Published on 10 May 2022 on Insider Monkey via Yahoo Finance
10 Penny Stocks to Buy in May
In this article, we will look at 10 penny stocks to buy in May. If you want to explore similar stocks that have the potential to explode in the future, you can also take a look at 5 Penny Stocks to Buy in May.
Predicting the future might be a little far-fetched, but that does not mean you can't apply some logical thinking and statistical analysis or even just keep up with the latest news to determine the potential outcomes of an event. Penny stocks have long been a favorite tool of investors to make fortunes by getting in on the scene when the company is severely undervalued. However, this goes both ways for penny stocks are highly volatile and risky investments, and companies have been shut down or gone bankrupt in the past instead of appreciating in value.
There was a time when some of the most prominent and renowned corporations were trading at less than $5 a share. It was only a matter of certain efforts made by company leaders, be it a successful IPO, securing governmental contracts, collaborating with an industrial giant on a project, or even something as trivial as a short-squeeze, that shot up those stocks and made them well-known leaders in the market. Spotting growth potential in a company and understanding its business model to gauge whether or not it will have relevance in the future is a skill only a few possess. Penny stocks are compelling investments for legendary investors because they come cheap, offer a high room for appreciation, and can prove to be highly lucrative if all goes well.