When dealing with speculative investments – especially overlooked penny stocks – prospective participants must first acknowledge the risks. It’s a wild world out there. Anything can happen and if I may be blunt, that “anything” tends to be something bad.

Unfortunately, if you choose 10 overlooked penny stocks, having two of them be winners is a good day at the office. This arena reminds me of baseball. In practically, no other industry would a success rate of 30% be considered anywhere near acceptable. But if you’re a baseball player batting .300? You’re going to be in the starting lineup for someone.

The other thing about this investment category is that you have to be disciplined: you must know when to cut your losses and when to take profits. Both factors are crucial for success. Otherwise, you will lose, and lose badly. If you’re okay with that, these are the overlooked penny stocks to put on your radar.

Niu Technologies (NIU)

Based in China, Niu Technologies (NASDAQ:NIU) designs, manufactures and sells smart electric scooters. Fundamentally, the idea of electric mobility has come under significant pressure due to a host of reasons. Primarily, economic jitters combined with high prices of electric vehicles relative to their combustion-powered counterparts have contributed to the fallout. However, electric scooters may be a different story.

Basically, scooters provide a mix of the best of both worlds: by deploying them within urban centers, you can help solve the last-mile problem. At the same time, the platform adds to the zero-emissions goal that nations everywhere are gradually implementing. So, Niu helps forward convenience under a more sustainable directive – it’s a win-win.

To be sure, analysts aren’t exactly clamoring over NIU. However, that makes it one of the overlooked penny stocks. Still, the projections that are available call for fiscal 2024 earnings per share to reach 20 cents. That’s a big jump from a loss of 48 cents one year ago. Also, revenue may rise to $467.81 million, up nearly 28% from 2023’s tally.

Dragonfly Energy (DFLI)

Headquartered in Reno, Nevada, Dragonfly Energy (NASDAQ:DFLI) engages in the manufacturing and sale of deep cycle lithium-ion batteries for recreational vehicles, marine vessels, solar and off-grid residence industries. It also serves industrial and energy storage markets. With the broader push for clean and sustainable solutions – particularly amid the geopolitical backdrop – Dragonfly enjoys a relevant narrative.

Whether that translates to significant profitability remains to be seen. Currently, only one analyst within the past three months has covered DFLI. However, when extending the coverage spectrum to August of last year, DFLI actually carries a unanimous buy rating. Notably, the high-side target calls for a per-share price of $3, implying over 270% upside potential.

What’s intriguing here is that covering experts call for fiscal 2024 revenue to land at $68.28 million. That’s up 6% from last year’s haul of $64.39 million. However, the most optimistic target calls for $76.21 million. Now, fiscal 2025 could be a huge year, with sales projected to reach $115.92 million. Therefore, it’s a good idea to keep Dragonfly on your radar of overlooked penny stocks.

PHX Minerals (PHX)

Calling Fort Worth, Texas home, PHX Minerals (NYSE:PHX) specializes in oil and gas exploration and production. That’s a fancy term for the upstream component of the hydrocarbon value chain. Per its public profile, PHX produces and sells natural gas, crude oil and natural gas liquids. Because the world runs on oil, PHX effectively enjoys a permanently relevant profile.

However, with the geopolitical backdrop threatening to disrupt global oil supply chains, the company could become even more valuable. However, PHX is only up less than 2% since the start of the year. I think that’s ridiculously underappreciated considering the fundamentals. Therefore, it belongs on your speculative list of overlooked penny stocks.

What makes PHX a perplexing idea is that it features a unanimous strong buy rating with a $4.85 average price target. At the same time, data from Yahoo Finance reveals that these same experts anticipate earnings and revenue declines for fiscal 2024, with improvements only coming in fiscal 2025.

Frankly, I think the financial forecast will be pushed ahead of schedule. It’s one of the overlooked penny stocks to consider.

