10 Top Penny Stocks for 2023
Penny stocks are low-priced stocks that represent small companies. Although the SEC doesn’t point to a specific dollar amount in the definition of penny stocks, the general consensus among the investing public and even some municipalities is that stocks priced under $5 per share fall into the penny stock category.
Read: 3 Things You Must Do When Your Savings Reach $50,000
Penny stocks often attract investors with small portfolios, as their low share prices give these investors opportunities to diversify. Moreover, it’s commonly believed that penny stocks have the potential to grow far more quickly than their large-cap counterparts.
Penny stocks are also riddled with risk and are not typically a good choice for beginner investors. Nonetheless, if you’re an experienced investor who’s looking for strong opportunities in the penny category, read on to learn about the top 10 picks on the market today.
10 Penny Stocks That Should Be On Your Radar
Discover the top 10 penny stocks to watch below.
1. Brandywine Realty Trust (BDN)
Brandywine Realty Trust is a REIT that owns a wide range of properties from office spaces to science labs and residential buildings. The company either develops these properties directly or acquires them on the open market, and it’s constantly working to grow its portfolio of properties.
Much of BDN’s recent portfolio growth is in the life sciences sector, which is another reason to watch the stock. In fact, about 40% of the company’s pipeline is in the life sciences industry, one that some experts suggest offers stability and value opportunities for the company.
The company pays a $0.76 annual dividend. That’s not bad when share prices are just north of $4.20. The strong dividend makes this stock a hot pick for income investors.
2. Lloyds Banking Group PLC (LYG)
Lloyds Banking Group is a British financial services group. The company offers both retail and commercial banking solutions to communities across the U.K. This is also a strong dividend payer, offering a 4.74% dividend yield.
3. Inter & Co. Inc. (INTR)
Inter & Co. is an investment holding company in Brazil. The company’s core holding is its shares of Banco Inter, a Brazilian digital bank that offers free banking services. In February, Inter & Co. announced that it acquired YellowFi, a fund manager and mortgage originator. This acquisition is expected to produce a meaningful increase in revenue and earnings ahead.
4. Verastem Inc. (VSTM)
Verastem is a development-stage biotechnology company that’s working to develop innovative cancer therapeutics with a core focus on RAS pathway mutations. The company’s pipeline consists of several Phase 2 programs that could produce positive catalysts ahead.
Moreover, the RAS therapeutics market is expected to grow by more than 50% per year through 2031.
5. Mogo Inc (MOGO)
Mogo is a Canadian fintech company that operates a commission-free trading platform with tools and technology to help Canadians build wealth. Today, the company is empowering more than 2 million Canadians to take control of their financial wellness, and its user count continues to grow.
6. Blue Star Foods Corp (BSFC)
Blue Star Foods Corp is a Seafood company headquartered in Florida, but it offers premium seafood from all over the world. The company sells premium Salmon from British Columbia and premium crab meat from Asia. Importantly, Blue Star Foods focuses on sustainability and support for artisan fishermen. The efforts made in these areas could reflect on the company’s share prices ahead.
7. Vaalco Energy, Inc. (EGY)
Vaalco Energy is an oil and gas company with roots that trace back to 1984. The company operates 100% of its own assets, assets that span more than 230,000 acres. As Russia continues to invade Ukraine, gas prices are likely to continue to rise, making this a hot stock to watch.
8. Ardelyx Inc (ARDX)
Ardelyx is a biotechnology company focused on developing treatments for conditions with significant unmet medical needs. The company launched Ibsrella in 2019 as a treatment for irritable bowel syndrome and hopes to launch XPHOZAH in 2023. This could be a major catalyst for the company.
9. Galaxy Gaming Inc (GLXZ)
Galaxy Gaming is a casino game producer that’s taken a beating in the market as of late. However, if the company can steam up the revenue growth engine, the stock could prove to be highly undervalued, creating opportunities ahead.
10. I-80 Gold Corp (IAUX)
I-80 Gold is a Nevada gold producer. Importantly, the company is moving into the production phase. That’s great news considering the fact that the price of gold has been soaring lately. In fact, gold futures are up more than 11% year-to-date and chart patterns suggest more growth ahead.
Final Take
Investing in penny stocks is a risky business. You should only do so if you have adequate market experience and a solid risk management strategy. If so, keep a close eye on the 10 penny stocks mentioned above. These have significant potential for upward movement.
Information is accurate as of Apr. 13, 2023.
This article originally appeared on GOBankingRates.com: 10 Top Penny Stocks for 2023
