Penny stocks, broadly defined as stocks that trade for less than $5 per share, have attracted renewed interest from traders and investors since the election of Donald Trump as president of the United States. The idea is that the new administration will adopt tax policies and reduce regulatory hurdles that will benefit these companies, whose stocks have lagged the S&P 500 in 2024.
That’s not to say that all small-cap stocks have performed poorly in 2024. The Russell 2000 index, considered a proxy for small-cap stocks, rose about 16%. That’s a good year, but it was about 68% lower than the S&P 500, which ended the year up about 27%.
But you still want to look for companies that offer strong fundamental reasons to own the shares in 2025. And while these stocks could make interesting bargain candidates, we view these stocks as three of the best penny stocks to buy for the long term. profit.
Strong partnerships outweigh near-term risks for Globalstar
Globalstar Inc. (NYASIRKA: GSAT) provides mobile satellite services that play an important role in low-Earth orbit (LEO) communications. The company’s proprietary Always On and Always Reliable satellites provide connectivity in remote areas.
Globalstar today
As of 01/08/2025 16:10 Eastern
- 52 week range
- $1.00
▼
US$2.74
- Target price
- US$5.00
GSAT shares surged in November 2024 when the company announced a strategic partnership with Apple Inc. NASDAQ:AAPL. This will give Globalstar access to $1.5 billion in Apple funding, which the company will use to buy new satellites, nearly doubling its existing network.
Globalstar also recently announced a partnership with Peiker Holding Gmbh to provide automotive OEMs with the company’s satellite emergency service and telematics capabilities.
The company is already well capitalized thanks to its business model that generates recurring revenue. Globalstar reported revenue of $72.3 million in the most recent quarter, beating expectations by 19.5%. The company is not yet profitable, but is approaching this milestone.
Despite the healthy balance sheet, investors will have to endure a reverse stock split sometime in 2025. The board of directors announced that it would be anywhere from 1 in 10 to 1 in 25. The split is planned to coincide with the company’s relisting from the NYSE to NASDAQ. This is expected to happen sometime in the first quarter of 2025.
Continued rise in gold prices should boost mining stocks
Gold was one of the strongest asset classes in 2024 and 2025, posting gains of about 28%, just outpacing the S&P 500’s gains. Some analysts are predicting the yellow metal could hit $3,000 at some point in 2025.
B2Gold today
As of 01/08/2025 16:10 Eastern
- 52 week range
- US$2.34
▼
$3.50
- Dividend yield
- 6.13%
- Target price
- US$3.53
This would be bullish for mining stocks.and B2Gold Corp. NYSEAMERICAN:BTGis one of the more intriguing names to consider for risk-tolerant investors. consider. Most of the company’s mining operations are located in geopolitically unstable regions.
The start-up of the Goose project in Canada drives the company’s forecast of a 30 percent year-on-year increase in gold equivalent ounces at the midpoint of its forecast. The strengthening bullish outlook is supported by a solid balance sheet showing $430 million in cash and just $201 million in debt.
The stock trades at a forward price-to-earnings (P/E) ratio of around 10x, and this solid balance sheet covers the company’s dividend, which has an attractive yield of 6.18%.
ChargePoint is a long-term bet that could pay off
ChargePoint Holdings Inc. New York Stock Exchange: CHPT went public in 2021 as part of a special purpose acquisition company (SPAC). To be fair, they were one of many companies that went public this way. At the time, the company looked like one of the best investments among auto stocks.
ChargePoint today
As of 01/08/2025 15:58 Eastern
- 52 week range
- US$1.05
▼
$2.44
- Target price
- $2.46
The United States had an electric vehicle (EV)-friendly administration that created incentives for consumers to own electric vehicles. At the same time, the country needed charging infrastructure like the one ChargePoint provides.
However, there were too many headwinds to count. Demand for electric vehicles has risen sharply, but is still below forecasts. At the same time, the construction of charging stations is moving slowly in an environment of higher interest rates. In addition, ChargePoint faces competition from Tesla Inc. NASDAQ:TSLAAnd EVGO Inc. New York Stock Exchange: EUGO, both companies produce Level 3 superchargers, which are becoming the industry standard.
However, ChargePoint is well capitalized, meaning the risk of bankruptcy is low. Let’s assume you have a risk tolerance and a long time horizon. In this case, CHPT stock could look attractive, especially after the company announced its partnership with General Motors New York Stock Exchange: CEO build 500 high-speed charging stations.
You might want to hear this before you consider Globalstar.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Globalstar wasn’t on the list.
While Globalstar currently has a Buy rating among analysts, the top-rated analysts rate these five stocks as Outperform Buys.
View five stocks here
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