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Top 6 Hot Penny Stocks Who Make The Most Money

Aria Thomas

Apr 20, 2022 16:16


When searching for penny stocks to purchase, conduct your homework and invest only in firms that fit your investment plan. 

Bear in mind that you should diversify your portfolio to avoid placing all of your eggs in one basket. 

This might be as simple as a stop loss if you're trading short-term or swing. However, if you're trading for the long term, you may choose to set price objectives and exit/entry points.

What Are Penny Stocks?

Penny stocks are tiny company shares that often trade for a fraction of the money of bigger company shares. Despite its name, the phrase "penny share" refers to any stock worth less than $5. While a penny stock may be traded over-the-counter (OTC), many are also traded on SEC-regulated exchanges such as the New York Stock Exchange (NYSE).

Due to the simplicity with which penny stocks may be manipulated, they have traditionally been fraud and artificial price inflation targets. The "pump and dump" scam is one of the most common types of penny stock fraud. During a pump and dump, marketers who own shares of a specific investment purposefully circulate incorrect or misleading information about the firm that issued the stock, causing the stock's price to spike dramatically. After the price has increased, the holders "dump" the stocks at inflated prices to individuals who have become interested in the stock due to the news.

The growing popularity of social media platforms such as Twitter and Facebook has resulted in an upsurge in pump and dump operations, particularly when penny stock news floods the market. It is more critical than ever for investors to do due research before purchasing. Indeed, you may identify penny stocks to monitor even if you're not persuaded they're a smart investment at the moment.

Penny stocks are also enticing to investors due to their greater volatility than the market average. Volatility is a term that refers to the frequency and magnitude with which a stock's value increases or decreases throughout a typical trading day. For instance, the finest penny stocks under ten cents may skyrocket, but they may also collapse. You are taking a risk, but the potential returns are enormous.

Due to the high volatility, there is enough opportunity for profit while buying and selling penny stocks. For instance, if you purchase 1,000 shares of Stock X at a price of $1 and sell them at a price of $2, you will have doubled your money and made $1,000. However, it is easy to lose money fast because of this extreme volatility. When you discover penny stocks to purchase immediately, you may also need to supervise your account and/or sell at the same time.

Consider the Following When Purchasing Penny Stock

Not all penny stocks are created equal, and Penny stock trading is inherently dangerous — but you may minimize your exposure. When looking for penny stocks to purchase today, look for the following five characteristics:

Trades on a major exchange: The majority of penny stocks are traded over-the-counter (OTC) or through the OTC Bulletin Board. While these shares are sometimes very inexpensive (frequently trading for pennies on the dollar), they also enjoy far lesser levels of control. If this is your first time purchasing penny stocks, start by looking for stocks on larger exchanges such as the NYSE or NASDAQ. Stocks listed on these exchanges must adhere to the Securities and Exchange Commission's minimal standards, which significantly minimizes the probability that you'll become a victim of fraud.

The business seems to be legitimate: Any business you invest in needs more than a Facebook page or social media account to have an online presence. Consult the press for corporate information and even do a search for customer evaluations. This sort of information enables you to determine if the business is worth your time and money. While OTC penny stocks are alluring, investors must ensure that the firm is not only genuine but also sustainable.

Find the catalyst: You must first understand why the stock is increasing in the first place. Look for a product release or other significant event that will provide insight into why the price is growing or decreasing. While doing research on the organization, you may come across an instance of the aforementioned "pump and dump" scam. You may make money if you buy in and exit promptly. If you are unprepared for this kind of trick, you risk losing your money.


A high daily trading volume: Numerous investors seek high volume penny stocks with the expectation of profiting from swing or day trading. However, some individuals overlook the fact that in order to sell a stock, there must be someone eager to purchase it. Utilize a stock screener to identify penny stocks that trade at a greater average daily volume. A bigger volume will enable you to sell your stocks at your leisure — not at rock-bottom rates.

Positive earnings per share: The earnings per share (EPS) value of a stock is equal to the company's current profits divided by the number of shares outstanding. If feasible, seek a stock with positive earnings per share (EPS) figure - this suggests that the firm is profitable at the moment.

Due to the fact that the majority of penny stocks represent more minor or recently founded companies, this may not always be achievable. If you decide to invest in a stock with a negative earnings per share (EPS) value, make sure that the company has a reasonable debt.

Is It a Good Idea to Invest in Penny Stocks?

Investing in penny stocks may be a thrilling experience. With a diverse variety of sector alternatives, increased volatility, and hundreds of stocks priced under $20, it's simple to understand why so many investors are attracted to the potential represented by penny stocks. However, it's critical to make in mind that penny stocks are very hazardous – and should never comprise the bulk of your portfolio.

