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8 Penny Stocks That Could Explode In January 2022!

Noah Zelvis - January 16, 2022

Follow along for our picks for the best penny stocks to buy now and a breakdown of each company on our list.

While it’s true that trading penny stocks is inherently risky, there’s also an opportunity for making massive returns.

Some penny stocks are set to explode, and if you can spot them before they take off, you could stand to gain a lot.

The key is taking advantage of their volatility and getting in before a stock’s price swings up and getting out before it drops.

But what penny stocks should be on your radar?

Check out our list of top penny stocks to buy now to find out. 

Penny Stocks that Could Take Off

Drive Shack Inc. (NYSE: DS)

Drive Shack is a company that combines golf with other forms of entertainment for an exciting social experience.

Each location features a professional golfing range with fun augmented reality features.

Recently, Drive Shack announced a partnership with professional golfer Rory McIlroy to launch an exciting new entertainment brand called the Puttery.

This new venture focuses on mini-golf and has been very popular among casual players.

Its Dallas location is already open, with locations in Charlotte, Washington D.C., Houston, and Miami to follow.

While Drive Shack has already pinged on investors’ radars, its plans for Puttery are bolstering confidence.

The company’s most recent investor presentation revealed the profit potential of its new Puttery venues when compared to its Drive Shack locations.

First, Puttery locations cost around $13 to $39 million less to develop, with developmental yields from 25–40% compared to 10–20% for a typical Drive Shack venue.

The company plans to have 50 Puttery locations open to the public by the end of 2024.

This new venture could help Drive Shack compete with other recreational golfing giants like Top Golf.

Drive Shack’s most recent financial report was positive, beating earnings per share and revenue goals.

Share prices are currently down despite favorable financial numbers for the third quarter of this year.

This is to be expected given how hard in-person entertainment industries have been hit over the past two years.

penny Stocks

Denison Mines Corp. (NYSE: DNN)

Denison Mines Corp. is a Canadian enterprise that explores, develops, and produces uranium.

The company represents a 95% interest in the Wheeler River project, the largest undeveloped uranium deposit in the Athabasca Basin of Saskatchewan.

Denison has several other interests throughout Canada, such as the McClean Lake Uranium Mill.

The uranium exploration company also has a closed mine division that provides decommissioning services to others in the industry.

These decommissioning services offer an additional source of cash flow.

Denison’s third-quarter earnings report shows a massive jump in revenue, net income, and diluted earnings per share.

Denison is doing quite well financially, with share prices rising over 145% this past year, but they have tapered off since then.

Still, its stock price has been on a steady incline for the last six months.

So this DNN might be best suited to investors looking for a long-term play.

penny stocks

 

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Penny Stocks to Watch in 2022 

Professional Diversity Network, Inc. (NASDAQ: IPDN)

Professional Diversity Network helps connect businesses with potential employees.

Employers can post jobs on the site, and applicants can view what’s available.

Professional Diversity Network’s services are looking more and more relevant as the pandemic persists, which could allow them to grow quicker than expected.

The company reported that its market had expanded by three to five times since the pandemic began.

Share prices are down currently, but financial numbers are all moving in the right direction.

Some key takeaways are that revenue was up 28%, net income is up 91%, and net profit margin is up 93%.

It’s still operating at a loss, but the company’s recent reports show that it might be turning a corner — though, only time will tell.

If the company can continue its momentum, its stock price could follow.

Phunware Inc. (NASDAQ: PHUN)

Phunware is an Austin-based tech startup with offices in Miami, Irvine, and San Diego. 

Its products help companies develop apps and other software for their audiences.

Some of Phunware’s features include audience monetization, location services, analytics, content management, and more. 

The tech venture also looks to blockchain technology through two crypto products — PhunToken and PhunCoin. 

PhunToken is a mobile loyalty program that businesses can use to reward customers and keep them coming back. 

PhunCoin is a consumer-facing blockchain program that rewards consumers for voluntarily sharing their data.

Its stock price shot up in October 2021, reaching about $8 a share before falling back down. 

