With all the negativity looming over the market today, you may think there are few hot penny stocks to buy out there.
In general, this may be true, but as the saying goes, “don’t fight the Fed.” With the Federal Reserve carrying on with its raising of interest rates to fight inflation, it’s going to be difficult for major stocks to perform well, much less smaller, more speculative names.
Still, there may be some exceptions. Certain stocks could perform well, despite today’s macro backdrop.
For instance, names with exposure to sectors that could thrive in the coming years, no matter what lies ahead for the global economy could be solid penny stocks to buy.
Another good example of penny stocks to buy are those with potentially game-changing catalysts just around the corner. Alongside this, there are stocks that could make a needle-moving move in the next year, thanks to success with shareholder activism efforts.
With these three hot penny stocks to buy, such near-term catalysts could outweigh current market conditions. You may want to consider buying them in September. Even if there continues to be a high degree of market uncertainty.
Denison Mines (DNN)
As InvestorPlace’s Samuel O’Brient reported Sept. 1, uranium stocks have been rising lately.
Between Japan’s warming back up to the use of nuclear power, and Elon Musk’s comments supporting wider nuclear power use, there’s been renewed bullishness for uranium plays, including Denison Mines (NYSE:DNN).
It’s not the most popular uranium miner out there. Names like Uranium Energy (NYSE:UEC) have received a greater degree of attention. Yet when it comes to making a bet on increasing the use of nuclear power to achieve the goal of net-zero carbon emissions, DNN stock may be a better choice among the energy penny stocks to buy.
It may offer a better value proposition. As a Seeking Alpha commentator argued last month, Denison’s flagship project (Wheeler) could eventually have a $2.59 billion net present value, if uranium prices move up slightly, to $65 per pound.
That’s an amount well above its current market cap ($1.16 billion).
Globalstar (NYSEAMERICAN:GSAT) has been surging higher in the past month.
There is a fair amount of risk going into GSAT stock now. Unlike just a few months back, the Apple rumors have resumed being partially baked into its valuation, making this one of the riskier penny stocks to buy.
If the tech giant fails to include satellite connectivity (via Globalstar’s services) as a feature with the upcoming iPhone 14, shares could experience a sharp price decline.
That’s what happened last year when it wasn’t added as a feature on the iPhone 13. Then again, if it does? The stock may have room to run. If you’re looking for a high-risk, high-reward wager in today’s cautious market, consider this stock.
AMMO Inc. (POWW)
At first glance, AMMO Inc. (NASDAQ:POWW) may not seem like it belongs in the “penny stocks to buy” category. Shares have tanked since its announcement on Aug. 15 to split into two companies, with one owning its ammunition business, and another owning its e-commerce segment (consisting mainly of Gunbroker.com).
However, it’s not certain the company will end up going through with this divestiture plan based on recent shareholder activism news.
Gunbroker founder Steven Urvan, whose group owns around 17.1% of outstanding POWW stock, has launched a full-on proxy fight.
The dissident shareholder plans to nominate a full slate of replacement directors for the company’s board. If Urvan prevails, the company could decide to scrap the spin-off idea and pursue a new strategy that results in a re-rating for this stock.
Shares are arguably undervalued, considering the prospect of continued earnings growth.
On the date of publication, Thomas Niel did not have (either 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.