Despite market volatility, these penny stocks to buy show tremendous upside potential
The overarching theme this earnings season is ‘beat and hold.’ Even though the biggest fishes in the stock market will likely surpass consensus estimates, you’re unlikely to see encouraging price action. Hence, amidst subdued market enthusiasm, would it be wise to invest in some promising penny stocks to buy at this time?
Penny stocks tend to be high-risk, high-reward investments, which is the opposite of what investors seek now. Nevertheless, the contrarian investor would sense an opportunity, especially with the current market volatility. Moreover, with multiple rate cuts expected later this year, scooping up penny stocks at the right prices could prove incredibly fruitful. That said, here are three penny stocks to buy offering tremendous upside potential.
Penny Stocks to Buy: Solid Power (SLDP)
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Solid Power (NASDAQ:SLDP) stands out as a frontrunner in the race to commercialize solid-state batteries, a technology often referred to as the forever battery. This innovative battery type has the potential to revolutionize the electric vehicle (EV) and technology sectors, offering superior energy density, charging speeds, safety, and longevity compared to traditional lithium-ion batteries. With the market for solid-state batteries projected to expand significantly in the coming years, Solid Power’s position is one that potential investors should not overlook.
SLDP is perhaps the best bet in taking solid-state batteries to the next level. It has made significant strides over the past few years, delivering A-sample cells for its automotive partners to test. This year, it aims to develop A-2 sample cells, which will deliver greater safety and performance.
What sets it apart from its peers is that it has the backing of major automotive giants such as BMW (OTCMKTS:BMWYY) and Ford (NYSE:F). With the support of these two titans and an emerging EV upstart in SK On, SLDP has the runway to take its project to new heights without worrying too much about cash burn. Additionally, its stock has gained an impressive 18% year-to-date (YTD), having shed more than 23% of its value last year.
Blade Air Mobility (BLDE)
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Blade Air Mobility (NASDAQ:BLDE) is a leading eVTOL player that efficiently navigates the skies above America’s notoriously congested air routes. Through its innovative, asset-light approach, the company has effectively carved out its niche and supports powerful growth trajectories. Unlike most of its peers, it’s not a pre-revenue business, having generated a sizeable $225.2 million in sales last year. Moreover, over the past few years, BLDE has grown rapidly, with its year-over-year (YOY) sales growth at over 54%.
BLDE generates roughly 56% of its sales as the top air transporter for human organ transplants in the U.S. Estimates suggest that this market has incredible long-term potential, potentially becoming a multi-billion dollar industry within the next decade. Moreover, with the company’s expansionary mindset, it’s just scratching the surface with its current sales figures.
Blade Air Mobility’s stock has surged more than 50% in the past six months, buoyed by the positive sentiment surrounding the eVTOL market and the company’s stellar fundamentals. With several eVTOL companies on the cusp of commercial launch in the next year, Blade Air Mobility’s stock is in position to ride this upward trend.
Niu Technologies (NIU)
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Niu Technologies (NASDAQ:NIU) is an innovative EV player hailing from China’s bustling streets. It develops cutting-edge electric scooters, which offer a fresh take in the hotly competitive electric mobility space. It distinguishes itself from its competition through specific innovations in scooter technology, design, and marketing strategies targeting urban commuters. Moreover, its scooters effectively address the last-mile problem while aligning with the global mandate for zero emissions. According to research published in 2019, the last-mile delivery problem in China’s e-commerce market accounts for a sizeable 30% of the total logistics cost.
Like other companies in the EV space, the going has been more challenging over the past year or so. However, Niu’s recent encouraging results point to a return to form. In its first quarter (Q1), its revenues rose to 129,139 electric scooters, a remarkable bump from 94,407 units in the previous year. This growth was fueled by its new models, including the premium flagship NXT, which contributed to 26% of domestic sales and accounted for more than half of total sales.
On the date of publication, Muslim Farooque did not have (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.
