Speculative penny stocks: we all love them and they’re super dangerous. You “invest” at your own risk, let me be 100% clear about that.
Since you’re already here, I’m assuming that you already know the drill and have accepted the risk. Let me just say before we start that the market typically represents a balance between predictability and potentiality. And these are inverse concepts.
If you want high predictability (blue-chip stocks, for example), you must sacrifice upside potentiality. On the flipside, if you want maximum potentiality (speculative penny stocks), you must sacrifice predictability.
These ideas can either put a smile on your face or lead you to despair. That’s the deal. If you’re okay with this severe binary setup, below are speculative penny stocks to consider.
Akoustis Technologies (AKTS)
Operating under the communications equipment subcategory, Akoustis Technologies (NASDAQ:AKTS) is one of the literal penny stocks. On Wednesday, shares closed at 58.5 cents. Per its public profile, Akoustis designs, develops, manufactures and sells radio frequency (RF) filter products for the mobile wireless device industry.
At the moment, two experts cover AKTS, with the consensus edging out as moderate buy. Further, the average price target lands at $1, implying 71% upside potential. Last fiscal year, the company consistently fell below expected loss-per-share targets. The average surprise was almost 20% below breakeven against analysts’ consensus expectations.
However, the experts are also looking for a rebound in fiscal 2024. The loss per share should improve from 88 cents to 67 cents. More importantly, revenue could hit $32.86 million, a rise of 21.2% on a year-over-year basis. Further, in fiscal 2025, sales could hit $53.62 million.
If you want an indirect play in the mobile wireless space, AKTS could be one of the compelling speculative penny stocks to consider.
FTC Solar (FTCI)
Working under the solar energy sector of the broader tech ecosystem, FTC Solar (NASDAQ:FTCI) engages in the provision of solar tracker systems, software and engineering services, covering the U.S. and international markets. It’s another name among literal speculative penny stocks, closing the midweek session at 51 cents.
Presently, four analysts cover FTCI, split between two buys and two holds. Per TipRanks, this assessment yields a moderate buy consensus view. Notably, the average price target shoots up to 99 cents, implying over 94% upside potential.
As with other speculative penny stocks, FTC’s fiscal 2023 performance wasn’t all that great. Aside from a beat in the first quarter, the company missed bottom-line targets consistently. Overall, the average surprise came out to 14.1% below analysts’ expectations.
Still, the experts are calling for a recovery in fiscal 2024. Loss per share should improve from 30 cents last year to 16 cents. Also, sales could hit $158.93 million, representing a 25.1% from fiscal 2023. Also, fiscal 2025’s revenue could clock in at $296.21 million.
Gold Resource (GORO)
As the name suggests, Gold Resource (NYSEAMERICAN:GORO) falls under the basic materials category, specifically gold mining. Per its corporate profile, Gold Resource engages in the exploration, development and production of gold and silver projects in Mexico and the U.S. It’s also another literal example of speculative penny stocks, priced at 56 cents.
One analyst has been willing to endorse GORO within the past three months, H.C. Wainwright’s Heiko Ihle. Conspicuously, the expert rates shares a “buy” with a $1.50 price target. That implies almost 168% upside potential. To be sure, the fiscal 2023 performance is not encouraging, with the average surprise coming out 25% below expectations.
However, in Q4 2023, the company’s quarterly surprise popped out to 66.7%. For the current fiscal year, Ihle and Alliance Global Partners’ Jake Sekelsky believe that revenue on average may land at $85.99 million. However, the high-side target calls for $105.3 million. The latter seems more credible given the sharp rise in the yellow metal’s spot pricing.
Arbe Robotics (ARBE)
Conducting business in the infrastructure software category, Arbe Robotics (NASDAQ:ARBE) is billed as a semiconductor enterprise. It provides 4D imaging radar solutions for Tier 1 automotive suppliers and automotive manufacturers for multiple countries. Most importantly, Arbe attempts to address the core issues that cause safety incidents tied to autonomous vehicles.
Should Arbe help dramatically improve driverless technology, the underlying security could easily skyrocket. That’s fundamentally why it attracts attention as one of the top speculative penny stocks to consider. Indeed, Wall Street analysts (five of them) rate shares a unanimous strong buy. Also, the average price target stands at $3.50, with the high side coming in at $4.
In fairness, Arbe’s fiscal 2023 performance wasn’t that great. The average loss per share came out to 16.8 cents or 15.4% below experts’ projections. However, the spotlight is in the revenue projection. For fiscal 2024, they’re looking at sales of $1.65 million, up 12.2% from last year.
As well, fiscal 2025 could see revenue soar to $31.35 million. If so, we’re talking about an 1,800% growth rate from projected 2024 sales.
Stem (STEM)
Also operating under the infrastructure software ecosystem, Stem (NYSE:STEM) operates as a digitally connected, intelligent and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs). It also provides edge hardware to collect site data and assist in the management of smart grid equipment.
With the spotlight on renewable energy systems, Stem enjoys a solid narrative. It’s also one of the speculative penny stocks that experts have their eye on. Right now, STEM features a moderate buy consensus view. Further, the average price target lands at $3.63, implying over 96% upside potential. The high-side target runs up to $5.
Last fiscal year, Stem’s performance overall wasn’t that great. Its average quarterly surprise came out to 23.45% below parity against expectations. However, in Q2, it did post earnings per share of 12 cents, beating the expected loss of 17 cents.
For fiscal 2024, the attention is squarely on revenue growth. Analysts see a top line of $672.15 million, 45.6% above last year’s print of $461.51 million.
Microvast (MVST)
Working in the industrials space, Microvast (NASDAQ:MVST) falls under the electrical equipment and parts category. It’s another example of literal speculative penny stocks, priced at just under 52 cents at time of writing. However, bold retail investors appreciate the idea because of the underlying relevance. Microvast provides battery technologies for electric vehicles and energy storage solutions.
Granted, the EV sector is not having a good time right now. That’s somewhat evident in Microvast’s financials. Overall, the average quarterly surprise sat at 9.13% below parity last fiscal year. Still, analysts peg MVST as a moderate buy with a $3.33 price target. That implies an upside potential of more than 542%.
Fundamentally, the assumption here is that the EV sector will eventually recover. So, experts are looking at fiscal 2024 revenue to reach $349.13 million. If so, that would be a 13.9% growth rate over last year’s print of $306.62 million. By fiscal 2025, the top line could expand to $535.27 million, up 53.3% from projected 2024 revenue.
Gevo (GEVO)
Listed under the basic materials industry, Gevo (NASDAQ:GEVO) works in the specialty chemicals arena. According to its corporate profile, Gevo focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel for multiple purposes, including aviation fuel, renewable natural gas and animal feed and protein.
To be sure, GEVO ranks among the riskiest of speculative penny stocks. At the moment, GEVO trades at 71 cents after incurring a 5.4% loss in the midweek session. Many investors won’t be keen on the company’s performance or lack thereof. In fiscal 2023, the average quarterly surprise came out to 40% below parity.
However, experts also see a recovery effort for the current fiscal year. Sales may reach $19.87 million, up 15.5% from last year’s tally of $17.2 million. Moreover, in fiscal 2025, the top line could hit $29.66 million. If so, we’d be looking at a 49.3% growth rate over the prior year’s projected sales.
Penny Stocks
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