Vertex Energy (VTNR)

Headquartered in Houston, Texas, Vertex Energy (NASDAQ:VTNR) is an energy transition company. It focuses on the production and distribution of conventional and alternative fuels. Per its corporate profile, Vertex engages in refining and distributing petroleum products comprising the mobile refinery and related operations. It also sells ferrous and non-ferrous recyclable metal products.

Now, to be clear, VTNR represents an extremely risky idea among overlooked penny stocks. Since the start of the year, shares stumbled nearly 31%. That’s ugly. At the same time, over the past five sessions, the security gained almost 70% of equity value. That’s more like it.

Analysts are looking at Vertex as a moderate buy with a $2.51 average price target. That implies over 49% upside potential, with the high-side target aiming for $4. Now, for the current fiscal year, the experts see revenue (on a consensus basis) declining about 2% from last year.

However, the geopolitical context may lead to a pushing up of the fiscal 2025 revenue target of $3.43 billion. That’s up 9.8% form projected 2024 sales.

Purple Innovation (PRPL)

Hailing from Lehi, Utah, Purple Innovation (NASDAQ:PRPL) designs and manufactures sleep and other products in the U.S. and internationally. The company offers a wide variety of sleep-related products: mattresses, pillows, cushions, bases, sheets, platforms, adjustable bases – you get the idea. It markets and sells its products through its e-commerce online channels, retail brick-and-mortar wholesale partners, third-party online retailers and Purple showrooms.

Sleep is very important. According to Straits Research, the global sleep market – which includes everything from bedding products to pharmaceuticals – represents $60.35 billion industry. By 2031, the sector could be worth $102.07 billion, implying a compound annual growth rate (CAGR) of 5.91% from 2023. A good night’s rest aids economic productivity. While Purple may be boring, it’s in my opinion one of the overlooked penny stocks.

Covering experts see the company generating revenue of $548.91 million. That’s up 7.5% from last year’s tally of $510.54 million. Further, fiscal 2025 sales could hit $594.07 million, implying 8.2% growth from projected 2024 revenue. With the enterprise forecasted for steady growth in a relevant sector, it’s one of the overlooked penny stocks to buy.

AXT (AXTI)

Based in Fremont, California, AXT (NASDAQ:AXTI) designs, develops, manufactures, and distributes compound and single-element semiconductor substrates. The company offers indium phosphide for use in multiple applications. These include high-speed data transfer protocols in data centers, 5G communications, fiber optic lasers and detectors, among myriad other applications. Long story short, it’s a relevant idea among overlooked penny stocks to buy.

AXTI is up over 18% on a year-to-date basis. It was up much higher than that earlier this year, reflecting the wild choppiness of the idea. Still, it also presents speculators with an opportunity for significant growth. In the trailing month, AXTI lost almost 38% of equity value. However, analysts rate shares a unanimous strong buy with a $5.30 average price target. Shares exceeded this target in March so the potential is there.

Even more compelling, experts are calling for fiscal 2024 sales to hit $93.79 million. That’s up 23.7% from last year’s tally of $75.8 million. What’s more, the high-side target calls for $104.5 million. In fiscal 2025, revenue could land at $130.62 million, up 39.3% from projected 2024 sales.

Ceragon Networks (CRNT)

Based in Israel, Ceragon Networks (NASDAQ:CRNT) together with its subsidiaries, provides wireless transport solutions for cellular operators and other wireless service providers. The company’s solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the service provider’s network. It’s a vital cog in the broader communications ecosystem.

Notably, CRNT is a strong performer in the charts. Since the start of the year, shares gained over 32%. In the past 52 weeks, they’ve managed to return more than 54% of equity value. However, CRNT is also encountering near-term volatility, falling over 15% in the trailing month. For the speculative types, this could be the juncture to get a discounted price.

For the current fiscal year, analysts are looking for EPS of 31 cents, a big improvement over last year’s 9-cent EPS. Also, they’re projecting sales of $394.13 million, which implies 13.5% upside from 2023’s tally of $347.18 million. Further, in fiscal 2025, the top line could expand to $418.74 million, up 6.2% from projected 2024 sales.

Penny Stocks

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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.