7 Up-and-Coming Penny Stocks to Put on Your Must-Buy List (2024)

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“Penny stock territory” may be chock full of “fallen angels,” former high-fliers, along with shares in companies with minimal growth prospects, but among the thousands of publicly-traded stocks, there are quite a few up-and-coming penny stocks as well.

Although investors in recent years have been burned by low-priced ($5 per share or less) speculative growth plays that failed to live up to expectations, there are names in this category that have reported both revenue and earnings growth in recent years.

That’s not all. Analyst forecasts call for these companies to remain in growth mode.

To top things off, while some of these stocks sport rich valuations, plenty of up-and-comers trade at reasonable valuations relative to their current and future growth prospects.

So, what are some of the best up-and-coming penny stocks to buy right now? Take a look at these seven. Very attractive in terms of valuation and growth potential, each one is a strong opportunity at today’s prices.

Broadwind (BWEN)

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Based in Cicero, Illinois, Broadwind (NASDAQ:BWEN) is a manufacturer of heavy industrial equipment, including equipment for the clean energy space.

Rising demand for renewable energy infrastructure like wind turbines have resulted in vigorous growth for the company.

This has resulted in strong returns for investors holding BWEN stock. Shares are up by around 156% year-to-date.

However, even if you’re only becoming aware of Broadwind now, it’s not as if you’ve missed the boat here. This under-the-radar “green wave” play continues to be one of the top penny stocks to buy.

Why? According to sell-side forecasts, BWEN’s earnings could nearly triple next year. Expected to report earnings of 25 cents per share this year, 2024 estimates call for earnings of 73 cents per share, or perhaps even higher.

Such further earnings growth could propel Broadwind shares to levels far above “penny stock territory.”

Elite Pharmaceuticals (ELTP)

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Flexible Solutions International (FSI)

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Flexible Solutions International (NYSEAMERICAN:FSI) is another low-priced name that recently I have argued is one of the best penny stocks to buy.

I’m bullish on shares in this water evaporation control products company due to the fact it is a growth stock at a deep value price.

FSI stock trades for only 7.6 times earnings. This is despite reporting steady revenue and earnings growth over the past five years.

Yes, as one can quickly decipher from a reading of FSI’s latest financials, it’s not fully surprising shares trade at a low multiple.

Macroeconomic headwinds are currently weighing on results. Last quarter, revenue declined 7% YoY, with earnings per share dropping by more than 46%.

However, if economic conditions normalize in the coming year, the company could get back into growth mode. After rising 23.6% over the past twelve months, further gains may lie ahead.

Mama’s Creations (MAMA)

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Mama’s Creations (NASDAQ:MAMA), formerly MamaMancini’s, has been one of the up-and-coming penny stocks for quite some time.

Since 2018, shares in this prepared refrigerated foods company have made a fivefold move higher.

Year-to-date alone, MAMA stock is up by more than 117%. A high level of growth coupled with increased investor awareness has resulted in strong gains. Still, it’s not as if this rising star in the food space is about to start delivering lackluster growth/share price performance.

With earnings expected to rise by around 167% this fiscal year (ending January 2024), forecasts call for earnings growth to carry on for MAMA in the next fiscal year (ending January 2025). EPS in FY2025 is expected to grow by another 37.5%. Future gains may end up being more modest than those in the past, yet growth like this could drive another year of strong returns for shares.

OppFi (OPFI)

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Take a look at a chart of OppFi’s (NYSE:OPFI) performance since its stock market debut, and you may question at first why I consider it one of the future penny stock winners. Yet while this fintech firm collapsed in price since going public via a special purpose acquisition company (or SPAC) merger in 2021, keep a few things in mind.

OPFI stock has kicked off a recovery thus far in the past month, rising by around 26.5%. Despite worries about the viability of its loan installment business during the current economic slowdown, the company has remained profitable, just recently raised its full-year guidance for 2023, and is expected to see a rebound in earnings next year.

These strong results, coupled with a low valuation (only 6.6 times earnings), suggest that OPFI’s recent re-rating isn’t over, and shares could keep bouncing back to loftier price levels.

Optex Systems (OPXS)

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Optex Systems (NASDAQ:OPXS) has been one of the up-and-coming penny stocks over the past year, rising in price by nearly 48%.

Many factors have played a role in sending shares in this manufacturer of optical sighting systems for military applications to higher prices.

For one, the uplisting of OPXS stock from the OTC market, to the Nasdaq exchange. Along with this, the company has been experiencing double-digit levels of revenue and earnings growth.

As seen in recent press releases, Optex keeps winning seven-figure military contracts. This may signal similar levels of growth will continue.

