Undervalued penny stocks to buy stand out as potential goldmines, ready to offer robust returns for audacious investors. Despite macroeconomic headwinds, the S&P 500 has shown resilience, trending higher by 13.8% year-to-date. Amid the market’s ups and downs, numerous growth and penny stocks have delivered relatively strong returns. Now, as we enter the second half of the year, it’s time to delve into the best penny stocks for June. These are the potential hidden gems brimming with long-term potential. From cheap penny stocks to those with the potential for high returns, these securities could easily double in the next 12 months.
EVgo Inc. (EVGO)
EV charging operator EVgo Inc. (NASDAQ:EVGO) recently saw its stock price tumble by double-digits following an announcement to offer $125 million of new stock shares. Despite this stumble, the company’s performance paints an optimistic picture. With a whopping 229% surge in sales year-over-year in the first quarter, In addition, EVgo is making meaningful strides, even as EBITDA losses cast a shadow on the stock price. Moreover, the company’s charging infrastructure is expanding. Beyond the numbers, EVgo is set to receive a $6.6 million subsidy from California, which will facilitate the deployment of chargers across the state. This, coupled with a bright revenue growth forecast for the year, signals a bright outlook for EVgo as we advance.
Diana Shipping (DSX)
Diana Shipping (NYSE:DSX) is sailing ahead as a strong contender in the bustling sea of penny stocks. At the moment, it trades 42% lower than its 52-week high price. In addition, it offers a lucrative dividend yield of over 22.5%. Also, DSX’s core business, providing shipping transportation services through its fleet of dry bulk carriers, is thriving. As of the first quarter, it reported a near-full utilization of 99.4% across 42 vessels.
The firm’s first quarter showcased a 7.2% year-over-year revenue increase, reaching $72.6 million. Coupled with an attractive time charter equivalent rate of $18,503 against a daily vessel operating expense of $5,396, DSX has been cruising towards healthy operating cash flows. Moreover, the company has consistently reduced its liabilities, a trend set to boost its credit metrics and propel DSX stock even higher.
Cronos (CRON)
In the budding landscape of cannabis penny stocks, Cronos (NASDAQ:CRON) is arguably one of the most compelling picks. With a cash war chest amounting to a whopping $836 million, a forthcoming committee vote on a marijuana bill could catalyze a positive uptick in CRON’s stock value, making it an enticing long-term prospect.
Cronos recently announced its departure from U.S. hemp-derived CBD operations to trim costs while maintaining financial agility effectively. This positions the company to re-enter the U.S. market when regulatory conditions are favorable. Additionally, Cronos is looking to achieve positive cash flows by 2024, and the promise of evidence-backed medicinal cannabis in the upcoming years adds another layer to Cronos’ potential growth and long-term growth story. With its well-rounded portfolio covering recreational cannabis in Canada and wellness products in Israel, the firm covers all its bases.
Bitfarms (BITF)
Bitfarms (NASDAQ:BITF) shines as a potent contender in the crypto-verse, potentially multiplying five or tenfold if Bitcoin ascends to unprecedented highs. In May, the company bolstered its mining capacity by a significant 47% year-over-year to 5 exahash per second (EH/s), with plans to further expand to 6 EH/s by the third quarter.
When paired with a Bitcoin rally, this capacity growth heralds a robust prospect of top and bottom-line growth alone with impressive free cash flows for this low-cost Bitcoin miner. Additionally, Bitfarms’ financial health is robust, with a reported liquidity buffer of $41 million as of the first quarter, having reduced its debt load by $140 million over the past 10 months.
With its cost-effective mining operations and robust balance sheet, Bitfarms stands ready to make aggressive growth investments. If Bitcoin continues its upward trajectory, expect Bitfarms to respond with an assertive capacity expansion in 2024.
Kinross Gold (KGC)
Kinross Gold (NYSE:KGC) is one of the top, most undervalued gold mining plays, exiting the first quarter with a robust liquidity buffer of $1.7 billion and an operating cash flow of $259 million. This monetary muscle gives Kinross the ability to pursue aggressive long-term growth strategies. Moreover, with it trading at an enticing forward price-to-sales ratio of 1.48, KGC also offers a dividend yield of 2.47%, adding another feather to its golden cap.
Furthermore, Kinross made the strategic decision last year to offload its Russian assets. The company will likely make acquisitions to bolster its reserves and production profile. Their current asset base guarantees steady production through 2025. Under the golden assumption of gold at $2,500 an ounce, Kinross is positioned to generate annual operating cash flows exceeding $1.5 billion. This hefty cash flow will pave the way for potential dividend growth.
Li-Cycle Holdings (LICY)
Li-Cycle Holdings (NYSE:LICY) is an emerging player in the realm of lithium-ion battery resource recovery, which stands out with its unique offering and early-mover advantage in a sector brimming with long-term growth potential. The growing global market for EVs heralds an increase in battery materials feedstock, which is where Li-Cycle’s patented process comes into play. Li-Cycle boasts the technology to extract essential materials like cobalt, manganese, nickel, and copper from used batteries. This ingenious process fosters cost savings and reduces reliance on mining companies.
With strategic locations, industry partnerships, and a more than $400 million cash reserve, Li-Cycle can see off the construction of its Rochester Hub facility for battery recycling. The addressable market for feedstock is massive, and market analyst BlueWeave expects the global lithium-ion battery recycling market size to grow at a robust growth rate of 14.2%, reaching a whopping $32.41 billion by 2029.
Lumen Technologies (LUMN)
Embarking on a transformative journey, telecom operator Lumen Technologies (NYSE:LUMN) is pivoting from its traditional landline services to the high-speed arena of fiber optics. Steered by a new CEO and a dedicated management team in 2023, this transition aims to offer superior connectivity through amplified fiber optics capabilities and investments in innovative architectures.
Lumen has laid out an ambitious turnaround plan. It anticipates headwinds in sales and earnings until 2024 but is optimistic about growth from 2025 through 2027. The company intends to invest heavily over the next few years, expecting a surge in free cash flow to $300 to $500 million by 2027. With Tipranks analysts projecting an impressive 328.64% upside to its current price, analysts are buying into its promising transformation story.
Penny Stocks
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Muslim Farooque 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