Phunware’s stock price is on a downward trend, but it’s still 130% higher than last year.

Although it may be a penny stock now, it could grow dramatically if companies implement its solutions on a broader scale.

Palatin Technologies (NYSE: PTN)

Palatin Technologies is a rising star in the biotech sector.

The company has a broad spectrum of drugs it’s in the process of developing at present.

It has already received FDA approval for Vyleesi®, designed to treat women with generalized Hypoactive Sexual Desire Disorder.

As a result, Palatin has a source of revenue to fuel its future projects.

Other pipeline projects address dry eye, diabetic retinopathy, and inflammatory bowel diseases.

Gross product sales for Vyleesi® are up almost 89% from last quarter.

With all it has currently in place, Palatin Technologies looks like it could have a bright future, especially if its newest drugs see the same success as its flagship product.

Transocean Ltd. (NYSE: RIG)

Transocean Ltd. is one of the largest offshore drilling companies in the world and is based out of Vernier in Switzerland.

The company uses rig-based well construction services with trained staff, innovative technology, and quality equipment to locate oil.

It tends to focus on demanding environments where other drillers do not go.

Each of Transocean’s 37 rigs can drill as deep as 40,000 feet below the water’s surface to access hard-to-reach areas.

Ten harsh environment rigs can travel to the most remote sections of the ocean.

Transocean also works to take care of the Earth, with plans to reduce greenhouse emissions by 40% before 2030.

Share prices have been a bit up and down of late, but they are still up about 20% from last year.

The drop is likely from a recent earnings report that showed a miss in earnings per share and revenue numbers.

With expansion and sustainability at the forefront of Transocean’s business model, this could be an excellent opportunity to buy the dip before share prices head back up.

penny stocks

Hottest Penny Stocks to Buy Today

Gran Tierra Energy Inc. (NYSE: GTE)

Gran Tierra is an energy company headquartered in Calgary that explores and produces oil and natural gas in Colombia and Ecuador.

Gran Tierra uses its technology to harvest resources safely and responsibly through three locations in these two countries.

In addition, it is also working hard to provide sustainable practices that do not affect the ecosystems its teams are working in.

The company’s stock has performed well from 2021 going into 2022, but it’s not a surprise given the success that the oil industry has seen lately.

Right now, the stock is up about 100% over the past year.

Gran Tierra announced that it plans to allocate 70% of its 2022 capital program to bolster its core assets, which includes $70 million to develop its Acordionero field, $40 million toward its Costayaco field as well as $30 to its Moqueta field.

Only time will tell if this investment pays off, but investors who get in now could see solid returns if these developments fortify Gran Tierra’s exploration capabilities in the long run.

penny stocks

ReWalk Robotics (NASDAQ: RWLK)

ReWalk Robotics is a frontrunner in new technologies that help individuals recover mobility lost from lower limb disabilities.

The company achieves this through the use of lightweight powered exo-suits that provide walking assistance through propulsion.

The two products currently in production are the ReStore™ Exo-Suit for stroke rehabilitation and the ReWalk™ Personal 6.0 Exoskeleton for spinal cord injuries.

The ReWalk™ Personal 6.0 Exoskeleton has been FDA approved since 2014, where the ReStore™ Exo-Suit received its approval in 2019.

Reddit and other retail investment communities set their sights on ReWalk, and its stock experienced a substantial jump in price in March of 2021.

Since then, it has dropped by around 70%.

Regardless of its original meme stock status, the company plans on serving a large market, and if it can stick the landing, its share price could take off.

Investing in ReWalk will most likely appeal to long-term investors, as it will take years for the company to provide its tech to the larger population. 

 

penny stocks

What Is a Penny Stock?

As defined by the Securities and Exchange Commission, penny stocks are defined as stocks that trade for $5 or less.

These stocks are characteristically more volatile because they have low liquidity.

Should You Buy Penny Stocks?

Whether or not you should buy penny stocks mostly depends on your risk tolerance and your general attitude as an investor.

