Investing in low-priced securities offers a potential goldmine. But it’s not for everyone. It suits those ready to brave the market’s wild swings. The companies in this article bring you three unique opportunities. These are penny stocks under $1, and each is ripe with investment potential.
Their innovation spans electric vehicles and ethical cannabis products. Yet, penny stock trading isn’t a walk in the park. It’s a high-stakes game with high rewards. It demands sharp analysis and sound risk assessment. Part of offsetting that risk can involve waiting to buy speculative companies at a bargain.
So, can you dig out hidden market gems? Have the expertise to unearth potential windfalls? If so, let’s explore your June options for penny stocks under $1.
Nikola Corporation (NKLA)
Nikola Corporation (NASDAQ:NKLA), an American entity, has recently gained significant attention for its efforts in the domain of electric vehicles and hydrogen fuel cells. It strives to bring a revolution in the transportation sector by introducing semi-trucks powered by hydrogen and electricity.
Although the company has promising avenues due to the rapidly flourishing industry, it also faces numerous challenges, such as regulatory supervision and competition from prominent pre-existing players. Despite these issues, it continues to make strides in improving its top and bottom lines.
What I like about this pick is that the company’s earnings per share is estimated to grow 39% next year. Additionally, its sales on a quarterly basis have climbed a staggering 484.20%, thus making it a hot pick. The company’s share also fell 72.26% year to date, meaning investors can potentially scoop the company up at a bargain.
Ideanomics (IDEX)
Ideanomics (NASDAQ:IDEX) is a company with a global presence that aims to facilitate the use of electric vehicles in commercial settings while also developing financial products that cater to next-generation fintech requirements.
The electric vehicle division of Ideanomics, known as Mobile Energy Global (MEG), presents cost-effective group purchasing options. These cover commercial electric vehicles, financing, and charging solutions.
Additionally, this stock is trading at a hefty discount. Its current position hovers near the lowest point in its 52-week range, placing it in oversold territory. Unlike many competitors in the hydrogen space, this stock appears undervalued. The price-to-sales ratio stands at 0.32, and the price-to-book ratio is at 0.18, which may suggest undervaluation.
Canopy Growth (CGC)
Canopy Growth (NASDAQ:CGC) is a Canadian company that produces and sells cannabis for medicinal and recreational purposes. The success of Canopy Growth is attributed to legal and regulatory changes, growing consumer acceptance of cannabis products, and maintaining growth with quality control.
The business is in a favorable position for a few key reasons. The first is that it has a high amount of insider ownership at 33.53%. This suggests management actively has skin in the game and may therefore work in the best interest of shareholders. Furthermore, its EPS is set to skyrocket 88% next year if analyst predictions are correct.
Its most recent development is also a promising one. Canopy Growth announced that it would work with Indiva to distribute its Wana cannabis gummies in Canada for a term of five years. In the press release, it was stated that this partnership would “immediately” lift the company’s EBITDA, which may prove to be a future boon for investors.
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 InvestorPlace.com’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, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.