As an investor, it is essential to have a diverse range of stocks within a portfolio. Penny stocks may not make up most of someone’s holdings, but they are a crucial investment addition. They are prone to massive volatility swings from news events, downgrades and upgrades, product approval, and earnings. But penny stocks with solid potential can become very profitable when they break out.
I believe the following three are poised to perform well as they continue to build up momentum for a potential breakout.
Penny Stock Breakouts: Ardelyx (ARDX)
Ardelyx (NASDAQ:ARDX) is a biopharmaceutical company that offers medication to treat irritable bowel syndrome and is in the development stage on drugs to treat chronic kidney disease and metabolic acidosis.
In late 2022 the investment bank Piper Sandler raised its price target for Ardelyx from $3 to $8. In addition, the FDA advisory committee voted to favor Tenapanor as a monotherapy for irritable bowel syndrome. As a result, total revenue for the company skyrocketed by 43-fold to $44 million. And EPS went from -$0.31 to $0.06 in Q4 2022. Their flagship product, the brand name Ibsrela has seen $16 million in sales for all of 2022 and $9 million in Q4 alone.
Ardelyx has seen over 65% growth in its share price YTD, with its flagship medication being very profitable and multiple other therapies in the pipeline. As a result, the company is poised for a bright future.
B2Gold (BTG)
B2Gold (NYSE:BTG) is a gold producer in Vancouver, British Columbia. In addition, the company has multiple operating mines in Africa and Asia.
B2Gold and other gold stocks have been more popular lately due to the spike in inflation. Investors hedge against rising inflation by diversifying their portfolios into other assets such as gold and commodities. For example, in February, they acquired all issued and outstanding shares of Sabina Gold & Silver Corp. (OTCMKTS:SGSVF), which has mining operations in Nunavut, Canada. B2Gold also agreed in March with Snowline Gold Corp. (OTCMKTS:SNWGF), another gold mining company, to purchase approximately 4 million shares of common stock.
The company’s gold production reached a quarterly record of 367,870 ounces. Net income rose by 15% in the fourth quarter.
B2Gold has been expanding its gold production capacity. It has also gained assets from its recent acquisition and stake within Snowline Gold Corp. With gold prices near all-time highs, BTG is a stock to pay attention to.
Nuvve Holding (NVVE)
Nuvve Holding (NASDAQ:NVVE) Is a company that focuses on green energy technology by supplying electric buses and similar vehicles with charging solutions through their vehicle-to-grid (V2G) technology.
The company reported its most recent earnings release in March, and they have expanded its electric grid services in North America and Europe. Nuvve cut their net loss for the fourth quarter by nearly $2 million on revenue that remains virtually unchanged compared to Q4 2021.
The expansion and increased adoption of electric vehicles (EVs) allows companies like Nuvve to see substantial growth over time with continued improvements to its V2G) technology and a growing customer base. Thus, it could be among the top penny stock breakouts.
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, Noah Bolton 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.