For investors, there’s no shortage of penny stocks from which to choose within the biopharma sector. Successful companies in this industry often achieve strong returns due to FDA approval.
That raises a question: Where do investors look for strong returns from penny stocks outside of the biopharma sector? Fortunately, for them, there are still plenty of stocks to consider that have nothing to do with pharmaceuticals or medical devices.
Today we’re going to look at a handful of those companies and their shares which have upside. As always, it’s important to caveat penny stock investing as the speculative Endeavor that it is. Only invest what you can lose. Remember, though, the returns can be substantial.
Taboola.com (TBLA)
Taboola.com (NASDAQ:TBLA) is a stock to consider investing in especially for those interested in the internet beyond the big, dominant players.
The company recommends editorial content and advertisement placement across the “Open Web.” The Open Web refers to digital internet property properties that aren’t associated with the major players that have become omnipresent.
From a fundamental perspective, Taboola.com continues on a path to improvement. Its third quarter performance bested guidance across all metrics allowing the company to reiterate its fourth quarter guidance. Revenues grew by over 8% reaching $360.2 million. Net losses narrowed by 11.1% to $23.1 million.
The company has a decent amount of coverage on Wall Street. Five of those six analysts rate its shares as a buy. However, they give no sign regarding their price target expectations muddling its investment case. I would expect that the company is entering a period of strength in 2024 with rate cuts on the horizon, lower lending costs, and a brightening outlook for advertising spending as a result.
Nerdy (NRDY)
Nerdy (NYSE:NRDY) operates an online learning platform that offers a lot to like for investors. It will encourage readers who put a lot of stock into target prices to know that analysts believe its shares have roughly 30% upside.
I recently wrote about nerdy in relation to its AI potential. That’s a great place to start. The company, which offers tutoring and instruction across over 3,000 subjects, continues to invest in AI.
The company is leveraging the power of AI to better connect students with tutors, for example. Further, Nerdy has applied artificial intelligence to its proprietary HI infrastructure delivering more than 10 million hours of one-on-one tutoring to date.
The company is in growth mode with revenues that increased by 27% in the third quarter. sales reached 40.3 million, above the $38 to 40 million range the company had projected. The company expects fourth quarter revenues to reach between $52 to $56 million which would represent 32% growth on a year-over-year basis
Lumen Technologies (LUMN)
Lumen Technologies (NYSE:LUMN) provides wired telecommunications services to both commercial and residential customers. The stock, currently priced at approximately $1.75, jumped by more than 12% on the Fed’s latest news regarding interest rates.
One of the primary reasons investors should consider Lumen Technologies headed into 2024 relates to interest charges. The company’s full year GAAP interest expense guidance sat at $1.2 billion at the end of the third quarter period.
Next year should be a lot better for the company in that regard as the cost of lending is projected to decrease due to expected rate cuts. that has the potential to help the company return to profitability that it experienced in 2022 when the rates were lower than they are today.
The company won’t be immediately able to return to profitability Via lower interest rates because they simply won’t reach previous rates for a long time, if ever again. However, analysts remain optimistic about the stock’s future price overall.
Terran Orbital (LLAP)
Terran Orbital (NYSE:LLAP) is a rapidly growing penny stock that has faced issues but has a ton of potential at the same time.
The company launches satellites into orbit and has an impressive roster of connections and a significant backlog of orders there from. That is the primary reason to consider investing in the company which has seen its shares plummet in 2023. That said, those same shares tentatively appear to be on the rebound.
The primary issue in investing in Terran Orbital relates to its strong backlog of orders balanced against significant cash burn. Revenues reached $43.9 million in the most recent quarter, up 58% overall. The company remains in growth mode but also produces losses that exceeded $26 million in the third quarter.
That said, the future looks bright. The company’s outlook is bolstered by a $2.6 billion backlog That includes partners like Lockheed Martin (NYSE:LMT).
Himax Technologies (HIMX)
Himax Technologies (NASDAQ:HIMX) Is a semiconductor stock that’s in position to provide returns for investors and is an inexpensive penny stock worth considering.
The semiconductor company provides fabrication services throughout the semiconductor sector and is located in Taiwan.
There’s an argument to be made that now is a strong time for Himax Technologies overall. The argument assumes that winds have been stacking for the company, reflected in earnings results over a month ago.
Third quarter revenues grew by 1.5% beating guidance which expected sales to be flat at best and more likely in the negative 7% range. That earnings beat was a strong sign for the firm.
Further, there’s a broader economic win that also favors the company as an investment. Of course, I’m talking about the notion that we will soon experience rate cuts. Recent news from the Fed should serve to put chip manufacturing into a stronger position in 2024, benefiting Himax Technologies.
Clear Channel Outdoor Holding (CCO)
Clear Channel Outdoor Holding (NYSE:CCO) Engages in the business of outdoor advertising that spans both the digital and printed mediums. At the end of the third quarter, the company had over 335,000 total displays overall.
Clear Channel outdoor holding isn’t a strong company from a fundamental or operational perspective. The company continues to produce losses despite revenues that exceeded $517 million in the third quarter. In fact, its losses exceeded $263 million in the period.
Despite those substantial losses there continues to be a case that favors investing in CCO shares. It is in distress but the company also saw its shares increase on recent rate hike news. That suggests that the markets will respond well to the company in the light of expected rate hikes in 2024.
While the company is clearly very risky for traders, there’s significant evidence that there is still money to be made on Clear Channel Outdoor Holding shares.
Grab (GRAB)
Grab (NASDAQ:GRAB) is an obvious choice in the stock market for growth pics that are strongly positioned at the moment. The Singapore-based company has built a superapp that spans ride hailing, mobility, food delivery, insurance, and more.
It also continues to lose a lot of money, which made the stock poorly positioned in 2022. Prior to that, a lot of investors were very interested in grab and it’s shares. The reason was simple: its growth was impressive and lending was cheap. Of course, that changed in 2022 and has defined the company since.
In the third quarter, though, the company showed some reasons for optimism. Its losses narrowed by 71% to $99 million. Grab continues to show impressive growth with revenues growing by 61% to $615 million.
Those last two factors are suddenly looking much more attractive as it is expected that the cost of lending should decrease in the next few months. it’s entirely possible that GRAB shares come back into focus in a way that returns them to high demand.
On the date of publication, Alex Sirois 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.
