3 Hot Penny Stocks That Can Rocket 100% in the Blink of an Eye


  • These are the penny stocks to buy for 100% returns within the next few months.
  • Bitfarms (BITF): Significant hash rate capacity expansion will translate into stellar revenue and EBITDA growth.
  • IAMGOLD (IAG): Production growth is likely in the coming quarters, and with higher realized gold prices, the cash flow outlook is positive.
  • Cronos (CRON): As regulatory headwinds wane, Cronos will utilize its cash buffer for organic and acquisition-driven growth.
penny stocks to buy - 3 Hot Penny Stocks That Can Rocket 100% in the Blink of an Eye

For penny stocks whose time has come, 100% or 200% returns come in the blink of an eye. This is irrespective of broad market conditions. Within the penny stock space, I ideally like to have two portfolios. First, penny stocks to buy that can surge by 100% in a few weeks or months. Further, penny stocks can make it big and are worth considering for the next few years.

This column focuses on penny stocks to buy for quick returns in the coming months. It’s important to emphasize that quick returns do not imply that the idea is purely speculative. I am primarily focused on penny stocks that represent companies with good fundamentals. Further, near-term business catalysts will support the stock’s going ballistic.

As a long-term investor, book profits on 100% returns and invest in blue-chip or quality growth stock ideas. Let’s talk about the reasons for being bullish on these penny stocks.

Bitfarms (BITF)

Bitcoin and crypto mining farm. Big data center. High tech server computers at work. Bitfarms (BITF) mines crypto.
Source: PHOTOCREO Michal Bednarek / Shutterstock.com

Bitcoin (BTC-USD) has witnessed some correction in the recent past. With halving done, I expect a renewed rally for the cryptocurrency. At the same time, I am bullish on quality Bitcoin mining stocks. Bitfarms (NASDAQ:BITF) is among the penny Bitcoin miners poised for a big rally.

It’s worth noting that BITF stock has corrected by 32% year-to-date. The primary reason is equity dilution, with the company raising $375 million from an at-the-market offering. The correction presents a golden entry opportunity for Bitfarms, which has ambitious expansion plans.

The first point to note is that Bitfarms has strong fundamentals. With a zero-debt balance sheet and robust cash buffer, ample headroom exists for aggressive mining capacity expansion. Bitfarms ended 2023 with a hash rate capacity of 6.5EH/s.

The company expects to increase capacity to 21EH/s by the end of the year. This will translate into stellar revenue and EBITDA growth. For now, the potential uptrend in Bitcoin and new all-time highs will translate into a big rally for BITF stock.


gold chess king
Source: Dilok Klaisataporn / Shutterstock.com

IAMGOLD (NYSE:IAG) stock has surged by almost 50% in the year’s first four months. I believe a bigger rally is impending, with IAG stock still looking undervalued.

The first point is that gold trades above $2,300 an ounce, even with some correction. I expect the precious metal to remain in an uptrend, with potential rate cuts likely in the second half of 2024. IAMGOLD is, therefore, positioned to benefit from higher realized gold prices that will imply EBITDA margin expansion.

Further, IAMGOLD is positioned for a significant upside in production. This will be backed by the Côté project that commenced production at the beginning of this month. The asset will likely deliver production in the range of 220,000 to 290,000 ounces for the year. 

Therefore, IAMGOLD can benefit from a higher realized price and production upside. The results for the coming quarters are likely to be stellar and will ensure a big move in IAG stock.

Cronos Group (CRON)

Even Contrarian Investors Should Hold off on CRON Stock for Now

Cronos Group (NASDAQ:CRON) is another penny stock ready to go ballistic. A key reason for being bullish on Cronos is the declining regulatory headwinds. Germany recently legalized cannabis, and I would not be surprised if other European countries follow suit.

Further, most Americans believe cannabis should be legalized for recreational and medicinal use. With Presidential elections around the corner, the legalization issue will likely gain traction. This will be positive for the industry. It’s worth noting that there is a likelihood of cannabis being reclassified as a Schedule III drug by the U.S. Drug Enforcement Agency.

Specific to Cronos, a cash buffer of $862 million is a big positive. The company will likely utilize the cash buffer for aggressive organic and acquisition-driven growth. Last year, Cronos entered new markets in Australia and Germany. Further international expansion is likely and will help in accelerating revenue growth.

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

On the date of publication, Faisal Humayun did not hold (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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/3-hot-penny-stocks-that-can-rocket-100-in-the-blink-of-an-eye/.

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