7 Penny Stocks to Buy on the Dip: April 2024


  • Entravision Communications (NYSE:EVC): Investors have overreacted to bad news about EVC’s digital ad business, pushing the stock to deep value prices.
  • Greystone Logistics (GLGI): GLGI stock has slumped following a recent surge, but this pullback could prove temporary.
  • I-80 Gold (IAUX): IAUX stock has underperformed relative to other gold stocks, yet this may not last indefinitely.
  • Read more about the top penny stocks to buy on the dip!

There’s no getting around it. Considering penny stocks to buy on the dip is a high-risk endeavor. Given the volatile nature of stocks trading for $5 per share or less, what may seem like a bottom fisher’s buy at first can easily turn into a “falling knife” type situation.

But while most of the thousands of names in “penny stock territory” should be approached cautiously, if not avoided, there are few diamonds in the rough within this risky yet opportunity-rich area of the market.

For instance, there are many penny stocks trading at a sharp discounts to their underlying value. Efforts to realize this valuation, or simply via investors “discovering” this value, can in time lead to strong gains for such stocks.

There are also penny growth stocks trading at a more-than reasonable valuations relative to their future prospects. Add in turnaround stories and other event-driven opportunities, and it’s clear that there are plenty of worthwhile penny plays to consider.

This is especially the case with the following seven penny stocks to buy on the dip. Each one has pulled back this year, but could bounce back in a big way, sooner rather than later.

Entravision Communications (EVC)

A remote being held and pointed at a black flatscreen tv with two potted plants on either side
Source: shutterstock.com/Gaurav Paswan

Entravision Communications (NYSE:EVC) has historically been a Spanish-language TV and radio broadcaster, but in recent years, digital advertising has become its main business. Ironically, it’s this “new economy” business, not the broadcasting assets, that are behind this penny stock’s most recent price plunge.

In March, EVC stock experienced an immediate 48% cratering, on news of Facebook parent Meta Platforms (NASDAQ:META) ending its sales partnership agreement with the company’s digital division. While a negative for future prospects, there is a silver lining to this turn of events.

As Seeking Alpha commentator Kingdom Capital recently argued, following the stock’s big dive on the Meta news, shares now trade at a significant discount to the value of the company’s broadcasting and spectrum assets. Yes, for now there’s little to suggest when monetizing these assets will happen. Even so, shares could begin to recover, once more investors catch onto this “hidden value.”

Greystone Logistics (GLGI)

A photo of a pile of red polypropylene plastic pellets.
Source: Anastasiia Burlutskaia / Shutterstock.com

Greystone Logistics (OTCMKTS:GLGI) is a manufacturer of plastic pallets. Back in February, when I last wrote about this OTC-listed penny stock, I argued that, even after its big run-up in price, shares had more room to run, on improved earnings thanks to a cooldown in inflationary pressure.

Unfortunately, instead of a further climb, GLGI stock has experienced a moderate sell-off. While this sell-off likely was driven by the company’s latest quarterly earnings release, it’s possible investors reacted erroneously to the report. Taking into account a one time event that boosted results in the prior year’s quarter, Greystone results were solid, especially given reported improvements in its operating margins.

As mentioned in the earnings release, delivery of new pallet molds may result in improved utilization of manufacturing capacity. Ahead of a potential renewed recovery later this year, consider GLGI one of the penny stocks to buy on the dip.

I-80 Gold (IAUX)

Gold bars and Financial concept, studio shots. Costco's gold bars, cost stock
Source: Misunseo / Shutterstock.com

Rising spot gold prices have been a boon for gold stocks, but that’s not been the case for I-80 Gold (NYSEAMERICAN:IAUX). Shares in this Reno, Nevada-based miner have continued to pull back thus far in 2024.

Admittedly, there are some good reasons why IAUX stock has underperformed compared to other gold mining plays. As InvestorPlace’s Steve Booyens recently pointed out, while I-80 has reached the revenue stage, it’s still largely an exploration-stage junior miner. Also, in order to finance the development of its exploration-stage projects, I-80 Gold has been engaging in dilutive capital raises. Most recently, with a 60 million unit offering announced earlier this month.

