While we’re not in a bull market, certain value penny stocks show potential for 5x or 10x returns in the next five years, assuming forecasted business catalysts unfold. If we’re focusing on promising early-stage businesses, the long-term outlook is optimistic.

Discussing penny stocks with a 12-month return potential of 100% may seem conservative, considering the rapid gains seen in the 2021 rally. Indeed, if we see such a scenario materialize again, these stocks can really rally hard.

However, it’s also true that we could be entering a difficult economic period. While acknowledging challenging economic conditions, the focus is on quality businesses with strong fundamentals for potential multi-bagger returns.

Here are three penny stocks I think are at least worth diving into.

Surge Battery Metals (NILIF)

Few investors are currently looking at this stock, but I’m telling you Surge Battery Metals’s (OTCMKTS:NILIF) stock is one to certainly keep an eye on right now.

Recently, the company revealed certified assay findings from hole NN2305 at the Nevada North lithium project (NNLP), Nevada. This mine could have the potential to be among the largest in North America, uniquely positioning Surge to become a leader in this geopolitically sensitive space.

Results confirm high-grade mineralization from surface, totaling 15.2 meters at 3,926 ppm lithium (Li). Drill hole NN2305, a 150-meter step-out south of NN2201, yielded positive outcomes, including a horizon from surface with 15.2 meters at 3,926 ppm Li. Notably, 54.1 meters of clay were intersected with an average grade of 3,003 ppm Li. Greg Reimer, CEO, stated, “NNLP continues to produce high-grade lithium intercepts near surface, promising favorable mining conditions in future studies.”

These factors alone make NILIF stock one of the best and most promising penny stocks to buy now.

Nikola (NKLA)

Nikola (NASDAQ:NKLA) stock surged 10% following the release of its Q3 earnings report. The company, which recalled all 209 Tre battery-electric trucks due to fire risks, revealed an estimated $61.8 million cost for recall-related battery repairs in its earnings report.

Over the coming months, the recall and repair disbursement is projected at $38.1 million, offset by $10.7 million in receivables and a $13 million contribution from selling remaining Tre trucks. 

Despite the recall, Nikola received an order for 47 battery-electric trucks during the quarter, with deliveries resuming in Q1 2024. The hydrogen-fuel truck is outperforming, with 277 non-binding orders from 35 customers. If demand remains hot for the company’s business and its hydrogen fuel business continues to grow, this is a stock that could take off.

SurgePays (SURG)

SurgePays (NASDAQ:SURG) has faced uncertainties due to potential changes in the Affordable Connectivity Program, impacting its stock. Yet, Q2 marked a record with $6 million net income and $35.9 million revenue, up 28% year-over-year. This resulted in a notable improvement in the company’s gross margin, which increased to 28%.

SurgePays’s fintech platform empowers convenience store clerks, expanding accessibility to prepaid wireless and financial products for lower-income consumers. Rapidly onboarding thousands of stores, SurgePays aims for a presence in over 25K stores within 12 months, targeting positive cash flow with an expansion goal of 13K stores by 2023’s end.

Despite a slight revenue miss, SurgePays is diversifying its distribution and products, minimizing ACP-related risks. Strategic partnerships, including those with LeadEx and Boys & Girls Clubs, position the company for increased ACP subscribers and reduced acquisition costs.

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.

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