With so much financial uncertainty due to the pandemic, now is a good time to widen your investment portfolio. When it comes to making smart investments, most people tend to focus on well-established brands. This is a good strategy, but there is also a lot of potential to be found in penny stocks. We have rounded up the best opportunities for you and provided clear reasoning for why they are worth investing in before the end of the year.
What is a Penny Stock?
A penny stock is any stock that is trading for less than $5 per share. This low value is where the term ‘penny’ comes from. When you compare the prices to well-established brands such as Apple, Amazon, or Tesla, there will definitely be a substantial difference. However, penny stocks have huge potential for long-term growth. There are many gems to be found, and through penny stocks, you may even land on the next big thing and profit from their rise. Their low price means you can purchase more stock and benefit from substantial profits if the company becomes successful.
With that in mind, these are some of the best penny stocks that are definitely worth investing in before 2021.
Best Penny Stocks to Buy for 2021
The first penny stock on our list comes from the Silver industry. We know that Gold usually gets attention for being a good holder of value, but Silver has also been making some significant gains this year. The trend looks set to continue, which makes it a good idea to invest in a related penny stock to take advantage. Silvercorp Metals is a junior minor that is well worth a look. They have a good balance sheet alongside relatively low levels of debt. Moreover, they have a 25% profit margin. The company is based in China and is the biggest producer that has a main focus on Silver.
The shares have risen since March, and this growth looks set to continue in 2021. SVM can definitely be considered as one of the best penny stocks in terms of potential growth.
Pivot Technology Solutions INC (PTG) – Best Overall Penny Stock 2021
Next, up on our list is a technology firm based in Canada. They specialize in acquiring and integrating technology companies. These acquired companies are then able to provide IT support for a number of vendors. Outstanding shares of the firm were bought by Computacenter PLC, giving an equity value of CA$105.8M. This is a company that looks like it has a bright future ahead and is definitely worth considering to invest in as part of your 2021 penny stock portfolio.
The pandemic has led to a rise in remote working and studying. Many are predicting some of these changes to last in the long-term. The switch to online teaching has made Zovio a promising proposition for investment. Zovio is based in California, and they specialize in providing software solutions to enable courses to be run online efficiently. Additionally, the software is adept at data management, which makes it ideal for managing the curriculum, enrollment, and tuition fees. The stock has been hitting new heights since April, and it is well worth considering this company since we see that Universities face challenges with re-opening. It seems as though online learning will remain a more prominent study method long after the pandemic has passed. And for this reason, this is a must-have as one of the best penny stocks out there.
Husky Energy (HUSKF) – Best Value Penny Stock 2021
Another type of investment opportunity to focus on this pandemic is stocks that may have been hit hard but show potential to recover. Husky Energy is a prominent example. The Canadian oil firm suffered losses due to the pandemic and subsequent collapse in oil prices. However, they look set to bounce back in the next year. The company has a variety of assets in Canada’s oil sands and $5 billion in liquidity. Additionally, they have over 500 gas stations. The firm is currently priced very cheaply, especially in comparison to their historical stock prices. All these reasons mean that Husk Energy is definitely one of the best penny stocks to buy for 2021.
Dynavax Technologies (DVAX)
Next on our list is another stock that looks to be potentially undervalued. Dynavax Technologies is a pharmaceutical firm that specializes in vaccines. The stock fell by 20% in September, but there are plenty of good signs that point to a sustained resurgence. The company currently provides an effective Hepatitis B vaccine, and more innovations can be expected through their research. There was an initial interest in a Coronavirus vaccine, but those plans have since been shelved. Biotech firms, in general, tend to be significantly volatile, but they can be worth investing in for the long haul.
Usio Inc. (USIO) – Best Penny Stock Growth Potential 2021
The final penny stock on our list is a technology company that specializes in payment solutions to both merchants and billers. Their services include prepaid card processing and debit/credit offerings. The company has a long term to combine payment processing and card issuing options into one seamless platform. They are currently outperforming expectations in the stock market, and there are voices in the industry that back them to have a very strong year in 2012. The company may well be worth backing due to the high potential upside involved.
After thorough investigation and research, we concluded that these were the best penny stocks for investment. As with all investments, it is important to be aware of the various risks involved and conduct your own research before putting any money in. It is important to be patient with penny stocks and keep in mind that all of them cannot be successful. But, their high potential for growth means that there is always a good chance that one of them could turn out to be a fantastic investment in the years to come. Investing in the best penny stocks is a great way to get a head start on everyone else.