Our top penny stocks list for 2023 contains 14 companies with a high probability for long term success. Penny stocks can be a high-reward investment, but investors must do their due diligence.
Penny stocks get publicly traded for less than $5 per share. These stocks are an excellent investment option for investors looking to take a chance on small-cap companies with the potential for significant growth.
However, finding the top penny stocks can be challenging due to their volatility and the risk of investing in small companies.
The key to getting the most out of your penny stock investments is choosing the right undervalued stock, or at least one with a relatively stable growth history compared to other stocks in the same industry and sector.
Factors to Consider When Creating Your Top Penny Stocks List
1. Company's Financials
Researching the company's financial statements, including its balance sheet, income statement, and cash flow statement, is essential to ensure its solid financial foundation.
2. Industry Trends
It is crucial to understand the dynamics of the sector, including emerging trends, competitive pressures, regulatory issues, and consumer preferences. This analysis can provide a better understanding of the potential growth prospects for the company and its stock.
3. Company Management
Research the management team's experience and track record. Strong management teams with a history of success can indicate that the company is well-positioned for future growth.
Penny stocks are often thinly traded, which means there may be a limited number of buyers and sellers in the market which can create liquidity issues and make it difficult to buy or sell the stock. Investors should therefore look for top penny stocks with reasonable trading volume and liquidity.
Penny stocks can experience significant price fluctuations. Investors must consider their risk tolerance and investment goals before investing in penny stocks.
Investors should thoroughly research the company's financial reports, products or services, competitors, and any relevant news or events that may affect the stock's price. Doing so will help them make informed investment decisions.
7. Scams and Fraud
Penny stocks are often the target of fraudsters looking to make a quick profit. Investors must be vigilant and watch out for red flags, such as promises of guaranteed returns or unsolicited investment advice.
The low pricing of penny stocks can create an attractive entry point for investors. However, assessing the company's valuation is essential to ensure the stock is not overpriced.
Top Penny Stocks List for 2023
The following stocks have a high probability of success, and they can deliver good returns over the long term:
Naked Brand Group Inc. (NAKD)
First on our top penny stocks list is NAKD. Naked Brand Group Inc. fashion company that designs and sells intimate apparel, swimwear, and loungewear. It has recently rebranded to focus on the e-commerce market. The company's stock has seen a surge in value in recent months, with a year-to-date (YTD) return of 1,400%.
The company's focus on e-commerce makes it an excellent investment option for investors looking to invest in the growing online retail market.
Ocugen Inc. (OCGN)
This clinical-stage biopharmaceutical company focuses on developing gene therapies for rare and underserved diseases. The company's lead product candidate, OCU400, is a gene therapy for retinitis pigmentosa, a genetic disorder that causes vision loss.
With a market capitalization of around $1.5 billion and positive clinical trial results, Ocugen could be a substantial investment opportunity for those looking for top penny stocks with high growth potential.
Ocugen's stock price has been on a rollercoaster ride in recent years, but it has the potential to be a top performer in 2023.
Sundial Growers Inc. (SNDL)
Sundial Growers Inc. is a cannabis company specializing in producing and distributing high-quality cannabis products. With the recent legalization of cannabis in many states, the demand for cannabis products has increased, and Sundial Growers is poised to take advantage of this trend.
With a market cap of just over $500 million, Sundial Growers is still considered a small-cap stock, but it has the potential for significant growth in the coming years.
Castor Maritime Inc. (CTRM)
Castor Maritime Inc. is a shipping company specializing in transporting dry bulk goods. Castor Maritime has a market cap of just over $40 million and is a small-cap stock with the potential for significant growth in the coming years.
The global economy is recovering from the COVID-19 pandemic, and the demand for shipping services will likely increase, which bodes well for companies like Castor Maritime.
Sunworks Inc. (SUNW)
Next on our top penny stocks list is Sunworks Inc. This company designs and installs solar systems for residential and commercial customers. With the increased focus on renewable energy sources, SUNW could be a great investment opportunity in 2023.
The company's stock price has increased significantly in the past year, and with more and more people looking to switch to solar energy, the stock may continue to rise.
Cinedigm Corp (CIDM)
Cinedigm is a US-based company that provides streaming services for various content, including movies, TV shows, and digital channels. The company has been growing rapidly in recent years, with revenue increasing by 42% in the last quarter of 2022.
With the increasing demand for streaming services, Cinedigm is well-positioned to continue its growth in 2023. It could be a great investment opportunity for investors looking to capitalize on this growing trend.
Zomedica Corp (ZOM)
Zomedica Corp is a veterinary diagnostic and pharmaceutical company. ZOM has been experiencing steady growth due to its innovative approach to animal healthcare. The company focuses on developing diagnostic and treatment options that cater to the unique needs of animals.
ZOM's current price is just under $1, and it could be a great investment opportunity for investors looking to get in on the ground floor.
Chesapeake Energy Corporation (CHK)
CHK is a US-based company exploring and producing natural gas and oil. The company has been expanding rapidly in recent years, with revenue increasing by 41% in the last quarter of 2022.
With the increasing demand for natural gas and oil, Chesapeake Energy Corporation is well-positioned to continue its growth in 2023.
Senseonics Holdings Inc. (SENS)
Next on our top penny stocks list is Senseonics Holdings Inc. This medical technology company specializes in glucose monitoring systems. The company's stock has grown significantly over the past year, with a YTD return of 760%.
In addition, the company's focus on developing innovative glucose monitoring systems makes it an excellent investment option for investors looking to invest in the growing medical technology market.
Boxlight Corporation (BOXL)
BOXL is an education technology company that specializes in interactive classroom technology. The company's stock has seen a surge in value in recent months, with a YTD return of 470%. The company's focus on developing innovative classroom technology makes it an excellent investment option for investors looking to invest in the growing education technology market.
Acasti Pharma Inc. (ACST)
Acasti Pharma Inc. is a biopharmaceutical company focusing on researching and developing drugs to treat cardiovascular diseases. With a market cap of just over $20 million, Acasti Pharma is considered a small-cap stock and carries a bit more risk.
However, with a potential upside of 150%, according to some analysts, this stock is worth considering for those willing to take on a bit more risk.
Ampio Pharmaceuticals, Inc. (AMPE)
This biopharmaceutical company focuses on the development of therapies for inflammatory conditions. The company's lead product candidate, Ampion, is a non-steroidal anti-inflammatory drug that has shown promise in treating knee osteoarthritis.
Also, with a market capitalization of just over $200 million and positive clinical trial results, Ampio Pharmaceuticals could be a strong investment opportunity.
Tellurian Inc. (TELL)
Tellurian Inc. focuses on the development and production of natural gas products. TELL has a market cap of just over $600 million and is still considered a small-cap stock. However, it has the potential for significant growth in the coming years.
Companies like Tellurian Inc. are well-positioned to take advantage of this trend as the world shifts toward cleaner energy sources.
Aterian Inc. (ATER)
Based in the US, this technology company provides e-commerce solutions for businesses. The company has been growing rapidly in recent years, with revenue increasing by 101% in the last quarter of 2022. Aterian is well-positioned to continue its growth trajectory in 2023 with the increasing popularity of e-commerce.
Top Penny Stocks List for 2023 – Conclusion
In conclusion, investing in penny stocks can be a high-risk, high-reward endeavor. While many penny stocks fail to live up to their hype, some can offer tremendous returns to investors. Our top penny stocks list could offer some great investment opportunities for investors looking to buy in 2023.