Do you have money that you’re willing to lose, and can you stomach a serious loss?

If so, you might have the temperament to start trading penny stocks.

There’s a lot of trial and error with this investment style, so you’ll need to learn how to study the markets and weed out legit stocks from scams.

What Are the Best Penny Stocks to Invest In?

The answer to that question is simple: the one you have researched thoroughly.

Do not invest in any penny stock company you have not studied.

This is especially true if you want to start day trading penny stocks.

It’s also helpful to know a lot about the company’s sector and its main competitors. 

If you are an avid gemologist, you may know more about junior miners or precious metal companies.

If you know a lot about cannabis, you might be able to spot a decent cannabis product.

Can Penny Stocks Explode in Value?

Penny stocks can explode in value, but most are duds.

Unless you’re a penny stock pro like Timothy Sykes, you might want to temper your expectations.

Cheap stocks are typically high risk, so proceed with caution or you might end up stepping into pump and dump schemes.

How Do Beginners Invest in Penny Stocks?

If you want to trade on the penny stock market, you’ll need a broker.

There are plenty of great online brokers to choose from, but we recommend starting your search with Robinhood and Webull.

These are great places to find stocks listed on major exchanges like the New York Stock Exchange and Nasdaq.

A quick note, neither platform allows you to trade OTC stocks.

Our stock picks are listed on major exchanges, so accessibility shouldn’t be a problem, though.

These brokers do not charge trading commissions.

Buying Stocks that Could Blow Up on Robinhood

The Robinhood trading platform caters only to these exchanges and does not have any listings from over-the-counter markets.

Robinhood is also quite user-friendly and great for those diving into the stock market for the first time.

So if you’re new to investing, you might want to pick them as your first brokerage account.

Is Robinhood Safe for Penny Stocks?

Robinhood is a safe platform; however, there have been some security concerns from users since its latest hack.

Buying Stocks that Could Blow Up on Webull 

Webull’s user interface is a bit more advanced and may take some getting used to if you are new to the game.

If you want to trade on the OTC market, you’ll want to look for a broker like Fidelity.

Is Webull Safe for Penny Stocks?

Webull is a safe platform to trade penny stocks on.

Final Thoughts on the Best Penny Stocks

Trading penny stocks could be a solid investment strategy if you do your due diligence and have the risk tolerance to offset your losses.

Still, there are no guarantees in investing, and this is especially true for trading penny stocks.

These are very volatile investments that can skyrocket or plummet overnight.

That being said, savvy investors who execute proper market timing can take advantage of this volatility and get out before a stock crashes.

At the end of the day, if you want to make money trading, penny stocks you’ll need a lot of patience and persistence.


Top Penny Stocks FAQ

Take a look at our answers to the most commonly asked questions about buying penny stocks.

Is It Profitable to Buy Penny Stocks?

It can be profitable to buy penny stocks, but they also come with a lot of risks.

More often than not, you stand to make a lot or lose it all.

What Stocks Have a Buy Rating?

  • Drive Shack Inc. (NYSE: DS)
  • Phunware Inc. (NASDAQ: PHUN)

What Is So Bad about Penny Stocks?

Penny stocks are risky because they are very volatile and the companies that list them are not bound by the same disclosure rules by the Securities and Exchange Commission.

Many penny stocks are pump and dump scams.

Can You Make a Living off Penny Stocks?

You can make a living off of trading penny stocks, but this is a risky market to be involved in.

If you want to trade penny stocks for a living, you’ll want to commit to some serious research.

Has Anyone Ever Got Rich off Penny Stocks?

There are plenty of people who have gotten rich off of penny stocks, including Timothy Sykes.

He’s an investment guru who helps folks develop strategies specifically for penny stocks. 

Was Apple a Penny Stock?

Apple (NASDAQ: AAPL) was a penny stock around the early 2000s.

Another wildly successful company that first started trading as a penny stock was Amazon.

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Noah is an American copywriter on a mission to help clarify the nuances of the financial world. When he's not working, you’ll likely find him running or traveling.