The Federal Reserve, for now, remains committed to its low-rate policy, so the stock market is the place to look for investors seeking a high return. To find names that can deliver solid returns and now come with a bargain price tag, investors will often turn to penny stocks, or those trading for less than $5 per share.
Sure, there could be a very good reason these tickers are so affordable, but should there be even minor share price appreciation, massive percentage gains could materialize, along with hefty profits for investors. The risk is that a small drop in value can also cause a high-percentage loss, so investors need to do their homework carefully before buying into the pennies.
Bearing this in mind, we used TipRanks’ database to pinpoint two Strong Buy penny stocks that have earned a thumbs up from members of the analyst community. Not to mention each boasts substantial upside potential of over 200%.
Surgalign Holdings (SRGA)
First up is Surgalign, a medical device maker with a focus on spinal ailments and treatments. The company develops and markets a comprehensive line of devices for both surgical and non-surgical treatment of spinal problems. Originally founded in Marquette, Michigan, the company now has offices in Illinois and Germany, and sells its products globally.