Top Penny Stocks For 2024? 4 For Your Watch List

Joe Sirianni
4 min readDec 29, 2023

Why Trade Penny Stocks?

Penny stocks, defined as stocks that trade below $5 per share, offer traders potential opportunities not found in higher-priced stocks. Several reasons explain why some traders focus specifically on these low-priced shares rather than traditional equities.

First, penny stocks allow traders to leverage smaller levels of capital in exchange for more stock, compared to higher-priced equities. A trader can purchase hundreds of shares in dozens of companies across various sectors with only a few hundred or thousand dollars. This aims to capitalize on various levels of volatility and trading liquidity

Their cheaper price means smaller moves in absolute dollar terms can equate to double or triple digit percentage changes. For intraday traders seeking quick profits, this volatility can produce solid short-term gains unachievable in more stable, established companies. Of course, this same volatility also carries an increased risk of substantial losses.

Volatility = Opportunity

Many penny stock traders also like the challenge involved. Conducting thorough due diligence on companies, remaining patient, and efficiently managing risks takes work. Successfully trading penny stocks over the long run requires dedication and an acceptance of failure. Some possess the temperament accepting this challenge.

While the potential rewards attract some to penny stocks, the underlying reality explains why most avoid them. Trading shares below $5 per share usually involves dealing with sketchier companies than more reputable ones. Transparency, accountability, and oversight tend to be lower.

No matter the reason for trading penny stocks, recognizing both the upsides and downsides remains critical. Having clear goals and risk tolerance before purchasing helps determine if certain penny stocks to watch have a place in your portfolio.

As with any equities, diversification across sectors and industries and utilizing stop losses may assist in managing risk. Do your due diligence and tread carefully with penny stocks. In this article we look at an active list of penny stocks gaining momentum heading into 2024.

Lumen Technologies (NYSE: LUMN)

Lumen Technologies specializes in connecting people, data, and applications. They offer a wide array of services, including metro connectivity, long-haul data transport, edge cloud capabilities, security, and managed services, catering to diverse customer needs both currently and for future advancements.

On December 18, 2023, Lumen Technologies announced Dr. Satish Lakshmanan as the new Chief Product Officer. In this role, Dr. Lakshmanan will guide Lumen’s corporate strategy and oversee its product portfolio, focusing on network innovation and advanced services to enhance customer experiences in the digital economy. He will directly report to Lumen CEO Kate Johnson.

The news helped spark momentum in LUMN stock, which has continued through this week.

FLJ Group Limited is a multifaceted company operating in the People’s Republic of China. It functions through two primary business units: an insurance agency and an insurance technology business. One of the catalysts at play right now is the latest milestones the Group has achieved.

The company completed its acquisition of Alpha Mind Technology Limited. This transaction was previously disclosed on November 22, 2023. FLJ Group acquired all issued and outstanding shares of Alpha Mind for an all-cash transaction valued at $180 million USD. Following this transaction, Alpha Mind has become a wholly-owned subsidiary of FLJ Group, with the senior management of FLJ Group remaining post-acquisition​.

Since the news hit late in the day on Thursday, FLJ stock saw a much more pointed reaction in the stock market today. The penny stock jumped to premarket highs of $3.40 during the early morning session. Closer to the open, the stock was trading around the $1.60 level.

If you’re unfamiliar with Fisker Inc., the company creates sustainable electric vehicles. They aim to revolutionize the automotive industry with innovative design and technology as do most EV companies. Delivery news has been a big proponent of optimism or pessimism for EV’s depending on the numbers. In Fisker’s case, the latest figures came out and the market has reacted favorably.

In December 2023, Fisker Inc. announced significant business progress. The company produced 10,142 vehicles in 2023, with about 4,700 Fisker Oceans delivered, representing a substantial increase in revenue. Deliveries grew by over 300% from the third to the fourth quarter, demonstrating strong demand for their vehicles, particularly the Fisker Ocean One launch edition.

“We became a revenue-generating company in 2023, but we also faced numerous challenges. Emerging from COVID-19 created several issues for our supply chains, but we have largely overcome them, and we have delivered approximately 4,700 Fisker Oceans,” explained CEO Henrik Fisker.

Additionally, Fisker expanded its market presence by commencing deliveries in Canada and operating in 12 markets globally. The Fisker Ocean won six European awards in 2023, enhancing its reputation in the electric vehicle market.

SenesTech has been on fire this week. The company specializes in animal pest population control through fertility management. Their notable products include ContraPest, a U.S. EPA-registered contraceptive for rats, and Evolve, another rat contraceptive​​.

Shares have slowly been moving higher after the penny stock swiftly dropped below $1 earlier this quarter. Several catalysts have been pushing optimism and could be a source of speculation. For instance, SenesTech announced an exclusive distribution agreement with Fruit Tree Limited, a Hong Kong-based pest control company. The deal includes an initial order and annual minimums for Evolve™ Soft Bait.

Fruit Tree Ltd. is recognized in the pest control industry, offering products and services regionally. This partnership aligns with Fruit Tree’s commitment to quality, innovation, and sustainability. Director Francisco Pazos Alvarino mentioned potential expansion to Mainland China and the alignment of Evolve with their environmental safety goals. He also noted discussions with regulatory bodies about testing Evolve in government venues, especially in wet markets with significant pest infestations​​.

The potential expansion into Mainland China opens a new market. However, risks include regulatory hurdles in new markets and the effectiveness of Evolve in diverse environments. So if SNES stock is on your watch list, keep that in mind.

Originally published at https://pennystocks.com on December 29, 2023.

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Joe Sirianni

Entrepreneur, Podcaster, Marketer& Content Maniac — Not Investment Advice. Editor In Chief, Partner https://www.PennyStocks.com https://www.StockMarket.com