Stock Market Crash: 3 Must-Buy Penny Stocks When Prices Plunge


  • Numerous penny stocks are undervalued and ready to spike after a market repricing. Consider these three gems!
  • Workhorse Group (WKHS): Key metrics and the firm’s fundamentals are aligned toward the upside. 
  • Air Water Solutions (ARIS): The company addresses a promising market and has achieved early-stage operating efficiency.
  • Kona Gold Beverage (KGKG): Various synergies exist, which play into a perpetual growth story.
Penny Stocks to Buy During Crash - Stock Market Crash: 3 Must-Buy Penny Stocks When Prices Plunge

Source: John Brueske /

The iShares Micro-Cap ETF (NYSEARCA:IWC) has surged by approximately 20% in the past six months, illustrating the optimism among risk-seeking investors. However, key variables suggest a correction in risky asset prices might occur. For instance, the Federal Reserve has announced a reduction in its tightening program, which conveys an implied economic slowdown. Moreover, the S&P 500 Volatility Index is below its long-run average of 21, and mean reversion will likely happen, concurrently wrecking high-risk assets.

As stated above, I have a negative outlook on risky stocks. Nonetheless, I do anticipate a rebound following a temporary market downturn. If you share my opinion, then you might want to consider buying these three penny stocks after their prices have declined.

Workhorse Group Inc. (WKHS)

Drone flying over landscape representing uvas stock
Source: Rocksweeper /

Workhorse Group (NASDAQ:WKHS) is an all-electric durable goods producer specializing in vehicles, drones, software, and advanced infrastructure. The firm’s stock has underperformed in the past year, losing approximately 80% of its value. However, an inflection point might occur in late 2024; here’s why.

Workhorse Group’s recent capitulation was largely due to inconsistent earnings and liquidity concerns. Despite these concerns, Workhorse Group is growing at scale. For example, Workhorse’s fourth-quarter earnings report reflected $4.4 million in revenue, a 27.9% year-over-year increase. Moreover, Workhorse has reportedly entered a $129 million convertible notes agreement with an institutional investor, allowing it to bolster its balance sheet, increase its production capacity, and double down on product development.

WKHS has an alluring price-to-book ratio of 0.66x, and I believe its fundamental factors will align later this year. As such, I hold a bullish view of WKHS stock.

Aris Water Solutions, Inc. (ARIS)

Flooded quarry for limestone mining. Turquoise water. White beaches. Water stocks.
Source: Klintsou Ihar /

Water scarcity is a serious problem, and you might not know it yet, but commercial water recycling businesses are critical to commercial sustainability. Therefore, I’d like to introduce you to Aris Water Solutions (NYSE:ARIS), a U.S.-based water recycler with a presence in the oil and gas industry.

Although Aris Water Solutions is an early-stage firm, its preliminary results show great promise. For instance, Aris’ fourth-quarter financial statements communicated $104.12 million in quarterly revenue, a 25.6% year-over-year increase. Moreover, Aris reported a net profit of $13 million, translating into a net profit margin of approximately 12.5%.

Furthermore, Aris’ execution is worth observing. The company’s latest data shows that its operating margin per barrel increased by 11% year over year, leading to a $114 million annualized increase in operating cash flow.

Aris Water Solutions has achieved operational efficiency and financial prowess merely nine years after its inception. Additionally, its price-to-earnings-growth ratio of 0.02x suggests it is an overlooked gem!

Kona Gold Beverage, Inc (KGKG)

three different alcoholic beverages
Source: Shutterstock

Kona Gold Beverage (OTCMKTS:KGKG), which will soon be called NuVibe, is a beverage company that sells low-calorie energy and hydration drinks.

The firm operates in a competitive market, but its three-year compound annual growth rate (CAGR) of 69.14% suggests it is rising above its competitors. Much of its success stems from its unique flavoring and successful branding, which places it in the ‘healthy’ segment of the energy drinks market. Moreover, Kona is benefitting from its exposure to the cannabis market via its infused drinks due to cross-sales synergies.

I think Kona has great interim prospects due to the secular growth embedded in the energy drinks industry. Moreover, its acquisition of Surge Distribution opens up vertically integrated opportunities that could widen its profit margins.

Lastly, KGKG stock has a price-to-sales ratio of 0.65x, suggesting it is grossly undervalued. I would seriously consider this stock in the event of a market repricing!

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’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, Steve Booyens 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 Publishing Guidelines.

Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for cross-asset research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary – University of London. Furthermore, Steve obtained his CFA Charter on April 26, 2024, and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve’s articles on InvestorPlace form an interesting juxtaposition between mainstream opinion and objective theory. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.

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