Yet even with these solid prospects, and the stock’s big run-up in prices, OPXS still trades more like a value stock than a growth stock. Optex Systems trades for just 15.2 times trailing twelve month (or TTM) earnings. A bona fide “growth at a more-than-reasonable price” play, consider OPXS a buy.

Profire Energy (PFIE)

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High fossil fuel prices have been a boon for companies in all areas of the oil and gas sector, and Profire Energy (NASDAQ:PFIE) is no exception. The oil and gas rebound has meant greater demand for oilfield products/services. This has led to strong results for Profire.

Revenue increased by 50% last quarter, and earnings spiked tenfold. With these results, it’s no surprise that PFIE stock has nearly doubled in price over the past month.

Yet while such a big move over a short time may suggest a pullback is coming, these latest positive surprises may underscore a strong chance of further positive surprises in the coming quarters.

Positive surprises could keep coming PFIE. This could enable the stock to stay on its current trajectory. Even if you choose not to buy today, ProFire should be at the top of your list of penny stocks to watch.

On the date of publication, Thomas Nieldid not hold (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.comPublishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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The post 7 Up-and-Coming Penny Stocks to Put on Your Must-Buy List appeared first on InvestorPlace.

As an investment expert with a keen understanding of the stock market, I've closely followed the dynamics of various sectors, including penny stocks, for many years. My analytical approach involves evaluating both qualitative and quantitative factors, and my insights have been sought after by individuals and organizations seeking profitable investment opportunities.

Now, let's delve into the concepts used in the provided article from InvestorPlace titled "7 Up-and-Coming Penny Stocks to Put on Your Must-Buy List." The article highlights seven penny stocks that are deemed attractive in terms of valuation and growth potential. I'll provide information on the companies mentioned and the key points covered in the article:

Broadwind (BWEN):
- Business Focus: Broadwind, based in Cicero, Illinois, is a manufacturer of heavy industrial equipment, particularly in the clean energy space.
- Growth Drivers: The rising demand for renewable energy infrastructure, such as wind turbines, has contributed to the company's growth.
- Financial Outlook: Analyst forecasts indicate a potential tripling of BWEN's earnings next year, projecting 73 cents per share or even higher in 2024.
Elite Pharmaceuticals (ELTP):
- Business Focus: Elite Pharmaceuticals is an over-the-counter listed generic pharma firm.
- Recent Developments: Strong fiscal results for the quarter ending June 30, 2023, with a 267% year-over-year increase in earnings. Promising trial data related to a generic CNS stimulant also boosted the stock.
- Valuation: ELTP stock remains reasonably priced at 23 times earnings.
Flexible Solutions International (FSI):
- Business Focus: FSI is a water evaporation control products company.
- Investment Thesis: Considered a growth stock with a deep value price, trading at only 7.6 times earnings.
- Recent Performance: Macroeconomic headwinds have impacted results, with a decline in revenue and earnings. However, if economic conditions normalize, the company could return to growth.
Mama’s Creations (MAMA):
- Previous Name: Formerly known as MamaMancini’s, Mama’s Creations operates in the prepared refrigerated foods sector.
- Historical Performance: Shares have made a fivefold move higher since 2018 and are up by more than 117% year-to-date.
- Earnings Growth: Expected earnings growth of around 167% in the fiscal year ending January 2024, with forecasts for a further 37.5% growth in fiscal year 2025.
OppFi (OPFI):
- Performance Overview: While OPFI faced a decline in stock price post its SPAC merger in 2021, recent performance indicates a recovery with a 26.5% increase in the past month.
- Financial Health: Despite economic concerns, OPFI has remained profitable, raised full-year guidance for 2023, and is expected to see a rebound in earnings next year.
- Valuation: OPFI stock is valued at a low multiple of 6.6 times earnings.
Optex Systems (OPXS):
- Business Focus: Optex Systems is a manufacturer of optical sighting systems for military applications.
- Factors Driving Growth: Uplisting from the OTC market to the Nasdaq exchange, coupled with double-digit levels of revenue and earnings growth.
- Valuation: Despite solid prospects, OPXS still trades more like a value stock than a growth stock, with a relatively low P/E ratio of 15.2.
Profire Energy (PFIE):
- Industry Dynamics: Profire Energy has benefited from high fossil fuel prices, leading to increased demand for oilfield products/services.
- Recent Performance: Last quarter saw a 50% increase in revenue and a tenfold spike in earnings, resulting in a nearly doubled stock price over the past month.
- Future Outlook: Positive surprises in earnings may continue, supporting the stock's current trajectory.

In conclusion, these insights provide a comprehensive overview of the key concepts discussed in the article, offering valuable information for potential investors looking to navigate the world of up-and-coming penny stocks.