3 Best Penny Stocks Categories To Invest In 2024

The new year is around the corner. Which means you’ve got to shake off your conservative image. No expecting a 12-month return with a cent percent potential. That’s lame! Instead, you need to clarify your portfolio objective.

We are already looking at a challenging macroeconomic scenario. And things will likely trickle down to 2024. Eyeing for a 10-15% return on portfolio is acceptable. You must learn how to use penny stock alerts to keep things on your radar. Speculation is out of the question. The key here is knowing the fundamentals of a particular stock. Here’s a look at the three best penny stocks categories to consider investing in 2024.

Maritime Logistics-Overseas Shipholding Group (OSG)

One of the safest bets across the transportation sector, Overseas Shipholding Group (NYSE: OSG) reported a net income of $17.6 million in Q3 results. An adjusted EBITDA of 13.7% also shows their strong position in the market. Across the year, OSG worked with cash, buying back shares to settle their debts. This helped them strengthen the bond with new ship owners.

What makes them an investment-worthy penny stock 

The biggest game changer for OSG was the acquisition of Alaskan Frontier. The vessel had been lying in Malaysia for over three years now. OSG plans to give the tanker a makeover and rebuild the engine. But it’s not about the looks. It’s about making a green move. The idea is to save as much as possible on fuel and reduce our carbon footprint. The commitment is worth $50 million for a high-performing, sustainable machine—an enticing opportunity for investors.

Mining Equipment-PHX Minerals (PHX)

PHX Minerals (NYSE: PHX) is a prominent player in the natural resource industry. The company has shown some great results for the financial quarter that ended in September 2023. It’s a noteworthy comeback for PHX ($1.9 billion in net income) from the loss incurred in the last quarter. The adjusted EBITDA stood at $6.3 million, signaling great operations and steady growth. 

What makes them an investment-worthy penny stock 

PHX has recently acquired 988 net royalty acres. It’s a strategic move to streamline cash flow per share. Besides, it will significantly expand the royalty and mineral position of the company. Further, PHX’s net inventory has increased by 31%. 

The company also has plans to improve operational efficiency and profitability. They have set a target to bring down general and administrative expenses across all units by at least 13% in 2024. PHX has also managed to maintain a conservative balance sheet. The expected pro forma leverage sits below 1.50 times following the acquisition. 

Electric Cars-Polestar

Electric vehicles are undoubtedly the future. Sweden’s popular electric car maker, Polestar (NASDAQ: PSNY), has fired up the scene with impressive results from the last quarter. Reportedly, Polestar socks are up by 41% year-over-year. The total revenue stands at $613 million. That’s 13,976 electric vehicles delivered, which is 51% higher than last year. As of September closing, Polestar also has $951 million in cash and equivalents.

What makes them an investment-worthy penny stock 

Although the numbers matter, investing in Polestar for penny stocks is about a secured future. EV vehicles will be in demand for passenger cars by as much as 30% by 2030. So, investing in Polestar’s penny stocks makes sense for accelerated profit margins. The annual production rate in 2024 is expected to be 155,000-165,000 vehicles. It’s an important shift considering the diversified range. It also involves cost-cutting measures as they join hands for an innovation with Chinese counterparts. 

Closing Thoughts 

Penny stocks have always been attractive to investors. However, one must assess the high risk involved. For a newbie investor, it makes sense to weigh in factors like context and limited liquidity. What’s even worse is that penny stocks are also prone to scams. So, running a background check on the company is always advised. Knowing their current balance sheet scenario, recent acquisitions, and future declarations matter. 

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