7 Penny Stocks That Even Wall Street Experts Love: Spring 2024


  • GrowGeneration (GRWG): GrowGeneration could benefit from favorable cannabis trends.
  • Brilliant Earth Group (BRLT): Brilliant Earth may rise on social normalization dynamics.
  • Jerash Holdings (JRSH): Jerash might see a demand increase from a strong labor market.
  • Read more about these top penny stocks to buy today!
Penny Stocks to Buy - 7 Penny Stocks That Even Wall Street Experts Love: Spring 2024

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Penny stocks to buy are incredibly risky “assets” – there’s just no getting around this reality. At the same time, they also offer tremendous upside possibilities if the stars align just right. That’s why people keep coming back to this space.

Now, what really adds spice to this ecosystem is that every now and then, Wall Street analysts stick their necks out and endorse certain high-risk enterprises. Much of the reason centers on belief in the business. However, there’s also a component that renegade analysts can make a name for themselves.

Best of all, expert guidance tends to influence the market. At the very least, they provide visibility to the ideas they cover. So, you can speculate with a greater sense of confidence. With that, here are analyst-backed penny stocks to buy.

GrowGeneration (GRWG)

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Based in Greenwood Village, Colorado, GrowGeneration (NASDAQ:GRWG) is not a cannabis operator. Instead, per its public profile, the company owns and operates retail hydroponic and organic gardening stores. However, retail investors are free to read between the lines. While GrowGeneration might not explicitly support the cannabis space, its products – including environmental control systems – are relevant to the space.

Why does that matter? Recently, the Biden administration moved to reclassify marijuana to Schedule III from Schedule I. With the lower level of enforcement, the U.S. cannabis sector has enjoyed a significant bout of credibility. Following the announcement, several pure-play “botanical” enterprises saw their equity value rise dramatically.

In fairness, traders dumped GRWG and other cannabis stocks on Wednesday to collect their profits. Still, demand may rise longer term, possibly forcing a rethink. For example, analysts previously believed the company would post revenue of $208.84 million in fiscal 2024. That’s down 7.5% from last year. Projections for 2024 (and you’ve got to think especially for 2025) should be modified upward.

For now, GRWG carries a moderate buy rating with a $3.70 average price target. It’s one of the more reasonable penny stocks to buy.

Brilliant Earth Group (BRLT)

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Hailing from San Francisco, California, Brilliant Earth Group (NASDAQ:BRLT) designs, procures, and sells diamonds, gemstones and jewelry in the U.S. and internationally. Per its corporate profile, Brilliant Earth’s product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings and fine jewelry.

Fundamentally, Brilliant Earth presents an interesting but challenging case for penny stocks to buy. On one hand, the tough consumer economic environment has crimped sentiment. To be sure, diamond rings represent a big-ticket item. On the other hand, such products like engagement rings are (you’d hope) once-in-a-lifetime events.

Plus, the broader social normalization could help Brilliant indirectly as people are more willing to consider meeting new people. That just wasn’t possible during the worst of the Covid-19 pandemic.

Analysts are looking for solid growth given the circumstances, anticipating sales of $462.72 million this year. Last year, the print came out to $446.38 million. They also peg shares a moderate buy with a $3.50 price target.

Jerash Holdings (JRSH)

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Based in Fairfield, New Jersey, Jerash Holdings (NASDAQ:JRSH) operates in the apparel manufacturing category. According to its public profile, Jerash through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. It serves several brand-name retailers in the U.S., Hong Kong, Jordan and other international markets.

To be upfront, Jerash presents one of the trickiest ideas among penny stocks to buy. To give you an idea of what I’m talking about, experts believe that fiscal 2024 sales will land at $116.94 million. That would be down 15.3% from last year’s result of $138.06 million. So, why bother putting money at risk in JRSH?

While discretionary sentiment may be down, it’s also fair to point out that the U.S. labor market is robust. Further, the apparel market isn’t exactly the biggest-ticket item out there. It’s possible that gradually, Jerash’s business could recover. Certainly, the security’s price action has been relatively stable this year.

