When you’re searching for the best penny stocks to buy today, the most important thing is to look for strong companies. Whether you’re new to stocks or looking to diversify your portfolio, penny stocks can be a great option.
This article aims to provide you with the best penny stocks to buy now in 2023. You can find the market cap of penny stocks lists and the overview guide on why you should buy them.
What Is Penny Stock?
Penny stocks are low-cost shares, usually costing less than $5. They’re often linked to small businesses or startups in specific fields. Since they have a small market and aren’t easily traded, their prices can fluctuate a lot. You can buy them on major stock markets or smaller, over-the-counter platforms.
Key Takeaways
- Penny stocks are low-cost shares, often priced under $5, and are usually linked to small or emerging companies.
- Many of these companies are undervalued in terms of share price and market cap, making them top picks on penny stocks lists.
- These stocks offer the potential for high long-term returns, especially if the companies continue to perform well.
5 Best Penny Stocks to Buy in 2023
Before making an investment in penny stocks, it is important to do thorough research on each penny stock before making an informed decision. Here are 5 best penny stocks to buy now:
1. Riot Blockchain, Inc.
Ticker: (NASDAQ: RIOT)
Market Cap: 1.03 Billion
One of the best penny stocks to buy today is Riot Blockchain, Inc. Founded in 2000, this company focuses on Bitcoin mining and is based in Castle Rock, Colorado. It’s a standout choice because it gives investors a chance to tap into the unpredictable but potentially profitable world of cryptocurrencies.
Bitcoin, the world’s most well-known digital currency, is a big part of their operations. As of November 2022, the company has mined 521 bitcoins, bringing its total to 6,897 bitcoins.
On November 23, H.C. Wainwright’s Mike Colonnese gave Riot Blockchain a Buy rating and a $10 target price. He sees the company as a major player in Bitcoin mining and expects its market share to hit 4% by 2023. Colonnese believes Riot is well-positioned to survive any crypto downturns. As of Q3 2022, eleven hedge funds own Riot shares.
2. Clover Health Investments, Corp.
Ticker: (NASDAQ: CLOV)
Market Cap: 573.533 Million
Clover Health Investments, Corp., is also one of the best penny stocks to buy now.
They are a Medicare insurance provider based in Franklin, Tennessee, and uses its Clover Assistant technology to help doctors make medical decisions. On November 8, Richard Close from Canaccord gave the company a Buy rating and set a $4 price target for its shares.
The analyst, Richard Close, was impressed by Clover Health’s better-than-expected performance in Q3 2022. He also noted that the company raised its sales forecast for 2022. Close praised the management’s focused efforts to become profitable more quickly.
To reach its goals, Clover Health plans to scale back the growth of its Medicare and non-insurance businesses. In the third quarter of 2022, Renaissance Technologies boosted its stake in Clover Health by 145%.
3. Rocket Lab USA, Inc.
Ticker: (NASDAQ: RKLB)
Market Cap: 2.309 Billion
Rocket Lab USA, Inc., considered one of the best penny stocks to buy today, is a well-known rocket and satellite maker based in Long Beach, California. The company has successfully launched 31 rockets and sent 151 satellites into space. After reviewing the company’s Q3 2022 performance, Edison Yu from Deutsche Bank gave it a buy rating and set a $12 price target for its shares.
The analyst was impressed by Rocket Lab’s strong quarterly results. The company is increasing new customers every day, helping it grow quickly. This growth is expected to boost its market share in the rapidly expanding space services industry.
Cost-cutting efforts in their Electron project are also expected to improve profit margins. Because of these strong growth factors, analysts consider it a top penny stock. As of Q3 2022, fifteen hedge funds own shares in Rocket Lab.
4. Matterport, Inc.
Ticker: (NASDAQ: MTTR)
Market Cap: 971.561 Million
Another penny stock to buy today is Matterport, Inc., based in Sunnyvale, California. The company specializes in 3D media technology, allowing for the creation of 3D and virtual reality models. Matterport, founded in 2011, claims its tech can cut development time in half and reduce costs by up to 20 times. The company serves a wide range of businesses in over 150 countries.
On November 11, analyst, Brent Bracelin, from Piper Sandler raised the price target for Matterport from $5 to $6 and kept a positive rating. He noted the company’s strong Q3 2022 earnings, boosted by more subscribers.
Matterport announced that it has cleared the backlog for its Pro2 3D camera and that its new Pro3 platform is doing well in the market. The company has also become a top penny stock after buying VHT Studios. As of the third quarter of 2022, seven hedge funds have invested in Matterport.
5. WeWork Inc.
Ticker: (NYSE: WE)
Market Cap: 1.197 Billion
The last of the 5 best penny stocks to buy now is WeWork Inc., which is a New York-based company that offers coworking spaces. They rent out entire office buildings to big companies, small businesses, and freelancers. Unlike traditional landlords, WeWork offers shorter lease terms.
In the current tough financial environment, the company is cutting costs by shutting down less successful locations. In the third quarter of 2022, WeWork reduced its spending and saw a 20% increase in revenue compared to the previous year.
On November 4, analyst Thomas Catherwood from BTIG started covering WeWork Inc. and set a $7.50 price target with a Buy rating. He believes that the demand for flexible workspaces will boost WeWork’s performance in the short and medium term, making it a top penny stock for 2023.
⚠️Tip: Whether you’re new to the stock market or an experienced investor, these penny stocks offer diverse opportunities for portfolio growth.
Conclusion
The future of the stock market in 2023 is uncertain, especially when it comes to the best penny stocks to buy now. Whether it’s a year of gains or losses is anyone’s guess. However, the penny stocks to buy today that we’ve discussed could guide you to make an informed decision for investment. So, make sure you’re prepared.
Importantly, before putting your money into any stocks, especially those on the penny stocks list with varying market caps and share prices, thorough research is very important.
FAQs
Penny stocks are low-priced shares, often under $5, usually associated with small or emerging companies. Their price could fluctuate at any time.
You can buy penny stocks through a brokerage account, either online or with a financial advisor. They’re available on major stock exchanges and over-the-counter markets.
Penny stocks work like any other stocks but are more volatile. They offer the potential for high returns but come with higher risks due to their low market cap and liquidity.
Penny stocks can offer high returns but are risky investments. They’re best suited for investors who understand the risks and are willing to do thorough research.
To find good penny stocks, focus on companies with strong fundamentals, low debt, and growth potential. Analyst ratings and financial reports can also be helpful.
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