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Penny stocks are an interesting category to follow. These relatively young companies can be risky to invest in. But picking the right penny stocks early on can lead to meaningful long-run growth.
One way penny stock investors choose their picks is by looking into analyst opinions. In particular, they often look for stocks that analysts believe have the potential to grow earnings significantly. Find five penny stocks that analysts expect will grow earnings by over 300% this year below.
Key Points:
- Penny stocks are risky but they can produce meaningful profits.
- Getty Images, HUYA, Dingdong (Cayman), and Waterdrop are all expected to grow earnings by over 300% this year.
- If you’re looking for some stocks with huge potential that could be fantastic growth opportunities, make sure to grab a free copy of our brand-new “The Next NVIDIA” report . It features a software stock we’re confident has 10X potential.
Know the Risk
Before we get into the penny stocks analysts expect to grow earnings by over 300% this year, it’s important to discuss risk. Penny stocks are typically young or small companies that haven’t proven themselves stable. As such, there’s a high probability that the companies represented by these stocks can fail. You should only invest in penny stocks if you have a high risk appetite.
Getty Images Is the Picture of Penny Stock Earnings Growth
Getty Images ( NYSE: GETY ) is a go-to source for publishers to find quality royalty-free images. Those images are uploaded by users who earn a percentage of the profits when rights to their images are sold. Analysts seem to expect strong earnings growth out of the company ahead.
For 2023, Getty Images produced $0.05 in earnings per share. However, according to the average among seven analysts weighing in on the stock, the company is expected to earn around $0.19 per share this year. If analysts are correct, Getty Images will grow earnings by around 380% this year.
It’s also worth noting that of the seven analysts weighing in on Getty Images, four rate it a Buy, while three rate it a Hold. Plus the $6.03 price target represents the potential for significant price growth ahead.
HUYA Can Help You Create a Stream of Growth
Huya ( NYSE: HUYA ) is a Chinese game streaming company that has seen remarkable growth as of late. And, if analysts are correct, that growth is likely to continue.
17 analysts have shared opinions on HUYA stock, and most of those opinions are positive. One such positive opinion has to do with earnings. In 2023, HUYA produced a loss of $0.24 per share. However, analysts expect the company to generate $1.34 EPS this year. That’s significant growth.
When it comes to ratings, nine analysts rate the stock a Buy, three rate it an Outperform, four rate it a Hold, and one rates it a Sell. And with an average price target of $41.89, analysts expect to see significant growth in the stock ahead.
Dingdong (Cayman) May Deliver Meaningful Profits
Dingdong (Cayman) (NYSE: DDL) is a Chinese delivery service that delivers food and other goods to users at their homes, offices, or wherever else they may be. The company is experiencing strong growth, which seems to be leading to positive analyst opinions.
At the moment, six analysts are weighing in on the stock. Between them, they expect the company to produce $1.23 in earnings per share this year. If the company achieves such earnings, it will represent significant growth, as it lost $0.06 last year.
Analysts don’t just have a positive opinion surrounding earnings growth either. Of the six analysts weighing in, three rate the stock a Buy, one rates it an Outperform, one rates it a Hold, and one rates it an Underperform. The average price target on the stock is $15.90, suggesting that there’s potential for strong price growth ahead.
Waterdrop Could Produce Meaningful Earnings Growth This Year
Waterdrop (NYSE: WDH) is a Chinese insurance technology platform. The company specializes in crowdfunding insurance and other healthcare needs, and that business model seems to be paying off.
At the moment, four analysts are weighing in on Waterdrop shares. Between the four, they expect the company to produce $0.80 earnings per share in 2024. That’s an impressive expectation considering earnings per share came in at just $0.10 in 2023. So how do the analysts weighing in on the stock rate it?
Two of the four analysts rate the stock a Buy, while the other two rate it an Outperform. There are no Hold or Sell ratings to speak of. The average price target is $13.38 per share, setting the stage for tremendous potential growth ahead.
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