3 Standout Penny Stocks With 70% to 124% Upside Potential
Penny stocks often fly under the radar, but their low price points can offer outsized returns for bold investors. These stocks typically represent companies with innovative ideas and emerging market niches that are just waiting to break out. By getting in early, investors can capitalize on massive growth as these hidden gems catch the market’s attention and scale up rapidly.
Notoriously volatile in nature, penny stocks can experience sharp price swings due to their relatively lower liquidity. This volatility can be nerve-wracking for some investors, as minor news or changes in investor perception can significantly impact share prices. There’s also a high degree of risk involved, and not every penny stock will turn into a multi-bagger – so these investments are best suited for those with a healthy appetite for risk and a long-term investment horizon. However, this very volatility is also what creates opportunities for substantial gains.
In light of this context, for investors on the hunt for high-growth opportunities, these three “Strong Buy”-rated penny stocks – Planet Labs (PL), Uranium Royalty Corp (UROY), and D-Wave Quantum (QBTS) – could be ideal investment candidates now, each boasting potential upside of 70% or more to Wall Street’s mean price targets.
Penny Stock #1: Planet Labs
Founded in 2010 by three visionary NASA scientists, California-based Planet Labs (PL) is at the forefront of global satellite imagery and geospatial solutions. With a mission to image the world every day, Planet Labs operates the largest fleet of Earth observation satellites, delivering crucial data and advanced insights to over 1,000 customers across diverse sectors, including agriculture, forestry, intelligence, education, and finance. By making change visible, accessible, and actionable, Planet Labs empowers users to unlock unique value from satellite imagery and transform how they understand and respond to the world around them.
With a market cap of around $698 million, shares of Planet Labs are up 11.6% over the past year, but are in negative territory on a year-to-date (YTD) basis, down 4.6%. The stock has bounced back sharply from its April lows, though, delivering gains of roughly 39% over the past six months, compared to the broader S&P 500 Index’s return of 15.5% during the same time frame.
Planet Labs revealed its fiscal 2025 Q2 earnings results in early September, achieving remarkable revenue growth with a 14% year-over-year increase to a record $61.1 million. Its customer base expanded by 7%, reaching a total of 1,012. Additionally, gross margin improved to 53%, up from 49% in the same quarter last year. The company demonstrated robust growth in Q2 among government customers in the Defense & Intelligence sector, where revenue surged over 30% year-over-year.
CEO Will Marshall noted the successful restructuring of the business towards an industry-aligned operating model, leading to improved operational efficiency and gross margin expansion. With a strong balance sheet boasting approximately $249 million in cash and no debt, Planet Labs is well-positioned for continued success and growth.
PL stock has a consensus “Strong Buy” rating overall. Of the 10 analysts offering recommendations for the stock, seven suggest a “Strong Buy,” one advocates a “Moderate Buy,” and the remaining two have a “Hold” rating. The average analyst price target of $4.00 indicates a notable potential upside of around 70.2% from current price levels.
Penny Stock #2: Uranium Royalty
Canada-based Uranium Royalty Corp (UROY) is the world’s sole uranium-focused royalty and streaming company. Through strategic acquisitions of royalties, streams, debt, and equity in uranium companies, Uranium Royalty provides investors with essential exposure to uranium commodity prices while also trading physical uranium. Amid escalating demand for carbon-free nuclear energy, the company is a vital capital provider for an industry that requires substantial investments in production capacity.
Valued at a market cap of around $350 million, shares of Uranium Royalty have gained 7.5% on a YTD basis and outpaced the broader market over the past six months, with healthy gains of 26.7%. The company reported its fiscal Q1 earnings results on September 12, revealing a net loss of C$0.02 per share, up from a net loss of C$0.01 per share in the year-ago quarter.
Despite the wider net loss attributed to higher office and administration expenses, Uranium Royalty boasts strong working capital of C$222 million ($159.8 million). In a strategic move to enhance its portfolio, UROY made two notable acquisitions in Q1, positioning the company to capitalize on the growing demand for uranium. The average analyst price target of $5.34 indicates expected upside of almost 83% from current levels, underscoring its investment potential.
Penny Stock #3: D-Wave Quantum
Valued at a market cap of $239.7 million, Palo Alto-based D-Wave Quantum Inc (QBTS) is a pioneer in quantum computing and is recognized as the world’s first commercial supplier of quantum computers. Committed to unlocking the potential of quantum technology for both business and society, D-Wave delivers practical quantum applications that tackle a wide range of challenges, from logistics and artificial intelligence (AI) to drug discovery and financial modeling.
The company’s cutting-edge technology has been adopted by leading organizations, such as Mastercard, Deloitte, Siemens Healthineers, and Lockheed Martin, showcasing D-Wave’s ability to provide significant value across various industries. Shares of D-Wave are up almost 76% over the past year, and more than 28% on a YTD basis.
Following the company’s impressive Q2 earnings results on August 8, shares took off more than 5% in the next trading session. The company’s revenue hit $2.2 million, a solid 28% increase from the year-ago quarter. The average analyst price target of $2.54 indicates a whopping 124.8% potential upside from current price levels, making D-Wave Quantum a highly promising candidate for growth-oriented investors.
In conclusion, while penny stocks are synonymous with high volatility and risk, these three candidates show noteworthy potential for significant gains. Investors looking for high-growth opportunities may do well to pay attention, but should always conduct their own research before making any investment decisions.