SPECIAL REPORT The Top 7 Stocks for 2024

The Top 3 Most Promising Energy Penny Stocks to Buy

Advertisement

  • Finding energy penny stocks is as simple as identifying companies on the cusp of new energy trends. 
  • Ballard Power Systems (BLDP): A massive European order and slowing cash burn cements this fuel-cell giant as an energy penny stock leader. 
  • NexGen Energy (NXE): Nuclear energy might be the future, and analyst price targets indicate a big upside for this uranium energy penny stock.
  • ClearSign Technologies (CLIR): CLIR marries legacy energy companies with a sustainable future by slashing emissions.
energy penny stocks - The Top 3 Most Promising Energy Penny Stocks to Buy

Source: Vitalii Vodolazskyi / Shutterstock.com

Energy stocks are a fickle bunch. More prone to economic cycles than many companies, considering massive up-front expenses usually fueled by short-term debt, their financial positioning is constantly precarious. At the same time, they don’t have the longevity and market share (in many cases) that their utility stock cousins enjoy. Worst yet, a company can collapse suddenly and without notice if its energy claim — oilfield, mine or whatever — is dry or produces less than expected. 

Energy penny stocks compound those problems tenfold. A small-cap or micro-cap stock betting the farm on a niche energy source, product or service could go bust the second demand dissipates or legislation limits what they can do. 

At the same time, promising energy penny stocks can quickly explode in value on just a hint of good news. Better yet, if that news ends up panning out to be a long-term benefit, today’s energy penny stocks could easily become tomorrow’s energy staples.

Ballard Power Systems (BLDP)

Ballard Power Systems Inc logo visible on display screen
Source: Pavel Kapysh / Shutterstock.com

Ballard Power Systems (NASDAQ:BLDP) is a fuel-cell manufacturer targeting a unique market — heavy automotives like buses and trains alongside portable power solutions like those seen on construction sites. Relying on fickle retail consumer demand can cripple a company when market and business cycles swing out of favor, as we’ve seen with Tesla (NASDAQ:TSLA) in recent months. But by targeting enterprise-level clients first, Ballard entrenches itself in a reliable series of industries that serve to anchor future pivots.

Earlier this month, Ballard locked an order for more than 177 hydrogen fuel cell engines for buses across Europe. The contract marks the largest deployment of hydrogen fuel-powered buses in the continent and represents a pivotal moment for the long-standing energy penny stock leader. 

For some, Ballard’s rapid cash burn represents a real concern. But, as the company’s recent earnings report highlighted, management is trying to mitigate that burn. At the same time, the company’s debt-free balance sheet means it isn’t overburdening itself with unsustainable leverage in today’s high-interest rate climate.

NexGen Energy (NXE)

Powdered and solid uranium in front of a white background.
Source: RHJPhtotos / Shutterstock

NexGen Energy (NYSE:NXE) is an energy penny stock leveraging what could be the future of sustainability — uranium. Uranium, in general, and NXE are very speculative plays within energy penny stocks. Still, the company’s unique position could translate to 10-bagger success in the coming years, even if its current financial standing isn’t great.

Despite zero profitability and limited short-term prospects, industry analysts are shockingly bullish on NXE’s prospects. Price targets range as high as $8.39 per share, representing more than 35% upside from today’s pricing. Focused primarily on exploration today, NXE could be a huge stock in coming years as increased focus on sustainability reigns supreme. More governments and individuals are recognizing that electric and lithium battery-powered solutions are more damaging to the environment than originally thought. Likewise, nuclear lobbying efforts reveal that the power source might be the best bet for a truly green future. If that future pans out, this energy penny stock might be one of the biggest winners. 

ClearSign Technologies (CLIR)

website for ClearSign Technologies (CLIR)
Source: shutterstock.com/Pavel Kapysh

ClearSign Technologies (NASDAQ:CLIR) is an energy penny stock bridging the gap between legacy fossil fuels and a sustainable future. The company develops emission control tech to help oil and gas companies manage their carbon footprint and meet regulatory requirements. Those requirements are increasingly restrictive, meaning CLIR has a clear future ahead as companies adapt to changing demands.

The company’s tech slashes emissions by more than 80% without the massive costs associated with other systems. ClearSign is tiny, and its relative size suits its penny stock status. But on the heels of its first few product sales, its revenue could quickly snowball. Newly deployed tech will effectively serve as a “proof of concept” for other firms to notice, creating a flywheel effect that could turn ClearSign into a moneymaking machine. 

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Jeremy Flint held no positions (directly or indirectly) in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/the-top-3-most-promising-energy-penny-stocks-to-buy/.

©2024 InvestorPlace Media, LLC