Although it may seem crazy to talk about cheap penny stocks, you can find them here. Even blue-chip stocks are having trouble gaining traction as the economy is cooling. There are many reasons that speculative investors should consider penny stocks.
Investors will first want to note that penny stocks are possible in the small-cap industry. This is why it makes sense to hold these higher-risk assets for the long-term, as history suggests that small-cap stocks are often at the forefront of market reversals.
Investors should also remember that valuations are important. Another obvious fact is that penny stocks are cheap right now. A little capital can make a big difference in the amount of penny stock companies an investor can purchase. Investors can also allocate smaller positions to these stocks while still having plenty of cash available.
The Amazon (NASDAQ:AMZN), effect is another. Investors know that Amazon was an online small-cap book seller before it became one of the FAANG stock. However, if you bought the stock in those days, it would have been a great investment.
I can't promise that any stock in this presentation will become the next Amazon. Even the most conservative investor can still dream of finding the next big thing, even if it's trading at a bargain price. Here are three penny stocks you can buy at bargain prices if that is you.
Amyris (NASDAQ:AMRS) is an innovative biotechnology company. It is pioneering the field of synthetic biology. There are hundreds of penny stocks investors can purchase, and it is not unusual to find biotech stocks. These companies are often not only unprofitable but also in the pre-revenue phase.
Amyris is different. Amyris has patented ingredients made from sugar cane, which is a reusable source. Their biggest breakthrough is based on a molecule called “hemisqualene”. This molecule is used in many home beauty products and resonates with educated consumers who are looking for natural ingredients.
Amyris is now able to leverage hemisqualene's popularity with enterprise-level clients. Analysts now expect a 37% average annual growth rate through 2026. Analysts now think the company could double its revenue projections.
This would be a welcome development for shareholders. AMRS stock was cut in half by 2022. Analysts however give the stock an average price target of $9.50.
Meta Materials (MMAT)
Meta Materials (NASDAQ:MMAT), manufactures and develops “functional material.” These materials consist of traditional materials like metals, plastics, and are designed by Meta scientists to have new or improved properties.
Meta Materials is at the forefront of technological advances in functional materials. The company plans to create intellectual property that it can sell to the right people.
In 2021, Meta Materials established a scientific advisory panel that will help the company develop more diverse and stronger products. Based on recent partnerships, this move seems to be paying off.
Meta Materials, like many penny stock companies, will not be profitable over many years. However, revenue is not likely to be a problem. Analysts are not covering the company heavily, but they project strong revenue growth over five years.
Bionano Genomics (BNGO)
Gene editing and genomics are expected to be the most exciting driving forces in the coming decade. Bionano Genomics (NASDAQ:BNGO) is a leader in the field nanoscale gene imaging, analysis and research. The company already has a product, the Saphyr system, that is commercially-available today.
Josh Enomoto wrote recently that has “announced landmark Research centering on its OGM technology to accurately identify rare diseases.”
It could still be an example of the company being ahead its time. Bionano continues to spend a lot on SG&A to try to sell its Saphyr systems. This has had a negative impact on margins which is evident in the lackluster movement in BNGO stock in 2022.
However, profitable investments require getting in at the ground floor. Bionano is still years away from making a profit but its revenue is expected to rise sharply in the next five years.
Originally published on InvestorPlace.com