Penny stocks can be intriguing due to their low share price and potential for high returns. These stocks trade for less than $5 per share, and have small market capitalizations. These companies often operate in emerging industries with high growth potential.
However, penny stocks carry significant risks, as not all businesses will be successful. Here are two penny stocks that are rated “strong buys” in the analyst community, and could be appropriate for investors with a diversified portfolio and a high-risk tolerance.
