5 Penny Stocks to Buy Right Now

Penny stocks have always been a hot topic, but as more and more new investors enter the fray, their popularity is only rising. There are a few potential reasons for this trend:

  • A Big Payday. Many investors see penny stocks as a way to create a big payday. After all, diving into the right penny stock at the right time has the potential to yield returns far better than the returns seen in the overall market. 
  • Crypto Concern. Many have watched as cryptocurrency millionaires have been minted, but with these assets being so young and the blockchain being the wild wild west of the investing space, many have veered away from crypto and looked for opportunities to mint significant gains in the stock market. 
  • Excitement. Finally, penny stocks offer up some of the most excitement in the stock market. After all, these stocks come with significant volatility and provide a fast-paced investing environment for investors to latch onto. 

However, there are so many penny stocks out there, it may be hard to find the best options to dive into. With that said, some of my favorites include:

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CES Energy Solutions (CESDF)

The energy sector has been heating up. As oil prices climb and North America heads into winter months, signalling further demand increases, several companies in the sector are presenting strong opportunities. 

As you could imagine, there are plenty of penny players in the oil sector, but one seems to be grabbing my attention tighter than the rest, CES Energy Solutions. The Canadian company provides consumable chemical solutions throughout the life-cycle of the oil field with an asset-light model that helps it generate significant free cash flow. At the same time, the company’s market share is growing fast. 

While the stock has already seen significant growth, tripling in value in the past year, analysts don’t think that growth is over. In fact, the consensus opinion of 10 analysts suggests that the stock will grow another 90% over the next year. Not to mention, the company recently issued its first dividend, pointing to its financial strength. 

Silo Pharma (SILO)

Next up is Silo Pharma, a developmental-stage biotechnology company with both significant potential and a serious undervaluation. The company’s claim to fame is its work with psychedelic compounds in the treatment of conditions like General Anxiety Disorder (GAD), Parkinson’s disease, and fibromyalgia. 

The company has been firing on all cylinders too, producing a steady stream of press releases in order to update its following. 

Beyond its work in the biotechnology space, the company’s valuation is ridiculous at this point. At the moment, the stock trades with a market cap of around $20 million. However, if you look at its books, more than half of the company’s value can be found in the ownership of a tech company known as DatChat, a company which Silo owns a million shares of. 

At the moment, that million-share position is worth about $12 million! If that doesn’t scream undervaluation, I don’t know what does. Combining the company’s valuation metrics with the strides it has made in its core business makes Silo stock one that’s hard to ignore. 

Senseonics (SENS)

Staying on the topic of biotechnology, Senseonics is next up on the list, and surely deserves its position. Recently, retail investors have been flooding the stock thanks to a low share price and high level of short interest, but the potential for a short-term short squeeze isn’t what’s exciting here. 

At the moment, Senseonics is awaiting a decision by the United States Food and Drug Administration (FDA) surrounding its 180-day version of its continuous glucose management system. 

At the same time, Senseonics is gearing up for a rebound after the COVID-19 pandemic weighed heavily on the company. After all, during the pandemic, patients found it more difficult to access care at doctors’ offices and at one point, Senseonics was forced to stop sales to new patients and medical practices. 

Nonetheless, these hardships seem to be behind the company at this point, and should it receive FDA approval soon, the stock could experience significant gains. 

Electrameccanica Vehicles (SOLO)

As its name suggests, Electrameccanica Vehicles is an electric vehicles company. However, this company is a bit different from what you’ve seen in the industry. In fact, the company is focused on the development of single-seat vehicles, an idea that has been met with some debate. 

Nonetheless, preorders for the company’s vehicles have been strong, and these preorders are about to turn into real revenue. 

In fact, Electrameccanica recently announced that it’s starting to deliver vehicles. That means that revenue from preorders will turn into real revenue, adding to the company’s top line. Deliveries began on October 14th, and for the company, that means it’s off to the races. 

At the same time, analysts are very bullish on the stock. In fact, according to the average of five different analyst price targets, the stock has the potential to grow to be worth $8.91 over the next year pointing to an opportunity to generate well over 100% growth. 

PaySign (PAYS)

Finally, PaySign is a company that I’ve been following for some time now, and it’s an interesting play to say the least. The company provides prepaid gift cards to plasma donation centers that are used to incentivise donors. In exchange, PAYS earns money from the fees associated with using these cards. 

As with others on this list, the COVID-19 pandemic weighed heavily on the stock. After all, with the pandemic hitting hard, the last thing on the minds of consumers’ was giving blood. 

Nonetheless, this is another stock that’s poised for a strong recovery. As donations start to flow again, PaySign’s prepaid cards are being used more, and through the rest of 2021, the company is expecting to generate pretty strong results. 

At the same time, analysts are bullish on this stock as well, suggesting the potential for nearly 80% growth over the next year. 

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The Bottom Line

The bottom line here is simple. Penny stocks are hot, and the stocks above are some of the best in the space in my humble opinion.

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Disclosure. CNA Finance is not a financial advisor or broker dealer. Trading in penny stocks can lead to a significant loss of capital. CNA Finance has a financial relationship with Silo Pharma.