Analysts rate shares a consensus moderate buy with a $5 price target.

Arbe Robotics (ARBE)

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Headquartered in Tel Aviv, Israel, Arbe Robotics (NASDAQ:ARBE) conducts business in the infrastructure software industry. A semiconductor company, Arbe provides 4D imaging radar solutions for Tier 1 automotive suppliers and automotive manufacturers in multiple markets, including China, Germany and the U.S. According to the corporate profile, Arbe aims to address the core issues that cause autonomous vehicle and autopilot-related accidents.

Fundamentally, it doesn’t take much to recognize the upside potential here. Fortune Business Insights notes that the global autonomous vehicle market reached a valuation of $1.5 trillion in 2022. By 2030, this sector could hit $13.63 trillion, implying a compound annual growth rate of 32.3% from 2023. Not surprisingly, analysts believe Arbe could print revenue of $1.65 million, up 12.2% from last year.

Here’s the kicker: in fiscal 2025, experts believe that Arbe can post sales of $31.35 million. If so, that would be 1,800% up from projected 2024 sales. Lastly, analysts peg shares a unanimous strong buy with a $3.50 price target.

Blade Air Mobility (BLDE)

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Based in New York City, Blade Air Mobility (NASDAQ:BLDE) operates in the airports and air services sector. Per its public profile, Blade Air provides air transportation alternatives to congested ground routes in the U.S. It provides services through charter and by-the-seat flights using helicopters, jets, turboprops and amphibious seaplanes.

Of course, Blade Air is best known for its innovations in electric vertical aircraft, also known as electric vertical takeoff and landing (eVTOL) aircraft. According to Precedence Research, the eVTOL sector reached a valuation of $11.15 billion in 2022. By 2032, the ecosystem could be worth $35.79 billion, implying a CAGR of 12.37%.

For fiscal 2024, analysts forecast revenue to reach $246.37 million. That’s up 9.4% from last year’s tally of $225.18 million. By 2025, the top line could hit $279.79 million, up 13.6% from projected 2024 sales.

It’s also one of the most tempting penny stocks to buy. Analysts rate shares a unanimous strong buy with a $6 price target.

Blink Charging (BLNK)

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Headquartered in Bowie, Maryland, Blink Charging (NASDAQ:BLNK) technically operates in the engineering and construction subcategory. Officially, the company owns, operates, manufactures and provides electric vehicle charging equipment and networked EV charging services in the U.S. and international markets. BLNK is a compelling idea among penny stocks to buy because of the long-term narrative.

Still, it’s a tough case. Notably, the EV sector is experiencing a demand fallout. What makes the matter worse is that combustion-based hybrid electric car sales are flying through the roof. So, it may be a while before demand returns back to pure-play EVs. On the other hand, more people are interested in making the transition to electric.

If you’re one of the believers, experts forecast fiscal 2024 sales to hit $170.59 million. That’s up 21.3% from last year’s print of $140.6 million. In fiscal 2025, revenue could rise to $228.41 million, up 33.9% from projected 2024 sales.

Analysts are pegging BLNK as a moderate buy with a $7.83 price target.

Rekor Systems (REKR)

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Hailing from Columbia, Maryland, Rekor Systems (NASDAQ:REKR) operates in the infrastructure software space. Per its corporate profile, Rekor is a technology company that provides infrastructure solutions for transportation, public safety and urban mobility markets in the U.S. and international markets. It utilizes artificial intelligence to provide roadway intelligence.

Interestingly, one of Rekor’s businesses involves providing traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives. The company is also involved in innovative AI-driven traffic studies for traffic management research.

For fiscal 2024, analysts are looking for revenue to hit $66.07 million. That’s up 89.1% from the prior year’s print of $34.93 million. What’s more, fiscal 2025 sales could reach $88.74 million. If so, that would be up 34.3% from projected 2024 revenue.

Finally, analysts rate shares a consensus moderate buy with a $4.50 average price target. This could be one of the blue-sky prospects among penny stocks to buy.

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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/7-penny-stocks-that-even-wall-street-experts-love-spring-2024/.

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