Are you sitting on $1,000 and yearning for it to flourish into a whopping $1 million? You’re in good company. Many of us seek to nurture that extra cash, nurturing it like a patient gardener tending to a promising bud. If you’re one to embrace risk and dare to dream, choosing to invest in tangible companies rather than fritter it away might just be the best call. Granted, there are no guarantees. But with meticulous research and a sprinkle of serendipity, the seemingly impossible may just become tangible.

The current landscape presents a ripe opportunity for penny stocks, despite recent market fluctuations. Growth stocks are on the rebound, and speculative trading instruments are sparking to life once more. Could this mean that hidden within this arena lie a few pearls that could embellish our portfolios? I believe so. However, it remains imperative that we approach this space with due diligence. Not all penny stocks bear the fundamental strength or momentum to yield the coveted 10,000% gains. It’s a domain that calls for careful sifting.

Here, I present a trio of penny stock selections that I reckon hold the potential to transform your $1,000 into a cool $1 million in the future. But it’s crucial to underscore the patience and risk involved, for penny stocks often offer a rollercoaster ride. Yet, for those who can weather the volatility, these companies may present opportunities for life-altering returns. Let’s delve in and explore!

High Tide (HITI)

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High Tide (NASDAQ:HITI) immediately captures one’s attention as a lower-risk contender in the cannabis industry. Unlike its cash-burning counterparts, High Tide has charted remarkable growth without resorting to frequent capital raises.

Courtesy of the company’s innovative discount club model and membership programs, which furnish substantial high-margin recurring revenue, High Tide is steadfastly treading towards profitability by 2025. From virtually negligible sales in 2018, the company’s revenues have burgeoned to $487.7 million (CAD) in FY2023, witnessing steady quarter-over-quarter revenue growth. Notably, the revenue swelled impressively by 36.7% over the past year.

Having waned through a good part of 2022 and maintaining stability since, HITI stock is currently hovering around $1.75 per share, a modest distance from its $1.25 floor over the past year. Notably, shares are trading at a mere 0.35-times forward sales, marking a massive discount relative to its peers.

While the timeline for U.S. cannabis legalization remains shrouded in uncertainty, High Tide has delivered a stellar performance in Canada. Analysts are forecasting the company’s earnings per share to touch $0.64 by 2030, indicating that the shares are currently trading at a mere 2.8-times earnings over seven years hence.

From time to time, the choicest bargains emanate from the less glamorous stocks rather than those bedecked with flashy headlines. High Tide fits this narrative to the tee. Market consensus implies a whopping 208% upside potential in just one year. True, risks are omnipresent, but I’m convinced that patient investors could potentially reap bountiful rewards by enduring the long haul with this stock.

FiscalNote (NOTE)

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Despite recently drawing significant bearish sentiment, FiscalNote (NYSE:NOTE) presents a conspicuous upside as an AI-powered analytics provider. The company extends proprietary data and AI solutions to aid clients in tracking legislative and political intelligence.

Even though it missed the earnings per share and revenue targets in its Q3 report, FiscalNote has made considerable strides in reinstating profitable growth. The revenue surged by 17% year-over-year to $34 million, coupled with a noteworthy 87% reduction in losses to $14.5 million. The stock has significantly retreated as investors cash in their chips, rendering NOTE stock’s current entry point remarkably enticing. I’m inclined to believe that profitability could materialize within the next 24 months at this pace.

In addition to its growth trajectory, the improving margin outlook sets FiscalNote apart notably amid the slowing pace observed among fintech peers. Both its revenue and adjusted EBITDA appear well-positioned for a positive inflection in 2023.

Investing in high-growth but unprofitable stocks invariably carries risks. However, I hold the view that FiscalNote has the levers to widen margins and generate cash flow. With shares trading at a mere 1.4-times forward sales and a fraction of book value, NOTE stock presents substantial upside potential if it sustains its execution.

Analysts have pegged a one-year target of $3.90 for this company, indicating a burgeoning 178% upside. FiscalNote’s premier GRM system swiftly identifies new legislation and its ramifications, rendering it a valuable compliance and goal-pursuit tool. There exists a real prospect for FiscalNote to emerge as the legislative data counterpart to Bloomberg, securing a vast swathe of the Fortune 100 companies as its clients.

Bitfarms (BITF)

Bitcoin (BTC-USD) has surged past the $51,000 mark, a significant milestone in the cryptocurrency world. The recent rally has sparked optimism and solidified the belief that we are amid what some may call a 2024 crypto bull market. In the midst of this surge, several mining companies are expected to reap the benefits, and one of these is none other than Bitfarms (NASDAQ:BITF).

Optimism in the Air

Bitfarms has distinguished itself by mining Bitcoin at a cost much lower than its current trading price. Not only is the company primed to benefit from the upcoming halving event, but it is also expected to be positively impacted by potential Federal Reserve rate cuts. Additionally, the anticipated approvals of spot Bitcoin ETFs could pave the way for increased capital inflows, further enhancing the overall outlook for Bitcoin mining operations.

Fortune Favors the Bold

Many crypto miners have been amassing Bitcoin, anticipating further price appreciation, and the current landscape suggests that Bitfarms is in an advantageous position to rake in substantial profits. With the upcoming halving event scheduled for April and a potentially constructive macro backdrop, Bitfarms could potentially witness monumental gains over the long haul.

The Great Unknown of Speculative Assets

Investing in speculative assets such as Bitfarms comes with its own set of challenges, primarily due to the unpredictable nature of cryptocurrency prices. Forecasting revenue or earnings is a complex task, heavily reliant on the trajectory of Bitcoin. However the company appears to be a promising crypto mining investment, aligning with what could potentially kick off a tremendous multi-year Bitcoin bull run.

Transparency and Responsibility

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.