In the world of stocks, investors have at their disposal a whole range of asset classes to choose from. While some prefer large-cap stocks for the stability they typically offer, many prefer cheap penny stocks that hold the potential to undertake wild swings.
The smart investor, however, aims for a balanced portfolio that contains a healthy mix of stocks, including the notorious penny stock category. Penny stocks that trade for under $1 are becoming extremely popular amongst a growing generation of investors.
This in large part has come about following recent phenomena that have seen such stocks explode following immense market hype. In light of this, therefore, we bring forward, in this article a list of five highly promising penny stocks that are presently priced beneath the $1 mark. Each of these holds immense potential, allowing your portfolio to rapidly grow in the following weeks and months.
Mullen Automotive
We start off our list of penny stocks for under $1 with one of the most hyped-up stocks in the market, Mullen Automotive Inc. (NASDAQ: MULN). The stock has gathered a large fan following amongst market participants given the tremendous gains it had seen in the last few months, which pushed it up as high as almost $16. At present, MULN trades at $0.72, given market pessimism surrounding emerging players, and the wider macroeconomic headwinds.
The most high-potential aspect associated with Mullen is its incredible solid-state polymer batteries. Earlier when the company announced battery test results, the market had been taken by storm. These tests had been conducted by the renowned, Battery Innovation Center, a state-of-the-art institute that works together with leading universities and commercial enterprises. The Mullen battery technology offers fast charging and high-energy density all within a compact size. Through this, a 150-kilowatt-hour Mullen battery can run an EV for as much as 600 miles. Even more impressive is that these solid-state batteries offer a far higher degree of safety than lithium-ion cells, as used by Tesla Inc.
Even at this early stage, the Mullen leadership has confirmed a hefty order by a major Fortune 500 company for electric vehicle vans. Similarly, it has signed an order for 600 electric cargo vans with DelPack Logistics, a major Amazon Delivery Services Partner.
Mullen is still in a grey area in its present timeline as to when it will achieve these ambitious objectives. However, what remains certain is that the market will be rapid in its response as emerging catalysts come to pass.
Integra Resources Corporation
Next, we move on to Integra Resources Corp. (AMEX: ITRG), a mineral resources company. The stock is presently trading at $0.66, after having plummeted by over 73% in the last 12 months. Inflation had increased the costs of production in the industry and had also seen a lowering of precious metal prices in the last year, leading to poor sentiment across the market. Integra suffered too, given these results, with its recent quarterly EPS for June 2022 falling by a staggering 58% on a year-on-year basis.
Although the headwinds similarly impacted the fundamentals of the wider precious metals and minerals industry as a whole, no other stock had seen a plummet as sharp as that of ITRG. Given the panic selling that the stock had gotten caught up in, there is ample reason to believe the stock is now significantly undervalued.
Similarly, a new financing announcement has significantly propped up the company’s prospects, putting it closer to the path towards financial sustainability. The arrangement includes $10 million of debt and a convertible agreement of up to $20 million. The news comes as a relief to distraught shareholders, as the company now has sufficient capital to complete its 15km drill program. This liquidity boost further allows the company to enhance its profitability by focusing on areas that had held its business down.
Camber Energy Inc.
Number three on our list of penny stocks for under $1 is the oil and gas company, Camber Energy Inc. (AMEX: CEI). The stock is one like many in the industry, that had taken a beating in this year’s bear market, falling 60% since the start of 2022. The last five years have been hard on the company, especially since its strategic shift and expansion towards shallow oil and gas reserves. Despite this offering lower-risk production portfolios that have a longer lifecycle, the industry remained too saturated with better-equipped competitors.
However, a turnaround seems to be on the way for CEI, with the management announcing some fundamental changes to its business approach. For one, Camber now focuses on serious restructuring and cost elimination, which will streamline operations and optimize efficiency.
Moreover, Camber’s fully-owned subsidiary since February 2022, Viking Energy also brings in good news, which suggests CEI’s undervaluation. The company’s Bottom Cycle Power System, along with its carbon capture technology is officially under patent. The milestone gives Viking a substantial entry point in the clean energy market, allowing its technology to be licensed and sold to third-party players. Camber stands to gain with these developments and could be seeing a turning point in its price trajectory.
To add, its subsidiary, Viking has been reporting consistently improving fundamentals. After its loss of over $41 million in 2020, the company posted a net income figure of $1.3 million, in 2021. All of these factors point to the immense opportunity Camber shareholders face, making the stock’s present price an incredible bargain.
Argonaut Gold Inc.
The fourth penny stock for under $1 we present is of the Canadian gold miner Argonaut Gold Inc. (OTC: ARNGF). Argonaut is a classic example of a stock with a price that is far beneath its intrinsic value. This typically happens when the market is in a state of irrational panic that is not in line with fundamentals. In terms of Argonaut, the company in its recent annual results had seen its top and bottom lines climb by 36.6% and an incredible 86.7% respectively.
2022, with all its macroeconomic headwinds, brought its fair share of challenges to the company, with its recent quarterly revenue seeing a year-on-year decline of 7%. These short-term obstacles hardly justify the over 83% drop that the last 12 months delivered to the stock. As per the company’s recent report, its balance sheet portrays present cash holdings of over $75 million. For a company operating at the scale of Argonaut, this is highly sufficient at allowing the company to explore lucrative options, whilst also strengthening its position within the gold market. For this reason, we here at Stocks Telegraph believe that Argonaut was aggressively oversold in the past, and is imminently due for an upside correction.
Inuvo Inc.
The final stock on our list of penny stocks for under $1 is that of Inuvo Inc., (AMEX: INUV) a US-based tech company. The stock is perhaps the most innovative and potentially revolutionary on this list, in what it offers. Inuvo brings digital marketing into the realm of AI. Inuvo’s patented digital advertising platform, IntentKey, uses AI technology to generate anonymous signals. These signals guide advertisements to their most optimal placement zones. This technology holds immense promise, given privacy concerns surrounding cookie technology throughout web browsers. This patented technology remains Inuvo’s greatest asset, considering the wider ‘cookie crumbles’ that could send shockwaves across the digital advertisement industry.
The market has been responding to this crucial technology with overwhelming acceptance. In its first-quarter results, the company netted sales of $18.6 million. This figure represented a whopping 75% year-on-year rise, indicating the rapid nature of Inuvo’s market capture.
INUV represents an opportunity that remains too good to ignore. Those early in catching this train will likely benefit tremendously given the scale of digital advertising, as well as the company’s unique competitive advantage. There is no telling as to how high this bird will fly in the long term.
Conclusion
Penny stocks for under $1 are one investment class that many market participants turn to, in anticipation of a rapid growth explosion. Despite risks of high volatility and unpredictable future projections, many cannot resist including low-price penny stocks within their portfolios.
Even the most seasoned of investors seek to diversify their holdings through the inclusion of promising penny stocks, which could bring their portfolio to soaring new heights. Each of the stocks mentioned in this list holds immense growth potential and could bring your portfolio soar to new heights.
