In this article, we discuss the 15 best penny stocks to invest in. If you want to skip our analysis of these stocks, go directly to the 5 Best Penny Stocks To Invest In.
The US equity market has been volatile since the start of 2022. The Dow 30 Index extended an eight-week consecutive losing streak. Meanwhile, the S&P 500 Index was not far behind with a losing streak of seven consecutive weeks. Numerous negative developments like the Russia-Ukraine conflict, the COVID-19-related lockdowns in China, and the rising inflation in the US due to increasing commodity prices have played a key role in making investors think about potential investment opportunities.
While penny stocks do not offer the security offered by big-cap firms like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), they provide an opportunity for decent short-term returns due to their volatility. One such example is GameStop Corp. (NYSE:GME) which skyrocketed thousands of percentage points in 2021. Similarly, Cassava Sciences, Inc. (NASDAQ:SAVA) was also in the penny stock range a while ago. The stock recorded a gain of over 4000% between 2020 and 2021. These examples reflect the opportunity penny stocks provide investors to earn handsome returns.
Our Methodology
In this article, we take a look at the 15 best penny stocks to invest in. The selected stocks have a stock price of less than $3. We have analyzed the growth catalysts and long-term potential of these companies to provide a holistic overview of these stocks to potential investors. Furthermore, we have also looked at how popular these stocks are among the hedge funds. Insider Monkey has a database of over 912 elite funds as of Q1 2022.
15 Best Penny Stocks To Invest In
15. Camber Energy, Inc. (NYSE:CEI)
Share Price as of June 8: $0.6114
Number of Hedge Funds Holders: 5
Camber Energy, Inc. (NYSE:CEI) is a Houston, Texas-based energy company involved in the acquisition and sale of natural gas, crude oil, and natural gas liquids (NGL) in Louisiana, Missouri, and Texas.
Camber Energy, Inc.’s (NYSE:CEI) proved reserve stood at 73,800 barrels of oil equivalent as of December 31. The company also has a major holding in Viking Energy Group, Inc. The subsidiary holds an exclusive license for a carbon capture system in Canada. Camber Energy, Inc. (NYSE:CEI) is an active stock with an average daily volume of around 56 million shares. In the last 52 weeks, the stock has seen a low and high of $0.33 and $4.85, respectively.
As of Q1 2022, 5 funds held a position in Camber Energy, Inc. (NYSE:CEI).
14. Imperial Petroleum Inc. (NASDAQ:IMPP)
Share Price as of June 8: $0.5390
Number of Hedge Funds Holders: 5
Imperial Petroleum Inc. (NASDAQ:IMPP) is a Greece-based international shipping company specializing in the transportation of petroleum and petrochemical products in liquefied form. Imperial Petroleum Inc. (NASDAQ:IMPP) is in the growth phase as it announced the acquisition of two Suezmax tankers for $46.8 million on May 27. Both these Suezmax tankers would have a combined capacity of 320,000 dwt, which is equivalent to three million barrels of oil. The tankers are expected to be delivered in mid-June. Imperial Petroleum Inc. (NASDAQ:IMPP) also revealed that it intends to finance the purchase through cash-on-hand and new senior secured bank debt.
Imperial Petroleum Inc. (NASDAQ:IMPP) was held by 5 hedge funds at the end of Q1 2022.
13. Clovis Oncology, Inc. (NASDAQ:CLVS)
Share Price as of June 8: $0.6716
Number of Hedge Funds Holders: 14
Clovis Oncology, Inc. (NASDAQ:CLVS) is a Boulder, Colorado-based commercial-stage biotech company that is working on acquiring, developing, and commercializing cancer treatments.
On June 6, Clovis Oncology, Inc. (NASDAQ:CLVS) announced that its therapy Rubraca (rucaparib) significantly increased the probability of progression-free survival in women with advanced-stage ovarian cancer as compared to placebo. The research reached its primary endpoints. The median progression-free survival for women provided with Rubraca was reported at 28.7 months as opposed to 11.3 months amongst the women who were given the placebo. Clovis Oncology, Inc. (NASDAQ:CLVS) is also conducting another study to assess the impact of rucaparib combined with nivolumab. The research is expected to be completed by Q1 2023.
Of the 912 hedge funds in Insider Monkey’s database, 14 funds held a stake in Clovis Oncology, Inc. (NASDAQ:CLVS) as of Q1 2022.
12. Mullen Automotive, Inc. (NASDAQ:MULN)
Share Price as of June 8: $1.3800
Number of Hedge Funds Holders: 4
Mullen Automotive, Inc. (NASDAQ:MULN) is a Brea, California-based electric vehicle manufacturing company with its subsidiary CarHub involved in car dealerships across Arizona and California.
Founded in 2014, Mullen Automotive, Inc. (NASDAQ:MULN) is gaining mainstream prominence as it will become a part of the Russel 2000 and 3000 Indices from June 27. As a result, the stock will be included in the relevant funds and value indexes. Mullen Automotive, Inc. (NASDAQ:MULN) is not only offering electric cars but also claiming a potential breakthrough in battery technology. The company has also brought in executives from General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA), and other notable car manufacturers.
As of Q1 2022, Mullen Automotive, Inc. (NASDAQ:MULN) was held by 4 hedge funds.
11. Quoin Pharmaceuticals, Ltd. (NASDAQ:QNRX)
Share Price as of June 8: $0.5690
Number of Hedge Funds Holders: 1
Quoin Pharmaceuticals, Ltd. (NASDAQ:QNRX) is an Israeli specialty pharmaceutical company focused on developing and commercializing treatments for orphan diseases.
