While the topic of top penny stocks to buy may arouse controversy similar to apocryphal literature with spiritual implications. That might sound hyperbolic but generally, financial advisors shy away from the sector because of the extreme risks involved. It’s not just that investing in this arena is dangerous to your financial standing; rather, the ecosystem can be very addictive.
Nevertheless, without fail, people continue to request ideas regarding top penny stocks. Since it doesn’t make a whole lot of business sense to deny hot demand, here we are. But a word of caution again. You don’t engage this sector with money you cannot afford to lose. Quite frankly, you’ll probably end up losing it.
That said, every now and then, some ideas come up that even capture the attention of Wall Street analysts. And these puppies have – based on public assessments – 10-bagger potential. If you’re ready for the high heat, below are penny stocks to consider.
Quantum Computing (QUBT)
What it is: A specialist in its namesake industry, Quantum Computing (NASDAQ:QUBT) doesn’t exactly earn points for creativity. However, it’s seeking to establish a foothold in what could be a paradigm-shifting innovation. Per its website, the company offers full-stack quantum solutions for its enterprise-level clients. This involves both hardware and software solutions along with professional services.
Relevance: As the kids like to say, quantum computing is the brown matter (the good kind, not the bovine variety). According to MarketsandMarkets, the underlying sector will soon reach a valuation of $866 million. By 2028, experts project that the ecosystem could be worth $4.38 billion, representing a massive compound annual growth rate (CAGR) of 38.3%. From there, the sky’s the limit.
Pros: Ascendiant analyst Edward Woo rates QUBT a “buy” with a price target of $8.75, implying over 929% growth. If so, that would easily make QUBT one of the top penny stocks to buy.
Cons: It’s wildly risky and I don’t mean that lightly. Since the start of the year, QUBT slipped 44%.
Affimed (AFMD)
What it is: A biotechnology specialist, Affimed (NASDAQ:AFMD) claims to pursue the untapped potential of the immune system to help patients fight cancer. Specifically, the company’s approach involves redirecting innate cells to recognize and kill tumor cells. It features a proprietary technology called ROCK (Redirected Optimized Cell Killing). It’s the biotech version of an assassination squad targeting the vilest terrorists.
Relevance: To be sure, the relevance is broadly understandable. After all, hatred of cancer unites the human race. In terms of data, Precedence Research states that the solid tumor cancer treatment market size reached a valuation of $185.97 billion in 2022. By 2032, the sector could hit $532.42 billion, representing a CAGR of 11.09%. Therefore, it’s worth consideration among top penny stocks.
Pros: Affimed may be building a technical support line. Also, analysts peg AFMD a unanimous strong buy with a $4 target, implying almost 935% upside.
Cons: Unfortunately, the company suffers from myriad financial vulnerabilities. Additionally, shares lost 68% of equity value since the January opener.
YS Biopharma (YS)
What it is: Only appropriate for the most extreme of gamblers, YS Biopharma (NASDAQ:YS) is a specialist in advanced novel immunotherapeutics. Per its website, the company focuses on the treatment of infectious diseases and cancer. Further, YS features two business avenues: vaccine development for diseases such as hepatitis B and rabies and immuno-oncology for the development of potent antitumor therapeutics.
Relevance: As stated earlier, the relevance of cancer-fighting therapeutics is self-explanatory. Regarding the vaccination specialty, the global vaccine market size will reach a valuation of $77.6 billion at the end of this year. By 2028, experts project that the sector could hit $93.8 billion. If so, that would come out to a CAGR of 3.9%. While the growth isn’t spectacular, YS may only need to grab a modest share for its stock to skyrocket.
Pros: Noble Financial analyst Gregory Aurand rates YS a “buy” with a $5.25 price target, implying 978.91% upside potential. That would easily make YS one of the top penny stocks to buy.
Cons: There’s no getting around, YS is absolutely high risk, losing 95% of value since the January opener.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.