This year is going to offer a lot of opportunities for risk seeking investors. The world of penny stocks is well known to be speculative and is usually the domain of investors possessing a risk seeking profile.
The year is shaping up to be a strong one for speculative investment. The Federal Reserve is slated to cut interest rates multiple times this year, which should cause a flood of liquidity in the markets as lending rates fall. Cheaper lending will lead to increased risk appetites overall, benefiting speculative penny stocks.
Bearing that in mind, let’s look at seven penny stocks that can triple your capital based on target prices.
Agilon Health (AGL)
Agilon Health (NYSE:AGL) is a healthcare stock that has not started 2024 as it had hoped. On Jan. 5 the company updated guidance to reflect its expectation of higher costs in late 2023.
The Austin-based healthcare provider that primarily serves Medicare Advantage members updated guidance to reflect higher overall costs on that date. The result has been a halving of share prices, which have fallen from $12 to below $6 in the subsequent weeks.
The company has experienced a higher number of outpatient surgeries, specialist visits, and increases to Part B drugs and supplemental benefits. The slight offset from lower overall admissions has not been enough to prevent the company from revising guidance downward.
As bad as all of that may sound, Agilon Health share prices are rising and should continue to rise throughout the year.
The current consensus forecast is that the shares should rise to $18 over the next 12 to 18 months. In other words, 200% returns are entirely possible. The highest forecast suggests shares could reach $30 over the same period.
Bilibili (BILI)
Bilibili (NASDAQ:BILI) Is a penny stock trading at $9 and as such may soon lose its penny stock status.
The company provides video based content throughout China that includes user-generated videos and contents, audio, comics, mobile games and more.
The bullish news for investors is that analysts expect it could rise as high as $120. It currently trades for $9 and benefits from a consensus share price above $28.
During the third quarter, Bilibili Reported an average of 103 million daily users. Of its 341 million monthly active users, 29 million were paid. Users spent an average of 100 minutes on its content during the third quarter.
Yet problems continue to play the Chinese economy overall. That resulted in flat revenues during the quarter. However, the company reported a 21% increase in ad revenues in Q3. Given how high it’s expected to rise, now is an excellent time to consider investing.
Wheels Up Experience (UP)
Wheels Up Experience (NYSE:UP) provides on demand aviation services and is one of the largest private charter firms in the world. The platform serves a base of 11,000 members connecting them to a network of 1,500 private aircraft.
The bad news about the company is that its most recent earning period was not strong. Revenues fell by $100 million, dipping to $320 million overall. Net losses were substantial but flat, reaching $145 million.
Yet, there continue to be a lot of reasons for bullishness. For one, Delta (NYSE:DAL) invested $450 million in capital along with several other partners. Strong industry leader backing is an obvious benefit.
Beyond that, there’s a reason to believe that on demand Aviation Services will grow in 2024. The macroeconomic outlook continues to improve and lending rates will fall in 2024. That alone could be enough to spike demand for the company’s services.
IHS Holding (IHS)
IHS Holding (NYSE:IHS) owns, operates, and develops telecommunications infrastructure across several emerging market nations.
The company’s presence spans Latin America, the Middle East, and both North and sub-Saharan Africa. The consensus forecast is that the stock will double from its current price of $7. However, analysts believe it could rise as high as $23.
It has not been smooth sailing for IHS Holding of late. During the third quarter, revenues fell by over 10%. a large part of that decline was because of unfavorable foreign exchange rates for the Nigerian Naira.
The Naira declined in value by over 78% during the period. The company remains confident that it will not suffer as much because of the unfavorable foreign exchange rate. CEO Sam Darwish maintains that FX protection mechanisms will result in stronger fundamentals in the fourth quarter.
The company upheld its previous guidance for all of 2023, which shows that it truly believes FX headwinds will not affect it further.
Relay Therapeutics (RLAY)
Almost every list of high potential penny stocks includes a biotech firm like Relay Therapeutics (NASDAQ:RLAY).
The company develops precision medicine, including small molecule therapeutics designed to aid in the treatment of cancer and genetic diseases.
From a fundamental perspective, there is a lot to like about Relay Therapeutics. Many high potential biotech penny stocks are pre-revenue.
However, Relay Therapeutics is not one of them. During the third quarter, the company reported $25.2 million in revenues. That is a dramatic increase from a year prior when the company reported a mere $0.3 million in revenues. The company continues to produce net losses, with a 65.7 million net loss in the most recent period.
Revenues improved as rapidly as they did, primarily because of milestone payments that are part of a collaboration agreement with Genentech.
The company will report updates for two of its clinical stage programs in 2024. Those will continue to be significant catalysts. further, the company will also disclose new pre-clinical programs during the year.
Seabridge Gold (SA)
Seabridge Gold (NYSE:SA) acquires and explores gold properties throughout North America. Mining exploration stocks are speculative. That is true of Seabridge Gold, which experiences rapid swings in its ability to generate revenues from period to period.
For example, Seabridge Gold posted a $5.3 million net loss during Q3 of 2023. A year prior, it posted $5 million in net income. Ultimately, investing in mining exploration companies is simply a gamble.
Seabridge Gold, like all others, buys property rights and attempts to derive profits from those projects. During the third quarter, the company spent $73.7 million to acquire additional mineral rights on various properties.
Whether that investment pans out remains to be seen, but the single analyst with coverage of the company expects its shares to rise to $25 in the future. Shares currently trade for $10 so a 200% return is a bit of a stretch goal.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is the best known and highest potential stock on this list. The company recently separated its operations in order to isolate its development of the Thacker Pass lithium deposit in Nevada.
Sacropass is the second largest confirmed lithium deposit globally. it is geopolitically important given its location entirely within the United States.
However, it remains a gamble given a few factors. For one, lithium prices have collapsed. No one knows when they will rebound. Some experts suggest that a rebound could begin later in 2024, while others think it may not materialize until 2026.
Further, Lithium Americas remains in the early stages of development. Site construction is scheduled to occur throughout 2024. The company should begin producing lithium in mid-2026.
The company has developed a major partnership with General Motors (NYSE:GM). Although GM’s early development of electric vehicles has not gone to plan, the company continues to have substantial resources. That’s part of the reason that analysts are so bullish on LAC shares overall.
On the date of publication, Alex Sirois 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.
