Even though they are among the riskiest stocks on the market, investing in some penny stocks can mean a lot of profits. In times of economic uncertainty, penny stock investment can be a lifesaver for investors.
In this article, you’ll learn more about three of the most promising penny stocks to buy on the market and what makes them fantastic portfolio additions going into the second half of the year. Let’s dive right in.
Ardelyx (ARDX)
Ardelyx (NASDAQ:ARDX) is a biopharmaceutical company that develops treatments for gastrointestinal and cardiorenal therapeutic areas. Its most popular product, Ibsrela, which the FDA approved in 2019, dramatically increased its revenue.
Since then, its stock has performed consistently well in the market, making it an ideal option for investors looking for penny stocks to buy.
To put things in perspective, Ardelyx recorded an impressive $28.4 million in revenue for Ibsrela in the first quarter of the year. Analysts say this revenue growth is thanks to a growing list of healthcare providers prescribing Ibsrela.
But Ibsrela is not the only Ardelyx product generating millions in revenue. Xphozah, another popular treatment, brought in $15 million in revenue in the first quarter. The chronic kidney disease treatment only received FDA approval last year and is already performing exceedingly well in the market.
With several successful treatments and its plans to expand overseas, Ardelyx is proving to be a penny stock that investors cannot ignore for much longer. ARDX stock is severely undervalued and will surely be corrected in the coming months.
Sirius XM (SIRI)
Sirius XM (NASDAQ:SIRI) is an American broadcasting giant that specializes in satellite and online radio services. The company offers over 400 channels on radio and mobile devices with a deep selection of audio entertainment, from music and sports to talk shows and podcasts.
On the financial front, Sirius XM is performing exceptionally well. According to its recent quarterly report, the company generated over $2 million in revenue and recorded a free cash flow of $132 million in the first quarter. Analysts say these numbers are thanks to an increasing subscriber count that surpasses 30 million.
Subscribers aside, Sirius XM is involved in several partnerships that can bode well for it in the long term. Deals with brands like Hyundai and Genesis have been very successful, and if Sirius’s track record is to be considered, more deals like this could be sealed in the coming months.
All indications point toward Sirius XM maintaining its profitability, barring any significant changes. There are not many better options than SIRI around when it comes to penny stocks to buy.
Vaalco Energy (EGY)
Vaalco Energy (NYSE:EGY) is an American company specializing in hydrocarbon exploration with world-class facilities scattered around the globe, including in Canada, Gabon and Egypt.
Since the Russia-Ukraine conflict began, energy supply and prices have taken a hit, creating a surge in demand from which companies in the energy sector, like Vaalco Energy, are profiting. According to its recent quarterly report, the company generated a net income of $7.7 million. This is a significant improvement from the $3.4 million it generated in the first quarter of last year.
Analysts expect the company to continue this profitability run till the end of the year at least. This reasoning comes from the fact that Vaalco Energy has been making significant progress and changes to its operations. It recently resumed production on its oil field in Boabab, a facility with a production capacity of 5,000 oil barrels daily.
EGY should be considered when looking for penny stocks to buy.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Joel Lim 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.