Avoid succumbing to the misleading narrative that Apple and Microsoft were formerly penny stocks. That is completely untrue. Microsoft's first public offering was priced at $21.00 — in 1986. Bear in mind that whole market and index funds are tested and accurate, but a collection of penny stocks is not. This will allow you to flourish while still safeguarding your future.

However, do not be scared to invest in a few quality penny stocks and hope they appreciate in value. Keep a careful eye on these stocks to ensure you can sell them immediately if they fall or increase sharply. While a stop-loss order may help you avoid losses, a stop-limit order can help you profit quickly.

Risks associated with penny stock trading

Penny stocks with significant risks in comparison to common stocks. Among the risks are the following:

Penny stock companies are small. 

The majority of publicly listed companies are significant enterprises with a clear demonstration of their worth, which generally varies from hundreds of millions to a trillion dollars or more. In comparison, firms that issue penny stocks are often rather small, with even the most extensive penny stock company being valued at far under $100 million.

Penny stock businesses have not been validated.

It is uncommon for firms that you are already familiar with to be included in the ranks of penny stocks. Rather than that, penny stocks are often those of smaller, less established businesses that have yet to demonstrate their ability to survive and prosper.

Penny stocks are not traded publicly.

Many largest stock exchanges like The New York Stock Exchange (NYSE) and the Nasdaq Stock Market do not list penny stocks. Rather than that, penny stocks are often traded over the counter or OTC, and companies whose stock stocks are on the OTC market have less stringent reporting requirements than those listed on the NYSE or Nasdaq. Buying and selling penny stocks efficiently may also be challenging since stocks are less often traded and more illiquid, implying that broad shares between the bid and ask prices are prevalent.

Pump-and-dump scams sometimes target penny stocks. 

Con artists often target penny stock investors by marketing a penny stock firm as the next hot thing in investing. Creating a buzz around a penny stock may artificially inflate its share price, and the price rise can be claimed as proof of the company's success. After the stock price climbs, the fraudsters often sell (dump) their shares and cease advertising the stock. Typically, the share price subsequently collapses precipitously, resulting in substantial losses for late-arriving investors who bought the hype.

Hot Penny Stocks to Consider

1. Inpixon (INPX)

Inpixon delivers location-based services and big data analytics to a global customer base from its headquarters in Palo Alto. It provides a range of sensor solutions that enable customers to improve interior areas via Wi-Fi and Bluetooth connectivity. The company has a market valuation of almost $37 million and 220 workers led by CEO Nadir Ali.

The price has dropped over 80% within a year, from over $1.20 to its current figure of $.024. Therefore, why should we invest? To be sure, many people dismiss Inpixion as a dud stock. However, the price has dropped so low that Inpixon may be worth a minor investment as part of a balanced portfolio. It will only take a little price fluctuation to generate significant proportionate returns for the investor.

Critically, some critical factors indicate that Inpixon is significantly undervalued. Revenues have climbed from $3 million to $16 million during the last four years, and INPX sales increased 15% in Q4 2021. And analysts WallStreeenZen make no apologies: 'INPX ($0.24) is considerably undervalued by 65 percent compared to our estimate of its Fair Value price of $0.69,' they write.

2. DiDi Global Inc. (NYSE: DIDI) 

DIDI stock was one of the day's biggest gainers on April 13th. At EOD, shares of DiDi Global increased by more than 3%. While this may not seem to be a significant increase, it contributes to the company's month-over-month rise of more than 44 percent.

DIDI stock has lost more than 69 percent of its value during the last six months. While this is disappointing for investors, the stock's recent swings indicate a positive reversal. To fully appreciate why DIDI stock is surging at the moment, we need to take a deeper look at the firm. The company's most recent statements concern its possible delisting from US exchanges.

With Beijing presenting a threat to Chinese firms listed in the United States, several investors have expressed concern about the future of DIDI stock and comparable companies. However, these anxieties have mostly subsided in recent months, resulting in good momentum for DIDI. Therefore, although it is difficult to determine if DIDI stock is worth purchasing given its high volatility, it may be worth adding to your list of penny stocks to monitor.

3. Sunworks Inc. (SUNW)

Sunworks is a solar energy firm based in Roseville, California. The company distributes solar systems to local industrial and agricultural businesses.

Sunworks employs approximately 500 people and has a market capitalization of $66.5 million; this is a high staff-to-market capitalization ratio, indicating that reorganization may be one of many options for increasing firm profitability.

