Many people have trouble deciding where to invest their money. There are so many options, but it can be difficult to decide which one of them is the best. However, the current market can seem like a bonanza for the risk-tolerant investor. Quality companies are available at a steep discount to historical highs because of the broader market downturn. And if you are looking to buy stocks, penny picks can offer explosive gains.
When it comes to penny stocks, there are a few things you should look for before you make a purchase. First, research the company and make sure that they are reputable and have a good track record. Second, check if the penny stock is trading on a major exchange. This will give you more liquidity and peace of mind knowing that you can easily sell your shares if necessary. Finally, watch the penny stock carefully and don’t buy it if it is volatile or seems too good to be true. By following these simple tips, you can make penny stock investing a lucrative and exciting way to grow your portfolio.
On this list, you will find three penny stocks with a solid growth model. At the same time, these stocks are incredibly affordable, considering historical valuations. We do not know when the bear market will end. Morgan Stanley’s (NYSE:MS) Mike Wilson believes we will see the back of it in early 2023, but no one knows. Whatever the case, if you are willing to hold onto these stocks for the foreseeable future, they promise healthy gains, considering their history.
With that in mind, here are three quality penny stocks to buy for your portfolio:
With inflation rampant, discretionary incomes are flattening. During such times, people tend to focus on the essentials, and little money can be spent on luxury items. GoPro (NASDAQ:GPRO), known for its cameras and mountable and wearable accessories, is feeling the pinch in this environment.
GoPro’s latest earnings report paints a picture of a company struggling to maintain momentum in the face of intense competition and macroeconomic headwinds. GoPro’s latest financial results show that the company is struggling to generate healthy profits. The net income dropped from last year, as revenue also fell by 3.64%. A large tax benefit in last year’s quarter was likely responsible for the shortcoming.
Although there are many setbacks, the outlook is not all bad. TSA checkpoint numbers show passenger throughput is rising, clearly illustrating that global travel is back after the pandemic-induced slump. This is great news for GoPro since most of its customers use its cameras and mountable and wearable accessories to capture moments when traveling. Plus, if there is a revival in the economy, you can expect GoPro sales to gain ground once again, as we saw with fiscal 2021 results, where GoPro recorded revenue of $1.16 billion, up 30% year-over-year. That is the impact of pent-up demand for you! Hence, you can’t ignore GoPro when discussing penny stocks to buy.
Bionano Genomics (BNGO)
Bionano Genomics (NASDAQ:BNGO) is a cutting-edge genomics company that offers nanotechnology-based tools and services for genome mapping, assembly, and analysis. The company’s Bionano Solve platform enables researchers to generate high-quality whole-genome maps with unprecedented resolution. This allows for more accurate genome assembly, enhanced disease gene discovery, and improved characterization of structural variation.
As a result, Bionano Genomics is well-positioned to become a leader in the genomic mapping market. This is a growing space. According to a Fortune Business Insights report, the global genome market size is projected to hit $94.65 billion in 2028, at an average growth rate of 19.4% between 2021 and 2028. In its recent quarterly earnings release, Bionano Genomics reported $7.22 million in revenue, a 55% increase. But in absolute terms, there is plenty of market share for grabs at the moment.
The potential for this company is huge, considering the total addressable market. Bionano’s technology can map genomes with single-base pair resolution, enabling doctors and researchers to see DNA alterations that cannot be seen with other methods like fluorescent in situ hybridization assays. This is important because many diseases are caused by mutations or changes in our DNA sequence. Detecting these changes at such a high resolution could lead to earlier detection and better treatment.
Additionally, Bionano’s technology can be used for crop improvement and genetic editing, which means that it has the potential to impact the food industry on a large scale. Although the company is not profitable yet, it is clear that there is a lot of potential for Bionano Genomics to grow and become a major player in the genomics field.
VAALCO Energy (EGY)
VAALCO Energy (NYSE:EGY) is a publicly traded oil and gas company with a long exploration and production history. It operates in the United States, Gabon, and Equatorial Guinea. The company’s primary focus is developing and producing oil and gas reserves. VAALCO Energy also has a successful track record of discovering and expanding reserves. It has a concentration of assets in West Africa, an area of the world full of potential for oil and gas production. In addition to its exploration and production activities, VAALCO Energy owns and operates a fleet of oil tanker vessels.
The commodity boom has helped VAALCO in the last few months. In the third quarter, the company reported 56 cents in earnings on revenue of $78.10 million, which both beat analyst estimates. If the Russia-Ukraine crisis continues, investors can expect several more quarters of success for the company. It is well-positioned to take advantage of the growth in the oil and gas industry, and it has a proven track record of making money.
VAALCO Energy should be high on any investor’s list when considering penny stocks.
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 publication date, Faizan Farooque 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.