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Listen, if you haven’t gotten the memo, penny stocks are incredibly dangerous. Yes, they’re cheap – in this case, extremely cheap. For the uninitiated, you might believe that shares can’t get any lower. Wrong! They can go down to zero. And before that happens, they can trade in fractions of a penny.
At the same time, there are a few rare penny stocks that trade for less than a quarter that have analyst backing. It could just be one voice, an effort to break into a crowded arena. While I wouldn’t put too much weight into any one of these endorsed ideas, they do technically have expert support. That’s not nothing.
Finally, we’re dealing with a game of managed failure. Statistically, the vast majority of speculative stocks will fail. Still, if one happens to leave the yard, it just might be worth your while (or maybe not). If you don’t mind wild risks, these are the penny stocks you can pick up for super cheap.
Cue Health (HLTH)
Source: Vitalii Vodolazskyi / Shutterstock.com
Headquartered in San Diego, California, Cue Health (NASDAQ:HLTH) is a healthcare technology company. Per its public profile, the company designs and develops diagnostic platforms for diagnostic tests for individuals, enterprises, healthcare providers, payors, and public health agencies. Notably, Cue also provides COVID-19 testing kits. Since the start of the year, HLTH stock lost almost 15% of its equity value.
First thing you’ll notice is the price. At 20 cents, HLTH might seem cheap. However, in the trailing one-year period, the security plunged more than 91%. That’s what happens with extremely risky penny stocks. Not helping matters was the overall negative earnings performances. Yes, in the third quarter, it mitigated loss-per-share expectations. However, for Q1, Q2 and Q4, the company was wildly off the mark against estimates.
Still, analysts anticipate that by the end of this fiscal year, Cue will post sales of $71.53 million. And in 2025, the enterprise might manage to ring up $115.79 million on the top line. For context, last year’s revenue was $70.94 million.
Analysts rate HLTH a consensus moderate buy with a 75-cent price target. That implies 282% upside potential.
Americas Gold and Silver (USAS)
Source: John Brueske / Shutterstock
Incorporated in 1998, Americas Gold and Silver (NYSEAMERICAN:USAS) engages in the exploration, development and production of mineral properties in North America. Per its corporate profile, the company explores for gold, silver, zinc, lead and other byproducts. Notably, Americas Gold holds 100% interests in the Cosalá Operations consisting of 67 mining concessions that covers approximately 19,385 hectares located in the state of Sinaloa, Mexico.
Since the start of the year, USAS stock suffered a loss of nearly 19%. In the past 52 weeks, it’s down about 54%. Making matters particularly tricky is the role of inflation and the Federal Reserve’s monetary policy. Also, the business itself would have to succeed in continuing to extract and produce valuable metals and minerals.
Still, analysts have high hopes. In January, management revealed that Q4 2023 represented the company’s strongest production quarter of the year, with silver production totaling 580,000 ounces compared with approximately 380,000 ounces in the year-ago quarter. For fiscal 2024, experts believe sales should hit $115 million.
H.C. Wainwright’s Heiko Ihle pegs USAS a “buy” with an 80-cent target, implying 294% growth potential. It’s one of the penny stocks to consider for bold speculators.
Clinigence (NUTX)
Source: Shutterstock
Founded in 2011 and based in Houston, Texas, Clinigence (NASDAQ:NUTX) operates as a network of micro-hospitals. According to the University of Southern California, micro-hospitals are “small-scale inpatient facilities on two to three-story buildings built on 20,000 to 50,000-square foot spaces that offer a wide range of medical services in a small, neighborhood setting.”
It’s an interesting concept but it’s also an extremely risky one. Since the start of this year, NUTX stock suffered a loss of nearly 52%. And in the past 52 weeks, it plunged just over 91%. Clearly, we’re not talking about an investment for the faint of heart. At the same time, analysts seem intrigued with the concept.
For fiscal 2024, the company anticipates sales of $316.2 million. Also, they believe the loss per share for the year could come down to 1 cent. We’re still waiting on full-year 2023 results. However, in 2022, the loss per share was a staggering 67 cents. Also, revenue at the time was only $219.29 million.
Within the past three months, only Benchmark’s Bill Sutherland has been covering NUTX. However, the expert rates NUTX shares a “buy” with a $1 price target, implying over 938% upside potential. If you want extreme rewards with your penny stocks, this is it.
Penny Stocks
On Penny Stocks and Low-Volume Stocks:With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand thatInvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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.comPublishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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