There’s finally some respite for investors in the stock market. Businesses have been struggling with rising prices over the past year. However, the market still has plenty of pessimism, with multiple undervalued penny stocks up for grabs.
Undervalued penny stocks can offer a high degree of liquidity and a way to invest in a company with high growth potential. They tend to be much less expensive than shares of larger companies, making them an accessible investment for individual traders.
Moreover, they offer investors an exciting way to make money, and they shouldn’t be overlooked because of their low prices.
Many undervalued penny stocks represent high-quality businesses. These stocks have the potential to snap back in the future, providing stellar returns for long-term investors. The strategy should be to focus on non-speculative penny stocks that can effectively weather the volatility at this time.
Kinross Gold (KGC)
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Kinross Gold (NYSE:KGC) is perhaps one of the most attractively valued companies in the sector, with incredible fundamentals to boot, making it among the best undervalued penny stocks to buy.
Moreover, it boasts strong operating cash flows and a robust balance sheet, enabling it to weather any bumps in the road.
In addition, Kinross has a diversified portfolio of mines, ensuring that it is not overly reliant on any one location. It wrapped up the third quarter with a tremendous liquidity buffer of roughly $2 billion. That means it has enough financial flexibility for its potential acquisitions, dividends, and share repurchases.
Also, gold production for the year is also guided to be two million ounces, and the firm expects to maintain these levels by 2025.
Entravision Communications (EVC)
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Entravision Communications (NYSE:EVC) operates a robust advertising, media, and tech solutions business based out of Los Angeles.
It offers a comprehensive suite of services helping firms reach their target audiences. Its platforms include television, radio, digital, and out-of-home; its technology solutions include data analytics, programmatic advertising, and various value-added services. Consequently, it can provide its clients with a one-stop solution for all their advertising, media, and marketing needs.
The firm owns the largest digital advertising business in the Latin American region. It’s grown its digital advertising business rapidly in the past five years, accounting for roughly 73% of total company sales.
It owns more than 40 local television stations catering to the Hispanic market. Overall its businesses have helped the enterprise post consistent results, with revenues and EBITDA margins growing over 40% and 22%, respectively. Despite the strong performance, its stock trades at just 0.5 times forward sales.
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Ideanomics (NASDAQ:IDEX) is a leading global fintech and asset digitization company driving the transformation of traditional industries through disruptive technology.
Its uniquely positioned to become the preeminent provider of end-to-end electric vehicle (EV) solutions, covering everything from manufacturing and financing to charging and hailing. Though it operates in the competitive EV space, it has the potential to become a fascinating speculative play in the space.
Its mobility business is currently its largest segment, providing trucking and bus fleets electrification services. It’s been remarkably successful so far, attracting several high-value clients and generating sizeable revenues.
Its fintech business holds plenty of promise, focusing on several areas, including real estate, commodities, and others. With IDEX stock trading for chump change and a colossal addressable market, it’s worth investing in now.
Heron Therapeutics (HRTX)
Heron Therapeutics (NASDAQ:HRTX) is a budding biotech stock with a strong long-term outlook.
It recently got approval from the U.S. Food and Drug Administration (FDA) for Aponvie, a drug catering to postoperative nausea and vomiting (PONV). According to the firm, its patient receives 36 million procedures each year, which points to a massive addressable market for the drug in the U.S. Including Aponvie, its portfolio consists of two acute care and two oncology drugs.
Company revenues have been growing at a healthy pace, and though it’s still a loss-making enterprise, it has a strong cash buffer to continue investing in its research and development. Therefore HRTX stock is an excellent speculative play for the long haul.
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Transocean (NYSE:RIG) is a Switzerland-based leading provider of deep-water oil rigs. Its rigs are some of the most technologically advanced in the world and can operate in the most challenging environments.
Transocean has a strong safety and reliability track record, and its rigs have been used by major oil companies worldwide. Transocean is a trusted partner for oil companies looking to explore and develop new resources in the most challenging environments.
Market conditions have been improving for the business, and its order backlog has grown to a whopping $7.4 billion. The massive growth in its backlog provides clear cash flow visibility for its business. Moreover, with higher day rates for its recent orders, the firm will likely experience stellar EBITDA margin expansion next year and beyond.
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Pekka Lundmark became the new CEO of Nokia (NYSE:NOK) in 2020, and since then, the company has undergone a major transformation.
The Finnish firm was once famous for its mobile phones. Still, it has addressed chip procurement weaknesses and taken advantage of 5G opportunities in North America and other parts of the globe. It has established itself as a leading mobile telecommunications player with a massive growth runway ahead.
Recent results have been excellent for the tech firm, making robust progress in the 5G space. It recently posted its third-quarter results, which beat estimates on both the top and bottom lines.
Its Mobile Networks segment, particularly, has been remarkably impressive, with reported sales growing by 16% and a 22% improvement in earnings. With the rampant growth in 5G adoption, Nokia is positioned to continue growing its business for the foreseeable future.
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B2Gold (NYSE:BTG) is a Canadian gold mining business with operations in the Philippines, Mali, and Namibia.
B2Gold’s philosophy is to build safe and responsible mines and create long-term value for its shareholders. The company’s mines are all located in politically stable jurisdictions, and its operations are built on a foundation of strong environmental, social, and governance practices.
As a result, B2Gold is well-positioned to continue its rapid growth in the years to come.
It’s been an up-and-down year for the business, but it has still effectively maintained its impressive margin portfolio. Gross profit and EBIT margins over the past five years; have grown by 61.8% and 36.1% on average. Also, it offers one of the highest yields in the precious metals industry, and with significant growth on deck, it is an attractive opportunity at current prices.
On the date of publication, Muslim Farooque 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.