Another great thing is that these companies often have tiny market caps and cheap valuations, so the prospects of hitting a multi-bagger is perhaps the highest for these types of investments.
Of course, the flip side is that many penny stocks also carry a heightened risk of failure, as these smaller companies may lack the resources, management expertise, or competitive advantages to sustain long-term growth.
With that said, here are seven of the best penny stocks to buy for April. These companies have that magic mix of advantages and low valuations that make them attractive for investors of various risk tolerances and time horizons.
Taboola (TBLA)
Taboola (NASDAQ:TBLA) operates in the online advertising space, having gained recognition for its content recommendation platform and its deal with NBCUniversal News Group.
I believe that TLBA could be one of those best penny stocks to buy in April for a few different reasons. Analysts view TBLA’s future positively, expecting a 33% revenue growth in 2024 to nearly $2 billion. A $100 million share buyback program has also been authorized.
The company itself is forecasting substantial growth across key metrics. The company expects revenue from its main operating segments to grow by 25% compared to 2023, with adjusted EBITDA expected to exceed $200 million and free cash flow projected to surpass $100 million.
TBLA could be a great pick for investors who want to invest in a developing advertising company without paying for a steep valuation. Therefore, it’s one of those best penny stocks to buy in April.
New Gold (NGD)
New Gold (NYSE:NGD) is a Canadian-based gold mining company with multiple projects.
Gold has always been a favorite of mine as a precious metal to invest in due to its lack of correlation with traditional risk assets, but NGD stands as a promising penny stock to invest in on its own while preserving some of Gold’s uncorrelated properties.
The company has a number of investments planned for this year. These investments are expected to underpin free cash flow generation, with a notable increase in gold production projected at the Rainy River Mine to between 250,000 and 280,000 ounces.
Financially, NGD’s performance in 2023 laid a strong foundation, with revenue growing to $786.5 million from the previous year. The increase was primarily driven by higher sales volumes and gold prices, although partially offset by lower copper prices.
NGD could then be a great option for those who want exposure to precious metals.
Bit Digital (BTBT)
Bit Digital (NASDAQ:BTBT) is engaged in the cryptocurrency mining sector, focusing on Bitcoin (BTC-USD) production.
Bitcoin will continue to be a strong winner in my opinion, and I think that after a pullback this April following the upcoming halving event, it could continue its rapid capital appreciation as institutional investment continues to pour into it. Small miners like BTBT could then lend themselves to significant returns.
In 2024, BTBT plans to focus on enhancing its Ethereum (ETH-USD) treasury holdings through the conversion of mined bitcoin into ETH for staking. For January 2024, BTBT reported the production of 145.7 BTC, a decrease from the previous month, with an active hash rate of approximately 2.50 EH/s.
The company’s digital asset holdings, including BTC and ETH, were valued at approximately $74 million, with cash and equivalents of $22.6 million. BTBT’s staked ETH earned a blended APY of about 3.69%, yielding approximately 38.7 ETH in rewards for the month.
This backdrop and its war chest of crypto make it one of the best penny stocks to buy in April.
Future FinTech Group (FTFT)
Future FinTech Group (NASDAQ:FTFT) works in the blockchain and fintech industries catering to a global clientele in the e-commerce sector.
The company’s main business includes an online shopping platform, Chain Cloud Mall (CCM), based on blockchain technology. FTFT has expanded into financial services and cryptocurrency market data services.
For the third quarter of 2023, FTFT reported an earnings per share of negative 16 cents marking a 36% improvement compared to the same period the previous year, where the EPS was negative 25 cents The total earnings for the quarter were approximately -$2.49 million.
The reason I think FTFT could be a long-term winner is that its CCM platform is one of the most disruptive in the industry, and gives people an alternative to the big name brands. The fintech industry is expanding rapidly, and I believe that investors should have exposure to this sector for long-term gains.
Gerdau (GGB)
Gerdau (NYSE:GGB) is a steel producer with operations spread across various sectors such as civil construction and automotive. The steel industry heavily relies on the health of the Chinese economy to fuel its expansive construction projects.
I’m bullish on China, notwithsanding some short-term setbacks, as it has now shown some signs of recovery.
The company closed the second quarter of 2023 with an adjusted EBITDA of $3.8 billion, marking one of its best historical results for the period, despite a slight decrease in shipments of steel.
Despite this, GGB’s P/E ratio is below the US market average, indicating good value compared to peers and industry.
GGB stock is then one of those best penny stocks to buy due its valuation, as well as the fact that it gives investors some indirect exposure to China’s continued rise as an emerging economy through its healthy appetite for steel.
The projected one-year price target suggests a potential upside of 19.16% from its current price, setting the target at $5.10.
Genworth Financial (GNW)
Genworth Financial (NYSE:GNW) is an insurance holding company offering products like mortgage insurance and long-term care insurance.
In the fourth quarter of 2023, GNW experienced several financial shifts, notably in its long-term care insurance and life and annuities sectors.
The company reported an adjusted operating loss of $151 million in long-term care insurance, a decrease from a $204 million income in the same quarter of the previous year.
It also announced a significant $350 million share repurchase authorization in July of the previous year. GNW plans to invest approximately $35 million in 2024 in CareScout services, aiming to drive long-term growth for its offerings.
I think that GNW could be one of those penny stocks to buy in April, primarily due to management’s strong conviction that its shares are undervalued, evidence through the share repurchase, as well as being n undervalued insurance company in its own right when compared with its peer companies.
Transocean (RIG)
Transocean (NYSE:RIG) is a major player in deep-water and ultra-deep-water drilling with a global operational footprint.
RIG entered 2024 on a somewhat positive note, with a narrowed net loss in Q4 2023 and a robust backlog. RIG reported an adjusted EBITDA of $122 million and a margin of 16.3%.
The company’s backlog stood at $9.01 billion. Meanwhile, its management noted the addition of $3.2 billion to the backlog during the quarter and highlighted the delivery and commissioning of two eighth-generation drillships.
This backdrop is enough for me to recommend RIG and one of the best penny stocks for investors to scoop up in April this year.
The stock has also seen an increase in value, rising 5% from the start of 2024 to the recent trading price. Analysts set a 12-month price target with an average expectation of $8.06, indicating a potential upside of around 20.9% from its current trading level €‹.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.