5 Penny Stocks With High Growth Potential

2. UWM Holdings Corporation (NYSE:UWMC)

Number of Hedge Fund Holders: 15

UWM Holdings Corporation (NYSE:UWMC) has the distinction of being the biggest wholesale non-bank mortgage lender in terms of origination for the past seven consecutive years. The company, founded in 1986, had a headcount of 7,000 employees as of June 30.

UWM Holdings Corporation (NYSE:UWMC) reported a net income of $216.4 million during Q2 2022, which reflected an increase of 55% YoY due to a rise in the value of mortgage servicing rights (MSRs). The rise in the benchmark interest rates since March this year has caused mortgage rates to surpass the 5% level and resulted in a challenging environment for mortgage originators. On the other hand, the higher demand for MSRs has countered the impact. Analysts think UWM Holdings Corporation (NYSE:UWMC) has a solid growth plan in place, meriting its inclusion in the list of the ten penny stocks with high growth potential.

As of Q2 2022, UWM Holdings Corporation (NYSE:UWMC) was held by 15 hedge funds.