Penny stocks are typically stocks that are trading under $5 per share. They offer investors who may not have a large amount of capital to invest in the stock market an opportunity to make substantial gains over time. However, there is a downside in that penny stocks tend to be one of the riskiest investment categories. They are very volatile and can lose significant value for a bad earnings report or news.
Investors looking for a riskier investment for the possibility of great returns may want to consider these penny stocks. They are projected to continue growing but have some risks.
Bitfarms (BITF)
Bitfarms (NASDAQ:BITF) operates as a cryptocurrency mining company in the U.S., Canada, Argentina, and Paraguay. They own server farms that perform validation transactions on the Blockchain and earn transaction fees and other rewards.
On November 28, Bitfarms stock rose by 26% following news that it upgraded its overall mining capabilities to over 35,000 Bitmain T21 miners. The units will be installed in the first half of 2024.
Over this past year their share price has grown by 127% partly due to the overall rally that Bitcoin (BTC:USD) has been experiencing. On November 7. they announced their earnings results for the third quarter which stated that their revenue grew by 4% and the net loss shrank by 78% to $18 million compared to the previous year.
With the overall steady increase in the price of Bitcoin which has more than doubled in the last year. Bitfarms could be a great buy for investors looking to gain exposure to the cryptocurrency markets.
Rolls-Royce Holdings (RYCEY)
Rolls-Royce Holdings (OTC:RYCEY) is a U.K. aerospace and defense company that supplies both commercial and military aircraft with engines and other power and propulsion equipment for a wide range of uses. Rolls-Royce also has aftermarket services and maintenance work for its customers.
Rolls-Royce has seen considerable growth recently in which their share price has more than tripled just within the last 12 months due to increased profitability and future outlook. Their stock price rose by 7% on November 27 on the news of their improved mid-term targets for free cash flow, operating profit, and return on capital which the company wants to put more attention towards going forward.
Talkspace (TALK)
Talkspace (NASDAQ:TALK), located in New York, New York, operates a virtual therapy platform that allows patients and businesses to meet with psychologists, psychiatrists, and other behavioral experts for online meetings; Talkspace also has various behavioral health plans provided by employers.
Their most recent earnings report for the third quarter of 2023, released on November 2, stated that their total revenue grew by 32%, and their net loss shrank by 76% to $4 million compared to Q3 2022. The payor and B2B revenue were their best-performing sectors, in which they grew by 132% and 79% in revenue, respectively.
Year-to-date, their share price has soared by over 200% due to their strong financials and the growing number of employers beginning to add mental health coverage to their insurance plans.
Talkspace offers investors a great choice for a momentum stock that has grown substantially recently and is expected to grow with the further adoption of mental health benefits.
As of this writing, Noah Bolton did not hold (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.
