7 Penny Stocks to Buy That Can Skyrocket Like Carvana


  • Cronos Group (CRON): Growing tailwinds in the cannabis sector should help strengthen Cronos.
  • Archer Aviation (ACHR): An order backlog of $3.5 billion implies a strong platform for revenue growth in 2025 and beyond.
  • Solid Power (SLDP): It’s moving toward the commercialization of solid-state batteries with the backing of strong automotive partners.
  • Read more about the top penny stocks that can rocket much like Carvana!
penny stocks to buy - 7 Penny Stocks to Buy That Can Skyrocket Like Carvana

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In 2023, Carvana (NYSE:CVNA) traded as a penny stock after plunging from an all-time high of $360. At the time, investors soured on the name, and it looked like CVNA’s days were numbered. However, CVNA surprised investors and analysts since then, with multi-bagger returns in just over a year. Last month, the stock hit a high of $94. It’s this kind of rally among attractive penny stocks to buy that can change the fortune of investors.

It’s important to note that not all penny stocks can replicate the rally in CVNA stock. The surge in Carvana’s stock should not be construed as a signal for going overboard on penny stocks.

At the same time, it’s important to have at least 10% to 15% exposure to penny stocks. One or a few stories like Carvana can have a significant impact on the overall portfolio. In fact, here are seven penny stocks to buy that could rally like CNVA stock and deliver multi-bagger returns.

Cronos Group (CRON)

Don't Count on Altria to Keep the Price of Cronos Stock Propped Up
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I believe that some of the best cannabis stocks might be poised for a big move in the next few quarters. With U.S. elections around the corner, there is likely to be some news related to federal legalization. That’s a big potential catalyst. Further, cannabis is likely to be reclassified as a Schedule III drug in the U.S.

Cronos Group (NASDAQ:CRON) is among the most undervalued cannabis penny stocks to buy. In the last six months, CRON trended higher by 41%. However, this is just the beginning of the rally in my opinion.

It’s also worth noting that Cronos ended its fourth quarter with a cash buffer of $862 million. This provides the company with high flexibility for organic and acquisition-driven growth.

In addition, Germany just legalized cannabis and Cronos has entered the German markets with an initial focus on medicinal cannabis. Further, Australia is another new market for the company. That, plus a strong cash buffer coupled with geographical expansion tells me Cronos is positioned for robust growth.

Archer Aviation (ACHR)

Person holding mobile phone with web page of US eVTOL aircraft company Archer Aviation Inc. (ACHR) on screen with logo. Focus on center of phone display. Unmodified photo. Archer Aviation Stock Analysis
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Another one of the top penny stocks to buy is Archer Aviation (NYSE:ACHR). Granted, it recently corrected from all-time highs of $7.50 to current levels of $4, but it’s set to launch with flying cars.

For one, Archer is preparing for commercial operations in 2025. Two, it just initiated the construction of its manufacturing facility. And, with an initial capacity to produce 650 eVTOL annually, Archer is positioned to scale up operations.

I also like the fact that Archer has an order backlog of $3.5 billion. The backlog is from the United States, UAE, and India. The Company will commence operations in these countries before the end of 2026.  Therefore, stellar revenue growth seems likely in the next five years. Helping, Archer will continue to enter new markets.

Solid Power (SLDP)

Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.
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Solid Power’s (NASDAQ:SLDP) stock is up about 18% on the year. The upside comes after an extended period of correction. In January, Chardan Research estimated that the stock is likely to triple in share price after the company deepened its partnership with Korean conglomerate SK On.

In terms of business progress, Solid Power delivered A-sample cells in 2023 to formally enter the automotive qualification process. The Company’s automotive partners include BMW (OTCMKTS:BMWYY) and Ford (NYSE:F). With BMW also involved in parallel research and development, Solid Power has a strong backing.

