In this article we will take a look at the 10 best penny stocks to buy now. You can skip our detailed analysis of these cheap stocks’ outlook for 2021 and some of their major growth catalysts, and go directly to 5 Best Penny Stocks to Buy Now.
If you are an aspiring investor closely following the financial markets, the two questions that would usually pass through your mind several times on a daily basis are: “Why didn’t I invest in this company earlier” and “Why can’t I spot breakout stocks when they are little known and no one is buying them?”
After all, major companies like Monster Beverage, Las Vegas Sands and Ford were once penny stocks.
Penny stocks are one of the best investment options for beginner investors. The market is always full of promising penny stocks that are destined to succeed in the future. Amid the rising fraud, speculations, pump-and-dump schemes and no track records, penny stocks have a specific negative stigma attached to them. But the reality is that penny stocks remain the most profitable investment strategy for those who are willing to put in the hard work that is required for due diligence and research. There are literally thousands of penny stocks out there and only a few of them are going to breakthrough in the near future. To help you with the research, we have compiled the best 10 penny stocks to buy now in this article. You will notice that most of these penny stocks are operating in disruptive industries. These companies are working on products that could resolve one or many of the key problems faced by mankind.
However, we are in no way suggesting that these penny stocks are guaranteed to go up. There’s always a pronounced level of risk in penny stocks. However, we have tried to minimize the risk by paying attention to the fundamentals of these penny stocks. While investing in penny stocks, you should totally ignore the companies that have no legitimate business model or addressable market. You should also do research on their management and dig deeper into their trading practices.
Best Penny Stocks to Buy Now
The rise of individual trading and internet trading platforms is fueling the demand of penny stocks. The performance of penny stocks has also been very impressive. According to data by Refinitiv, from November 2020 through January 2021, stocks priced below $1 outperformed those priced between $1 and $2. The worst-performing stocks in the period were those priced above $100.
It’s become extremely important to practice due diligence before investing your money. The volatility in the finance markets is even making it harder for the smart money to post profits. The hedge fund industry that once used to post sterling gains is also feeling the reverberations of the changing financial landscape. The hedge fund industry’s reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context and industry outlook in mind, let’s start our list of 10 best penny stocks to buy now.
10. Onconova Therapeutics, Inc. (NASDAQ: ONTX)
Number of Hedge Fund Holders: 1
Onconova is working on treatments for breast cancer. The company’s two main drugs are currently in Phase 1 in China (with plans for expansion in the U.S.) and have shown no side effects so far.
As of the end of the fourth quarter, there was 1 hedge fund in Insider Monkey’s database that held stakes in ONTX. Ken Griffin’s Citadel Investment Group, with 569,015 shares of ONTX, is the biggest stakeholder in the company.
The stock is up 187.64% over the last 12 months.
9. Atari SA (OTCMKTS: PONGF)
Atari SA is a French video game company that owns brands like Pong, Asteroids and Centipede. The company is now foraying into the crypto and blockchain space with non-fungible tokens (NFTs). It is partnering with Bondly Finance to combine NFTs with gaming platforms. The company is also building its first “gaming hotel” in Las Vegas.
The stock is up 253.48% over the last 12 months.
8. Denison Mines Corp. (NYSE: DNN)
Number of Hedge Fund Holders: 6
Denison Mines ranks 8th in the list of 10 best penny stocks to buy now. The Canadian company is primarily engaged in uranium exploration. On March 15, the stock jumped after reports said the company will be added to Canada’s benchmark S&P/TSX Composite index beginning March 22. The company’s flagship asset is the Wheeler River project. The project has very low OPEX costs, with two extremely high-grade uranium deposits. Estimates show that these two deposits have U308 reserves of 109.4 million pounds.
The company is also getting the attention of the smart money, as 6 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter. Falcon Edge Capital owns 9.6 million shares of DNN, worth $6.2 million.
The stock is up 300.00% over the last 12 months.
7. Citius Pharmaceuticals, Inc. (NASDAQ: CTXR)
Number of Hedge Fund Holders: 3
Citrus Pharmaceuticals is one of the best penny stocks to buy now. The stock is listed on the NASDAQ. The company is set to discuss on March 25 its Phase 3 program for its lead product candidate for the treatment of catheter-related bloodstream infections (CRBSIs). The company focuses on diseases that have no or very rare treatments in the market. Some other promising products of Citius include Lido (CITI-002), Mino-Wrap (CITI-101), and iMSC (CITI-401). The company’s key product, Mino-Lok, has an estimated addressable market of over $1.5 billion.
As of the end of the fourth quarter, 3 hedge funds in Insider Monkey’s database of 887 funds held stakes in CTXR, compared to 1 fund in the third quarter. Jim Simons’ Renaissance Technologies is the biggest stakeholder in the company, with 21,277 shares, worth $22,000.
The stock is up 318.75% over the last 12 months.
6. iQSTEL Inc. (OTCMKTS: IQST)
Iqstel is operating is several futuristic, promising and innovative markets, including telecom, EVs, Liquid Fuel Distribution, blockchain, fintech and IoT. The company’s revenue in February jumped 288% on a year-over-year basis to $4.86 million. For 2021, the company expects a revenue of $60.5 million and sees improved profit margins as it consolidates Telecom subsidiaries under a single brand name.
The stock is up 896.58% over the last 12 months.
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Disclosure: None. 10 Best Penny Stocks to Buy Now is originally published on Insider Monkey.