16 Most Profitable Penny Stocks Now

Published on November 19, 2023 at 7:11 am by Fahad Saleem in Hedge Funds, News

In this article, we will take a look at the 16 most profitable penny stocks now. To see more such companies, go directly to 5 Most Profitable Penny Stocks Now.

Earlier this month investors cheered the latest inflation data report which showed the Fed’s battle against inflation might finally be working. Throughout 2023, investors and analysts spent more of their time processing economic data reports, debating possibilities of a soft landing or a full-blown recession. While the year is about to end, those debates are still not settled. Some analysts are bold enough to declare a victory against inflation and paint a rosy path forward, but many are still advising caution. Russell Investments in its Q4 market update report said that it would be difficult for the Fed to chart a safe path out of its battle against inflation without tipping the economy into recession. The report cited the Sahm rule to back its claim that the upcoming weeks and months could see a higher probability of recession. The report said:

“The Sahm Rule3 holds that a recession has started when the three-month moving average of the unemployment rate rises by 0.5 percentage points from its low of the previous 12 months. The rule highlights the self-reinforcing dynamics that take hold once the unemployment rate starts to rise. Rising unemployment signals that firms are belt-tightening. Households become cautious as jobs become more difficult to find. This triggers more austerity and layoffs, which results in further household caution. The process usually starts from the lagged impact of Fed tightening. The Sahm Rule reminds us that it is difficult for the Fed to calibrate monetary policy precisely enough to ensure a policy-induced slowdown won’t slide into recession.”

Whether or not we will see a full-blow or mild recession before the end of 2023 or in 2024 is still an unsettled question. But for now let’s dig deeper into stock analysis and see the most profitable penny stocks.

For this article we used the Finviz stock screener to identify penny stocks (stocks trading under $5 as of November 12) with the highest income reported for the past twelve-month period.

Most Profitable Penny Stocks Now

16. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)

Income (TTM): $501M

Turkish telecom company Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) ranks 16th in our list of the most profitable penny stocks now. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) recently posted Q3 results. Revenue in the quarter jumped about 77%, while net income gained about 129% in the quarter. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) also increased its guidance for 2023.

15. ICL Group Ltd (NYSE:ICL)

Income (TTM): $911.00M

Chemicals company ICL Group Ltd (NYSE:ICL) ranks 15th in our list of the most profitable penny stocks now. Over the past one year ICL Group Ltd (NYSE:ICL)’s net income came in at $911 million. Earlier in November the company posted Q3 results. Adjusted EPS in the period came in at $0.11 beating estimates by $0.02. Revenue in the quarter fell 24.6% year over year to $1.9 billion. Operating cash flow in the quarter was $407 million.

14. Nomura Holdings, Inc. (NYSE:NMR)

Income (TTM): $942.44M

Japan-based financial holding company Nomura Holdings, Inc. (NYSE:NMR) is a high-yield dividend penny stock. Nomura Holdings, Inc. (NYSE:NMR)’s dividend yield came in at over 5% as of November 11. As of the end of the second quarter of 2023, 6 hedge funds tracked by Insider Monkey reported owning stakes in Nomura Holdings, Inc. (NYSE:NMR).

13. DISH Network Corporation (NASDAQ:DISH)

Income (TTM): $1.22B

DISH Network Corporation (NASDAQ:DISH)’s net income over the past 12 months came in at $1.22 billion. This makes DISH Network Corporation (NASDAQ:DISH) one of the most profitable penny stocks now. DISH Network Corporation (NASDAQ:DISH) was trading at $3.44 as of November 11, having lost a whopping 78% over the past one year.

A total of 33 hedge funds out of the 910 funds tracked by Insider Monkey reported having stakes in DISH Network Corporation (NASDAQ:DISH) as of the end of the second quarter of 2023. The biggest stake in DISH Network Corporation (NASDAQ:DISH) belongs to Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $74.5 million stake in the company.

ClearBridge Large Cap Value Strategy made the following comment about DISH Network Corporation (NASDAQ:DISH) in its first quarter 2023 investor letter:

“DISH Network Corporation (NASDAQ:DISH) was lower for more idiosyncratic reasons. The pay-TV provider, with unique potential to become a viable fourth wireless carrier, continues to face challenges executing its wireless buildout in a higher rate environment where a leveraged balance sheet is a liability. We believe there is still value to be captured for Dish, but it is clearly taking longer to realize, and we are monitoring the stock closely.”

12. Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG)

Income (TTM): $1.01B

Brazilian power company Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) ranks 12th in our list of the most profitable penny stocks now. As of the end of the June quarter, 14 hedge funds out of the 910 funds in Insider Monkey’s database of funds reported having stakes in Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG). The biggest stakeholder of Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) was Nathaniel August’s Mangrove Partners which owns a $21 million stake in the company.

11. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Income (TTM): $1.3B

Sirius XM Holdings Inc. (NASDAQ:SIRI) in late October posted Q3 results. GAAP EPS in the quarter came in at $0.09 beating estimates by $0.01. Revenue fell 0.4% on a YoY basis to $2.27 billion, missing estimates by $20 million.

A total of 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Sirius XM Holdings Inc. (NASDAQ:SIRI) as of the end of the June quarter. The most significant stake in Sirius XM Holdings Inc. (NASDAQ:SIRI) was owned by Dmitry Balyasny’s Balyasny Asset Management which owns a $19.4 million stake in the company.

10. Enel Chile S.A. (NYSE:ENIC)

Income (TTM): $1.4B

Chile-based electricity services company Enel Chile S.A. (NYSE:ENIC) ranks 10th in our list of the most profitable penny stocks now. Enel Chile S.A. (NYSE:ENIC) is known for its high dividends, with a yield of over 11%.

Insider Monkey’s database of 910 hedge funds shows that 10 hedge funds had stakes in Enel Chile S.A. (NYSE:ENIC) as of the end of the second quarter. The biggest stakeholder of Enel Chile S.A. (NYSE:ENIC) was Israel Englander’s Millennium Management which owns an $11 million stake in the company.

9. Wipro Limited (NYSE:WIT)

Income (TTM): $1.41B

India-based IT services company Wipro Limited (NYSE:WIT) is one of the most famous penny stocks in the world. Wipro Limited (NYSE:WIT)’s hedge fund sentiment jumped in the second quarter, with 14 funds out of the 910 in Insider Monkey database reporting stakes in the company in the period, up from 10 funds in the previous quarter. The biggest hedge fund stakeholder of Wipro Limited (NYSE:WIT) during this period was Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners which owns a $14.5 million stake in the company.

8. Gerdau S.A. (NYSE:GGB)

Income (TTM): $1.60B

Brazil-based steel company Gerdau S.A. (NYSE:GGB) has a dividend yield of about 14% as of November 12.

As of the end of the second quarter of 2023, 13 hedge funds had stakes in Gerdau S.A. (NYSE:GGB). The biggest stakeholder of Gerdau S.A. (NYSE:GGB) during this period was Jon Bauer’s Contrarian Capital which owns a $94 million stake in the company.

7. Telefónica S.A. (NYSE:TEF)

Income (TTM): $1.83B

Spanish telecom company Telefónica, S.A. (NYSE:TEF) ranks 7th in our list of the most profitable penny stocks now. In September, Telefónica, S.A. (NYSE:TEF) said Saudi Arabia’s STC Group has acquired a 9.9% stake in Telefonica.

As of the end of the second quarter of 2023, 11 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Telefónica, S.A. (NYSE:TEF). The biggest stakeholder of Telefónica, S.A. (NYSE:TEF) was Ken Griffin’s Citadel Investment Group which owns a $3.3 million stake in the company.

6. Ambev S.A. (NYSE:ABEV)

Income (TTM): $3.07B

Beverage company Ambev S.A. (NYSE:ABEV) is one of the famous penny stocks that are highly profitable. Last month Ambev S.A. (NYSE:ABEV) posted Q3 results. Adjusted EPS in the period came in at R$0.25. Revenue in the quarter fell 1.3% year over year to R$20.32 billion.

Ariel Global Fund made the following comment about Ambev S.A. (NYSE:ABEV) in its Q1 2023 investor letter:

“Also during the quarter, we initiated a new position in Brazil-based brewing company, Ambev S.A. (NYSE:ABEV) in the quarter. The company produces, distributes and sells beer, carbonated soft drinks and other non-alcoholic and non-carbonated beverages across the Americas. Ambev appointed a new executive leadership team in 2020 focused on transforming the company’s culture and operations. Following several consecutive years of margin contraction, we expect 2023 to be a turning point and believe Ambev’s commercial strategy will help improve the sales mix resulting in market share, revenue and earnings growth. In addition, we like the net cash balance sheet and high free cashflow generation of the business.”

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