The stock market can provide investors with an unpredictable and thrilling journey, filled with both excitement and anticipation. This article will delve into the peak of that exhilaration – penny stocks, and particularly high return penny stocks which may be undervalued relative to their future potential.
These lesser-known stocks have the potential for significant returns. Bold investors might find them particularly interesting. Penny stocks do carry some risk due to their smaller market cap and liquidity. But also consider they offer opportunities not easily found elsewhere.
Stocks that are less examined than others may slip through the cracks. Other investors may watch the big names on Wall Street, while we look for the hidden gems. These kinds of opportunities are possible to uncover with diligent research and asking questions others aren’t.
So here are the three best penny stocks for the potential for multi-bagger returns.
Microbot Medical (MBOT)
Microbot Medical Inc. (NASDAQ:MBOT) researches, develops and introduces micro-robotic technologies to the medical device industry. These technologies are designed to perform different medical procedures with minimal invasiveness, thereby revolutionizing the way treatments are approached.
This stock may be undervalued due to its strong financial position. The company has a solid balance sheet, as its current ratio stands at a healthy 4.30. Additionally, its earnings per share (EPS) has grown 28.40% quarter-to-quarter and grown 12.20% over the past five years, suggesting significant growth.
Another factor is that Microbot Medical’s long-term price action suggests it’s finding a home near the bottom, with a long-term trend in force since September. Additionally, it recently announced a 100% success rate in its preclinical animal study. This could be the first step towards unlocking additional revenue and earnings streams for the company in the future. MBOT could be one of the best high return penny stocks to invest in now.
Eos Energy Enterprises (EOSE)
Eos Energy Enterprises Inc. (NASDAQ:EOSE) operates in the energy storage solutions industry, with a particular emphasis on grid-scale batteries. It aims to develop and bring to market its unique zinc-based battery technology, dubbed the Eos Aurora System.
Eos Energy’s recent strong revenue growth, boasting a 166.70% quarter-over-quarter sales increase, caught my attention. The company predicts substantial EPS growth of 58.40% in the coming year. Eos Energy’s operational efficiency, evidenced by a 225% return on equity (ROE), demonstrates its effective conversion of shareholder resources into profit.
I see Eos Energy as undervalued. Why? The company showed a considerable rebound in its fundamentals during the last quarter with a year-over-year revenue jump of 166%. The company managed supply chain issues effectively, even during what its management described as the toughest period in thirty years. Given these points, I foresee major operational improvements ahead, which should result in higher investor earnings.
EVgo Inc. (NASDAQ:EVGO) is a prominent player in the U.S. electric vehicle (EV) charging space. With its well-placed charging stations across highways, cities and other popular locations, EVgo’s Level 2 AC chargers and DC fast chargers offer a convenient and swift charging option for EV drivers.
EVgo’s stock price took a significant hit over the past year, dropping more than 56%. It also lags about 42.42% behind the 200-day simple moving average. If you maintain faith in EVgo’s long-term prospects, you might find now an opportune time to snap up shares at their undervalued price.
EVgo is generating funding for its operations by selling shares and expects to increase its sales by 150% this year. The company will use the majority of the raised capital to broaden its nationwide charging network. Analysts point out that EVgo already operates the “second-largest DC fast charging network,” second only to Tesla (NASDAQ:TSLA).
Considering these factors, keep an eye on EVgo as one of the high return penny stocks you may want to purchase. With the U.S. shifting towards electric vehicles, the company has the potential for explosive growth, signifying a potentially undervalued investment.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.