Stocks to buy

3 Speculative Penny Stocks That Can Spike to Double Digits in 2024

Penny stocks can surprise.

It’s just a matter of timing, whether waiting for few months or quarters for a big rally. And when the rally does come, multibagger returns are possible in a matter of weeks.

While speculative activity in these stocks is high, the ideas are backed by fundamentals. Further, positive business catalysts are likely to trigger positive price-action.

If an interest rate cut happens in the second half of 2024, it will be another catalyst for these penny stocks trending higher. Despite the pros, investors must consider the cons. Limit exposure to penny stocks at 10% to 15% of the overall portfolio.

So let’s explore the business factors that are likely to support the bullish thesis on these penny stocks.

Archer Aviation (ACHR)

Person holding cellphone with logo of American eVTOL aircraft company Archer Aviation Inc. (ACHR) on screen in front of webpage. Focus on phone display. Unmodified photo.

Source: T. Schneider /

Archer Aviation (NYSE:ACHR) stock has declined by 38% year-to-date (YTD). This correction presents a good opportunity to buy before the flying car stock skyrockets.

In terms of impending catalysts, the company is preparing for its upcoming for-credit testing with the Federal Aviation Administration (FAA). Once this hurdle is cleared, ACHR is likely to trend higher. I don’t see any delay in commercialization of electric vertical take-off and landing (eVTOL) in 2025.

The second catalyst is the completion of the company’s eVTOL manufacturing facility before the end of the year. Archer Aviation is targeting production of up to 650 aircraft annually. With an order backlog of $3.5 billion, the company will be positioned to scale up deliveries in 2025 and beyond.

Notably, the company plans to commence operations in 2025 in the U.S. and UAE. Further, operations in India are expected to begin in 2026. Therefore, the stage is set for stellar growth. ACHR stock is likely to discounted these factors in the coming quarters.

Nio (NIO)

A mobile with NIO at horizontal composition.

Source: Freer /

No doubt, Nio (NYSE:NIO) has faced challenges related to growth and cash burn. However, the stock sell-off seems to be overdone after a near 60% downside in the last 12 months. I expect a sharp reversal rally with multiple potential catalysts.

The electric vehicle (EV) sector has been impacted due to macroeconomic headwinds. Expansionary policies will be one catalyst for NIO stock, likely toward year’s end.

Additionally, Nio has commenced deliveries of its 2024 ES8, ES6, EC7, EC6 and ET5T. Further, the delivery of 2024 ES7, ET7 and ET5 is expected in Q2 of 2024. The upgraded models are likely to boost the product competitiveness and positively impact deliveries growth.

Furthermore, Nio ended 2023 with a cash buffer of $8.1 billion. This provides ample flexibility to invest in innovation and growth. With the company also focusing on cost management, it’s likely that EBITDA margin will improve in the next few quarters.

Cronos (CRON)

Forget Legalization: CBD Is Good Enough for CRON Stock

Source: Shutterstock

In terms of percentage returns, Cronos (NASDAQ:CRON) stock can surprise investors. After remaining depressed for an extended period, the cannabis stock has trended higher by 33% in the last six months. This might just be the beginning of a big rally that’s supported by multiple factors.

First, Cronos ended 2023 with a cash buffer of $862 million. This provides ample flexibility to pursue aggressive organic and acquisition driven growth.

With Germany recently legalizing cannabis, Cronos entered the new markets of Germany and Australia in 2023. The legalization catalyst is likely to boost growth in the medicinal and recreational segment.

Also, cannabis will probably be reclassified as a Schedule III drug in the U.S. This might be the first step towards federal level legalization which would trigger a big rally for CRON. Overall, regulatory headwinds seem to be waning, which is the biggest reason to expect a sharp rally.

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’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, Faisal Humayun did not hold (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 Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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