What are the Top Performing Penny Stocks?

What are the Top Performing Penny Stocks?

Penny stocks, also known as micro-cap stocks, are stocks that trade at a low price, typically less than $5 per share. While penny stocks are considered a high-risk investment due to their volatility and lack of liquidity, they can also offer the potential for high returns. In this article, we will explore the top performing penny stocks and what makes them stand out.

Understanding Penny Stocks

Before diving into the top performing penny stocks, it's important to understand what penny stocks are and how they differ from traditional stocks. Penny stocks are issued by small companies that may not meet the listing requirements of major exchanges such as the New York Stock Exchange or NASDAQ. Instead, they trade on over-the-counter (OTC) exchanges or on alternative markets such as the Pink Sheets.

Due to their low price and lack of liquidity, penny stocks are often subject to manipulation and fraud. Investors should be cautious when investing in penny stocks and do their due diligence to ensure the company is legitimate and has the potential for growth.

Top Performing Penny Stocks

1. Zomedica Pharmaceuticals Corp (ZOM)

Zomedica is a veterinary diagnostic and pharmaceutical company that develops products for companion animals. The company's stock has seen a significant increase in price over the past year, with a 52-week high of $2.70 per share. Zomedica's growth potential is attributed to its innovative products and partnerships with major players in the veterinary industry.

2. Sundial Growers Inc (SNDL)

Sundial Growers is a Canadian cannabis company that produces and distributes cannabis products. The company's stock has seen a surge in price over the past year, with a 52-week high of $3.96 per share. Sundial's growth potential is attributed to the growing demand for cannabis products and the company's expansion into international markets.

3. Naked Brand Group Limited (NAKD)

Naked Brand Group is a fashion and lifestyle brand that designs and sells intimate apparel. The company's stock has seen a significant increase in price over the past year, with a 52-week high of $2.41 per share. Naked Brand Group's growth potential is attributed to its expansion into new markets and partnerships with major retailers.

Investing in Penny Stocks

While penny stocks can offer the potential for high returns, they are also considered a high-risk investment. Investors should do their due diligence and research the company before investing. It's also important to have a well-diversified portfolio and not to invest more than you can afford to lose.

One strategy for investing in penny stocks is to look for companies with strong fundamentals and growth potential. This can include companies with innovative products, partnerships with major players in the industry, and a strong management team.

Another strategy is to look for companies that are undervalued and have the potential for a turnaround. This can include companies that have experienced a temporary setback or have been overlooked by the market.

Conclusion

Penny stocks can offer the potential for high returns, but they are also considered a high-risk investment. Investors should do their due diligence and research the company before investing. The top performing penny stocks are Zomedica Pharmaceuticals Corp, Sundial Growers Inc, and Naked Brand Group Limited. These companies have shown strong growth potential and are worth considering for investors looking to invest in penny stocks. However, it's important to have a well-diversified portfolio and not to invest more than you can afford to lose.