7 Millionaire-Maker Penny Stocks to Buy And Hold Forever (2024)

In general, the investment horizon is long term for blue-chip stocks or high-quality growth stocks. However, penny stocks are high risk and exposure is generally for a shorter time-frame. Having said that, there are few millionaire-maker penny stocks that are worth holding for the long term.

In the euphoric rally of 2021, investors were largely looking at penny stocks from the perspective of speculation. Things have changed significantly and it’s unlikely that meme penny stocks like GameStop (NYSE:GME) will deliver multibagger returns at the blink of an eye.

Instead, I see quality penny stocks making a mark. In the next five years, the fundamentally strong penny stocks discussed can deliver 10x returns. My focus is on companies with positive industry tailwinds that will back robust revenue growth. Additionally, there are companies with impending technological or regulatory catalysts that can trigger a massive rally.

Let’s discuss seven of the top penny stocks to buy and hold.

Bitfarms (BITF)

Bitcoin (BTC-USD) has surged above $30,000 and it’s a good time to buy some attractive crypto stocks. Bitfarms (NASDAQ:BITF) is among the millionaire-maker penny stock to buy in the Bitcoin mining space. BITF stock potential is evident from a rally of 175% for the year.

Among the fundamental reasons to be bullish, Bitfarms has a strong balance sheet. The company has deleveraged during the crypto bear market and is well positioned for aggressive expansion. Assuming a scenario where Bitcoin trades near all-time highs, I would expect BITF stock to deliver 10x returns.

I also like the fact that Bitfarms is a low-cost Bitcoin miner. Significant EBITDA margin expansion and cash flow upside is likely in the coming quarters. Further, the company has continued to increase mining capacity. Currently, Bitfarms has an operational hash rate of 5.3EH/s. The company expects to boost capacity to 6EH/s by September. Of course, if the trend for Bitcoin remains bullish, aggressive expansion is likely to sustain in 2024.

Solid Power (SLDP)

Solid Power (NASDAQ:SLDP) is another name to buy among millionaire-maker penny stocks. Over a 12-month period, SLDP stock has plunged by almost 65%. However, it’s worth noting that the stock has remained sideways for the year. It’s an indication of bottoming out and there are catalysts for upside in the coming quarter.

As an overview, Solid Power is working towards the commercialization of solid-state batteries. If the company can achieve commercial production in the next few years, the stock will be a massive multibagger.

I am optimistic with the company’s research and development being backed by BMW (OTCMKTS:BMWYY). In the current year, Solid Power expects to deliver EV cells to automotive partners for validation testing. This is an important catalyst for stock upside.

Solid Power has the financial flexibility to pursue investments in R&D. Further, with Ford (NYSE:F) and BMW being automotive partners, the financial backing is strong.

Kinross Gold (KGC)

Kinross Gold (NYSE:KGC) is a deeply undervalued penny stock with multibagger returns potential. KGC stock currently trades at a forward price-earnings ratio of 13 and offers investors a dividend yield of 2.59%.

With a dovish sounding fed, I expect the dollar to weaken. This will be positive for gold with the precious metal consolidating near $2,000 an ounce. Kinross is positioned to benefit if the trend for gold remains bullish.

Specific to Kinross, the company has an investment grade balance sheet. As of Q1 2023, the company reported a cash buffer of $1.7 billion. Additionally, with operating cash flow of $259 million for the quarter, financial flexibility is high to make aggressive investments.

Last year, Kinross had to sell Russian assets due to geopolitical reasons. An acquisition seems to be on the cards to boost the production outlook. However, even with a stable production guidance, the company is positioned to create value through dividends and share repurchase.

Hecla Mining (HL)

Staying with precious metals, Hecla Mining (NYSE:HL) is another attractive penny stock to buy. Hecla claims to be the largest silver miner in the U.S. Further, the company has a diversified portfolio with gold, lead, and zinc mining assets.

A key reason to be bullish on Hecla is as follows – The company reported production growth of 10% for 2022. In the current year, silver production growth is expected to accelerate to 18% and further to 35% by 2025. Therefore, the best part of growth is due and if silver trends higher, HL stock is poised for multibagger returns.

It’s also worth noting that Hecla reported a liquidity buffer of $240 million for Q1 2023. The company has pursued acquisitions in the past and the financial flexibility will allow Hecla to pursue further opportunities. In addition, as gold trends higher, I expect sustained improvement in EBITDA margin and cash flows.

Polestar Automotive (PSNY)

By 2030, it’s expected that EV sales will be 60% of vehicles sold globally. The EV market is still at an early growth stage with current EV sales being less than 20% of total car sales. Besides the large players in the industry, there are few emerging EV companies that are likely to survive and grow. Polestar Automotive (NASDAQ:PSNY) stock is among the potential multibagger names to buy and hold.

In March, Polestar had revised its sales guidance for 2023 to 60,000 to 70,000 cars. The revision on the downside translated into a sell-off. However, this factor is discounted in PSNY stock.

There are two positives to note. First, Polestar is focusing on cost cutting and I expect EIBTDA losses to narrow in the next 12 to 24 months. Further, Polestar 3 and Polestar 4 are due for launch in Q1 2024. It’s likely that deliveries growth will accelerate significantly in the coming year if macroeconomic conditions are favorable.

Cronos (CRON)

Cronos (NASDAQ:CRON) stock looks significantly undervalued among millionaire-maker penny stocks. While the cannabis industry continues to face regulatory headwinds, it’s a good time for accumulation. Even without federal reforms, cannabis sales in the U.S. are expected to touch $71 billion by 2030.

From a fundamental perspective, there are two reasons to be bullish on Cronos. First, the company reported cash and equivalents of $836 million for Q1 2023. With high financial flexibility, the company is positioned to aggressively invest in research and expansion.

Further, Cronos expects to deliver positive operating cash flows in 2024. The company is already undertaking cost cutting measures. Positive cash flows will further boost the company’s credit profile. Once regulatory headwinds wane, the company will be best positioned for aggressive growth.

I therefore believe that CRON stock can easily deliver 10x returns in the next five years. Presence in the wellness and recreational segment implies a wide addressable market.

Curaleaf Holdings (CURLF)

Curaleaf Holdings (OTCMKTS:CURLF) is another cannabis stock that has millionaire making potential. The stock seems undervalued considering the growth potential of the company in the coming years. CURLF stock has been witnessing positive momentum with an upside of 18% in the last one month.

There are two major reasons to like Curaleaf. First, the company has presence in 21 states in the U.S. Additionally, Curaleaf has also expanded presence in eight European markets. Therefore, the addressable market is significant and the company is already delivering positive adjusted EBITDA on a consistent basis.

Further, Curaleaf has been investing meaningfully in research and development. In the last 12 months, the company reported 18% of revenue from new product launches. Currently, 15 products are in the active pipeline with another 50 in the front-end innovation process. With continued launch of new products, the revenue upside potential is significant. This makes it one of those millionaire-maker penny stocks to buy.

On the date of publication, Faisal Humayun did not hold (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.