Each of these hidden penny stock gems have the potential to provide triple digit growth to investors. Investors are forever on the lookout for Investments that can turn $1 into $2 or more. That is precisely the potential that the stocks below offer to investors.
The firms discussed below are also relatively unknown and are generally not household names. They can therefore be characterized as hidden gems given their strong potential upside. As always, invest in penny stocks what you are willing to lose. While speculation in this sector can produce outsized gains it does pose substantial risk.
That caveat aside, these firms do have multiple factors that continue to make them interesting. They are not simply high upside firms with strong price targets. Let’s take a look at these firms in greater depth.
Baytex Energy (BTE)
Baytex Energy (NYSE:BTE) acquires and develops crude oil and natural gas assets in western Canada and Texas. The company controls assets in the Canadian provinces of Alberta and Saskatchewan as well as the state of Texas. Those assets span multiple forms of crude oil and natural gas. These companies stock trades for approximately $3.50 and carries a consensus target price of $7.25.
Many energy companies bear a dividend and Baytex Energy is no different in that regard. The company pays a modest dividend yielding slightly less than 2% at the moment.
One of the primary reasons to consider investing in Baytex Energy, outside of its high return potential, is its current valuation based on its P/E ratio. Baytex Energy’s P/E ratio is ranked better than 85% of industry competitors. In other words, investors are more willing to pay for a dollar of earnings in the vast majority of other energy firms. However, Baytex Energy is a commodity firm— very little separates its end products from those of competitor firms. Oil is oil. If the price of oil rises then BTE stock will be a great investment.
Lufax Holding (LU)
Lufax Holding (NYSE:LU) Is potentially a Hidden Gem among penny stocks. It’s an intriguing company because it appears to be fighting through adversity successfully. That is one reason to consider investing. The other is that it, like all other stocks in this article, can produce triple digit returns.
The company’s shares currently trade for $2.65 but very recently that was not the case. In fact, Lufax Holdings shares were trading below $1 which prompted the New York Stock Exchange to send the Chinese company a warning that its American Depositary Shares (ADSs) were at risk of delisting.
The company is one of the oldest fintech and lending platforms in China. It serves small businesses primarily and has been facing trouble along with the broader Chinese economy.
Traders who rely on technical analysis began to speculate that the company could recover at that time. In fact, it has. Share prices are approaching $3, much higher than the $1 listing requirement. Fortunately for other investors, there is plenty of upside remaining.
BioCryst Pharmaceuticals (BCRX)
BioCryst Pharmaceuticals (NASDAQ:BCRX) is one stock among many within a biopharmaceutical sector that has the potential to provide outsized gains to investors. The company develops and markets a variety of therapeutics that target multiple areas as diverse as influenza, angioedema, and RNA viruses.
One of these stronger reasons to consider investing in BioCryst Pharmaceuticals is that it is a reasonably well-established stock based on price. Shares trade for nearly $6 at the moment which implies that it is relatively well established. Yet at the same time, BioCryst Pharmaceuticals maintains substantial upside with target prices ranging as high as $30.
Many biopharmaceutical shares that offer 5x potential trade at prices far lower indicating that they are far less established.
BCRX shares also have momentum on their side following the launch of the company’s angioedema treatment in Italy. The company continues to develop other small molecule and protein therapies that address difficult to treat diseases.
Pagaya Technologies (PGY)
Pagaya Technologies (NASDAQ:PGY) is a high upside, high risk fintech stock for investors chasing outsized returns. Shares have the potential to quadruple from their current price of $1.50 based on analyst forecasts. However, potential investors should also be aware that Pagaya Technologies shares come with a beta of 6.95. That means that prices are highly volatile. Those price swings can just as easily work in investors favor or to their detriment.
Fortunately, things are going well for the company following the release of its fourth quarter earnings. The company continues to head in the right direction and is benefiting from record network volume of $2.4 billion in Q4. That resulted in record quarterly revenue of $218 million and pushed the firm closer to profitability through a dramatic narrowing of overall losses.
What’s particularly encouraging about the company is the fact that network volumes were above the high end of guidance. The company is expanding rapidly and is certainly worth a look at the moment.
Petco Health and Wellness (WOOF)
Petco Health and Wellness (NASDAQ:WOOF) isn’t doing particularly well from a fundamental perspective. The company continues to deal with multiple issues that trouble its company overall. However, analysts remain positive about its stock and future prospects. One of the reasons that those analysts are bullish on its ability to provide triple digit returns is the company’s recent expansion of pet insurance products.
As mentioned, the company’s fundamental picture isn’t particularly strong. In the third quarter the company released earnings showing flat revenues combined with substantial impairment charges from 2015 goodwill that resulted in a significant net loss.
More recently, Petco Health and Wellness expanded its partnership with Nationwide to provide pet insurance. The launch of their first co-branded product furthers their relationship. It should be a strong catalyst for the company as pet insurance is a growing market. The company benefits from an obvious opportunity in that regard. It is expected that the pet insurance market will grow at an annual rate above 14% through 2030.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is a stock that will either go down as a spectacular failure or a phenomenal success. Thus far, it has disappointed a lot of investors. Share prices of the stock have fallen from $10 to their current price of approximately $4 since beginning their publicly traded life in October 2023.
The company is positioned to become one of the most important lithium miners on Earth in the future.. However, prices of the lithium that the company will mine have collapsed. It owns the rights to the largest lithium resource in the western hemisphere. Unfortunately, it’s a terrible time to own those rights as a publicly traded company. They’re just not worth that much currently. That won’t always be the case.
The company is almost certain to succeed in the long run. The Thacker Pass lithium source is located in Nevada and possesses significant geopolitical importance. The company won’t begin producing lithium until 2026. By that time, prices are almost certain to have rebounded. Thus, a little bit of money invested in Lithium Americas today has the potential to balloon in price relatively quickly.
WideOpenWest (WOW)
WideOpenWest (NYSE:WOW) provides data, cable, and telephone services to business and residential customers throughout the United States. The internet service provider (ISP) is getting a lot of attention recently which is a great reason to consider investing in the stock.
The Colorado-based firm was named a best internet service provider of 2024 by U.S. News and World Report. Its Broadband business was ranked first in fastest upload speeds. Share prices currently sit above $4 with consensus targets at $13.
The company is considered to be among the best values among both fiber and cable internet service providers. It also offers value to investors based on its low P/S ratio. Investors haven’t been particularly interested in the stock by that measure. That could change given that the company very recently received a strong endorsement from the media.
Yet, investors should also be aware that the company is showing signs of distress. WideOpenWest is showing both potential and risk at the moment which investors should understand in the interest of a full disclosure.
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.
