As we move into June, I’ve pinpointed three top penny stocks that could be excellent long-term investments. While many investors, myself included, have been watching the cryptocurrency market, especially Bitcoin (BTC-USD) as it aims for another new all-time high, there are also some compelling penny stocks that I believe offer great value.

Regardless of risk tolerance or investment horizon, it’s worth considering allocating a small portion of your portfolio to promising penny stocks for long-term growth.

These companies have the potential to add a significant boost to your returns, particularly in today’s bull market. During a bear market, the resilience of blue-chip stocks or broad-market ETFs can help mitigate losses.

Choosing the right companies is essential, even if your investment is modest. The key is to reduce speculation and rely on solid, forward-looking analysis to make informed investment choices.

Here are three top penny stocks that long-term investors should consider as we kick off June with renewed optimism.

Castor Maritime (CTRM)

Castor Maritime (NASDAQ:CTRM) is a global shipping company operating a diverse fleet of vessels. Despite the maritime industry facing challenges due to geopolitical conflicts, I believe the overall environment will remain favorable for investors.

One of the appealing aspects of CTRM stock is its robust balance sheet, which has been further strengthened recently. It’s rare to find a long-term penny stock in the shipping industry that isn’t burdened by debt. In January, Castor Maritime announced the sale of two Panamax bulk carrier vessels, the M/V Magic Nova and the M/V Magic Horizon, for a combined price of $31.9 million.

CTRM also boasts $793 million in unrestricted cash and no outstanding debt, positioning it to navigate 2024 with greater ease compared to its peers facing various economic and geopolitical challenges.

The company’s valuation remains attractive, currently trading at just 0.86 times earnings and 0.09 times book value​. This undervalued position, coupled with its strong financial health, makes CTRM a compelling long-term penny stock for investors.

Taboola (TBLA)

Taboola (NASDAQ:TBLA) specializes in digital advertising, offering a platform that provides recommendations for the open web.

I like TBLA on several fronts, and some other analysts agree.

Taboola recently reported first-quarter 2024 revenue of $414 million, reflecting a 26% increase year-over-year. Despite a net loss of $26.2 million, this figure improved by 17% from the same period last year. The company is forecasting a revenue growth rate of 15% annually over the next three years, surpassing the industry average of 10%.

TBLA achieved only 3% growth this year, which would still be a solid outcome given the current cyclical challenges in the online advertising sector that may be suppressing its valuation.

Several factors contribute to TBLA’s potential for significant upside. The company has a market cap of $1.36 billion. Despite a negative EPS of -$0.23 and a net income of -$76.89 million, its forward P/E ratio of 9.19 indicates that analysts anticipate substantial improvements in its fundamentals.

Tellurian (TELL)

Another promising long-term penny stock to consider is Tellurian (NYSE:TELL), which focuses on the natural gas sector, particularly liquefied natural gas (LNG) projects. 

In the first quarter of 2024, Tellurian reported revenue of $25.47 million, a 49.99% decrease year-over-year. The company also recorded a net loss of $44 million, with earnings per share (EPS) of -$0.06, meeting analyst expectations. This follows a trend from 2023, where annual revenue was $166.13 million, a 57.61% decline from the previous year.

Tellurian’s Driftwood LNG project is a significant growth driver, expected to commence production in 2027. The company recently secured an agreement with Aethon Energy to sell its upstream assets for $260 million.

Currently, Tellurian trades at around $0.47 per share. It has a market cap of $410 million. Despite its negative earnings, with a loss per share of -$0.30, the forward price-to-earnings (P/E) ratio is 3.92, indicating that the market expects significant improvement in its financials​, which I think is great news for investors who have a long time horizon for investment.

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.