In most cases, investors should stay away from penny stocks. They’re wild, they’re unpredictable and they tend to lose their stakeholders money more so than they return. It’s just not a good place to consistently bolster your portfolio.

That said, the allure of penny stocks is understandable. Basically, they benefit from the law of small numbers. It doesn’t take much “energy” to move a small object up a ladder as compared to a heavy, bulky item. In similar fashion, if the stars align just right, these speculative vehicles could rocket higher.

Adding to that temptation, there are a select few market wagers that also carry analyst consensus buy ratings. This doesn’t guarantee anything, let me be crystal clear. However, if you’re going to gamble on penny stocks, you might as well do so the smart way.

Arbe Robotics (ARBE)

A semiconductor company, Arbe Robotics (NASDAQ:ARBE) provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Sweden, Germany, Switzerland, the U.S., Italy and Israel. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions and eliminating false alarms without radar ambiguities.

To be clear, Arbe’s financial performances have not been up to snuff. Last year, it could not mitigate expected losses per share. In the past four quarters, the average negative surprise came out to 15.43%. However, there could be improvement soon.

In fiscal 2024, experts believe Arbe will post a loss of 72 cents per share on revenue of $1.65 million. In fiscal 2023, the company delivered a loss of 71 cents on sales of $1.47 million. Even better, Arbe could potentially ring up sales of $31.35 million in fiscal 2025.

Analysts rate ARBE a unanimous strong buy with a $3 price target, implying over 36% upside potential. It’s one of the penny stocks to keep on your radar.

KORU Medical Systems (KRMD)

Operating under the medical instruments and supplies subsegment of the healthcare industry, KORU Medical Systems (NASDAQ:KRMD) offers what it terms freedom infusion systems. This solution delivers life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases, chronic inflammatory demyelinating polyneuropathy, and paroxysmal nocturnal hemoglobinuria. Since the start of the year, KRMD stock has gained over 5%.

In the past 52 weeks, shares swung up almost 15%, demonstrating solid near-term momentum. What’s particularly interesting is that Koru has delivered some solid quarterly results. Aside from a bad miss in Q4, Koru has either met the expected loss per share or has favorably undercut the red ink.

For fiscal 2024, experts believe that the medical devices firm will post a loss of 14 cents per share on revenue of $31.69 million. Last year, the company incurred a loss of 30 cents on sales of $28.52 million.

Analysts peg KRMD a unanimous strong buy with a $3.38 price target, projecting almost 49% upside. It may be one of the more reasonable penny stocks to consider.

PowerFleet (PWFL)

Falling under the communication equipment category of the technology ecosystem, PowerFleet (NASDAQ:PWFL) provides wireless Internet-of-Things (IoT) asset management solutions in the U.S., Israel, and internationally. Per its corporate profile, the company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies. It also provides many other services that help improve safety and security.

Since the start of the year, PWFL has already gained almost 51%. Therefore, it’s one of the penny stocks where you’ll be hoping strength begets even more strength. What’s appealing here is PowerFleet’s ability to pleasantly surprise. To be sure, it generally expands the expected red ink. However, in the first quarter of last year, the company posted earnings per share of 8 cents against a projected loss of 6 cents.

For fiscal 2024, experts believe EPS will land at 2 cents on revenue of $253.35 million. That’s a dramatic improvement over a loss of 29 cents per share on sales of $133.59 million.

Analysts rate a unanimous strong buy with an $8 target, implying 62% upside.

CarParts.com (PRTS)

Falling under the Internet retail category, CarParts.com (NASDAQ:PRTS) offers a self-explanatory service. It operates as an online provider of aftermarket auto parts and accessories. Its main market is the U.S. and the firm also covers the Philippines. Fundamentally, the enterprise may benefit cynically from the challenges facing the consumer economy. People aren’t rushing to buy new (or new-to-them) vehicles so they must keep their rides running well.

In theory, this dynamic should help PRTS swing higher as one of the compelling penny stocks. However, the market feels differently. Since the start of the year, shares have plunged more than 49%. In the past 52 weeks, they’re underwater to the tune of 67%. I’ll be straight up: this has been a falling-knife “investment.”

However, after a bum note in Q2, CarParts.com is showing signs of modest improvement. For fiscal 2024, analysts believe that it will roughly duplicate last year’s revenue of $675.73 million. However, in 2025, the top line could rise to $697.55 million.

Covering experts peg PRTS a unanimous strong buy with a $3.69 price target, implying almost 124% upside. It’s something to think about.

Lantronix (LTRX)

Operating under the communication equipment subcategory, Lantronix (NASDAQ:LTRX) provides solutions for video surveillance, infotainment systems and intelligent substations infrastructure in the Americas, Europe, the Middle East, Africa and Asia-Pacific/Japan. From its public profile, Lantronix offers myriad solutions, including secure network connectivity, audio/video aggregation, computer vision and machine learning, among many others.

While one of the more relevant penny stocks, LTRX is incredibly volatile. Since the beginning of this year, shares stumbled 39%. Over the past 52 weeks, they’re down more than 13%. However, recent sessions show a possible support baseline forming. Financially, it performs surprisingly well. In the past four quarters, the average positive earnings surprise came out to just under 30%.

For fiscal 2024, experts believe EPS will come in at 40 cents on revenue of $160.3 million. Last year, Lantronix posted per-share profits of 23 cents on sales of $131.19 million.

Again, analysts rate LTRX a unanimous strong buy with a price target of $8.25. That implies 131% growth potential.

Adicet Bio (ACET)

Plying its trade in the biotechnology sphere, Adicet Bio (NASDAQ:ACET) focuses on the discovery and development of allogeneic gamma delta T-cell therapies for autoimmune diseases and cancer. The company offers gamma delta T-cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, which targets autoimmune diseases and relapsed or refractory aggressive B-cell non-Hodgkin’s lymphoma.

Over the past 52 weeks, ACET stock lost almost 58% of equity value. That sounds bad and it is bad. However, in the past six months, it’s up 64%. Technically, something bullish appears to be brewing, which has excited the bulls. Notably, after expanding expected per-share losses, Adicet finally reached parity in Q4, delivering a loss of 69 cents.

For fiscal 2024, experts believe the company will post a loss of $1.86 per share. That would be an improvement over last year’s loss of $3.31 per share.

Analysts rate shares a consensus strong buy with a $9 target, projecting 286% upside potential. If the clinical trial gods favor Adicet, ACET could be one of the top penny stocks.

Vor Biopharma (VOR)

Another biotechnology specialist, Vor Biopharma (NASDAQ:VOR) operates as a cell and genome engineering company. Its lead product is tremtelectogene empogeditemcel (trem-cel), an engineered hematopoietic stem cell that is in phase 1/2 trial to treat acute myeloid leukemia (AML) and other hematological malignancies. It’s also developing other treatment candidates targeting various diseases.

As you might expect from penny stocks, VOR is incredibly volatile. Over the past 52 weeks, it lost nearly 60% of market value. However, in the past six months, it’s up more than 4%. That may be a signal that the security is building a support baseline.

Financially, Vor is a pre-revenue enterprise so the optimism is linked to its clinical narrative. That said, in Q4, the company posted a loss per share of 39 cents, paring the expected loss of 50 cents. For 2024, experts believe it will lose $1.43 per share, an improvement over $1.75 per share in the red last year.

Finally, analysts rate VOR stock a unanimous strong buy with a $14.25 price target. That implies almost 545% upside potential.

Penny Stocks

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, Josh Enomoto 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.