Many variables contribute to the price fluctuations of penny stocks. Over 13% more growth was seen in Russell 3000 stocks with average share prices under $2 last year. In December 2021, more than 1 trillion shares were exchanged, a seven-fold increase from the average the year before. When a company’s share price was lower, it performed better. More penny companies than reliable blue-chip stocks have outperformed the overall market in recent years. Dividends from large corporations like Microsoft Corporation provide assurance to investors. They do not, however, have the possibility of earning exponential gains like penny stocks do. The benchmark interest rates are predicted to rise by 75 basis points by the US Federal Reserve. This is probably going to lower the equities’ growth prospects and put pressure on their valuation. These high-growth potential companies now appear undervalued due to the low valuation.
Insider Monkey looked at the 10 penny stocks with high growth potential. The Tempe, Arizona-based company Wrap Technologies, Inc. creates tools and services for public safety. The main device, called BolaWrap 150, effectively launches a 7.5-foot Kevlar cable from a range of 10 to 25 feet to confine a person. Sunworks, Inc., based in Provo, Utah, offers solar services via its partner companies in 15 US states. Analysts predict that Sunworks will conclude the year with a top line of $149.20 million, representing a YoY rise of 47.50%. A company called CleanSpark, Inc. operates a green bitcoin mining operation in Henderson, Nevada. On September 7, the company bought 10,000 bitcoin mining devices, and by August 2022, it had mined 395 bitcoin. In the past year, CleanSpark’s hash rate has tripled. In the previous year and over the previous two years, the revenue of Nano Dimension Ltd. increased by a factor of 4 and a factor of 10 respectively. The 2012-founded business has taken the audacious step of purchasing a stake of slightly more than 12% in Stratasys Ltd. Greek company Safe Bulkers, Inc. offers marine dry bulk shipping services. Since 1958, the company has handled coal, grain, and iron ore cargoes on some of the most well-known maritime routes in the world. Dry bulk enterprises have become more well-known since the crisis between Russia and Ukraine first broke out. For more details, click the 10 Penny Stocks With High Growth Potential.