I don’t care how you want to phrase it: penny stocks to buy are risky. If you take a hard swing at the bat, sometimes, you’ll launch the ball out of the park. But most of the time – assuming you make contact with the ball itself – the swing will be just off, leading to either a harmless popup or worse yet, a double play.

Just like in baseball, you don’t want to be swinging wildly without a gameplan. Otherwise, by consistently betting on high-risk ideas, you are almost guaranteed to lose out. At the same time, over a long season, players will occasionally sense that they’re on a hot streak. If certain game conditions call for it, you’ll see them go for the big play.

That’s what we have with these penny stocks to buy. I wouldn’t mortgage my future with them – absolutely not! However, these speculative enterprises enjoy the backing of top Wall Street analysts. If you can stand the high heat, these ideas might be enticing.

Lantronix (LTRX)

Based in Irvine, California, Lantronix (NASDAQ:LTRX) falls under the broad technology sector. Specifically, the company operates in the communication equipment realm. Per its public profile, Lantronix provides solutions for video surveillance, infotainment systems and intelligent substation infrastructure. It specializes in integrating Internet of Things (IoT)-based solutions for wired and wireless connected devices and systems.

As one of the high-risk penny stocks to buy, investors might not give LTRX much of a chance. However, that might be a mistake. Between the second quarter of last year to Q1 2024, the company posted an average earnings per share of eight cents. This print translated to an average earnings surprise – or the magnitude by which EPS exceeded analysts’ consensus view – of 35.83%.

During the trailing 12 months (TTM), Lantronix incurred a net loss of $6.55 million or 18 cents per share. Revenue in the period reached $146.18 million. For fiscal 2024, covering experts believe that EPS may rise 78.3% to hit 41 cents. On the top line, sales may expand 22.3% to reach $160.49 million.

Combined with a unanimous strong buy rating with a $7.25 average price target, LTRX is one of the penny stocks to buy.

Wag! Group (PET)

Americans love their pets and pet industry statistics show that despite raging inflation, they’re willing to open their wallets for their four-legged family members. That’s a powerful endorsement for Wag! Group (NASDAQ:PET), which offers a technology platform helping to connect pet owners with independent pet professionals for on-demand services. It’s basically like a ride-sharing app for pet care.

Financially, the company could use some work, especially because it’s losing money. During the past four quarters, Wag’s average loss per share came out to 8.5 cents. It’s not unusual for promising tech-based enterprises to print red ink. However, the average surprise against analysts expectations was only 0.88%. Still, PET makes a case for penny stocks to buy.

During the TTM period, Wag incurred a net loss of $13.77 million or 36 cents per share. However, revenue in the cycle reached $86.51 million. Further, the most recent quarterly sales growth rate (year-over-year) landed at 12.6%.

For fiscal 2024, experts see a favorable mitigation of red ink from 35 cents to 25 cents. On the top line, sales may rise 28.3% to $107.67 million. Analysts peg shares as a unanimous strong buy with a $5 price target.

Beam Global (BEEM)

As the dramatic afterhours session of Rivian Automotive (NASDAQ:RIVN) demonstrated, the electric vehicle sector is turning to the middle-income crowd to boost their financials. That’s great and all but going down the income strata means that EV makers must address distinct consumer challenges. Over time, this should be incredibly beneficial for Beam Global (NASDAQ:BEEM).

Per its corporate profile, Beam is a clean-technology innovation firm. It focuses on designing and developing renewably energized infrastructure products and battery solutions. Further, it enjoys significant relevancies in the field of fast-charging systems for EVs. Because there’s a direct correlation between income and homeownership, targeting middle-income households translates to greater demand for public charging solutions.

To be blunt, the type of consumer that can “only” afford a $40,000 EV may not have access to a home with a garage. These drivers, if they make the transition to EVs, will require public charging infrastructure. That suits BEEM perfectly well.

BEEM stock carries a strong buy consensus view among analysts with a $20.67 price target. If you want to speculate, Beam could be the idea for you.

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, Josh Enomoto 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.