Top 3 Penny ASX Stocks To Invest In Right Now!

Our Active Trades Performance in September
COMPANY NAME
ASX CODE
OPEN DATE
BUY RANGE
CURRENT PRICE
STOP LOSS
TARGET
PERFORMANCE
  • Cyclopharm (ASX:CYC)

    CYC
    March 31, 2023
    Up to $2.20
    $2.75
    $2.25
    $3.00
    67.7%
  • Weebit Nano (ASX: WBT)

    WBT
    May 17, 2022
    Up to $5.00
    $3.25
    $3.50
    $9.56
    46.4%
NAME
ASX
OPEN DATE
CURRENT PRICE
PERFORMANCE
  • Cyclopharm (ASX:CYC)

    CYC
    March 31, 2023
    $2.75
    67.7%
  • Weebit Nano (ASX: WBT)

    WBT
    May 17, 2022
    $3.25
    46.4%

Stocks Down Under’s Team Of Experts Has Put Together Our Top Penny Shares Picks To Invest In Right Now!

Get our Industry Experts’ reports and recommendations, along with BUY and SELL Alerts for Penny ASX-listed Stocks with Stocks Down Under’s Concierge. Sign up to see our trades.

Group 550

Building a Solid Investment Strategy

Group 57

Comprehensive Research

Before investing in penny stocks, understand the company's fundamentals, such as their balance sheet, market cap, and profit margin. Review their capacity to generate revenue and assess the viability of the company's products or services.

Group 57

Comprehensive Research

Before investing in penny stocks, understand the company's fundamentals, such as their balance sheet, market cap, and profit margin. Review their capacity to generate revenue and assess the viability of the company's products or services.

supplier 2

Industry Analysis

Investing in penny stocks requires a thorough understanding of the industry the company operates in. Look at the current trends, the major players, and any potential disruptions that might affect the company's performance.

supplier 2

Industry Analysis

Investing in penny stocks requires a thorough understanding of the industry the company operates in. Look at the current trends, the major players, and any potential disruptions that might affect the company's performance.

diversify

Diversification

Diversification is critical when investing in penny stocks. Spreading your investments across various sectors and companies can help minimize risk. Therefore, balance your portfolio with a mix of various stocks.

diversify

Diversification

Diversification is critical when investing in penny stocks. Spreading your investments across various sectors and companies can help minimize risk. Therefore, balance your portfolio with a mix of various stocks.

time

Long-Term Perspective

Penny stocks are not typically a quick win investment. While there are instances of rapid share price growth, these are more the exception than the rule. Successful penny- stock trading and investing requires patience and a long-term perspective.

time

Long-Term Perspective

Penny stocks are not typically a quick win investment. While there are instances of rapid share price growth, these are more the exception than the rule. Successful penny- stock trading and investing requires patience and a long-term perspective.

evaluate

Risk Management

Penny stocks, being high risk, should only constitute a small portion of a diversified portfolio. Be prepared for fluctuations in the stock market, and don't invest more asx penny stock than you're willing to lose.

evaluate

Risk Management

Penny stocks, being high risk, should only constitute a small portion of a diversified portfolio. Be prepared for fluctuations in the stock market, and don't invest more asx penny stock than you're willing to lose.

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The Top Penny Stocks to Invest in on the ASX: A Comprehensive Guide for Retail Investors

Investing in penny stocks can be akin to venturing into a minefield, making it a highly speculative endeavour. These stocks belong predominantly to small companies, sometimes referred to as 'micro cap stocks', 'small caps', or 'smaller companies'. They're often young companies with stock prices that are just a few cents each, making them highly speculative investments in them an enticing proposition for those willing to take on higher risk for potential high returns.

One key attribute of penny stocks is their low liquidity, meaning there are relatively few sellers and buyers. This can make these stocks thinly traded, and at times it can be difficult to find enough buyer demand if you decide to sell your shares. However, by conducting your own research, you can mitigate some of these risks and potentially uncover lucrative investment opportunities.

The Risk of Investing in Penny Stocks

Penny stocks are known for their low market prices and the potential for rapid growth. While their low-cost nature makes them an attractive option for new investors, their inherent volatility also categorizes them as high risk investments.

While the prospect of turning a small investment into a fortune is certainly appealing, it's crucial to remember that penny stocks tend to be high risk investments. The companies behind most penny stocks are often going through financial difficulties or are yet to establish a consistent revenue stream. Therefore, as an investor, you must be prepared for the potential of a total loss.

Key Considerations When Buying Penny Stocks

Just like buying shares in larger, established companies, doing your due diligence is crucial when investing in penny stocks. Studying the company's fundamentals, such as their balance sheet, profit margin, and the potential to generate revenue is key.

Additionally, understanding the nature of the company's products or services, as well as the market in which they operate can give you insight into larger companies and their near future prospects. Past performance, while not a guarantee of future results, can also offer valuable information.

Frequently Asked Questions

There are numerous ASX penny stocks that have shown promise, such as Castle Minerals and Minrex Resources, among others. However, the "best" stocks will depend on your investment goals and risk tolerance.

Our Top 3 Penny ASX Stocks

ZIPCO

Zip Co Ltd (ASX: ZIP)

A player in the growing 'buy now, pay later' sector, Zip Co has seen significant growth in recent years. The company's revenue has been growing at a compound annual growth rate (CAGR) of 138% over the past three years as of March 2023. With its aggressive expansion plans, both domestically and internationally, Zip Co appears well-positioned for future growth.

sdu-lake-resource-

Lake Resources NL (ASX: LKE)

This lithium exploration and development company is positioned well to capitalize on the increasing demand for lithium from the electric vehicle industry. The company's Kachi Lithium Brine project in Argentina is one of the largest gold projects in the world. As of 2023, the project is on track, and the company has strong partnerships in place for extraction and production.

sdu-kogan-ltd

Kogan.com Ltd (ASX: KGN)

This online retailer has seen strong revenue growth over the last year, with a 56.8% year-on-year revenue increase as of December 2022. The shift to online shopping due to recent global events has likely played a role in this success. The company's continued focus on customer experience and the expansion of its product range set it up for potential future success.

ZIPCO

Zip Co Ltd (ASX: ZIP)

A player in the growing 'buy now, pay later' sector, Zip Co has seen significant growth in recent years. The company's revenue has been growing at a compound annual growth rate (CAGR) of 138% over the past three years as of March 2023. With its aggressive expansion plans, both domestically and internationally, Zip Co appears well-positioned for future growth.

ZIPCO
LAKE RESOURCES

Lake Resources NL (ASX: LKE)

This lithium exploration and development company is positioned well to capitalize on the increasing demand for lithium from the electric vehicle industry. The company's Kachi Lithium Brine project in Argentina is one of the largest gold projects in the world. As of 2023, the project is on track, and the company has strong partnerships in place for extraction and production.

LAKE RESOURCES
KOGAN.COM

Kogan.com Ltd (ASX: KGN)

This online retailer has seen strong revenue growth over the last year, with a 56.8% year-on-year revenue increase as of December 2022. The shift to online shopping due to recent global events has likely played a role in this success. The company's continued focus on customer experience and the expansion of its product range set it up for potential future success.

KOGAN.COM

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