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The Bullish Case for 7 High Potential Penny Stocks to Consider in February 2024

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When it comes to penny stocks, many investors view them as speculative trading tools, often used for quick gains and timely exits. However, some penny stocks possess the potential to create millionaires and are worth considering for long-term investment. This article delves into seven select millionaire-maker penny stocks that are not purely speculative in nature and could offer substantial returns if held over the long term.

These stocks represent companies at an early growth stage with ambitious plans. While they come with high risk, a limited portfolio exposure of 15% could significantly impact an investor’s portfolio. Treading with caution, these stocks are worth monitoring over the next five years, with a potential for millionaire-making returns.

Bitfarms (BITF)

Bitcoin and crypto mining farm. Big data center. High tech server computers at work. Bitfarms (BITF) mines crypto.

Source: PHOTOCREO Michal Bednarek / Shutterstock.com

The recent surge of Bitcoin (BTC-USD) to over $50,000 is hard to ignore and holds promise for crypto stocks. With the impending Bitcoin halving, the cryptocurrency’s momentum is expected to endure, and long-term forecasts, including Cathie Wood’s prediction of Bitcoin reaching $1.5 million by 2030, are equally optimistic.

Amidst these developments, I am particularly bullish on Bitfarms (NASDAQ:BITF) as a potential millionaire-making penny stock. Beyond riding on Bitcoin’s upward trajectory, the company boasts a robust balance sheet and has aggressive expansion plans in place.

Bitfarms’ hash rate capacity reached 6.5EH/s as of January, with a year-end target capacity of 21EH/s. This envisaged expansion is likely to result in substantial revenue and cash flow growth. Moreover, the company’s debt-free status and a liquidity buffer of $118 million as of December 2023 provide significant financial flexibility for further investment in expansion.

Tilray Brands (TLRY)

Tilray (TLRY) logo on a web browser.

Source: Jarretera / Shutterstock.com

Tilray Brands (NASDAQ:TLRY) is another potential millionaire-maker penny stock. Despite an extended period of weakness in the cannabis sector, prospects for the coming years look promising. Should federal legalization of cannabis materialize, TLRY stock could potentially deliver substantial returns, possibly building up to a ten-fold increase in value over the next two years.

Even in the absence of federal legalization, the projected worth of the U.S. cannabis market at $71 billion by 2030, in addition to the promising potential of the European medicinal cannabis market, offer significant room for growth and value creation.

In 2023, Tilray Brands pursued diversification, advancing to the position of the fifth largest craft beer brewer in the U.S. through strategic acquisitions. These acquisitions have not only diversified the company’s operations but also strengthened its foundational infrastructure in the U.S., positioning it for aggressive expansion if federal legalization of cannabis comes to fruition.

With record net revenue and a 34% year-on-year growth reported for Q2 2024, along with a guidance for positive adjusted free cash flow in the current financial year, TLRY stock is poised for substantial growth.

Lithium Americas (LAC)

Person holding smartphone with logo of Canadian company Lithium Americas Corp (LAC) on screen in front of website Focus on phone display.

Source: Wirestock Creators / Shutterstock.com

Lithium stocks have undergone a significant correction and currently appear undervalued. While the recovery of lithium prices is expected to be gradual, the long-term outlook remains positive due to an imminent supply gap.

Amidst this backdrop, there is a compelling opportunity to invest in some of the leading lithium stocks. One such candidate is Lithium Americas Corp (LAC), which presents an attractive risk-reward proposition. With its significant potential to benefit from the burgeoning electric vehicle revolution, LAC has strong prospects for growth and value creation.

The aforementioned penny stocks are representative of companies with the potential to create millionaires for investors who are perceptive and ready to embrace the risks associated with such investments.

Investing in High-Growth Stocks with Multibagger Potential

Lithium Americas (NYSE:LAC) is an opportunity set to soar reaching a current market valuation of $743 million. I foresee the stock yielding 10x to 20x returns over the next five years.

Unearthing the Potential of Lithium Americas

The Thacker Pass project, a treasure trove for Lithium Americas, is poised to create substantial value. With a mine life of 40 years and an anticipated average annual EBITDA of $1.1 billion, the company’s deep valuation gap echoes loud and clear.

