In this article, we discuss the 10 penny stocks to buy in March. If you want to move on ahead and skip our detailed analysis of these penny stocks, go directly to 5 Penny Stocks to Buy in March.
Penny stocks usually trade at $5 or less. These companies often carry high risk and can either stay at the bottom-end of the stock market, or go on to give their shareholders extraordinary returns. With proper analysis, study and understanding of a company’s fundamentals, and the nature of products/services it offers, one can gauge the probability of their success, and accordingly bet money on it.
Gone are the days of investors mostly being suited professionals in Wall Street offices. Since 2020, the number of individual investors have risen sharply, giving a newfound popularity to penny stocks. This is in part owing to the rise of commission-free trades on digital apps such as Robinhood. In the first three weeks of 2021, the top 10 stocks in the small-cap Russell 3000 index soared around 75%. Retail financial broker eToro also reported an uptake of 380,000 new users within that period, adding to its total user-base of more than five million.
As an example of what a penny stock can achieve in a short time, consider how Advanced Micro Devices, Inc. (NASDAQ:AMD) was trading at roughly $4 in May 2016. Fast forward to March 2022, the chipmaker has a market cap of $182.23 billion, and trades at $108 a share, having given established chipmakers such as Intel Corporation (NASDAQ:INTC) intense competition over the past several years.
Biopharmaceutical penny stocks can go on to become big names in their fields, if they manage to develop breakthrough drugs and therapies. That’s why several names in the following list are penny stocks working on novel health treatments. Novavax, Inc. (NASDAQ: NVAX) traded at less than $4 in January 2020. After receiving a US Food and Drug Administration (FDA) Fast Track Designation authorization for its seasonal flu vaccine candidate, and then getting the same Fast Track Designation for its NVX-CoV2373 Covid-19 vaccine in November 2020, the stock became a dominant name in the market, and currently trades at $72.48, with a market cap of over $6 billion.
It’s hard for beginner investors with limited budgets to funnel their money into expensive names like Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT). That’s why in this article we will mention some great penny stocks with long-term growth potential.
Photo by Sajad Nori on Unsplash
Our Methodology
For the following list, we picked 10 penny stocks with enormous growth potential that are working on disruptive technologies in bio-tech, energy, cybersecurity and other tech areas. Upcoming growth catalysts, analyst ratings, and business fundamentals of each stock were also considered in order to identify the most exciting ones. Hedge fund sentiment around each stock has been derived from Insider Monkey’s database of 924 elite hedge funds, and provided to give readers better context for their investment choices.
10 Penny Stocks to Buy in March
10. Predictive Oncology Inc. (NASDAQ:POAI)
Number of Hedge Fund Holders: 1
Share Price (as of March 3): $0.81
Predictive Oncology Inc. (NASDAQ:POAI) is a medical research firm which uses artificial intelligence to develop therapies for cancer treatments and drug development. It also provides the STREAMWAY system, which is used for automated, direct medical fluid disposal by surgeons and physicians during surgical procedures, reducing their exposure to infectious liquids.
On January 27, Predictive Oncology Inc. (NASDAQ:POAI) reported its strategy for 2022, and which claimed that the company was on its way to become a ‘first mover’ in the AI-powered drug discovery market, which is expected to grow to $20 billion in the next three years. The company is expected to start generating revenue from its drug discovery AI platform ‘PeDAL’ later in 2022. This platform will be used by pharmaceutical companies to help streamline their drug discovery and development process, and “provides an additional decision making tool to oncology drug development companies as they decide which tumor types to invest in and pursue.” Predictive Oncology Inc. (NASDAQ:POAI) will work with its network of pharmaceutical partners to establish a revenue stream for its PeDAL-powered projects, and is working to sign new drug development deals and partnerships, which can range from $5 million to $1 billion.
In December, Predictive Oncology Inc. (NASDAQ:POAI) acquired zPREDICTA, which is a cancer-based company working on vitro 3D cell culture models for the use of drug discovery and development. This will enhance revenue streams for Predictive Oncology Inc. (NASDAQ:POAI), and give the firm a competitive advantage in helping identify, research and develop new therapies for different cancer types.
Renaissance Technologies was the only hedge fund holding a stake in Predictive Oncology Inc. (NASDAQ:POAI) at the close of the fourth quarter, with a stake comprising of 235,000 shares valued at $224,000.
Unlike expensive names like Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), Predictive Oncology Inc. (NASDAQ:POAI) is a great penny stock to buy.
9. Safe-T Group Ltd (NASDAQ:SFET)
Number of Hedge Fund Holders: 2
Share Price (as of March 3): $0.80
Safe-T Group Ltd (NASDAQ:SFET) is an Israeli firm which provides cyber-security and privacy solutions. On January 31, Dawson James analyst Jason Kolbert initiated coverage of the firm with a ‘Buy’ rating and $6 price target.
