X returns, which is positive because it doesn’t attract pure speculation. Instead, it’s reasonably priced and offers high but achievable returns quickly.  

The company operates Suezmax tanker ships. Suezmax tankers are medium-sized, long haul ships used to transport crude oil.

As you may have guessed, Nordic American Tankers is in position to take advantage of rising oil prices. That is its primary catalyst, but it isn’t the only point of attraction for potential investors. 

For one, the company has already done very well in 2023, posting a $73.7 million net income in the first half. A year ago, during the same period, Nordic American Tankers posted a loss of nearly $31 million.

The company is predicting a historically strong third quarter as well. Further, its CEO is buying up shares quickly in anticipation of a strong quarter. It also comes with a huge dividend yielding nearly 12%, making it one of the undervalued penny stocks to snap up now. 

Overseas Shipholding Group (OSG)

Overseas Shipholding Group (NYSE:OSG) operates in another part of the oil transportation value chain.

Its stock benefits from rising oil prices as well, but it works to help tankers get their product onshore. Overseas Shipholding Group also operates Suezmax tankers, as does Nordic American Tankers. However, it also operates tugboats and smaller tankers that work to transport liquid onshore. 

OSG stock doesn’t have any ratings, so it’s difficult to guess where its price is headed other than to say that it has steadily moved from $3.50 to $4.50 beginning in late January.

Revenues have been flat over the last year and net income has risen substantially. The company isn’t awaiting breakout results on the promise of higher crude oil prices. Instead, it looks more likely to get stronger because of them. 

OSG has a total operating fleet of 21 vessels and, like Nordic American Tankers, is a steady choice for those hoping to make quick returns safely as energy prices rise. 

Cronos Group (CRON)

Cronos Group (NASDAQ:CRON) is a cheap cannabis stock that investors should really take a look at for the remainder of 2023. 

I recently wrote about it in relation to impending scheduling changes expected for marijuana.

The sector will rise if cannabis is rescheduled. Scheduling changes will lift many cannabis stocks but that alone isn’t the reason to buy CRON shares.

Instead, buy CRON stock because the company is controlling its costs, leading to narrowing losses. 

Cronos Group is rapidly approaching net gains. That will be solid proof that it is a bonafide leader in a sector that has become synonymous with large losses. 

Thus, investors should expect that Cronos Group is among cannabis stocks that are in the best position to provide them with nice returns. The company is well-funded and has huge liquidity at its disposal. There’s also an argument to be made that CRON shares have long-term potential and are more than a chance at a quick buck. 

Matterport (MTTR) 

Many readers will recall Matterport (NASDAQ:MTTR) as a highly popular metaverse stock that got very hot, very quickly.

It traded in the teens and as high as $28 around the time Facebook rebranded to Meta Platforms. Then the long era of quantitative easing ended and it fell like a stone with everything else metaverse and tech.

It trades for $2.15 as I write this. I’d argue that investors are entering another period of opportunity. The company sells cameras for mapping 3D spaces and subscriptions.

Its revenue trajectory overall and in relation to subscriptions has been steady and impressive. It is expected to reach as high as $159 million in sales this year. That equates to 36% compound annual growth between 2019 and 2023. Losses continue narrowing. 

Big tech will continue to introduce VR/AR products moving forward and investors are going to look at the metaverse again soon. 

Origin Materials (ORGN) 

The opportunity in Origin Materials (NASDAQ:ORGN) is directly opposite to the first two stocks in this article. The company produces decarbonization materials.

Origin Materials is focused on the science of replacing petroleum-based materials with decarbonized materials.

Take, for example, common PET bottles that store beverages. Origin Materials created a plant-based PET bottle that has a low carbon footprint. The company is working on a commercial demonstration-scale facility for that technology. 

It has initiated a start up plant that produces intermediates and another plant to produce something called FDCA, another intermediate in PET production. 

The firm reported $6.9 million in sales in Q2 but also boasts reservations exceeding $10 billion overall. Admittedly, investing in ORGN will require a longer time horizon but it makes sense and Wall Street expects strong returns over the next year or so.

Unicycive Therapeutics (UNCY) 

Unicycive Therapeutics (NASDAQ:UNCY) is a prototypical high-upside pharmaceutical stock in many senses.

It hasn’t yet commercialized any drugs and it didn’t report any revenues in Q2 of this year or last. It’s all about the potential of the company to commercialize drugs to treat kidney disease. That’s why it boasts 400% upside beyond its current $0.90 share price. 

That begs the question of why investors and scientists are so interested in Unicycive Therapeutics. The company boasts two drugs, UNI-494 and oxylanthanum carbonate.

UNI-494 prevents damage to the mitochondria which is thought to lead to a variety of pathogenic issues that worsen kidney disease. Oxylanthanum carbonate shows therapeutic promise in treating hyperphosphatemia, or excess phosphorus in the blood.

It is promising because it shows the highest ability to bind to phosphorus on a volume basis when compared to five other commercially available alternatives. The two drugs could turn the relatively unknown firm into a leading player in the kidney disease field. 

Abeona Therapeutics (ABEO) 

The opportunity in Abeona Therapeutics (NASDAQ:ABEO) is all about the treatment of Recessive Dystrophic Epidermolysis Bullosa (RDEB). RDEB is a connective tissue disorder for which there is no approved therapy. 

It results in the inability to produce a certain type of collagen, leading to painful and severe skin wounds. It is currently in Phase 3 clinical trials which act as a catalyst for FDA approval.

It shows strong evidence for wound healing and pain reduction, with a mean followup of 5.9 years and a maximum of 8 years. 

The company recently submitted a priority review application for EB-101 in the treatment of RDEB.

The application could shorten approval times for the drug. It will first be considered for a biologics license application which should be accepted by the FDA in 60 days or less.

It could then be approved by the second quarter of 2024 which would open several new pathways for revenue and commercialization. 

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.