Penny stocks attract speculative investors looking for high-risk/high-reward opportunities. That means looking for companies with disruptive technologies, that are part of an emerging trend, or ones that have a compelling turnaround story. Many of these companies will never survive or scale, but if just one of them delivers, investors can get impressive returns.
For investors who believe strength lies in numbers, MarketBeat offers a tool that lists the 100 Most Popular Penny Stocks. This is based on the number of MarketBeat subscribers following each company. While that’s no guarantee of success, it can give an investor more conviction in the stock’s potential.
