The 3 Best Penny Stocks to Buy in January 2024

Source: Vitalii Vodolazskyi /

This year, the best penny stocks may have their day in the sun. A buffet of companies to research and buy stock in is available to investors. But, not all of them are created equal. However, improving fundamentals are expected raise the best penny stocks.

With that backdrop in mind, let’s explore some names that I’m bullish on as long-term investments. These are for investors who have the required risk tolerance.

Lumen Technologies (LUMN)

Lumen Technologies (NYSE:LUMN) is a communications services company. Many investors appreciate is its unusually high institutional ownership for such a small company. Institutions owned around a $1.1 billion collective value of LUMN’s shares. This equates to nearly 67.40% of its shares outstanding.

Notably, LUMN presents a contrarian case for those who are prepared to take big risks. This is due to the company’s share falling 68.86% over the past year. But a good future may be in store for LUMN.

First, the negative backdrop for Lumen Technologies centers around its falling revenues year over year (YOY) since 2018. Also, LUMN consistently misses EPS guidance. However, some analysts suggest that management will be successful in steering the company back toward stabilized revenues and earnings.

Healthy cash flows provide optimism. Those can still leave room for reinvestment, growth in its business segments, and divesting problematic parts of its business. If management’s expectation plays out as anticipated, then Lumen Technologies could be one of those best penny stocks for 2024. (TBLA) (NASDAQ:TBLA) is an online advertising company. It could be one of the best penny stocks due to its deals with major media companies, like NBCUniversal News Group.

The NBC deal will help it optimize user engagement. Also, it will drive revenue across its portfolio media sites such as CNBC, MSNBC, and TODAY. The contract length is five years. I expect it to be highly accretive for the company now and into the future.

The consensus opinion amongst Wall Street analysts is that TBLA stock could outperform its peers strongly this year. A strong buy rating reflects this. Further, an implied upside of around 20% for its share price is a real possiblity within the next twelve months.

Additionally, analysts expect it to reach break-even profitability in the future. Also, they forecast continued revenue growth which has been consistent for the last several financial years.

Advantage Solutions Inc. (ADV)

Advantage Solutions Inc. (NASDAQ:ADV) provides in-store marketing services and is known for its administration of free sample booths in supermarkets.

ADV stock’s business model is in stark contrast to the modernity of Taboola. However, Advantage Solutions Inc. has still managed to report strong returns from its operations. Adding to the bullish flair of ADV is that its stock price has climbed a huge 69.48% over the past year. And insiders, including its CEO and CFO, have collectively purchased tens of thousands of shares.

Like many other young companies, ADV has a negative P/E ratio. But analysts expect it to reach breakeven profitability in the near future.

Understandably, Wall Street is also bullish on ADV, rating it a buy. This comes with an expected EPS and revenue upgrade for this year too.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks.  

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the Publishing Guidelines.

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