Investors with any experience in the world of penny stocks know that risk is real. That risk is higher as the price of shares goes lower. Thus, stocks trading between $5 and $10 are somewhat more stable than their sub-$5 counterparts.

Stocks in the $5 to $10 price range have generally passed major tests and become more stable in the process. That’s true of all of the shares discussed below. These shares also appear to be poised for breakouts moving forward. 

Furthermore, all of the stocks discussed below have returned 10% or more to investors in 2024. Their respective revenues have also grown by 20% or more in the most recent earnings period. Let’s take a look at these firms and their shares.

Payoneer Global (PAYO)

Payoneer Global (NASDAQ:PAYO) is a fintech stock that many investors and readers will have heard of. It is one of many payment companies that continue to garner substantial interest but are just outside of the higher volume, best-known plays in the space.

Nevertheless, Payoneer Global is certainly one worth paying attention to. The company primarily serves small and medium enterprises, facilitating transactions, and is doing quite well for its most recent earnings report.

That report shows that Payoneer Global’s revenues increased by 19% in the first quarter, on a 21% volume increase. The company also achieved record quarterly revenues of $162.9 million.

I’d argue that one of the primary reasons to expect Payoneer Global to break out is its earnings growth. Net income grew by 265% year over year, reaching $29 million in the first quarter. Consensus expectations suggest potential returns of roughly 20% in the next 12 months, but 50% returns are not unreasonable based on target prices.

Arcutis Biotherapeutics (ARQT)

Arcutis Biotherapeutics (NASDAQ:ARQT) stock might scare away investors who’ve been burned by biotech stocks in the past. That trepidation is reasonable given how often biotech companies fail, but Arcutis Biotherapeutics will likely succeed. 

In fact, the company is already succeeding from the perspective that it is currently producing revenues. The company’s dermatological treatments are selling well, and revenues are booming. 

Revenues jumped from $2.8 million to $21.6 million in the first quarter of 2024. Zoryve, the company’s foam dermatitis treatment, accounted for $15 million of those revenues. Arcutis Biotherapeutics filled more than 46,000 prescriptions for the drugs since it was commercially launched. It is also covered by the three largest pharmacy benefit managers. 

The company also received positive news regarding its scalp and body psoriasis treatment, Arrector. Arcutis Biotherapeutics plans to submit documents for that drug to the Food and Drug Administration in the third quarter following a pivotal Phase 3 trial. 

The company passed the pre-revenue stages that so often bankrupt biotech firms and should continue to appreciate and value. 

Nyxoah (NYXH)

Nyxoah (NASDAQ:NYXH) is a company commercializing treatment devices for sleep apnea. That makes the stock an interesting one to watch as sleep apnea has become a major health threat. Sleep apnea is proven to be associated with major health risks, creating a strong market opportunity. 

Nyxoah’s hypoglossal neurostimulation therapy treats moderate to severe obstructive sleep apnea. The company’s May 14 earnings report suggests that the company may receive FDA approval for the device as early as the end of 2024. That said, Nyxoah has already commercialized outside of the United States. Furthermore, the company is currently experiencing rapid sales growth with revenues having increased by nearly 200% in the first quarter.

Losses are currently very stable, and the company shouldn’t need to raise further capital until sometime in 2025. If the company is correct and receives FDA approval by the end of 2024, expect share prices to jump upward quickly as the U.S. market opens to it.

Redwire Corporation (RDW)

Redwire Corporation (NYSE:RDW) is a relatively young defense sector company whose stock is well worth understanding.

The company provides everything from avionics to sensors to solar arrays for government and commercial customers across the space sector. It represents an excellent investment for those seeking industrial stocks within the aerospace and defense sector.

The stock itself has provided nearly 80% returns since the beginning of 2024. Shares currently trade for slightly more than $5. The low target price suggests further upside, at $6 with the consensus price sitting at $7.33. Furthermore, a doubling from the current price is a distinct possibility based on analyst projections. 

Revenue growth at Redwire is particularly strong. First-quarter sales grew by nearly 53%, reaching $87.8 million. Losses were flat at $8.1 million, suggesting the company could soon realize overall profitability. Redwire also became free cash flow positive this quarter providing more reason to be bullish on the stock. 

Delcath Systems (DCTH)

Delcath Systems (NASDAQ:DCTH) is an oncology company that treats liver cancers. The company’s products include Hepzato Kit and Chemstat Hepatic Delivery System, which administer high-dose chemotherapy to the liver while mitigating the associated side effects.

Hepzato Kit is currently FDA approved while Chemstat is commercially available in Europe. The company recognized $3.1 million in revenues during the first quarter, $2 million of which was attributable to Hepzato Kit. Revenues jumped substantially from $600,000 to $3.1 million in the same period. 

The company previously expected 15 U.S. treatment centers to be activated in 2024. It has since increased that number to 20.

The stock itself will be highly attractive to investors because it has moved beyond the $5 range, which represents a significant psychological barrier. Perhaps more importantly, target prices suggest that 100% returns are the low expectation from analysts, with 200% to 300% returns entirely possible. 

Rush Street Interactive (RSI)

Opportunities in the online casino and sports betting space have propelled Rush Street Interactive (NYSE:RSI)  and its stock much higher in 2024. The stock has more than doubled in value this year, rising above $9.

There’s a reason to believe that the stock will continue growing. Namely, investors should look to the company’s most recent earnings report. The company issued that report on May 1.

It showed that revenues grew by 34%, reaching $217 million. That led to an overall net loss of $2 million. The strong growth allowed the company to revise its EBITDA guidance upward by 38% to between $50 and $60 million. 

That suggests that Rush Street Interactive could soon be producing overall net income. In fact, it’s very reasonable to expect the company to reach that milestone in the second quarter. That should provide a further catalyst for the stock to break out again.

Acacia Research (ACTG)

Acacia Research (NASDAQ:ACTG) controls intellectual property assets, licensing and enforcing patented technologies. The company also depends on industrial operations for other revenue generation, but its IP segment is its main driver.

The company’s intellectual property operations segment saw its revenues grow from $4.2 million to $13.6 million during the first quarter. Meanwhile, industrial operational revenues declined from $10.6 million to $8.8 million during the same time frame. Consolidated revenues grew substantially from $14.8 million to $24.3 million. 

The overall effect was that operating losses narrowed from $9.3 million to $2.1 million. 

One of the more interesting aspects of Acacia Research as an investment is that the company is heavily involved in the upstream oil industry. During the first quarter, the company purchased 140,000 acres of upstream assets. Pricing pressures are starting to dissipate as OPEC+ signals increased production toward the end of the year. The news doesn’t benefit Acacia Research, but its position as an oil producer will remain interesting in relation to other narratives, including electric vehicles.

On the date of publication, Alex Sirois 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.