On May 6, Aydin Huseynov at Ladenburg initiated coverage on Quoin Pharmaceuticals, Ltd. (NASDAQ:QNRX) stock with a Buy rating and a price target of $2. The analyst shared that Quoin Pharmaceuticals, Ltd. (NASDAQ:QNRX) has a topical serine protease for the treatment of Netherton syndrome or NS, which is a rare pediatric disease that is hereditary and has no approved treatment. The therapeutic has a shortcut regulatory pathway for potential approval by the FDA. Huseynov has derived the target price with a 50% success probability of approval by the FDA.
10. Amarin Corporation plc (NASDAQ:AMRN)
Share Price as of June 8: $1.6400
Number of Hedge Funds Holders: 22
Amarin Corporation plc (NASDAQ:AMRN) is an Irish-American biotech company that is focused on developing and marketing treatments for heart diseases.
The shares of Amarin have come under pressure following weak Q1 2022 results. However, Greenwich, Connecticut-based hedge fund Sarissa Capital Management has taken a 6.05% stake in Amarin Corporation plc (NASDAQ:AMRN). On June 3, the hedge fund revealed that it is in talks with the company’s management to enhance shareholder value. The hedge fund also intends to become a part of the Board. The action plan is already underway as CFO Michael Kalb resigned; he will be succeeded by Thomas Reilly from June 20. Furthermore, Amarin Corporation plc (NASDAQ:AMRN) has undertaken a $100 cost-saving initiative for its US business.
ClearBridge Investments shared its stance on Amarin Corporation plc (NASDAQ:AMRN) in its Q4 2021 investment letter. Here’s what the firm said:
“Consistent with our bottom-up approach, detractors were likewise diverse. Broader headwinds to the biotech industry, including the emergence of the Omicron variant, a spike in inflation and year-end tax loss harvesting weighed on Amarin’s performance.”
9. Wrap Technologies, Inc. (NASDAQ:WRAP)
Share Price as of June 8: $2.1200
Number of Hedge Funds Holders: 2
Wrap Technologies, Inc. (NASDAQ:WRAP) is a Tempe, Arizona-based corporation that offers a fully immersive police training simulator through Wrap Reality. Furthermore, Wrap Technologies, Inc. (NASDAQ:WRAP) is involved in producing bodycams, public safety training equipment, and fully patented remote restraint devices. Public safety stocks have come into the limelight following horrific mass shooting events in the US. On May 23, the Country Sheriff’s Office in Kentucky placed an order for Wrap Reality to train its officers to de-escalate real-world circumstances through the simulator without facing any injury. The law enforcement agency placed a multi-year contract with a period of five years.
Wrap Technologies, Inc. (NASDAQ:WRAP) was held by 2 hedge funds at the end of Q1 2022.
8. LiqTech International, Inc. (NASDAQ:LIQT)
Share Price as of June 8: $0.5161
LiqTech International, Inc. (NASDAQ:LIQT) is a Danish provider of water filtration systems, ceramic membranes, and diesel particulate filters (DPF). The company has a two-decade of experience in the filtration industry and has retrofitted more than 2.5 million vehicles with DPF. Furthermore, LiqTech International, Inc. (NASDAQ:LIQT) has more than 300 water treatment systems globally.
On May 19, Robert Brown at Lake Street gave LiqTech International, Inc. (NASDAQ:LIQT) stock a target price of $3 with a Buy rating. The analyst added that LiqTech International, Inc. (NASDAQ:LIQT) has recapitalized its balance sheet and made its cost structure efficient. Brown anticipates the company to generate $120 million in revenue and $17 million in EBITDA by 2023.
7. Smith Micro Software, Inc. (NASDAQ:SMSI)
Share Price as of June 8: $2.6500
Number of Hedge Funds Holders: 4
Smith Micro Software, Inc. (NASDAQ:SMSI) is a Pittsburgh, Pennsylvania-based developer and marketer of enterprise and consumer-level software and services. The shares have come under pressure following the news of exclusion from the Russel 3000 Index.
The launch of SafePath 7 in collaboration with T-Mobile US, Inc. (NASDAQ:TMUS) will start contributing to the company’s revenue from Q2 2022. Once the sales level increases, Smith Micro Software, Inc. (NASDAQ:SMSI) can be expected to become profitable within a short period. AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) are expected to follow the same route as well with a white-labeled offering called “FamilyMode 3.0.”
Smith Micro Software, Inc. (NASDAQ:SMSI) was held by 4 hedge funds as of Q1 2022.
6. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Share Price as of June 8: $2.0200
Number of Hedge Funds Holders: 2
Red Cat Holdings, Inc. (NASDAQ:RCAT) is a San Juan, Puerto Rico-based drone company with commercial and government customers. The e-commerce industry is expected to be a strong end market for the drone market following the required approval from the relevant authorities.
On May 24, Red Cat Holdings, Inc. (NASDAQ:RCAT) revealed that it had completed the production of four drones and multi-vehicle systems. The pilot will have the ability to control four drones at the same time. Red Cat Holdings, Inc. (NASDAQ:RCAT) plans to launch a first-person viewer (FPV) drone headset that will give a 1080p digital view. The company also secured an order from a NATO member country for 15 Golden Eagle drone units in April.
As of Q1 2022, 2 hedge funds held a stake in Red Cat Holdings, Inc. (NASDAQ:RCAT). Unlike major stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), penny stocks are not too popular among the hedge funds.
Click to continue reading and see the 5 Best Penny Stocks To Invest In.
Suggested Articles:
- 10 Dividend Growth Stocks Popular on Robinhood
- 15 Most Valuable E-Commerce Companies
- 10 Best ETFs to Invest In for Retirement
Disclose. None. 15 Best Penny Stocks To Invest In is originally published on Insider Monkey.
