If you have an extra dollar or two looking to throw around in some high-risk, high-reward stocks, you’re in the right place! Obviously, these stocks are unlikely to make you a millionaire, given a small starting budget. However, these pennies stocks certainly have the potential to deliver multi-bagger returns, if these companies continue to execute well and ride secular tailwinds. I believe it is always best to put your “fun money” into high-risk, high-reward penny stocks or even cryptocurrencies instead of gambling it away.
Small-cap stocks can be some of the best investments if you know where to put your money. These are the kinds of stocks that you can buy on a whim without breaking the bank. Even throwing $10 or $20 at such high-risk bets can pay off big time, if one of them ends up being a home run. Here are three to consider looking into right now.
Inuvo (INUV)
Inuvo (NYSEMKT:INUV) is a technology company that develops and sells IT solutions for marketing and advertising. Its solutions predictively identify and message online audiences for any product, service, or brand. Inuvo uses a patented artificial intelligence technology called IntentKey, which leverages context-based machine learning. Essentially, this product mirrors how the human brain can instantly associate ideas, emotions, places, people, and objects.
Here’s why I’m bullish on Inuvo: The company has a tiny market capitalization of just $58 million as of writing, and I believe recent AI hype can take this stock much higher from here. Additionally, the advertising market has returned, the stock’s cash bleed appears to have stopped, and I believe Inuvo can make a quick turnaround.
SaaS and AI companies often trade at large premiums today, so paying just 0.75-times forward sales for this stock makes sense. That’s especially true when investors consider the company’s 15-20% expected annual revenue growth moving forward. Again, this is a small company, so landing a few contracts could easily push its sales significantly higher. Importantly, Inuvo is also expected to approach breakeven in 2025. I believe INUV stock is a great penny stock candidate for investors seeking asymmetric upside in this uncertain environment.
Comstock (LODE)
Comstock (NYSEMKT:LODE) is a commercial decarbonization solutions company that provides innovative technologies in the clean energy realm. This company contributes to global decarbonization efforts by efficiently converting under-utilized natural resources into renewable fuels and electrification products. Some of its businesses include Comstock Fuels, which produces advanced renewable biofuels from abundant feedstock; Comstock Metals, which recycles solar panels and recovers materials; Comstock Mining, which uses artificial intelligence and advanced sensing technology to transform mineral exploration; and Strategic Investments, which expands the company’s capabilities and opportunities by direct investment in select target industries and geographies.
I believe this is a stock that wins in the long-term. Even though decarbonization efforts could see some setbacks depending on the geopolitical backdrop we see in the years to come, over the long-run, we should see continued investment into clean energy, which includes biofuels.
What I like about this company is that it is surprisingly diversified despite its market cap of just $53 million. Comstock’s mining segment also shows a lot of promise. The company also launched a satellite recently to map out silver deposits. If you think clean energy is the future, and precious metals are likely to see a boost in value over time, LODE stock is a good bet.
Tomi Environmental Solutions (TOMZ)
Tomi Environmental Solutions (NASDAQ:TOMZ) is a global provider of bacterial decontamination and infectious disease control solutions through its Hydrogen peroxide-based products and services. The company’s key product is its patented Binary Ionization Technology® (BITTM), a state-of-the-art technology for producing its disinfectant fog represented by the TOMITM SteraMist® brand.
I believe the company is very undervalued and overlooked right now. Currently, Tomi trades trades at a very low pirce-earnfgs multiple of only 12-times based on expected 2024 EPS. But that’s not all. The company is expected to significantly expand its earnings and revenue in the coming years. I expect the company’s earning per share to surge 12x from 2024 to 2032 if estimates are met. Revenue is also expected to grow from $18 million to $69 million during the same period.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Omor Ibne Ehsan 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.
