Penny stocks can be rewarding. Look at Acadia Pharmaceuticals (NASDAQ:ACAD), for example. In 2012, it was working on a treatment for Parkinson’s Disease Psychosis and traded for less than $1. By 2015, it was up to $43 a share, a 4,200% return. Apple (NASDAQ: , Ford Motor (NYSE , Advanced Micro Devices (NASDAQ:AMD) and even Novavax (NASDAQ:NVAX) were all former penny stocks, too. In short, find the top penny stocks to buy, and you can make a fortune.
Unfortunately, when it comes to top penny stocks to buy, there are also plenty of horrors. It’s why the U.S. SEC warns “Penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
With that in mind, here are three top penny stocks to buy that could skyrocket in the next 12 months.
Precigen (NASDAQ:PGEN) is a biotech company focused on gene and cell therapies. Their UltraCAR-T platform showed anti-tumor efficacy in preclinical data released in April. Nowadays, the company’s Phase 1 study demonstrated a favorable safety profile. It also continues to be well-tolerated with no dose-limiting toxicities in treating advanced-stage platinum-resistant ovarian cancer patients.
There’s hope further studies from PGEN are as encouraging. Right now, about 300,000 women are diagnosed with ovarian cancer every year. And since early ovarian cancer is often without obvious symptoms, the disease is frequently diagnosed at an advanced stage where cancer has spread to distant parts of the body, such as the liver or lungs, according to the company. Continued positive news from their UltraCAR-T platform has the potential to take this stock higher.
Atossa Therapeutics (ATOS)
Atossa Therapeutics (NASDAQ:ATOS) is another company working to develop cancer treatments. Their current focus is on breast cancer. The U.S. FDA authorized Atossa’s EVANGELINE study, a Phase 2 trial of its drug designed to treat breast cancer in premenopausal women.
In addition, according to company President and CEO, Dr. Steven Quay, “With three ongoing Phase 2 studies investigating -endoxifen, $103.9 million of cash and cash equivalents on our balance sheet, broad patent protection and a talented team in place, we are well positioned to change the treatment paradigm for women with dense breast tissue and those diagnosed with estrogen receptor-positive breast cancer.” Similar to PGEN this is a penny stock with growth potential if their drug trials continue to be successful.
American Lithium (AMLI)
Aside from biotech, the lithium story is red hot. First, according to Morningstar, “We see strong demand growth in the coming years driven by rising EV sales, as demand grows more than three times 2022 levels to 2.5 million metric tons by 2030.” Second, according to Stellantis (NYSE:STLA) CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans.
Those two catalysts alone could boost lithium penny stocks, like American Lithium (NASDAQ:AMLI). The company has also just received the first of three permits from Peruvian authorities for drilling near Quelcaya, with drilling expected to start immediately.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.