In January, Safe-T Group Ltd (NASDAQ:SFET) reported significant growth for its recently launched privacy solutions for Apple mobile devices. The company said it ended 2021 with more than 10,000 paid subscribers, and has recorded subscriber revenue growth of 50% each quarter on average. Safe-T Group Ltd (NASDAQ:SFET) looks to capitalize on this success by increasing its global marketing efforts, and introducing the Android and PC versions of this software.
Billionaire Jim Simons’ Renaissance Technologies was bullish on Safe-T Group Ltd (NASDAQ:SFET) in Q4 2021, holding 173,000 shares worth $123,000, which is an increase of 37% in holding from the previous quarter. One other hedge fund also held stakes in the cybersecurity firm in Q4, bringing the total number of bullish hedge funds to 2.
On February 16, Safe-T Group Ltd (NASDAQ:SFET) launched its latest product called the Ad Blocker Pro, which is an anti-malvertising solution. Malvertising is a new cyber-attack technique which infects digital ads with malicious viruses and code. This software will provide users with two layers of protection, firstly by protecting their privacy by blocking ads, secondly by securing their devices from malvertising.
Safe-T Group Ltd (NASDAQ:SFET) launched Net Bridge, its newest social responsibility program, in February. This program will provide services to academic and nonprofit research initiatives in order to create positive global impacts. The company’s services can be used for many research activities, including the detection and identification of criminal organizations, human trafficking, health and environment issues, as well by law enforcement agencies. This builds upon Safe-T Group Ltd’s (NASDAQ:SFET) previous social responsibility program, which offered free remote access services for employees of companies affected by Covid-19.
8. Mullen Automotive, Inc. (NASDAQ:MULN)
Number of Hedge Fund Holders: 3
Share Price (as of March 3): $0.89
Mullen Automotive, Inc. (NASDAQ:MULN) is a California-based electric car-maker, making waves around the world with its work on solid-state polymer battery technology, which is an advancement over the current lithium-ion batteries. The company announced an update in February on its efforts to produce EV batteries that will replace the lithium-ion technology. Mullen Automotive, Inc. (NASDAQ:MULN) says its testing revealed the potential for a 150-kilowatt-hour battery pack that can deliver around 600-plus miles of range, and provide over 300 miles of range with an 18-minute DC fast charge. The firm expects to carry out in-vehicle prototype testing of this battery technology by 2025.
Mullen Automotive, Inc.’s (NASDAQ:MULN) Mullen 5 model is on par and competing with established names such as the Tesla Y and Ford Mach-E, as reported by a recently conducted study. The firm’s focus on groundbreaking technology is proven with more than 120 patents in over 24 countries.
Electric vehicles stocks have been in the limelight since the Russian invasion of Ukraine, as the world looks to wean off its dependence on Russian oil and gas. Mullen Automotive, Inc. (NASDAQ:MULN) stock was held by 3 hedge funds in the fourth quarter of 2021, up from 2 in the preceding quarter.
Mullen Automotive, Inc. (NASDAQ:MULN) announced a strategic partnership with Comau in January, which is a leader in automation technology and has global experience in developing vehicle body assembly lines for the automotive industry. The two firms will work on Mullen’s advanced manufacturing and engineering center (AMEC) in Tunica, Mississippi, to establish a full-scale body assembly, where the upcoming and awaited Mullen FIVE EV Crossover will be produced.
7. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Number of Hedge Fund Holders: 5
Share Price (as of March 3): $3.12
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) deals in the development and provision of battery storage solutions for the commercial, industrial, utility and renewable energy markets in the United States. Its flagship product the Eos Znyth DC battery system is designed to provide uninterrupted back-up power and efficient electricity storage. This zinc-based technology is a crucial upgrade to the lithium-ion technology used to store electricity in grid systems, given its proclivity for fire in high-temperature zones.
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) reported its Q4 earnings on February 25, and posted a quarterly revenue of $3.10 million, which was up an astounding 1,586.96% year-over-year.
On February 28, B. Riley analyst Christopher Souther maintained a ‘Buy’ rating on Eos Energy Enterprises, Inc. (NASDAQ:EOSE) stock, and lowered the price target to $13 from $14, noting that he likes the firm’s long-term outlook.
As of March 3, shares of Eos Energy Enterprises, Inc. (NASDAQ:EOSE) rose 19.08% in a single day, as the market reacted favorably to news of Eos’ top executives buying their own company’s shares, with its CEO, CFO, General Counsel and Director buying a total of around 108,000 shares.
5 hedge funds held stakes worth $3.06 million in Eos Energy Enterprises, Inc. (NASDAQ:EOSE) at the close of the fourth quarter. This is the same number of hedge funds holding stakes in the firm a quarter ago. Royce & Associates was a leading shareholder of Eos Energy Enterprises, Inc. (NASDAQ:EOSE) in the fourth quarter, with a stake comprising of 90,000 shares worth $677,000.
