Some of the top penny stocks to buy can be rewarding. First, when it comes to penny stocks, you have to understand the high risk involved.
As the U.S. Securities and Exchange Commission (SEC) states, “Penny stocks may trade infrequently — which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
Also, never put all of your eggs in one basket. And finally, never risk more money than you can afford to lose on any stock, ever. The last thing you want to do is wind up in the poor house because you bet on a “sure thing,” which doesn’t exist.
As long as you understand the risks, and won’t risk the house, consider a few of the top penny stocks to buy now.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) traded at $2.76 on April 4, 2023. By March 2024, it was up to $10.25 for a solid win. Nowadays, after testing a recent low of $3.76, it just rebounded to $4.24, where it’s still a strong buy.
Additionally, analysts at Cantor Fitzgerald just upgraded the artificial intelligence (AI) voice and speech recognition stock to an underweight rating, with a price target of $4.90. Also, consider that SOUN is working with Nvidia, which just invested $3.7 million in the SOUN stock. Even more exciting, the market for voice-recognition technology could reach nearly $60 billion by 2030, as noted by Verified Market Research.
In fact, you may already be interacting with the technology every day. Apple (NASDAQ:AAPL), for example, has integrated it into hardware devices. Alphabet NASDAQ:GOOG, NASDAQ:GOOGL) uses speech applications with smart home devices, too. In short, big opportunity lies ahead for this small stock.
American Lithium (AMLI)
With lithium prices showing signs of finally bottoming out, keep an eye on American Lithium(NASDAQ:AMLI). At just 59 cents, I’d like to see it double, even triple from here, even as lithium prices start to show signs of life again. It’s another one of the top penny stocks to buy while it’s cheap.
“While EV sales growth has slowed, it is still 20% for the next few years, and thus we expect the global lithium market to tighten near-term,” according to Bank of America analyst Steve Byrne, as quoted by Barron’s.
Moving forward, he sees lithium prices averaging about $14,000 this year. For 2025, he sees lithium prices of about $16,300. If that’s the case, lithium stocks like AMLI could rocket to higher highs.
Additionally, AMLI tripled the estimated value of its Falchani lithium projects in Peru.
“The company said Falchani’s estimated value has tripled from the previous forecast to $5.11B and that the project would have a potential operating life of 32 years,” as noted by Seeking Alpha.
Unicycive Therapeutics (UNCY)
After catching support at around 95 cents, Unicycive Therapeutics (NASDAQ:UNCY) is seeing buy interest. Last trading at $1.12, it’s slowly pivoting from oversold RSI, MACD and Williams’ %R. And, analysts at Piper Jaffray rate UNCY as a buy, with a $9 price target.
“This micro-cap name is trading at ~cash and significantly below its value, in our view, but we think this hidden gem has a major upside ahead of OLC [oxylanthanum carbonate] approval,” according to the firm, as quoted by TipRanks.com. “Specifically, lead asset, OLC, is a wholly-owned phosphate binding agent currently in late-stage development for hyperphosphatemia, which universally affects CKD [chronic kidney disease] patients. CKD is a blockbuster market with >500K undergoing kidney dialysis (~80% on phosphate binders), driving ~$1.125B in U.S. sales in 2021 ($2.5B globally).”
Piper Jaffray is also bullish on the company’s key catalyst this year. That includes top line OLC 16-week Phase 2 CKD dialysis tolerability data, which should be out in the second quarter. Also, they note a possible new drug application filing by the middle of the year, followed by potential approval at middle of next year.
If the firm is right on this, UNCY could rocket much higher than $9 a share.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
