The equities market can feel like navigating through a fog while searching for the best penny stocks. Yet, amidst this uncertainty, a handful of names emerge as clear winners, displaying robust resilience and performance throughout the year.
These stalwart contenders are poised to continue their triumphant run as the year draws closer. Meanwhile, lurking in the shadows are other stocks, simmering with potential, ready to spring forward and spark a rally as we approach year-end. This presents a golden opportunity for the astute investor to seize these under-the-radar penny stocks on the verge of a resurgence. With many of these companies experiencing growth and improvements in the financial realm, they will likely rise to new heights.
CarParts.com (PRTS)
CarParts.com (NASDAQ:PRTS) is making waves in the auto part retail industry, buoyed by factors including the increasing age of U.S. passenger vehicles and the spike in car-related crimes in the country. Though its financials haven’t fully reflected these trends yet, analysts anticipate that stronger business execution should propel the company forward soon. PRTS stock is currently trading around pre-pandemic levels, with profitability projected by 2026 and a promising surge in earnings after that.
The company recently released its third quarter report, which marked its 15th consecutive quarter of year-over-year growth with $167 million in sales. Moreover, it boasts a strong cash position of $67 million, underscoring its resilience amidst economic challenges.
The firm’s strategic enhancements in eCommerce and digital platforms, including a powerful mobile app, underscore its dedication to digital innovation. With a keen focus on expanding its market reach and product variety, CarParts.com strongly emphasizes customer-centric strategies, evidenced by a major chunk of its revenue from repeat customers.
Ammo Inc (POWW)
In the face of global turmoil, Ammo Inc (NASDAQ:POWW) emerges as one of the top contenders in the arms industry. Established in 2016, this nimble player has efficiently climbed up the ranks, much like eBay did in the eCommerce sector. Its powerful ammunition and casings manufacturing and its leading firearm trading website, Gunbroker.com, have added new layers to its growth story. Moreover, its strategic pivot towards brass casings marks a savvy move with a focus not only on better margins but also on a new growth trajectory.
Financially, the firm’s resilience shines through, with a solid gross profit margin of 42.9%, underscoring the successful shift from ammunition to casings. This strategic realignment, though impacting revenues, enhances profitability and cash flows. AMMO is well-positioned for potential acquisitions and further expansion with low debt and a healthy cash reserve. Summing up, AMMO, Inc. adeptly navigates the firearm market with its strong online foothold and focus on lucrative segments.
Broadwind Inc (BWEN)
Broadwind Inc (NASDAQ:BWEN) is a true trailblazer in clean technology and specialized applications, which continues to impact the U.S. energy, mining, and infrastructure sectors significantly. Renowned for its advanced technological products, its offerings span constructing complex structures, precision fabrications, light fabrication services, and comprehensive supply chain solutions. It is also an original equipment manufacturer (OEM) for various clean-energy solutions, including solar arrays, wind turbine towers, and innovative solar trees across several states.
In their recent press release, Broadwind announced a third-quarter GAAP EPS of 21 cents, surpassing expectations by 12 cents. This financial accomplishment aligns with their steady revenue of $57.16 million, marking a 27.6% year-over-year increase while meeting projected targets. Additionally, their total backlog as of September 30, 2023, is a remarkable $220.8 million, up $88.6 million from the previous year.
Redwire Corporation (RDW)
Redwire Corporation (NYSE:RDW) operates a space infrastructure business, which remains somewhat hidden in the investment landscape. Despite the lack of profitability, Redwire’s growth trajectory looks incredibly promising. Moreover, as interest rates potentially decline, the path to profitability appears significantly more attainable. Historically, space stocks have garnered higher valuations, and RDW’s peers are no exception.
The company reported impressive revenue of $62.6 million for the quarter, a significant 68.3% increase year-over-year, exceeding expectations by $2.25 million. Additionally, Redwire’s comparable revenues for the third quarter of 2023 surged by 31.8% to $49.1 million, compared to $37.2 million in the same period last year. Encouragingly, the net loss for the same period improved by 39.3% to a negative $6.3 million from a negative $10.4 million the previous year. The company’s contracted backlog also saw a year-over-year increase of 59.5%, reaching $253.4 million as of September.
Moreover, Redwire’s stock is currently trading at just 0.7 times forward sales estimates, which is 47.5% lower than the median of its sector, offering an attractive entry point for investors.
Elite Pharmaceuticals (ELTP)
Elite Pharmaceuticals (OTCMKTS:ELTP) has effectively carved out a weighty presence in the competitive generic drug market, with its focus on a generic Central Nervous System (CNS) stimulant and an opiate analgesic. Given the robust demand for these types of medications, the potential market penetration of these drugs will likely dramatically boost Elite’s financial performance.
A pivotal moment for the company was its recent submission of an Abbreviated New Drug Application, which garnered the attention of the US FDA for review. This achievement underscores the company’s strategic acumen and ability to meet the rigorous regulatory standards the FDA sets.
Furthermore, investors have recognized Elite’s potential, with the massive market size for these drugs suggesting that even modest success could lead to a substantial increase in sales and profitability for Elite. This potential for growth makes Elite Pharmaceuticals a notable contender in the generic drug market, with a promising outlook for both top and bottom-line expansion.
Overseas Shipholding Group (OSG)
Overseas Shipholding Group (NYSE:OSG) sails triumphantly in the oil transportation sphere, revealing stellar third-quarter results. It boasted a robust net income of $17.6 million and an impressive 13.7% surge in adjusted EBITDA, demonstrating its prowess in navigating the challenging business environment. This success is propelled by the uptick in energy prices and the company’s versatile fleet, including Suezmax tankers and tugboats, which ensure smooth oil transitions to land-based facilities.
Furthermore, the firm has wisely channeled its cash flow into share buybacks and securing warrants, efficiently streamlining its financial structure. Additionally, OSG’s acquisition of the Alaskan Frontier tanker is a commitment to sustainability, with it investing $50 million to revamp and enhance this vessel, underscoring its dedication to environmentally friendly operations. Additionally, the company’s focus on operational excellence and sustainability positions it as a forward-thinking player in oil transportation. This makes it one of those best penny stocks to buy.
Pitney Bowes (PBI)
Pitney Bowes (NYSE:PBI) stands out in the realm of penny stocks, showcasing a dynamic vision for sustainable growth. Known for its cutting-edge tech and financial solutions in shipping and mailing, the company remains on a path toward rapid acceleration. The recent stepping down of CEO Marc Lautenbach signals a watershed moment, paving the way for Hestia Capital’s innovative strategy aimed at revitalizing the company.
This strategic shift focuses on cutting costs and bolstering investment in its burgeoning subsidiaries while side-stepping from less profitable areas. Recent financial outcomes reflect this positive change. Moreover, the company’s latest earnings report outshines expectations, with a Non-GAAP EPS beating forecasts by a considerable two cents while delivering a healthy sales figure of $784 million. Moreover, Pitney Bowes is exceeding its restructuring goals, targeting massive annual savings by the end of 2024. All in all, it’s one of the best penny stocks to buy.
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
