3 Penny Stock Lotto Tickets With 100X Potential

  • Here are some of the top penny stocks to bet on today.
  • Accuray (ARAY): Board Chair Joseph Whitters bought 100,000 shares at $1.56 each for about $156,050.
  • Aurora Innovation (AUR): Given its massive insider buying and relationship with Volvo, it could accelerate higher in the near term.
  • Globalstar (GSAT): On July 1, Director James Monroe III bought 4.51 million shares of GSAT for about $4.8 million.
Penny stocks - 3 Penny Stock Lotto Tickets With 100X Potential

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When it comes to investing in top penny stocks, a word of caution.

Always do your due diligence before buying. Make sure it has volume. Know upfront that you can lose a lot of money. And don’t get caught up in the promotional promises of turning $10,000 into millions without first doing your homework. As I’ll repeat below, penny stocks are frequently the playground for scam artists and market manipulators.

Sure, some penny stocks turned out to be massive success stories, like Apple (NASDAQ:AAPL), Ford (NYSE:F) and Monster Beverage (NASDAQ:MNST). But you must be willing to do the homework and dig through a lot of real garbage to find the next penny stock worth buying. 

Also, as the US SEC warns:

“Penny stocks are low-priced shares of small companies. Penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock should be prepared for the possibility that they may lose their whole investment.”

Here are a few top penny stocks I’ve been doing my homework with.

Accuray (ARAY)

Pennies in a jar on top of a background of blurred pennies. Penny stocks.
Source: John Brueske / Shutterstock

Medical device company Accuray (NASDAQ:ARAY) just saw its shares gap from about $2.20 to about $1.50. All after poor earnings stunk up the joint with a loss of $6.3 million, or six cents per share, from a year-ago profit of a penny. Revenue fell 14.3% year over year to $101.1 million, which missed calls for revenue of $113.65 million.

However, gross orders did jump by 21% to $89.1 million, as its book-to-bill ratio improved to 1.8 from 1.2. Better, after the miss, Board Chair Joseph Whitters bought 100,000 shares at $1.56 each for about $156,050. Paul Tudor Jones’ Tudor Investment seems to like the stock, increasing its best by 34.6% with the addition of 48,090 shares at the end of March.

In addition, there’s a consensus strong buy rating on the stock with an average price target of $6.33. The high end of price targets is $7 a share.

Aurora Innovation (AUR)

a phone displaying the Aurora website in front of a computer screen displaying the company logo
Source: T. Schneider / Shutterstock

When I highlighted the opportunity in Aurora Innovation (AUR) on June 5, I noted, “It just saw Uber Technologies (NYSE:UBER) buy about $75 million worth of stock.” I also said, “While the AUR stock chart isn’t too attractive at the moment, give it time. With massive insider buying and its relationship with Volvo, it could accelerate higher in the near term.”

At the time, AUR traded at just $2.15. It’s up to about $3, which is still a strong buy today. Also, as Investorplace contributor Josh Enomoto noted, “For fiscal 2024, analysts on average anticipate sales of only $830,000. There is a possibility that the company could hit $3 million. However, the big day could arrive sometime in fiscal 2025. That’s when sales could skyrocket to $17.61 million. It’s a risk but if you want hidden-gem growth stocks, this could be it.”

I’d like AUR to return to $4.50 from its last traded price of about $3.

Globalstar (GSAT)

In this photo illustration the Globalstar (GSAT) logo seen displayed on a smartphone screen
Source: rafapress / Shutterstock.com

On July 3, I highlighted an opportunity in Globalstar (NYSE:GSAT), trading at around $1.08.

I noted that director James Monroe III bought 4.51 million shares of GSAT for about $4.8 million on July 1. In addition, Apple recently said it would expand satellite messaging capabilities on the iPhone, which was also great news for GSAT. After all, GSAT partnered with Apple to develop satellite connectivity components. 

A few days later, GSAT is up to $1.32 a share and is still a buy.

Helping, the stock has seen a few days of volume spikes. On July 5, for example, volume jumped to 8.8 million. On July 8, volume was up to nearly 10 million, compared to its daily average volume of 3.15 million. 

Regarding earnings, while its first quarter EPS loss of a penny was just in line with estimates, its revenue of $56.48 million beat estimates by $1.74 million. 

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, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Article printed from InvestorPlace Media, https://investorplace.com/2024/07/3-penny-stock-lotto-tickets-with-100x-potential/.

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