Investing in certain penny stocks to buy during a volatile economy can present unique opportunities for investors. Typically priced below $5 per share (at a discount), these stocks often exhibit heightened volatility, translating into significant short-term gains for those adept at timing the market. Furthermore, penny stocks may offer diversification benefits, as they tend to be less correlated with broader market movements, enabling investors to capitalize on niche market trends and emerging sectors unaffected by macroeconomic uncertainties. However, it’s important to approach penny stock investing cautiously, conducting thorough due diligence and recognizing the higher risks associated with these investments.
Although there will be a slowdown, the economy will remain strong. You must invest in these key penny stocks to buy while they are at a discount to maximize your returns. The slight economic turbulence is the opening for a prime time for you to invest in these companies. These companies are innovating and creating great growth and profit opportunities: IQ is growing its digital library, ICL is expanding its customer base (massively) and GERN is opening new revenue streams. These companies all stand out as strong opportunity that I definitely would not want to miss. Invest now!
IQIYI (IQ)
IQIYI (NASDAQ:IQ) is a leading provider of online entertainment video services in China. Its platform combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content.
The global video streaming market size was valued at $138.47 billion in 2022 and is expected to expand at a CAGR of 20.89% during the forecast period, reaching $432.24 billion by 2028.
IQIYI showed its financial growth during Q4 2023. The company reported $7.71 billion in revenue, a YOY increase of 1.5%. The net income of $466.23 million grew by 53.24% YOY, and the diluted EPS of $0.49 grew by 16.67%. Overall, it was a successful Q4. Although the revenue slightly missed the analyst’s expectation by 0.34%, the diluted EPS beat the analyst’s expectation by 6.54%.
First, IQIYI is located in China, so its large population and growing middle class should provide a significant market for online video streaming services. Additionally, IQIYI is making itself special by having a diverse content library that includes licensed and original programming which ranges from movies and dramas to variety shows and documentaries. IQ will be a great option among penny stocks to buy.
ICL Group (ICL)
ICL Group (NYSE:ICL) is a manufacturing company that makes fertilizer and other chemical products. The stock is down 4.83% YTD. Investors rate the stock as a “Hold” but target a high price of $6.00 from a current price of $4.73.
ICL’s financials have not fared very well over the last year. In 2023, revenue was down to $27,793 million, a 17.41% decrease from the previous year. However, this is still a massive improvement from three years ago, when the stock was only $17.343 million in revenue. This indicates overall growth in the company. Additionally, the company’s cash and ST investments grew by 18.93% in the last year, which shows the potential for cash to be deployed for significant future returns.
ICL competes in the agricultural market, which has a forecasted CAGR of 15.6% and is predicted to reach $5.71 billion by 2033. Government grants and initiatives are driving sector growth. Additionally, the favorability of regenerative farming is becoming vital to the industry’s overall rise in value.
A key catalyst for ICL is its opportunities to expand into other regions. For instance, it recently acquired a biological company called Nitro 1000 in Brazil. Using the company’s specialty in soybean and sugarcane crops, ICL can offer a sustainable farming solution to its customer base in Brazil.
Ultimately, ICL is a penny stock with large growth potential.
Geron (GERN)
Geron (NASDAQ:GERN) is a leader in biotech, focusing on creating cancer treatments targeting telomerase, an enzyme that accelerates the growth of cancer cells. Its drug, imetelstat, is still being tested. However, recently, it has been approved by the FDA advisors.
GERN is not profitable yet, burning through $184.13 million in 2023. However, this is changing, with analysts expecting profit starting 2026. This optimism is reflected in price targets, which are, on average, 22.7% above the current price. This is despite an EBITDA of -$193.5 million. Pending full FDA approval, GERN’s profits will rise, leading to an increase in stock price.
The biotech sector is expected to grow at a CAGR of 14%, reaching $3.62 trillion by 2032. This is a promising growth trajectory and ensures that sector-wide growth will occur. The company’s stem cell-based products are also licensed, which is another revenue stream. This combination of factors positions the company for growth in the upcoming years.
Multiple BB banks rate GERN as a “Buy” or “Overweight” stock. Given its current valuation, investors should scoop up shares while they’re cheap.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.