We recently published a list of 7 Best Nanotech Penny Stocks to Invest In. In this article, we are going to take a look at where NanoXplore Inc. (OTC:NNXPF) stands against other best nanotech penny stocks to invest in.
Nanotech involves working with tiny particles which are about the size of molecules. This field is being used to improve products in many different industries, like electronics, medicine, and energy. By manipulating matter at this tiny scale, materials and devices with special properties can be made. The global nanotech market was valued at $3.69 billion in 2022 and is projected to grow at a 33.1% CAGR from 2023 to 2030, as reported by Grand View Research. This is driven by the increased use in medical diagnostics and imaging, technological advancements, substantial R&D funding, and the creation of advanced materials for healthcare, electronics, aerospace, textiles, transportation, manufacturing, and agriculture.
In 2022, nanodevices dominated the nanotech market, accounting for over 58% of global revenue. This was due to their potential in healthcare (targeted drug delivery, imaging, diagnostics, regenerative medicine) and electronics (smaller transistors, memory devices, sensors). Nanosensors, which are crucial for nanoscale detection and measurement across many industries, are projected to grow. Healthcare and pharmaceuticals led applications in 2022, with over 26% market share. This was driven by the increased use of nanotech in areas like surgical nano-robots, nano-diagnostics, and targeted drug delivery, as well as rising chronic disease prevalence and surgical procedures. The automobile segment is also expected to grow due to nanotech’s improvements in materials, energy efficiency, safety, and functionality.
While the nanotech industry as a whole holds promise, it is still in its early innings and many companies are in the small-cap territory.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top nanotech stocks under $5. We then selected the 7 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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NanoXplore Inc. (OTC:NNXPF)
Number of Hedge Fund Holders: NA
Share Price as of February 11: $1.75
NanoXplore Inc. (OTC:NNXPF) is a nanotech company that manufactures and supplies nanomaterials like graphene powder and graphene-enhanced products for various industrial markets. Its offerings include graphene-based solutions, graphene-enhanced plastics and composites, and silicon-graphene-enhanced Li-ion batteries for electric vehicles and grid storage.
The company’s advanced materials segment, which is centered on graphene-enhanced products, is its primary growth engine. This segment achieved an adjusted EBITDA of $1.51 million in FQ1 2025, which was a substantial increase from $171,000 last year. The company is expanding its advanced materials segment, particularly in the US, to meet the demand for graphene-enhanced composites. These investments are supported by existing customer contracts. Total revenue in FQ1 reached $33.7 million, recording a 16% year-over-year increase.
While expansions are underway in Canada and the US, which promise future growth, the near-term revenue for FY25 is projected between $140 million and $155 million. This reflects a slowdown in demand from two large customers and the US expansion coming online late in the fiscal year.
Overall, NNXPF ranks 7th on our list of best nanotech penny stocks to invest in. While we acknowledge the growth potential of NNXPF, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NNXPF 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.
