Penny stocks have a unique appeal– one that only strong-stomached, risky-taking investors find appetizing. This is for good reason– these stocks are insanely volatile. By definition, penny stocks are shares of companies selling for less than $5 each. While they are risky, the entry price is so low that great returns are within the realm of possibility, often with little regret should the market slump.
Today, I would like to recommend three penny stocks that could 10X your returns in the long run. That’s because all of these companies are at the cutting edge of their sectors; they’re on the brink of becoming extremely profitable. With that being said, they can be risky due to their extreme volatility, but the growth potential these stocks present makes them instant buys.
Vigil Neuroscience (VIGL)
Vigil Neuroscience, Inc. (NASDAQ:VIGL) is a clinical-stage biotechnology company that focuses on developing treatments for both rare and common neurological diseases. Its lead candidate at the moment is VGL101 (Iluzanebart), which is in Phase-2 trials with patients. The company is also developing VG-3927, a drug for more common neurological diseases.
While the company’s revenue is lacking, with losses every year for the last 4 fiscal years, this is to be expected for a new pharmaceutical company. The high entry cost of this sector, which is due to the cost of Research and Development, paying the highly skilled and low-supply professionals, and the cost of testing the drug itself, causes this. However, VIGL stock is set to spike should its products get regulatory approval.
VIGL stock has beat EPS estimates ¾ times in the last four quarters and has a beta of 1.95, indicating that the stock is 95% more volatile than the overall market. This beta also indicates that the stock is expected to give returns that outpace the market. Thus, this stock is definitely an investment you should consider.
Nisun International (NISN)
Nisun International Enterprise Development Group (NASDAQ:NISN) is an investment holding company that provides technology-driven integrated supply chain solutions and financial services for enterprises and financial institutions in the People’s Republic of China and internationally. It offers small-and mid-sized enterprise financing solutions, such as designing debt financial products, product descriptions and other related advisory services to underwriters and financial institutions.
NISN stock is currently trading at $3.37 with a market cap of $13.539 million. While the company’s profit and operating margin are small, at 6.08% and 9.14% respectively, the year-on-year quarterly revenue growth rate is 7.50% – indicating increasing revenue. It is trading at just 0.93 of trailing P/E, indicating great growth prospects.
Recently, NISN has seen breakthroughs in the egg business, following its expansion into the egg market. This shows management’s versatility, which is always a positive sign in an early-stage, growing company like NISN. All of this makes NISN stock an attractive buy that definitely has the potential to 10X your earnings.
Nerdy (NRDY)
Nerdy, Inc. (NYSE:NRDY) operates a platform for live online learning. The company’s purpose-built proprietary platform leverages technology, including artificial intelligence to connect students, users, parents, guardians and purchasers of various ages to tutors, instructors, subject matter experts, educators and other professionals, delivering value on both sides of the network.
NRDY stock is currently trading at $1.47 with a market cap of 258.3 million dollars. While the company’s profit and operating margin are negative at -14.49% and -23.92% respectively, the year-on-year quarterly revenue growth rate is 9.20% – indicating increasing revenue and decreasing profits. It has consistently beaten EPS predictions in the past 3 quarters, surprising analysts by 36.40% in Q1 2024.
Despite the current financial challenges, Nerdy’s innovative approach to online education and its consistent performance in exceeding EPS expectations suggest potential for future growth. Investors looking for a high-risk, high-reward opportunity in the evolving edtech space might find NRDY stock to be a promising addition to their portfolio.
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 InvestorPlace.com’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, Achintya Pasricha 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.
