We recently compiled a list of the 8 Best Value Penny Stocks to Invest in Now. In this article, we are going to take a look at where B2Gold Corp. (NYSEAMERICAN:BTG) stands against the other penny stocks.
The few weeks leading to President Donald Trump’s inauguration were the merriest for investors. A lot of money piled into the stock market, which saw the broad market index gain 2.74% in the last week of the inauguration. But all of that happened to be an ephemeral episode.
The S&P 500 has been down 4.13% in the past five days, and this is not the only index in red this week. The tech-heavy Nasdaq composite has pulled back 6.86% in the past five days, and so has the Dow, although it has a smaller margin of 1.31%. In fact, all of the indices are on pace for their worst week this year, with the Nasdaq and the S&P looking to record the worst week in five months.
What is interesting is that the same reason sentiment was hugely positive at the opening of the year is also one of the main factors driving the volatile market. Early in February, Trump said he would use tariffs to compel the US’s neighbors (Canada and Mexico) and its largest trading partner (China) to help them address immigration and drug issues. The tariffs on China went into effect on February 4, and those on the neighbors are scheduled to begin implementation on March 4, 2025. Investors were hoping that this threat would fizzle out, but a recent post on Trump’s Truth Social account indicates the opposite.
READ ALSO: 8 Worst Performing Mutual Funds in 2024 and 10 Best Get Rich Quick Stocks To Invest In.
The problem is that even the threat of tariffs is enough to throw the market into a frenzy. Investors are not wrong to panic because experts agree that the tariffs will soften the economy. According to Erica York, vice president of federal tax policy at the Tax Foundation, the tariffs will inflict pain on the US economy.
York says: “It means incomes and returns to shareholders in the US economy are lower instead, because if businesses have to eat those higher costs, it means they have less to pay their workers. It means they have less to hire and expand employment, or less to invest. So no matter what channel the price impact takes, it’s Americans who are hurt by the tariffs.”
And this situation has created an environment where the market appears irrational. According to Jay Hatfield, CEO of Infrastructure Capital Advisors, “We’re in a stalled, range-bound, slightly irrational market as we wait for policy clarity.”
The economic softening resulting from the tariffs is made worse by a softer-than-expected consumer confidence reading. According to the latest release, US consumer confidence dropped sharply in February 2025. In fact, The Conference Board’s Stephanie Guichard notes, “In February, consumer confidence registered the largest monthly decline since August 2021.” Add to that the disappointing retail sales data and a jump in jobless claims, and you have a properly rattled stock market.
The problem with a broadly underperforming market, as indicated by all the indices being in the red for the better part of the past 30 days, is that investors tend to undervalue some shares that deserve a better valuation. But this is not always a bad thing because it opens up potential opportunities.
In a recent interview, Bank of America’s Marci McGregor said that “volatility can open up potential growth opportunities as some investments become more reasonably priced, aligning with value stock strategies.” At the same time, penny stocks are likely to make huge moves in a volatile market, according to Timothy Sykes, a long-time penny stock trader.
If investors’ worries about the health of the US economy continue to mount, the market’s subdued sentiment is likely to continue. In other words, there’s never been a more apt time to consider a combination of value and penny stocks—value penny stocks.
Our Methodology
To make the list of the 8 best-value penny stocks to invest in now, we used a screener to identify stocks trading under $5 per share with forward P/E ratios of less than 20, as of March 3. We further looked for stocks with a positive upside potential of over 30% based on analysts’ consensus price targets. Finally, we ranked the companies based on hedge fund sentiment using Insider Monkey’s database of 1008 elite hedge funds’ holdings at the end of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a gold mine in Mali, showing the scale of the mining operations.
B2Gold Corp. (NYSEAMERICAN:BTG)
Price as of March 3: $2.66
Forward P/E ratio: 6.07
Analysts upside potential: 41.35%
Number of hedge fund holders: 19
B2Gold Corp. (NYSEAMERICAN:BTG) produces gold from mines in Mali, the Philippines, and Namibia. The Vancouver, Canada-headquartered company not only mines the precious metal but also develops and explores gold mining opportunities worldwide.
Recently, the company announced a positive preliminary economic assessment (PEA) for the Antelope deposit at the Otjikoto mine in Namibia. The PEA demonstrates strong project economics with an after-tax NPV of $131 million (at a 5% discount rate) and an impressive IRR of 35%. This deposit is expected to contribute roughly 65,000 ounces of gold annually over a five-year mine life, potentially boosting Otjikoto’s overall production to about 110,000 ounces per year when combined with the processing of existing low-grade stockpiles.
Overall, B2Gold Corp.’s (NYSEAMERICAN:BTG) operations are robust. The company’s latest operational performance update indicates booming production. In Q4 2024, it outputted 186,001 ounces of gold, for a total annual production of 804,778 ounces. The company maintained tight control over costs, with Q4 consolidated cash operating costs at $968 per ounce and all-in sustaining costs at $1,668 per ounce.
Several growth initiatives are also in motion. The Goose Project, which is the company’s largest initiative in recent years, is on track to begin producing gold in Q2 2025. There is also the recent $460 million convertible note issuance that underscores market confidence in the company’s long-term strategy. This is sufficient evidence that the current share price of $2.66 is an anomaly and that B2Gold Corp.’s (NYSEAMERICAN:BTG) true potential is not fully reflected in the market.
Overall BTG ranks 6th on our list of the best value penny stocks to invest in now. While we acknowledge the potential of BTG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
