What Are the Top Penny Stocks for 2018?

What Are the Top Penny Stocks for 2018?

Penny stocks, also known as micro-cap stocks, are typically priced under $5 per share and often attract investors due to their low entry cost. However, penny stocks are considered to be high-risk investments due to their volatility and lack of information available to the public. As such, investors should be cautious when investing in penny stocks and should conduct thorough research before investing their money. In this article, we will discuss some top penny stocks for 2018 and provide insights on how investors can approach investing in penny stocks.

Identifying top penny stocks for 2018

Identifying top penny stocks for investment can be challenging, but investors can use certain criteria to narrow down their options. Some of the factors to consider when identifying top penny stocks include the company's financial health, growth potential, and market trends. Investors should also consider the company's competitive advantage, management team, and industry outlook.

One of the top penny stocks for 2018 is Aurora Cannabis Inc. (ACB), a Canadian company that produces and distributes medical cannabis. With the legalization of marijuana in Canada and several US states, Aurora Cannabis is well-positioned to capitalize on the growing demand for medical cannabis. The company's financials have been impressive, with revenue growth of over 200% in 2017.

Another top penny stock for 2018 is Applied DNA Sciences Inc. (APDN), a company that provides DNA-based security and authentication solutions. The company's technology is used in various industries, including textiles, pharmaceuticals, and banking. With the increasing need for security and authentication solutions in various industries, Applied DNA Sciences is expected to experience significant growth in the coming years.

Investing in penny stocks

Investing in penny stocks can be risky, but investors can mitigate risks by adopting a disciplined approach to investing. Investors should conduct thorough research, diversify their portfolio, and set realistic expectations for their investments. One of the key strategies for investing in penny stocks is to focus on companies with strong fundamentals and growth potential.

Investors should also be aware of the risks associated with penny stocks, such as lack of liquidity, volatility, and lack of information available to the public. As such, investors should never invest more than they can afford to lose and should be prepared to hold their investments for the long term.

Conclusion

Penny stocks can be attractive to investors due to their low entry cost, but they are also considered to be high-risk investments. Investors should conduct thorough research, diversify their portfolio, and set realistic expectations when investing in penny stocks. Aurora Cannabis Inc. and Applied DNA Sciences Inc. are two top penny stocks for 2018 that investors may consider investing in. However, investors should always approach penny stock investments with caution and seek the advice of a financial professional.