Penny stocks tend to be riskier and more volatile than other types of stocks. However, in 2019, experienced investors are interested in them. Why?
Penny stocks have the potential to turn a small investment into a fortune. Also, they can add a strong upside potential for your portfolio. So, let’s take a look at the 3 top penny stocks that we have found to have good growth potential and are worth buying this year.
The Best 3 Penny Stocks To Buy in 2019
DroneShield Ltd (ASX: DRO)
DroneShield Ltd is the worldwide drone security technology leader of our time. The company, based in Sydney, Virginia, Washington DC, and London, provides protection against drones threatening safety, security, and privacy.
DroneShield Ltd has a complete system of products and services. It offers everything from the enterprise-grade sensor fusion software engine with proprietary multi-sensor detection technologies that detects and identifies drones to safe and highly effective countermeasures.
As a result, DroneShield brings world-class expertise in engineering and physics, combined with deep experience in defense, intelligence, and aerospace. Also, DroneShield Limited has a zero-debt capital structure, which means that the company doesn’t have any debt on its balance sheet.
Importantly, DroneShield Limited has improved itself over the last few years. For example, it had a revenue growth of 215% over the previous year. Over the previous three years, the company has grown earning per share by 71% each year.
People Infrastructure (ASX: PPE)
People Infrastructure is a leading Australian workforce management and management company. It aims to deliver innovative solutions to workforce challenges faced by Australia’s leading businesses.
The company has been operating since 1996. It now has over 17 offices across Australia and New Zealand. It focuses on four primary sectors, including healthcare, information technology, specialist services, and labor-hire.
People Infrastructure, shortly PPE, is a leader amongst its peers with high growth in profitability and share price. The company is also well-positioned to take advantage of the casualization of the workforce.
Currently, People Infrastructure shares are Australia’s largest listed workforce management business. The company employs over 14,000 people. PPE sits at about $227M market capitalization.
Volpara Health Technologies (ASX: VHT)
This healthcare research and development company, based in New-Zealand, provides medical software, specializing in managing breast screening and detection of breast cancer by improving the quality of screening using artificial intelligence (AI).
After adopting the SaaS business model, Volpara Health Technologies has seen revenue increase. The SaaS system manages the flow of information between the clinic taking the screening mammogram x-ray and the doctor.
In 2009, four of the world’s leading breast imaging experts decided to build Volpara Health Technologies. Professor Sir John Michael Brady and Dr. Ralph Highnam from the University of Oxford, Professor Nico Karssemeijer from the University of Nijmegen, and Professor Martin Yaffe from the University of Toronto.
Volpara Health Technologies generates money through its day-to-day business. However, to keep the company operating, VHT needs to reinvest that money into the company. Also, the current market capitalization of VHT is $360M, with a 119.91% 1-year return.
Other Stocks Worth Buying In 2019:
Electro-Optic Systems (ASX EOS)
- Specialized in electro-optic design and development for the Aerospace and Defence markets
- Sells specialist space and defense equipment to sovereign clients
- Partnered with Lockheed Martin to build space debris tracking systems
Immutep Limited (ASX: IMM)
- A biotechnology company with operations in Australia, Europe, and the U.S.
- They are specialized in developing products for treating cancer and autoimmune disease.
- Partnerships with five of the world’s largest pharmaceutical companies – Merck, Pfizer/Merch KGaA, Novartis and GSK, Eddingpharm in China
Cann Group (ASX CAN)
- A medicinal cannabis company
- Owned by one of Canada’s most significant Cannabis stocks Aurora Cannabis
- Plans to expand production by 50,000kg per annum
Impression Healthcare Limited (ASX: IHL):
- A dental manufacturing company
- Manufactures and distributes professionally made home-impression custom-fit dental products in Australia as well as New Zealand
- Offers a B2B network
Pioneer Credit (ASX PNC)
- An Australian financial services provider
- Specialized in acquiring and servicing retail debt portfolios.
- Headquartered in Perth, Western Australia, as well as representative offices in Manila, Philippines.
The Bottom Line:
In general, it is hard to predict the order flow on a day to day basis. Investors might buy or sell shares for different reasons. Therefore, before investing in stocks, you should try to understand the underlying market and certainly do technical analysis.
Penny stocks are an excellent choice for investors who manage investments through in-depth research as well as continuous monitoring. If backed by thorough research on fundamental and technical aspects of the company as well as chosen wisely, penny stocks have the potential to provide investors with substantial returns.