Evermore Global Advisors, an investment firm, discussed the prospects for Eos Energy Enterprises, Inc. (NASDAQ:EOSE) in its Q4 2020 investor letter, stating:
“Eos Energy Enterprises, Inc. (Country: U.S.; Ticker: EOSE US) is a $1.2 billion market capitalization (on a fully diluted share count basis) designer and manufacturer of stationary, large-scale, and modular zinc-based battery systems sold to electric utilities, power producers, and industrial energy end users. Its batteries are predominantly used to store renewable power generated during low demand “off-peak” hours, and discharge at times of higher demand and/or elevated spot electricity prices. Secondarily, in areas with unreliable grids or grids that are prone to rolling brownouts (as California has been experiencing), Eos solutions can provide uninterrupted backup power supply for industrial customers. Based in Edison, New Jersey, the company came to market in November 2020 via its merger into a special purpose acquisition company (or “SPAC”), B. Riley Principal Merger Corp. II (old ticker: BMRG US), in a deal that left Eos with approximately $130 million of net cash.
Until now, the small installed base of grid storage battery capacity in the U.S. has utilized lithium-ion batteries, with technology largely piggybacking off developments made for electric vehicle applications. But given the risks of fire in high temperature climates among other drawbacks (including supply chain fragility/complexity, and difficulty in end-of-life battery recyclability), lithium-ion has proven to be technologically challenging for grid storage applications, keeping a lid on the pace of deployments. Zinc-based chemistry on the other hand, like that found in the Eos Aurora solution, can operate in much wider temperature ranges than lithium-ion, with no practical risk of fire. Eos also offers a fully domestic supply chain, better recyclability, and a slower discharge rate. As a result, despite lithium-ion’s clear advantages in certain important metrics like density and round-trip-efficiency, its specific drawbacks mean that in a number of applications (or regions) Eos’ offerings ultimately yield a lower total cost of ownership to its customers.
Eos has a solid first-to-commercialize advantage within its zinc chemistry niche. We expect this, along with an extremely efficient “build as we need it” approach to manufacturing capacity, has potential to translate to a leading market share within a rapidly growing field. Global energy consultancy, Wood Mackenzie, for instance, projects 31% annual growth in deployed battery storage systems over the next decade, reaching 740 GWh installed capacity globally by 2030. While the company is in the very early stages of its revenue ramp, its sales pipeline and backlog are growing steadily. With over 130 active engagements on potential projects, Eos has disclosed that at the end of 2020 it had an opportunity pipeline of over $3 billion. At the time of its merger into the SPAC, Eos projected it would generate $50 million and $269 million in revenue for 2021 and 2022, respectively. We believe the company will comfortably exceed these levels given the pace of revenue conversion and pipeline growth it has experienced since the completion of the merger. Grid storage batteries are sold with multi-year warranties. Thus, we believe the very act of going public (complete with a bolstered balance sheet, audited financials, and a “brand name”) has helped assuage concerns of customers that might otherwise be reluctant to enter into long term agreements.
Shares of Eos have been a phenomenal performer in the short period the Fund has owned them, having appreciated by more than 100% at year-end. With such high rates of revenue growth (management expects annual topline growth of nearly 400% through 2024 in its Base Case projection), admittedly it is difficult to value the business with a high degree of precision. However, based on our expectations, the Fund paid no more than 3x 2024 projected EBITDA for what we expect to be a fast-growing, and politically popular industry.”
6. IZEA Worldwide, Inc. (NASDAQ:IZEA)
Number of Hedge Fund Holders: 6
Share Price (as of March 3): $1.02
IZEA Worldwide, Inc. (NASDAQ:IZEA) is a marketing firm which connects brands and advertisers with social media influencers to collaborate on marketing campaigns. In the digital age where digital ad spending is consistently taking away market share from traditional outlets such as TV and print, IZEA’s business model is uniquely designed to put the firm on a solid growth trajectory in the coming years.
IZEA Worldwide, Inc. (NASDAQ:IZEA) has been receiving a lot of demand for its services, as is evident by a recent spate of high-level marketing contracts signed with top companies around the world.
In February, IZEA Worldwide, Inc. (NASDAQ:IZEA) was awarded a six-figure contract expansion by a mass media and entertainment company to promote a major movie release in 2022. IZEA also signed a multi-million dollar expansion in its contract with a Global Fortune 20 technology company in January, which will see influencer marketing campaigns executed across multiple social media platforms throughout the year.
As of January, IZEA Worldwide, Inc. (NASDAQ:IZEA) has also started accepting Bitcoin and Ethereum as payments for its social media influencer marketing services. The company holds both Bitcoin and Ethereum, and has seen gains over the years as these currencies increased in value.
Investors were seen buying up IZEA Worldwide, Inc. (NASDAQ:IZEA) shares in the fourth quarter of 2021, where 6 hedge funds were long on the company shares, in comparison to 4 hedge funds in the preceding quarter.
IZEA Worldwide, Inc. (NASDAQ:IZEA) is an exciting penny stock to buy, unlike expensive stocks like Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT)
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Disclosure. None. 10 Penny Stocks to Buy in March is originally published on Insider Monkey.
