June 14, 2024

From Speculation to Millionaire-Makers: 3 Penny Stocks With Bright Futures


Explore the newest in penny shares as firms leverage blockchain, AI, and cutting-edge options

Penny stocks aren’t everybody’s cup of tea due to their inherent volatility, and any inventory not named Nvidia (NASDAQ:NVDA), up 152% this 12 months, is struggling for relevance.

Notwithstanding, aggressive traders select penny shares for the prospect of constructing monster returns with just a few cents and {dollars}. After all, a number of the world’s most profitable firms are former penny shares, with Apple (NASDAQ:AAPL), Monster Beverage Corporation (NASDAQ:MNST), and Ford (NYSE:F) being basic examples.

Goldman Sachs (NYSE:GS) and Bank of America’s (NYSE:BAC) bullish 2024 financial forecasts all add to the thesis.

Goldman Sachs has raised its goal for the S&P 500 on the end of the year to 5,200, thanks to falling inflation and a “dovish” Fed angle. Meanwhile, Bank of America, with a purpose of 5,000, believes the economy has adjusted to larger charges and inflation has stabilized.

These forecasts may get supercharged after the US election in November and when the three rate of interest cuts happen. This means the time for investing in penny shares is now, as these provide up to 218% in potential upside.

Phunware (PHUN)

Phunware is a cutting-edge technology company developing mobile apps for brands, enhancing user experience for seamless digital interaction. PHUN stock

Source: MacroEcon / Shutterstock.com

Phunware (NASDAQ:PHUN) continues to retain a consensus of “strong buy,” with analysts citing its mobility and digital transformation potential as highlights. Analysts are predicting a median value goal of $18, indicating a potential upside of 218%, even when the inventory is up 36% in 2024.

Phunware’s glorious inventory efficiency is partly due to multi-year renewals of its cell options with main resort and healthcare clients. This boosted the corporate’s place in company cloud platforms for cell engagement.

Having inked a multi-year agreement with PAL+ and Escapades Memphrémagog, Phunware can be rising within the resort business.

As a part of a much bigger technique to use blockchain expertise to improve engagement and income, Phunware additionally constantly enhances its digital asset ecosystem by introducing new currencies like PhunCoin and PhunToken.

Apart from its strides in blockchain expertise and hospitality, Phunware can be performing financially. It exceeded its inside income targets for the primary quarter of 2024, reduced its net loss by 46%, and reported an virtually 1,500% improve in its money place. PHUN additionally has an “at-the-market” fairness program in place to provide up to $120 million for additional increasing its operations or shoring up its stability sheet.

Canaan (CAN)

web browser showing Canaan (CAN) logo on website

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Canaan’s (NASDAQ:CAN) dominance in bitcoin mining attracts blockchain and AI funding. However, it’s down 50% this 12 months, as traders take income after the fourth Bitcoin halving on April 20.

However, Canaan can reverse the damaging momentum through its newest offering, the Avalon A1566, revealed on the Bitcoin Asia present in Hong Kong. The A1566 is essentially the most highly effective Bitcoin miner the corporate has made to date and is a part of the Avalon A15 line.

Demand for the product is robust. In June, Canaan received a big order from Cipher Mining Technologies to purchase its Avalon Miner A1566.

However, the very best factor Canaan can do to increase investor confidence is to carry out on the underside line. Canaan’s unaudited first-quarter 2024 financial results reveal earnings of $35.1 million, above analysts’ expectations, a 182.1% improve in mining income to $10.5 million, and the narrowing of CAN’s internet loss by 71.7% from the earlier interval to $39.4 million. This demonstrates a shiny begin to the 12 months and a considerable mining income improve between quarters.

Unsurprisingly, thanks to glorious financials and the hype surrounding crypto, CAN has a possible 180% upside. However, just one analyst is reporting this, so take it with a grain of salt when investing.

Northern Dynasty (NAK)

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Northern Dynasty (NYSEAMERICAN:NAK) holds a giant stake within the Pebble Project, a world-class copper, gold, molybdenum, and silver mine, and analysts are projecting massive issues for NAK, with 173% attainable upside. However, the mission’s authorized points make NAK inventory, which trades at 29 cents, riskier even for penny shares.

On the constructive facet, Northern Dynasty’s Pebble Project Preliminary Economic Assessment (PEA) shows strong expected financial results and numerous promise for metallic output, reminiscent of copper, gold, and rhenium.

In addition, Northern Dynasty received an initial advance beneath the second tranche of a modified royalty association. With this association, financing for the Pebble Project is assured, and the royalty holder will obtain a portion of any future manufacturing of gold and silver. Northern Dynasty additionally executed a convertible notice and personal placement for $23 million to finance the Pebble Project.

Since the Clean Water Act provides the EPA with broad regulatory authority, the mission’s authorized challenges are vital. Earlier this 12 months, Northern Dynasty sued the federal government twice for blocking the Pebble mine. NAK lately moved to add U.S. Army Corps of Engineers allegations to its EPA case.

On the date of publication, Faizan Farooque didn’t have (both straight or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing writer for InvestorPlace.com and quite a few different monetary websites. Faizan has a number of years of expertise in analyzing the inventory market and was a former knowledge journalist at S&P Global Market Intelligence. His ardour is to assist the typical investor make extra knowledgeable selections concerning their portfolio.



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