With the broader indices gaining this year, the time is ripe to check on the best penny stocks on Robinhood.
The penny stock sector undoubtedly bears its own risks. But if played right, it can offer rewarding potential. For instance, shares of NVIDIA Corporation (NASDAQ:NVDA) had no hope of surpassing the two-dollar barrier in the early 2000s. Yet this year, it reached its all-time high of $927.67, giving it a market cap of $2.3 trillion. Another example is Ford (NYSE:F), when it traded at less than $2 per share during the 2007–2008 worldwide financial crisis. Now, it’s changing hands for $12.11.
We will look at three penny stocks with similar potential and double-digit upsides you can purchase on Robinhood. The first pick benefits from wider crypto trends, the second from 5G, and the last from the aging American population. Each offers potentially astounding returns for risk-taking investors.
Bitfarms (BITF)
Crypto miner Bitfarms (NASDAQ:BITF) is one of the top penny stocks on Robinhood, as Bitcoin and Ethereum zoom past $71,000 and $4,000, respectively.
The Bitcoin miner will be one of the main beneficiaries of the Bitcoin (BTC-USD) bull run and the next halving. This event is why Bitcoin’s supply is literarily constrained at 21 million. The next one will occur in April. It is commonly observed that the news about the halving often results in a substantial price increase for Bitcoin and crypto stocks. BITF shares, which have already gained 191% over the last year, are in the spotlight.
Bitfarms held 804 bitcoins in its treasury as of the end of January. It mined 357 bitcoins in January and sold them all for $15.3 million.
Operational capacity remained consistent with an end-of-month operating hash rate of 6.5 exahashes per second (EH/s). Plans include boosting capacity to 21 EH/s within the year. Additionally, Bitfarms will deploy 11,600 Bitmain T21 miners in Quebec and install 1,920 MicroBT M53S+ miners in Paraguay soon. Also, it has acquired land for a new mining facility in Paraguay.
Further, Bitfarms added 3,888 S21s and 740 S21 hydro miners to its inventory. And, BITF executed options to buy 28,000 Bitmain T21 miners and 19,280 more, boosting its capacity. Moreover, Bitfarms has announced a $375 million at-the-market equity offering program, boosting shareholder returns at a critical stage.
TipRanks data indicate that investors willing to buy this stock will potentially gain 86.19% in upside based on a mean target of $4.45.
Nokia (NOK)
Nokia (NYSE:NOK) was once known for its mobile phone division. However, after losing the race for mobile supremacy to Apple (NASDAQ:AAPL), it pivoted to 5G technology, cloud, and network services.
Thanks to investments in 5G, it aims for a double-digit operating margin and a net sales target of around 10 billion Euro by 2026. It focuses on enterprise customers, Cloud RAN, O-RAN, and the defense sector.
The company wants to evolve its operating model by emphasizing SaaS and Networks as Code. In doing so, it will gain access to consistent recurring cash flow. Nokia investors could also take advantage of the Finnish multinational’s novel merchandise introductions. In addition to the XR20 and G50 phones, NOK is rolling out two more products—G400 and C200 models.
Nokia’s patent licensing agreements with key industry participants such as Apple also demonstrate a forward-thinking approach. NOK certainly needs these initiatives to work since the stock is down 22.1% on a one-year basis. It is coming off four quarters of disappointing analyst estimates.
However, estimates indicate the stock has a 30% upside potential from current rates, making it one of the best penny stocks to buy on Robinhood.
Clover Health Investments (CLOV)
Clover Health Investments (NASDAQ:CLOV) is one of the best penny stocks to buy on Robinhood if you want to invest in a future-oriented healthcare play.
The company provides Medicare Advantage insurance plans, aiming to slash costs and improve healthcare outcomes. CLOV is targeting the global Medicare Advantage market. The latter was valued at $456.6 billion in 2023 and is expected to reach $758.5 billion through 2032, according to an analysis from Custom Market Insights.
Plus, the U.S. is aging rapidly, with people 65 and older jumping from 58 million in 2022 to 82 million by 2050. As a result, the total number of Medicare beneficiaries will keep growing, proving CLOV stock positive tailwinds.
Meanwhile, the last three quarters have been earnings-beat quarters. Clover Health Investments targets Adjusted EBITDA profitability for the entire fiscal 2024. This will enable it to leverage its technology platform, Clover Assistant. Analysts are projecting an 82.6% upside for the stock based on a mean target price of $1.44.
Under these circumstances, CLOV establishes itself well among the best penny stocks on Robinhood.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the publication date, Faizan Farooque does not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.