Between 2020 and 2021, total Sunworks sales climbed by more than 150 percent, from $37.9 million to $101 million. However, this had no influence on the stock price, which has been continuously decreasing since hitting a high of approximately $25 in January 2021. Since the third week of February 2022, the price has remained over the $2 barrier, rising substantially from a low of $1.72 on March 24th. For this time of writing, one Sunworks share is trading at $2.24.


The excellent news for Sunworks is that a potentially fatal California Public Utilities Commission (CPUC) order known as NEM 3.0 has been suspended indefinitely. The NEM would have imposed additional taxes on solar users and cut rebates for surplus solar generation.

Finally, investing in Sun work is a gamble on a tiny solar energy firm with questionable management and financial performance. However, this is a volatile stock with excellent short-term potential; on March 8th, the stock price jumped past $5 during market hours before falling to $3.76 at the end of the business. Purchase now at $2.24 for a short-term bet on potential positive news in the solar energy industry.

4. Transocean Ltd. (NYSE: RIG)

Transocean is a penny stock that we have discussed several times in recent months. And today, shares of RIG stock jumped more than 4% at EOD. RIG stock has increased by more than 9% and 15% during the last month and six months, respectively. This demonstrates the bullishness around the energy business in general and fossil fuels in particular at the moment.

If you're unfamiliar with the company, Transocean is one of the world's major offshore drilling companies. The firm operates in a number of nations worldwide, including the United States, Norway, Scotland, and India. The firm just announced that it would issue its Q1 2022 financial report on May 3rd. Earnings reports are always critical for investors to examine since they provide insight into the health of a business.

5. Lucky Block (LBLOCK)

Before we begin, it's essential to mention that Lucky Block is a cryptocurrency, not a stock. However, this asset is one of the hottest in the sector at the moment, with huge development potential.

LBLOCK is the governance token for Lucky Block, a blockchain-based gaming platform that is generating significant excitement in the technology community. Lucky Block aims to fundamentally alter the way online games are played.

Because the platform is available to everybody around the globe, it has a large market. Additionally, it utilizes blockchain technology to increase transparency and justice. Transactions are plainly visible and trackable, and the game's records are accessible to everyone.

Earlier this year, Lucky Block launched the LBLOCK token on PancakeSwap — a leading decentralized cryptocurrency exchange. Since then, the asset's value has soared to an all-time high of $0.0092. There has been a 76.9 percent increase in the last month alone.

LBLOCK currently has a lot of potential, and it is one of the most promising cryptocurrencies available. Additionally, you may join the Lucky Block Telegram group to get all of the newest developments.

6. Arrival SA (NASDAQ: ARVL)

Arrival SA (NASDAQ: ARVL) is another penny stock that investors are closely monitoring at the moment. Arrival SA is an electric car manufacturer headquartered in the United Kingdom. ARVL stock is in the spotlight today after gaining over 2.6 percent. One of the primary reasons for this is that investors are becoming more aware of stocks based on renewable energy.


With the price of oil and gas skyrocketing in recent weeks, many investors have shifted their emphasis to environmentally conscious enterprises. This covers persons employed in the electric vehicle sector and others. Arrival has just begun manufacturing electric buses in the United Kingdom, where demand for these goods is quite strong.

And, despite the fact that Arrival SA has ceased manufacturing electric buses at its Rock Hill facility, many remain optimistic about the future of Arrival SA and its electric cars. Rather than expanding its Rock Hill Factory, the corporation asserts that the increasing demand in the United Kingdom makes it more practical to maintain local manufacturing. Therefore, given the high level of interest in EV penny stocks, should ARVL be added to your watchlist or not?


Stock market trading is an excellent way to earn money and make financial stability. There are several alternatives available to investors seeking the best penny stocks to purchase right now; you can begin by looking at some of our suggested selections above.


What are Penny Stocks and How Do They Work?

Penny stocks operate similarly to other types of stocks, and each penny stock is equivalent to one share of a corporation. Investors may make penny stocks and sell them at a profit if the stock price increases; however, determining whether to sell penny stocks is a complex choice that must be made independently.

Is it possible to get wealthy investing in penny stocks?

While penny stocks will not make you wealthy, they may help diversify your portfolio. At times, businesses emerge from bankruptcy or financial difficulties only to soar to the ranks of penny stocks. Additionally, you may make some astute transactions when penny stocks unexpectedly surge, providing an opportunity for a rapid profit. However, you cannot get wealthy only via penny stocks. Each portfolio should be varied, including a few penny stocks and a variety of other assets.

Are Penny Stocks a Good Investment in April?

The answer to the question of whether penny stocks are worth investing in is very subjective. Penny stocks might be an excellent option for some investors to make a fast profit, and they may be an extremely hazardous method to lose your whole investment for others.