Thacker Pass project’s financial backing appears solid, with General Motors (NYSE:GM) committing to invest $650 million in two tranches. Additionally, GM has secured an offtake agreement for the first phase of production over a span of 10 years.

A Glimpse into the Future of Blink Charging

Blink Charging (NASDAQ:BLNK) stands out among a select few emerging names in the EV charging industry that is positioned to yield substantial returns. It’s crucial to note that investments in charging infrastructure need to expedite in order to accommodate the target of 30-42 million EVs on U.S. roads. Consequently, there’s abundant room for growth throughout the decade.

Notably, Blink Charging has demonstrated an impressive revenue growth trajectory. In Q3 2023, the company reported a staggering 152% year-on-year revenue growth, amounting to $43.4 million.

The company recently announced preliminary numbers for Q4 2023, surpassing its guidance. Blink Charging anticipates exceeding $140 million in full-year revenue and has reaffirmed its projection for a positive Adjusted EBITDA run rate by December 2024.

Yatra Online’s Voyage to Success

Yatra Online (NASDAQ:YTRA) is an online travel company with a focused approach within the Indian markets, positioning itself as a prime contender for creating substantial value.

The company has carved a niche in the Indian market and emerged as the largest corporate travel player, boasting a customer base of 800 corporates. Yatra is also bolstering its business-to-consumer segment and is second only to MakeMyTrip (NASDAQ:MMYT) in terms of consumer brand awareness in India.

In Q3 2024, Yatra reported an impressive 23% year-on-year revenue growth to $13.4 million, achieving positive adjusted EBITDA for the same period. With a robust growth outlook, I anticipate substantial EBITDA margin expansion in the ensuing quarters.

Blade Air Mobility’s Flight to Success

Blade Air Mobility (NASDAQ:BLDE) is an under-the-radar penny stock positioned for significant returns. The company provides air transport alternatives to congested ground routes in the United States through charter flights, helicopters, and seaplanes, boasting an asset-light business model.

Blade Air reported a strong 56% year-on-year revenue growth in Q3 2023, amounting to $71.4 million, underpinning its high-growth trajectory.

Blade Air: Soaring Amidst Turbulent Times

In the midst of a volatile economic climate, Blade Air has defied expectations by reporting positive adjusted EBITDA and free cash flows in the first quarter. This feat is particularly noteworthy given the current challenges facing the air transport industry. However, Blade Air has demonstrated resilience and adaptability, leading to a strong financial performance.

IAMGOLD (IAG): Gilded Opportunities

An image of multiple gold bars. Gold prices

Source: Shutterstock

Amidst geopolitical tensions and inflationary pressures, gold emerges as a compelling investment option. Within the realm of penny gold mining stocks, IAMGOLD (NYSE:IAG) stands out as a promising prospect, poised to deliver substantial returns. The company’s strategic positioning and operational advancements place it in a favorable position within the market.

Looking ahead, IAMGOLD’s prospects appear even more promising with the anticipated commencement of production from the Cote gold mine. The company’s impressive attributable gold production and projected expansion indicate a robust trajectory for growth. Furthermore, IAMGOLD’s substantial liquidity buffer of $755 million as of December 2023 provides a solid foundation for future endeavors, including exploration initiatives and potential acquisitions.

Notably, IAMGOLD’s advantageous position in the market signifies a paradigm of growth and stability within the dynamic gold mining landscape. As the company continues to fortify its foothold within the industry, it remains well-positioned to capitalize on favorable market conditions and yield favorable results for stakeholders.

At the time of publication, Faisal Humayun did not hold any positions in the securities mentioned in this article. The views expressed here are solely those of the writer and are subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a seasoned research analyst with extensive experience in credit research, equity research, and financial modeling. With an extensive portfolio of over 1,500 stock-specific articles, Faisal’s expertise encompasses diverse sectors such as technology, energy, and commodities.

Energy, Renewable Energy, Battery, Healthcare, Cannabis, Consumer Discretionary, Financial, Fintech, Lithium, Industrial, Precious Metals, Travel

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