Yet while bad news in the long run, the near-term impact of this dilution could be far outweighed by the long-term payoff from further investment into its exploration projects. Increased production and mine development progress could spark a rebound for shares.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen
Source: Wirestock Creators / Shutterstock.com

Lithium Americas (NYSE:LAC) is an exploration-stage lithium mining company. After completing a spin off of its Argentinian mining assets last fall, LAC has become primarily a wager on the company’s Thacker Pass lithium mining project, located in Northern Nevada.

Lithium is a vital component in electric vehicle batteries, but that factor isn’t helping shares much right now. With EV demand growth and spot lithium prices falling, LAC stock pulled back considerably as well. News of a dilutive secondary offering has placed even more pressure on shares.

Still, while now out of favor, consider it one of the penny stocks to buy on the dip. As InvestorPlace’s Chris MacDonald has argued, the company has the funding in place to develop Thacker Pass. Within a few years, this mine could produce 40,000 metric tons. Combined with a rebound in lithium prices, the eventual payoff may be tremendous.

Nordic American Tankers (NAT)

On board on a suezmax tanker, NAT operates tankers like this one
Source: Vallehr / Shutterstock.com

Nordic American Tankers (NYSE:NAT) owns and charters a fleet of Suezmax-sized crude oil tankers. As I’ve discussed in prior coverage of another tanker stock, DHT Holdings (NYSE:DHT), demand trends have been favorable for the industry since last year.

In the case of NAT stock, last year this resulted in both steady price appreciation, plus a doubling of its dividend. Shares today sport a forward yield of more than 12%. However, in more recent months, Nordic American Tankers has pulled back. This move lower makes some sense. Suezmax charter rates have also pulled back.

That said, with rates still elevated compared to prior years, NAT may not necessarily experience a big profitability drop anytime soon. As earnings remain high, the tanker owner’s more than 12% forward dividend yield is likely sustainable. Shares could also bounce back, if it becomes clear that the tanker boom will continue longer than anticipated.

FiscalNote Holdings (NOTE)

Page of newspaper with words penny stocks. Undervalued Penny Stocks
Source: Vitalii Vodolazskyi / Shutterstock.com

FiscalNote Holdings (NYSE:NOTE) operates a SaaS-based, AI-powered platform that provides global policy and regulatory intelligence to end users like governments, corporations, and non-profit organizations. Unfortunately, “AI mania” has not provided any boost for this tech stock.

Rather, NOTE stock has slid significantly since last summer. Trading for over $4 per share as recently as August, today NOTE changes hands for around $1.25 per share. Yet while continued operating losses and slowing growth explain this poor performance, a closer look suggests that, at current prices, FiscalNote has become one of the penny stocks to buy on the dip.

As detailed in the latest quarterly earnings release, proceeds from a recent asset sale have enabled FiscalNote to shore up its balance sheet. Not to mention, provide capital to fund FiscalNote’s turnaround, which may result in a return to higher growth, as well as further progress towards becoming a profitable enterprise.

CarParts.com (PRTS)

A stack of auto parts
Source: Shutterstock

Take a look at a stock chart of CarParts.com (NASDAQ:PRTS), and at first it may seem like a falling knife stock you better not touch. Shares went to the moon during 2020 and 2021, thanks to pandemic tailwinds for the online auto parts retailer.

Over the past three years, though, sales growth has stalled, and the company has again become consistently unprofitable. As a result, PRTS stock has fallen back to pre-pandemic price levels. However, before you write off CarParts.com, keep in mind it may not necessarily be destined for the stock market junkyard.

According to co-founder and former CEO Mehran Nia, CarParts.com’s troubles are the result of mismanagement. Namely, current management’s pivoting away from higher-margin private label products, towards low-margin drop-shipped branded aftermarket parts. Continued efforts by Nia to influence and/or get back on the board may help to spark a recovery for PRTS.

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, Thomas Niel 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.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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