As we venture further into the promising landscape of 2023, the hunt is on for penny stocks for triple-digit returns. The prevailing sentiment among market gurus points towards reasonably priced stocks with specific catalysts. While penny stocks kicked off the year with considerable aplomb, mounting uncertainties have nudged investors towards safer harbors.
However, let’s not paint all penny stocks with the same brush. Amidst the sea of small-cap stocks, there exist overlooked gems related to sustainable businesses brimming with immense growth potential. Capitalizing on these underdogs at their current low ebb could pave the way for multi-bagger gains over the long term.
Bear in mind, though, that the realm of high growth penny stocks has its pitfalls, with the potential for stocks to nosedive to zero. Dedicating 10% to 20% of your portfolio to these top penny stocks might be what your portfolio needs to soar to new heights.
Lion Electric (LEV)
Lion Electric (NYSE:LEV) is an up-and-coming Montreal-based producer of medium and heavy-duty vehicles, which stands out as a top choice for enthusiasts scouting for penny stocks. With a fleet of 1,100 vehicles, Lion Electric presents a compelling narrative. However, the potent combination of the company’s robust growth and minimal losses piques investor interest.
Lion Electric remains in hyper-growth mode, with its first quarter of 2023 serving as a testament to its lofty growth trajectory. The firm delivered 220 vehicles, marking a remarkable 161% surge compared to the 84 vehicles delivered the prior-year quarter. Consequently, revenues swelled by 142%, reaching a whopping $54.7 million. Despite a reported loss of $15.6 million, Lion Electric’s prospects remain remarkably strong.
The company’s identity as an electric bus firm gives it a unique advantage over its peers. With buses making up 2,270 of the 2,565 vehicles in its order book, spanning charter and school buses, the firm is significant growth ahead.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) is a potential long-term winner in the EV battery realm. The stock took a steep tumble over 60% in the past 12 months, suggesting that it may be bottoming out, with major catalysts on the horizon potentially driving massive upside ahead.
At its core, Solid Power is a business forging ahead toward commercializing solid-state batteries. Should the firm achieve commercial production in the upcoming years, the stock could morph into a major multi-bagger. The optimism surrounding the stock is fueled by the company’s powerful research and development endeavors backed by automotive stalwarts such as BMW (OTCMKTS:BMWYY).
Moreover, the company anticipates delivering EV cells to automotive partners this year for validation testing. Additionally, its financial backing is further strengthened by its partnerships with auto giants in Ford (NYSE:F), a testament to its solid positioning in its niche.
Bitfarms (BITF)
As Bitcoin (BTC-USD) marches ahead, the time is ripe to consider investing in certain tantalizing crypto stocks. Bitfarms (NASDAQ:BITF) is among the leading players in the Bitcoin mining space, underscored by a robust 240% rally this year.
Bitfarms’ appeal is rooted in its robust balance sheet. Having deleveraged during the crypto bear market, the company is now positioned for aggressive expansion. Assuming Bitcoin moves ahead, one could reasonably anticipate a multi-bagger return on BITF stock. Additionally, Bitfarms’ status as a low-cost Bitcoin miner sweetens the deal. In the coming quarters, we can expect a healthy EBITDA margin expansion and a cash flow surge.
Bitfarms’ mining capacity is also on an upward trajectory, with an operational hash rate of 5.3EH/s currently. As we advance, the firm projects a boost to 6EH/s by September.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
