Speculative stocks will always be intriguing for investors. The thrill of identifying cheap shares, investing and striking it big will never go out of fashion. These penny stocks to watch each have the potential to multiply investor capital. That doesn’t mean investors should rush in with reckless abandon. Companies that trade for less than $5 are notoriously volatile and difficult to predict.
That’s why investors should follow the general rule of investing 10% or less of their capital in speculative investments.
That caveat aside, investors who chase growth are best positioned to reap the rewards of today’s hot industries. The companies discussed here span from electric vehicles to flying cars, and the basic materials used to produce both. Let’s take a look at these penny stocks to watch and what $1k invested in each has the potential to become.
VinFast (VFS)
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VinFast (NASDAQ:VFS) is a Vietnam-based manufacturer of electric vehicles. The company produces battery powered SUVs, scooters and buses. This option among penny stocks to watch has the potential to multiply investor capital rapidly.
While some metrics surrounding the company make it incredibly attractive, there is also highly evident risk associated with an investment. For example, take the fact that deliveries increased by 444% in the first quarter while revenues jumped up by 269%. Most investors, apprised of those truths, would perk up.
However, also consider that Vinfast shares traded for $82 when they peaked in August of last year. They now trade for less than $3. That makes it difficult to ascertain what to make of VFS shares. Analysts currently believe those shares are worth roughly $10 per consensus estimates.
Most investors would be thrilled to triple their investment. It looks like that’s possible. Beyond that, VinFast is interesting because it represents the fast-growing Vietnam economy. That’s where most of the firm’s sales continue to originate from. However, VinFast has also established dealerships in the United States and expects sales to ramp up in the second quarter, making it even more interesting.
Archer Aviation (ACHR)
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Archer Aviation (NYSE:ACHR) a well-known flying car stock. The emergent sector has garnered lots of attention of late. It’s currently expected that flying cars will take to the domestic skies in 2025. They are already flying in some capacity in China at present. Companies including Archer Aviation — leading the sector — have massive potential period.
JPMorgan analyst Reginald Smith rates the company a “Buy,” assigning a price of $8 to the stock. That price actually coincides with the low forecast for Archer Aviation’s shares moving forward.
The company is essentially contending with regulatory approval. Once Archer Aviation attains full certification and commercializes there is reason to be optimistic. The company benefits from an order book for 700 vehicles. Robo-taxi services are anxiously awaiting that approval. The United Arab Emirates will launch such a service upon certification. Is Archer Aviation risky? Definitely. Yet, investing in such risk is the way to double or triple your money in the stock market over a short period of time.
Lithium Americas (LAC)
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Lithium Americas (NYSE:LAC) stock continues to be full of potential despite its many issues. Let’s start with the most recent news and work backward from there.
The most important piece of news is that the company recently offered an additional 55 million shares of stock to the public at $5 a piece. Investors never like dilution and it is no different in this case. Lithium Americas needs additional funding to continue developing Thacker Pass.
The news comes roughly one month after Lithium Americas announced that it received a conditional loan from the U.S. Department of Energy valued at $2.26 billion.
The company will begin extracting significant amounts of lithium sometime in 2026. The recent additional capital raise combined with the time to commercialization represents real risk to be sure.
Yet, Thacker Pass remains one of the largest proven lithium resources globally and the largest in the west. Investing in LAC shares is clearly a bet, but one that investors should be able to recognize for its inherent value geopolitically.
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, Alex Sirois 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.