For the current year, the company shifted focus to A-2 sample cells. The objective is to achieve safer and higher-performance cells. Coming back to the partnership with SK On, the company has expanded its addressable market. Further, SK On will use “Solid Power’s cell technology for research and development.” At the same time, SK On will produce solid-state batteries in Korea.

Therefore, with strong partnerships, high financial flexibility, and steady business progress, SLDP stock is likely to skyrocket.

Bitfarms (BITF)

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With the completed Bitcoin (BTC-USD) halving, the cryptocurrency will likely trade at new highs in the coming months. In fact, it’s been estimated that Bitcoin is likely to touch $120,000 by the end of the year. If true, some of the best Bitcoin miners are likely to surge higher, including Bitfarms (NASDAQ:BITF).

I strongly believe the latest correction in the Bitcoin mining stock is a good opportunity to accumulate. It’s also important to note that the correction in BITF stock has been on the back of a $375 million equity offering.

The company plans to use the funds for massive hash rate capacity expansion. This will translate into stellar revenue and cash flow upside. To put things into perspective, Bitfarms reported a hash rate capacity of 6.5EH/s at the end of 2023. The Company is expecting to increase capacity to 21EH/s by the end of the year. With a zero-debt balance sheet and a strong liquidity position, the next leg of expansion will likely follow. Current levels are therefore attractive for accumulation.

Plug Power (PLUG)

Person holding smartphone with logo of US hydrogen fuel cell company Plug Power Inc. (PLUG) on screen in front of website. Focus on phone display. Unmodified photo.
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Plug Power (NASDAQ:PLUG) currently trades at $2.60. In my view, PLUG stock is deeply oversold and a strong reversal rally is in the cards.

The first point to note is that industry tailwinds remain positive with the global hydrogen economy likely to get bigger with time. However, Plug Power has suffered due to cash burn and concerns related to ambitious project execution. At the same time, raising funds would imply significant dilution of equity and that has depressed the stock.

However, there are positives to note amidst the concerns. Recently, Plug Power indicated that the company has made “substantial advancement” in hydrogen generation buildout.

The company’s first green hydrogen plant in Georgia has reached a nameplate capacity of 15 tons per day (TPD) of liquid hydrogen production. The Tennessee plant is also operating at a nameplate capacity of 10 TPD. Further, the Louisiana plant is projected to add 15 TPD of liquid green hydrogen by Q3 2024. If revenue growth gathers momentum in the coming quarters, PLUG stock is likely to surge.

Ring Energy (REI)

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With a forward price-earnings ratio of 4.4, Ring Energy (NYSEAMERICAN:REI) is among the most undervalued penny stocks to buy. The oil and gas company trended marginally higher by 10% in the last 12 months. I believe that a big breakout rally is in the cards for this $400 million company.

Helping, I’m bullish on crude trending higher. The reasons are geopolitical tensions and potential rate cuts in the second half of 2024. With higher realized oil prices, Ring Energy is positioned to deliver EBITDA margin expansion and robust free cash flows. Strong quarterly numbers are likely to be another factor that will drive REI stock upside.

Aker Carbon Capture (AKCCF)

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Aker Carbon Capture (OTCMKTS:AKCCF) is another under-the-radar penny stock to buy. From current levels of 67 cents, the AKCCF stock is poised for 10 to 20 times returns, I believe. It’s important to note that the bullish outlook is backed by positive industry tailwinds that are likely to last beyond the current decade.

As an overview, Aker Carbon is a provider of product, technology, and solutions in the field of carbon capture. With increasing focus on decarbonisation, Aker Carbon has a big addressable market in the United States and Europe.

The big positive is that the company has a proven proprietary technology with over 60,000 operating hours and seven carbon capture units being delivered. The Company is planning a massive scale-up and is targeting 10 million tons of CO2 capture per annum by 2025.

Therefore, revenue growth is likely to be stellar in the coming quarters. It’s worth noting that Aker has an order backlog of 2.6 billion Norwegian krone. This provides near-term revenue visibility.

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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.

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