5 Penny Stocks That Can Grow Big in 2023

In this article, we will take a look at the 5 penny stocks that can grow big in 2023. If you want to see more stocks in this selection, go to the 10 Penny Stocks That Can Grow Big in 2023.

5. Riot Blockchain, Inc. (NASDAQ:RIOT)

Number of Hedge Fund Holders: 11

Riot Blockchain, Inc. (NASDAQ:RIOT) is a Castle Rock, Colorado-based bitcoin mining company founded in 2000.

Riot Blockchain, Inc. (NASDAQ:RIOT) is one of the best penny stocks as it provides exposure to the speculative world of cryptocurrencies, which has the potential to yield sudden returns. Bitcoin is the biggest cryptocurrency in this universe. The company mined 521 bitcoins in November 2022 and has ownership over 6,897 bitcoins mined through its facilities.

On November 23, Mike Colonnese at H.C Wainwright gave Riot Blockchain, Inc. (NASDAQ:RIOT) a Buy rating with a price target of $10. The analyst highlighted the corporation as one of the world’s biggest, publicly listed, and vertically integrated bitcoin miners. Colonnese is anticipating the company’s share in bitcoin mining to grow to 4% by the end of 2023 as it is continuously growing its mining capacity. He thinks that Riot Blockchain, Inc. (NASDAQ:RIOT) is in the best position to weather the downturn in the cryptocurrency world and come back as a bigger and stronger player.

Of the 920 hedge funds in Insider Monkey’s database, Riot Blockchain, Inc. (NASDAQ:RIOT) was held by 11 funds as of Q3 2022.

4. Clover Health Investments, Corp. (NASDAQ:CLOV)

Number of Hedge Fund Holders: 17

Clover Health Investments, Corp. (NASDAQ:CLOV) is a Franklin, Tennessee-based provider of Medicare Advantage insurance plans. The company uses the data and technology from its proprietary Clover Assistant platform to assist medical practitioners in making medical decisions.

On November 8, Richard Close at Canaccord assigned Clover Health Investments, Corp. (NASDAQ:CLOV) stock a Buy rating with a target price of $4. The analyst highlighted that the company surpassed the Q3 2022 results compared to his estimates and also increased the revenue guidance for 2022. Mr. Close appreciated the management’s aggressive efforts to achieve profitability in a shorter timeline. Clover Health Investments, Corp. (NASDAQ:CLOV) intends to meet its targets by moderating the company’s growth in Medicare Advantage and non-insurance-related offerings.

Renaissance Technologies raised its stake in Clover Health Investments, Corp. (NASDAQ:CLOV) by 145% during Q3 2022.

3. Rocket Lab USA, Inc. (NASDAQ:RKLB)

Number of Hedge Fund Holders: 15

Rocket Lab USA, Inc. (NASDAQ:RKLB) is a Long Beach, California-based space company that is a known maker of launch vehicles and spacecraft. The company has the honor of deploying 151 satellites and has conducted 31 launches.

Following the Q3 2022 results, Edison Yu at Deutsche Bank assigned Rocket Lab USA, Inc. (NASDAQ:RKLB) stock a target price of $12, along with a Buy rating on November 14. The analyst noted that the company’s quarterly results were robust across all aspects. Yu added that Rocket Lab USA, Inc. (NASDAQ:RKLB) is gaining momentum as it is inducting new customers every day. This will aid the corporation in increasing its market share in a rapidly growing space infrastructure and launch services industry. Rocket Lab USA, Inc. (NASDAQ:RKLB) is also anticipated to experience margin expansion due to the cost reduction activity undertaken for the Electron project. Analysts consider the company one of the best penny stocks due to its strong growth catalysts.

As of Q3 2022, Rocket Lab USA, Inc. (NASDAQ:RKLB) was held by 15 hedge funds.

2. Matterport, Inc. (NASDAQ:MTTR)

Number of Hedge Fund Holders: 7

Matterport, Inc. (NASDAQ:MTTR) is a Sunnyvale, California-based creator of a 3D media platform that is used to make 3D and virtual reality models. The company, founded in 2011, claims that its platform reduces development time by 50%, resulting in 20 times cost savings. Matterport, Inc. (NASDAQ:MTTR) has thousands of businesses across over 150 countries as its customer.

In a report published on November 11, Brent Bracelin at Piper Sandler increased the price target on Matterport, Inc. (NASDAQ:MTTR) from $5 to $6 and reiterated an Overweight rating. The analyst noted that the company posted strong Q3 2022 results due to growth in subscriptions. Matterport, Inc. (NASDAQ:MTTR) revealed that the backlog for its 3D camera, Pro2, was cleared and the Pro3 platform was also positively received by the market. The acquisition of VHT Studios has also improved the outlook of Matterport, Inc. (NASDAQ:MTTR), making it one of the best penny stocks in the market.

As of Q3 2022, Matterport, Inc. (NASDAQ:MTTR) was held by 7 hedge funds.

1. WeWork Inc. (NYSE:WE)

Number of Hedge Fund Holders: 20

WeWork Inc. (NYSE:WE) is a New York-based provider of coworking spaces.

WeWork Inc. (NYSE:WE) leases out complete office buildings to well-known corporations as well as small entities and freelancers. The company offers its locations for a shorter period as compared to conventional landlords. During the present challenging macroeconomic environment, WeWork Inc. (NYSE:WE)  is reducing costs by shutting down underperforming locations to streamline its portfolio. The company was able to lower its expenses during Q3 2022 and observed its top line grow by 20% YoY.

In an update provided to investors on November 4, Thomas Catherwood at BTIG commenced coverage on WeWork Inc. (NYSE:WE) stock with a target price of $7.50 and a Buy rating. The analyst is forecasting a strong period for flexible working spaces in the short and medium term, which will be beneficial for WeWork Inc. (NYSE:WE), making it one of the best penny stocks with the potential to grow big in 2023.

You can also take a peek at the Best AI Penny Stocks Under $1 and the 10 Best Halal Dividend Stocks To Buy.

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