May has brought attention to seven penny stocks that investors should consider adding to their portfolios. As a keen observer of the cryptocurrency market, I’ve been watching Bitcoin (BTC-USD) closely as it aims to reach new all-time highs. However, I’ve also been keeping an eye on some fascinating penny stocks that I believe offer significant value.

Investors with different risk tolerances and investment horizons should consider allocating a small portion of their portfolios to top penny stocks. These companies have the potential to boost returns, especially in the current bull market. During a bear market, the stability provided by blue-chip stocks or broad-market ETFs can help absorb the impact of losses.

With Bitcoin now retracing below $60,000 at the time of writing, investors seeking impressive gains may look elsewhere, and these penny stocks may fit the bill. I think that these companies are also solid options regardless of what the broader market is doing, as they are solid companies in their own right. This could give them the potential to mint new millionaires.

So here are seven penny stocks for investors to consider buying in May this year.

Innovative Eyewear (LUCY)

Innovative Eyewear (NASDAQ:LUCY) provides smart eyewear solutions, blending fashion and technology.

LUCY is advancing its position in the smart eyewear market. In its 2023 financial results, LUCY reported annual revenues of $1.15 million, up 75% year-over-year, primarily driven by gains in direct-to-consumer and Amazon (NASDAQ:AMZN) channels.

The fourth quarter saw record revenue of $615,754, reflecting consistent growth across four quarters.

Looking ahead, LUCY aims to diversify its portfolio with new products, including smart eyewear lines from brands like Nautica and Eddie Bauer, as well as launching the Lucyd Armor safety glasses line. The company also introduced the Blueshift lens for enhanced eye protection and comfort, and the Lucyd app.

Smart eyewear could be part of an emerging trend in tech and fashion, which is an evolution from smart watches, but for eyeglasses. I think that this niche has potential, especially for those who love gadgets. LUCY’s position then is a strong one.

E-Home Household Service (EJH)

E-Home Household Service (NASDAQ:EJH) is a comprehensive household service provider; offering cleaning, housekeeping, and other related services to a variety of clientele.

The company’s 2023 financials showed revenue of $68.32 million, despite recording losses for the year, indicating both expansion and operational scaling. The company has also made significant strategic partnerships, including property cleaning contracts worth RMB 22 million and a collaboration with Xi’an Liangjian Technology to provide pharmaceutical services, expected to yield RMB 10 million.

Going forward, E-Home Household Service aims to consolidate its market presence by growing its portfolio and expanding its reach, particularly in China’s integrated home services sector​.

A major weakness for many U.S. investors’ portfolios is a lack of international diversification, especially in emerging markets. EJH could then tick two boxes as a high potential penny stock as well as a company that has an established presence in China.

Vertex Energy (VTNR)

Vertex Energy (NASDAQ:VTNR) is a waste management company specializing in recycling industrial waste oils and producing alternative fuels.

In 2023, Vertex reported an increase in total production, reaching 73,745 barrels per day across its operations​.  Despite some market volatility, Vertex’s growth trajectory remains positive, with planned developments in renewable fuels and ongoing strategic transactions​

For the first quarter of 2024, Vertex reported an update on its operational outlook, including anticipated throughput exceeding guidance due to stronger capacity utilization​. The company’s quarterly results show total production of 64,000 barrels per day, with renewable diesel production at 4,000 barrels per day, maintaining a production yield of over 95%.

With higher capacity comes higher earnings. I think then that VTNR could be one of those penny stocks for investors to have on their radars, especially since it operates in two lucrative sectors, namely alternative fuels and industrial waste recycling.

Weight Watchers International (WW)

Weight Watchers International (NASDAQ:WW) offers weight management programs, combining technology and in-person support to help individuals achieve healthier lifestyles​.

WW has been adjusting its business strategy and product offerings, yielding mixed results for 2023. The company’s revenue for the full year 2023 was $889.6 million, down 14.5% from the previous year, with gross profit of $529.3 million.

The company’s earnings per share in Q4 2023 was -$0.06, slightly missing analyst expectations, but earnings are expected to grow in the upcoming year to $0.40 per share.

The company has also announced plans for continued engagements, such as upcoming events on weight health and new offerings in its weight loss programs. Additionally, analysts forecast an average 3.31% revenue growth for WW in 2024​.

It seems that WW is on a path of recovery after restructuring its offerings, and with rising obesity levels worldwide, the company is in a strong position to grow its fundamentals.

EAF GrafTech International (EAF)

EAF GrafTech International (NYSE:EAF) is a leading manufacturer of graphite electrodes used in electric arc furnace steel production.

The company reported a net loss of $217 million for 2023, with adjusted free cash flow of $50 million, reflecting an ongoing focus on managing working capital​. In Q1 2024, GrafTech reported a loss of $0.12 per share but exceeded analyst expectations. This was attributed to continued softness in the commercial environment, though the company’s production volumes and revenue showed improvement.

To strengthen its financial position, GrafTech completed a $450 million private offering of senior secured notes, extending debt maturities to 2028. The company’s Monterrey facility, which had faced regulatory challenges, has also seen operations restart, which should support GrafTech’s growth.

The company expects sales volumes for 2024 to range from 13,000 to 16,000 metric tons​ this year. EAF is therefore in a strong position, and could lead to a seven-figure sum with a sizable investment, provided favorable conditions are met.

Genworth Financial (GNW)

Genworth Financial (NYSE:GNW) is an insurance company providing life insurance, long-term care insurance.

The company’s Q4 2023 earnings report showed a net loss of $212 million, or $0.47 per diluted share. This was driven by unfavorable impacts from assumption updates in its life insurance and long-term care insurance (LTC) segments​. Adjusted operating loss was $230 million, or $0.51 per diluted share. Revenue for Q4 was $1.91 billion.

Genworth has been proactive in addressing its financial structure, completing the redemption of its 2024 senior notes and focusing on strengthening its balance sheet​. The company also reported an increase in statutory pre-tax income to $148 million in Q4 2023, driven by various factors including benefits from premium increases and benefit reductions from in-force rate actions in its LTC segment​.

Looking ahead, Genworth aims to continue navigating the challenges of its industry, particularly in managing its LTC and life insurance operations. It could then have multi-bagger potential given its rock bottom valuation.

New Gold (NGD)

New Gold (NYSE:NGD) operates in the mining sector, focusing on the exploration and production of gold and other precious metals from its global assets.

In 2023, the company achieved consolidated gold equivalent production of 423,517 ounces, reaching the top end of its guidance. Looking ahead to 2024, New Gold outlines plans for a gold production increase at its Rainy River Mine, projecting 250,000 to 280,000 ounces. 

This growth is supported by a modest increase in gold grade and higher mining rates, particularly from its underground Main Zone which is expected to start production in Q4 2024. Additionally, the company projects total capital investments between $145 to $165 million.

New Gold’s management also anticipates improvements in its operational and financial performance through 2026. The company remains focused on optimizing its production profile and reducing costs over the coming years.

NGD’s performance could make it an attractive pick for those who are looking to diversify into gold, as well as pick up shares of a company that could mint new mllionaires.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.