5 Penny Stocks That Actually Make Money

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Penny stocks are an interesting investment opportunity. While picking the right stocks in this category can produce meaningful gains, these stocks come with risks. In fact, only about one in every 1,000 penny stocks will ever grow to become a mid-cap, large-cap, or blue-chip company.

The risk associated with these stocks is simple to understand. They typically represent small companies in the early stages of development. Many of these companies are pre-commercialization, meaning they rely on investor funding to stay afloat. If development stalls, funding dries up, or the company otherwise fails, those who invest in it will lose money.

On the other hand, some penny stocks represent profitable companies. While investing in these doesn’t alleviate all of the risk associated with investing in the penny category, it can help alleviate some of the risk. Find five penny stocks that actually make money below.

Key Points

• Penny stocks are risky because they represent small, underdeveloped companies, many of which aren’t profitable.
• There are some profitable penny stocks, and investing in those over their unprofitable counterparts could help you mitigate risk as you invest in this category.
• DLNG, EM, GHG, GETY, and ATUS are all penny stocks that actually make money.
• Do you want to earn more on your investments? Learn about an opportunity that could become the next NVIDIA here.

5 Penny Stocks That Actually Make Money

Profitability isn’t guaranteed with any company. However, in the penny stock arena, it’s relatively rare. Nonetheless, some penny stocks represent profitable companies. Some of my favorites include:

Dynagas LNG Partners Charters Its Way to Profits

Dynagas LNG Partners (NYSE: DLNG) is an American holding company that owns a fleet of high-performance liquid natural gas (LNG) carriers. The company charters its LNG carriers to international energy companies under multi-year contracts. That’s important because these multi-year charters give Dynagas LNG Partners the benefit of steady, reliable income and predictable profitability.

Not only is Dynagas LNG Partners a profitable company, but the only analyst weighing in on the stock expects those profits to climb this year. Last year, DLNG reported $0.66 in earnings per share (EPS). The analyst says that the company’s EPS for 2024 should come in around $1.10, suggesting that earnings can nearly double this year.

It’s also worth noting that the analyst weighing in on DLNG has rated the stock a Buy and set the price target at $4.50 per share. If the stock does climb to that price over the next year or so, those who invested in it now will have realized more than 18% gains.

Smart Share Global

Smart Share Global (Nasdaq: EM) is a Chinese company that has made a profitable business out of mobile phone charging stations. To be fair, the company’s charging stations can be used to charge just about any mobile device. And those stations are strategically placed at various points of interest around China. Those points of interest include restaurants, shopping centers, and more. So, how does Smart Share Global earn money?

The company earns money in a few ways:

• Charging : Smart Share Global charges a nominal fee for users to charge their devices at some of their charging stations.
• Advertising : Smart Share Global offers advertising services at its charging stations.
• Sales : Smart Share Global sells charging solutions online. The company may also generate revenue through business owners who want to deploy Smart Share Global’s point-of-interest charging solutions within their establishments.

This business plan seems to be working, as the company achieved profitability last year. In 2023, EPS came in at $0.04. But analysts expect those earnings to climb. At the moment, two analysts are weighing in on the stock. Between them, they expect Smart Share Global to generate $0.49 per share in 2024 earnings. If that’s the case, the company will have grown its earnings by more than 12 times in 2024.

Both analysts weighing in on Smart Share Global have a positive opinion of the company. Both rate it a Buy, and the consensus price target is $12.61 per share. That price target represents the potential for significant growth, as the stock is currently trading for well under $1 per share.

GreenTree Hospitality Group

GreenTree Hospitality Group ( NYSE: GHG ) is a Chinese hospitality company that owns, operates, and franchises GreenTree Inn brand hotels across China. That business model has proven to be profitable for the company.

Looking into the company’s earnings history shows that it produced profits in the past six out of seven years. While only one analyst is weighing in on the stock at the moment, they expect profits to grow meaningfully in the year ahead. While GreenTree Hospitality Group earned $0.37 per share in 2023, the analyst covering the stock expects EPS to come in at $3.75 this year. If that’s the case, earnings will have grown by about 10 times in 2024.

But it’s worth noting that something seems off about that analyst’s opinion. While they rate the stock a Hold, they have a price target of $30.36. That significant price target coupled with strong earnings expectations should make GreenTree Hospitality Group a screaming Buy.

Getty Images

Founded in 1995, Getty Images ( NYSE: GETY ) isn’t necessarily a young company. It has been serving customers for nearly three decades. In fact, if you work in the publishing industry, there’s a high likelihood that you already know about the company, as it’s a well-known brand in the space.

So, how does Getty Images make money?

Getty Images is a user-generated image-sourcing platform. That means photographers and artists upload images or videos to the website of the pictures they’ve taken or the artwork they produce. The website then licenses those images and videos to publishers for a nominal fee. When a publisher pays to license an image or video, Getty Images pays a royalty to the photographer or artist behind the work ranging from 15% to 45% of the revenue generated by the license. The company keeps the percentage of the sale it doesn’t pay out in royalties.

Over the years, Getty Images has bounced into and out of profitability. For example, in the past four years, it has had two years with profits and two with losses. Nonetheless, the company generated $0.05 EPS in 2023, and analysts expect those profits to grow this year. The average among seven analysts currently weighing in on the stock suggests earnings per share should grow to $0.19 this year.

Four of those analysts rate GETY a Buy, while three rate it a Hold. The median price target on the stock currently stands at $6.00 per share, representing the potential for meaningful growth ahead.

Altice USA

Altice USA ( NYSE: ATUS ) is an American telecommunications company that serves nearly 5 million customers across 21 states. The company offers internet, cable, landline phone, and mobile phone services and has been profitable in doing so since 2017.

According to analysts, those profits may continue. The average among 20 analysts weighing in on the stock suggests that earnings per share will come in at $0.26 this year. If that’s the case, it would represent significant growth over the company’s $0.12 EPS it produced in 2023.

It’s worth mentioning that analyst opinions are relatively mixed. Five of the analysts weighing in on the stock rate it a Buy, nine rate it a Hold, four rate it an Underperform, and two rate it a Sell. However, the median price target is $2, suggesting that there’s still room for meaningful growth.

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