Buy Alert: 3 Penny Stocks That Will Explode in 2024

When the term “buy penny stocks” is mentioned, ideas of high risk and high reward, overnight wealth creation, and possible scams may spring to mind. However, investing in carefully selected penny stocks can lead to a far less volatile experience.

That’s not to say you have to choose from familiar tickers. Even if a penny stock comes from a publicly traded company with real potential, anything from macroeconomic trends to legal action can bring the company down. It’s important to remember that every company started somewhere, and while some private companies with a respectable track record go public through an IPO, other newer publicly traded companies can still offer real potential.

So here are three penny stocks for investors who want to take their chances on smaller and newer companies that have not yet reached their financial potential.

CytomX Therapeutics (CTMX)

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One of the most common problems with cancer treatments today is the damage they cause to healthy tissue while trying to destroy cancerous tissue. CytomX Therapeutics (NASDAQ:CTMX) and its Probody therapeutics are outstanding. By developing modified antibodies, CTMX can ensure that its treatment only attacks the surface of cancer cells, limiting collateral damage during therapy.

In addition, the company has successfully tested several of its drugs in clinical trials. Although these are still at an early stage, phase one data is expected in 2025. To further underpin its credibility, CMTX is a partner of several major drug manufacturers such as Regeneron (NASDAQ:RAIN) And Bristol-Myers Squibb (NYSE:BMY).

With these factors in mind, CMTX’s prospects for the next decade are better than the average penny stock. Therefore, the company’s low price and high potential make it one of the better and ultimately safer penny stocks to buy.

Quhuo (QH)

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One of the most critical aspects of the current Chinese economy is its dependence on low-paid, unskilled labor such as delivery drivers, housekeepers and transport drivers. Here Quhuo (NASDAQ:QH) has found its niche as a provider of flexible workforce.

Although the stock has been on a steady downward trend over the past year, it now seems to have found a new bottom at the 50 cent mark. Listed on the Nasdaq ADR: The stock must exceed the $1 mark by November 2024 to remain listed. Thus, the stock presents both risks and opportunities due to its low price. In addition, investors should keep in mind that as an ADR issued abroad, they are only entitled to financial compensation for their investments and not to the usual shareholder privileges.

However, if the company can expand into other service-oriented economies like the US, it could potentially reverse this trend, as its basic business model could be lucrative in an America that is increasingly dependent on services.

Lument Finance Trust (LFT)

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As a real estate investment fund (REIT), Lument Finance Trust (NYSE:LFT) is not a typical penny stock. LFT specializes in the multifamily market and could be an extremely lucrative portfolio member thanks to its low entry price and high return potential. At around $2.50, the stock is not necessarily in the penny category, but it is cheap for the REIT world.

The potential may be so high because multi-family housing is the future of housing as families shrink and housing becomes more expensive. As a result, more and more people will be looking to the type of properties LFT invests in, which offer generous returns to their shareholders while the value of their assets increases.

Therefore, LFT could be one of the best REITs and penny stocks to buy to achieve stable, long-term growth from a low price.

On penny stocks and low-volume stocks:With very few exceptions, InvestorPlace does not publish commentary on companies that have a market capitalization of less than $100 million or that trade fewer than 100,000 shares per day. That’s because these “penny stocks” are often a playground for fraudsters and market manipulators. If we ever publish a commentary on a low-volume stock that may be affected by our commentary, we require that InvestorPlace.com writers disclose that fact and warn readers of the risks.

Read more: Penny Stocks – How to make a profit without being cheated

At the time of publication, Viktor Zarev had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.