3 Penny Stocks to Buy That Can Triple Your Money in the Next 12 Months

When it comes to discussing the best penny stocks to buy or invest in, it’s crucial not to be deceived; this sector poses significant risks. It’s not only the potential for substantial losses that should concern you but also the accompanying psychological distress caused by being in the red. Remember, it’s imperative not to invest more than you can afford to lose.

While penny stocks often carry a reputation for being inherently risky, it’s important to recognize that they are not all the same. Many of these stocks indeed present significant risks, and even those with promising potential can exhibit considerable volatility before aligning with their underlying narratives. Nevertheless, it’s worth considering the speculative ideas endorsed by analysts. The following stocks not only receive bullish assessments but also boast average price targets suggesting a remarkable growth of at least 200% or 3X returns within the next year. Assuming you’re up for the challenge, below are a few penny stocks worth considering.

What are penny stocks?

Penny stocks refer to shares of small publicly traded companies listed on stock exchanges with values less than ten cents. These securities are not widely traded and their potential gains typically rely on sudden surges in market volatility. However, due to their limited liquidity, investing in penny stocks can be inherently risky. Here in this blog, we will let you know about some of the best penny stocks to buy now 2023.

How to find penny stocks?

Before in a penny stock, it is imperative for investors to diligently conduct comprehensive due diligence. Dedicate ample time to meticulously researching the company to make an informed investment decision.

Experience paper trading – a simulation method to practice buying and selling stocks without real money. Consistently monitor your investments, selecting equities from the over-the-counter (OTC) market. Beware of equities on the Pink Sheets, as they are prone to manipulation.

Avoid engaging in pump-and-dump schemes and steer clear of penny stocks that lack liquidity. It is important to understand the opportune moment to sell your penny stock and capitalize on potential gains. Remember to only invest disposable income in penny stocks.

3 Best Penny Stocks to Buy

Here is the list of the best penny stocks to buy now that can double your money in the upcoming 12 months.

1. Gold Royalty (GROY)

Gold Royalty (NYSEAMERICAN: GROY), headquartered in Vancouver, British Columbia, Canada, is exactly what its name suggests – a firm specializing in precious metals royalties. Through royalty contracts, mining operations provide a percentage of their metals production or revenue to the other party involved. In return, the miner receives an upfront payment. Fundamentally, these arrangements offer business predictability, making GROY an intriguing choice for penny stock investors to consider.

Investing in Gold Royalty shares has become increasingly risky. Their value has significantly plummeted, with a staggering decline of over 42% since the start of this year and an alarming drop of more than 71% in the past five years. To complicate matters further, the Federal Reserve’s hawkish monetary policy adds another layer of uncertainty.

Notably, the company’s financials aren’t quite impressive. Over the past 12 months, Gold’s revenue has reached $2.68 million, showing a decline of 32% compared to its fiscal year 2022 performance. Nevertheless, analysts unanimously consider GROY a strong buy, with an average price target of $4.32 over the next 12 months. This suggests an astounding potential for upside growth, precisely at 200%.

2. LuxUrban Hotels (LUXH)

LuxUrban Hotels (NASDAQ: LUXH) presents an intriguing proposition for potential penny stock investments. With a focused strategy, LuxUrban is strategically assembling a robust portfolio of top-notch hotel assets in major metropolitan areas across the United States, as highlighted on their website. Specifically catering to both business and leisure travelers, LuxUrban targets the professional and higher-income demographic. The company is rapidly gaining traction and poses an enticing opportunity for those seeking high-quality penny stocks to buy.

Remarkably, in just the span of this year, LUXH has witnessed a staggering 85% surge in its equity value. This remarkable upswing can be attributed, in part, to the enduring allure of revenge travel. Essentially, consumers have given precedence to fulfilling the wanderlust that was thwarted by the pandemic, valuing such experiences over material possessions. Despite recent fissures in the consumer economy, people continue to prioritize indulging in well-deserved vacations.

Is this trend going to continue? Well, if you’re speculating on LUXH, you better hope so. There’s no denying that LuxUrban is a powerhouse in terms of growth. However, it’s crucial for them to demonstrate a credible path to profitability in the near future. Nevertheless, industry analysts have immense faith in LUXH, unanimously recommending it as a buy according to three expert voices. Moreover, their average price target for the next 12 months sits at $9.33, implying an impressive upside of 204%.

3. Verastem (VSTM)

Again, one of the best penny stocks to buy in 2023. Many Wall Street analysts tend to focus on the biotechnology sector when endorsing penny stocks. A significant breakthrough or a promising therapeutic can greatly propel a biotech company’s trajectory. Could this be the case for Verastem (NASDAQ:VSTM)? It appears to be off to a promising start. Since the beginning of January, VSTM has nearly doubled, showing a remarkable 96% increase. However, it is important to note that the stock is still undervalued, considering its slight decline of approximately 29% over the past year.

Verastem, driven by its mission, strives to offer alternatives to cancer patients who exhaust their treatment possibilities. With a specific focus on RAS proteins, a critical element in normal development, the company aims to tackle mutations in the RAS gene family, which contribute to nearly 30% of all human cancers. Verastem’s groundbreaking approach holds the promise of becoming a potential lifeline for those in need.

Similar to other biotech penny stocks to buy, VSTM is associated with a financially challenging profile. Therefore, investing in VSTM involves embracing a narrative. Nonetheless, industry analysts unanimously rate VSTM as a strong buy, supported by five experts. Additionally, the average price target of $31.70 indicates a potential upside of nearly 222%.