Investing

3 Penny Stocks Growing Earnings Over 200% This Year

Joshua Rodriguez

Published: August 16, 2024 9:51 am

Penny stocks are attractive for many investors. These stocks trade for under $5 per share and typically represent young companies. While most stocks in the penny category may fail, making the right investments in young companies can pay off handsomely in the long run. 

So how do you choose the best penny stocks to add to your portfolio?

Some say the answer is to consider analyst opinions. In particular, many look for stocks that analysts believe will see tremendous earnings growth ahead. Below, we’ll outline three penny stocks with analyst expectations that suggest there’s room for 200%+ earnings growth over the next year.

Key Points:

• Penny stocks are risky investments. 
• You can mitigate some risk by looking for stocks that analysts believe will produce meaningful earnings growth. 
• ZKH, GETY, and HUYA are all expected to increase their earnings by multiples in 2024. 
• If you are looking at penny stocks to find the best buy low, sell high opportunities, don’t miss our brand-new “The Next NVIDIA” report. It features 3 stocks that we are confident have 10-x potential in the AI space. The report is complimentary and available for a limited time only, so don’t delay!

Trade Penny Stocks With Caution

Before we get into the penny stocks analysts believe will grow by 200% or more over the next year, it’s important that you understand the risk associated with investing and trading this category of equities. 

As mentioned above, penny stocks typically represent young companies. These companies may be in the early commercial phases — or even the product development phase — of building a business. While some of these companies may succeed and produce meaningful gains for investors, many will fail, generating losses. 

Investing in and trading penny stocks is best for experienced market participants with a healthy risk appetite. 

5 Penny Stocks Growing Earnings Over 200% This Year

Here are five penny stocks that analysts expect to grow earnings by 200% or more in 2024:

ZKH Group Could Go From Losses to Profits

ZKH Group (NYSE: ZKH) is a Chinese MRO procurement company. That means the company helps other companies overcome maintenance, repair, and operational procurement challenges. The company works in a wide range of industries, like general consumables, chemicals, and office supplies. It also offers fulfillment solutions like warehouse space with a digital approach. For example, ZKH Group offers intelligent warehousing. 

Unfortunately, ZKH Group hasn’t been a very profitable company. For example, in 2023, the company produced a loss per share of $3.12. That followed the company’s $4.89 loss per share in 2022. But, analysts expect the company to achieve profitability in 2024. The two analysts currently weighing in on the stock expect 2024 earnings to come in at $0.79 per share. 

Those analysts both have a positive opinion of the stock, rating it a Buy. The median price target is $114.11. Considering the current price of just over $3 per share, that price target suggests there’s plenty of room for growth ahead. 

Getty Images Could Get Into Serious Profits This Year

Getty Images (NYSE: GETY) has become somewhat of a staple in image procurement for the online publishing community. The platform is used by many print publishers as well. Getty Images is essentially a technology company that developed a platform to connect photographers with image rights purchasers. When Getty Images sells the rights to a picture or video, it pays the photographer/videographer behind that product a royalty on the sale. So, how are earnings going at Getty?

Earnings growth was strong in 2023, with full-year EPS coming in at $0.05 — a vast improvement over the $0.53 loss per share the company generated in 2022. And analysts expect that growth to continue. In 2024, analysts say the company should produce $0.19 in earnings per share. 

But expected earnings growth isn’t the only exciting thing analysts have to say about this stock. Seven analysts have shared their opinions of the stock. Four of those analysts rate it a Buy and three rate it a Hold. And with a $6 median price target, those analysts are expecting plenty of growth over the current $3.29 stock price. 

HUYA Could Produce a Stream of Profits In 2024

HUYA (NYSE: HUYA) is a Chinese live-streaming service. The company offers a mix of professionally produced and user-generated video content. But videos aren’t the only type of content users stream on the platform. It also offers streaming games. 

The good news is that the HUYA streaming platform is expected to make the shift from losses to profitability this year. While the company lost $0.12 per share last year, analysts expect it to produce $1.34 in earnings per share this year. 

So it shouldn’t be surprising that the overall opinion of HUYA is a positive one. Of the 17 analysts weighing in on the stock, nine rate it a Buy, three rate it an Outperform, and four rate it a Hold. Only one analyst rates the stock a Sell. Not to mention, with a median price target of $41.89 per share and a share price that’s currently under $5, analysts suggest there’s plenty of room for gains ahead.