4 Penny stocks to watch in 2024

Penny stocks, often under the keen scrutiny of retail investors, hold a unique allure in the financial markets. 

Unlike their larger counterparts, these stocks, priced at less than $5 per share, boast significant upside potential with the possibility of yielding multi-fold returns. This appeal arises from their nimble nature, allowing for quicker growth compared to slower-paced large-cap stocks.

However, the allure comes hand in hand with higher risks, as penny stocks usually belong to lesser-known, growth-focused companies striving to make a mark in their industries. 

In this article, we explore four penny stocks that are currently attention for their growth potential and bullish analyst ratings.

Savara (NASDAQ: SVRA)

Savara (NASDAQ: SVRA) is a biopharmaceutical company in the clinical stage, dedicated to advancing treatments for rare respiratory diseases. This healthcare firm is best known for molgramostim, an immunostimulator presently undergoing phase 3 clinical trials for the treatment of autoimmune pulmonary alveolar proteinosis (aPAP).

The stock soared more than 170% over the past year, but there is a reason to believe that it could continue trending higher in 2024. Savara expects top-line data from its pivotal phase 3 trial of molgramostim by mid-224 and has said last year it had enough cash to fund operations through 2025. 

Moreover, analysts are largely bullish on the stock. Based on 4 Wall Street experts who covered the stock in the last three months, the average 12-month price target on SVRA is $6.63, suggesting a possible upside of more than 51%. Also, the consensus grade on the stock is Buy, while no strategists rated it as Hold or Sell, TipRanks data shows.

It is important to note that SVRA’s future performance largely depends on the results of the molgramostim trial data. As such, a disappointing outcome would likely result in a downturn. 

Hecla Mining Company (NYSE: HL)

Hecla Mining (NYSE: HL) is a precious metals mining company based in Coeur d’Alene, Idaho. It is the second-largest silver miner in the United States, and although its 2023 stock performance was not convincing, a recovery may be on the horizon. 

One of the primary factors behind this prediction is the expected rebound in the precious metals market. Bolstered by the Federal Reserve’s dovish pivot and geopolitical tensions, gold is widely anticipated to hit record highs in 2024. Since it tends to trade in tandem with the bullion, silver could also break out from its current bearish trend this year amid growing demand. 

The consensus 12-month price target on HL stock is $6.16, implying a potential upside of over 31% from the current price. Based on 4 Wall Street analyst coverages, the average rating on HL is ‘Strong Buy.’

iQIYI (NASDAQ: IQ)

iQIYI is one of the leading providers of online entertainment video services in China. Owned by internet juggernaut Baidu, iQIYI allows viewers to watch content from several Asian countries.

The company’s Q2 2023 revenue surged 17% year-over-year, while its operating income rose to $84.2 million. Moreover, iQIYI’s operating margin of 8% was notably higher than the 2% reported in the year-ago period. The streaming service provider boosted its free cash flow for four straight quarters. 

Meanwhile, Wall Street’s average price target of $6.95 on IQ shares implies a 45% upside from the current share price. Out of 7 analysts who covered the stock in the past three months, 5 rated it as a Buy, while 2 recommended a Hold.

Bitfarms (NASDAQ: BITF)

Over the past year, Bitcoin (BTC) mining company Bitfarms (NASDAQ: BITF) witnessed an eye-popping stock price surge of more than 560%. 

While the bulk of those gains can be attributed to a significant recovery in Bitcoin’s price during 2023, another key catalyst, Bitcoin halving, is due later this year. Bitcoin halving events have historically boosted the maiden cryptocurrency’s price, and should that happen again, mining stocks could also attract bullish pressure. 

Five strategists who issued coverage on BITF in the last three months have given the stock an average 12-month price objective of $3.75. That suggests an upside potential of more than 32% from the latest closing price. 

The consensus rating on BITF is Strong Buy, as a result of 5 Buy, 0 Hold, and 0 Sell recommendations, according to TipRanks.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.