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Highlights
- Investors often consider penny stocks when aiming for short-term gains to benefit from certain favourable market conditions.
- Penny stocks generally come in handy as these are typically priced below C$ 5. However, these are considered highly risky.
- A penny stock mentioned here skyrocketed by nearly 1109 per cent year-over-year (YoY).
People have different sets of investment objectives, return targets, financial needs and risk levels, which can change from time to time.
Investors often consider penny stocks when aiming for short-term gains to benefit from the favourable market environment.
Penny stocks generally come in handy as these are typically priced below C$ 5. They also have a market capitalization less than small-cap stocks, i.e., between C$ 60 million and C$ 300 million.
Some penny stocks can, at times, offer a higher return than a large-cap stock, but one should remember that they are generally highly risky.
Now, let us discuss three Canadian penny stocks that rose over 300 per cent in the last 52 weeks.
Also read: Is Well Health (TSX:WELL) a healthcare stock to buy right now?
Razor Energy Corp (TSXV:RZE)
Razor Energy is a TSXV-listed company engaged in oil and gas production. The junior energy company saw its total revenue at C$ 27.92 million in Q4 2021, notably up from C$ 14.27 million in Q4 2020.
The company also improved its net income to C$ 18.31 million in the latest quarter against a loss of C$ 6.04 million a year ago.
RZE stock skyrocketed by nearly 1109 per cent year-over-year (YoY).
Journey Energy Inc (TSX:JOY)
Journey Energy signed a definitive agreement to acquire a private firm which produces oil in the Carrot Creek area in March. The company also revised its 2022 guidance.
It expects annual average daily sales to reach 9100 to 9600 barrels of oil equivalent per day and adjusted funds flow of C$ 87 million to C$ 91 million in 2022.
JOY scrip ballooned by over 501 per cent in 12 months.
Graphene Manufacturing Group Ltd (TSXV:GMG)
Graphene Manufacturing Group manufactures graphene to enhance energy efficiency and cut costs in paints, coolants, lubricants, and battery technologies.
The company also launched its redesigned website for Graphene Supermarket, which features an updated visual identity and improved user interface.
GMG stock swelled by approximately 360 per cent in 52 weeks.
Bottomline
Penny stocks can sometimes fetch notable returns, considering proper investment strategies are in place and the right decisions are taken on time. However, such stocks can be risky, which is why investors should carefully analyze market sentiments and a company’s potential before putting money into any penny stock.
Also read: Air Canada (TSX:AC) posts operating revenue of $2.5B in Q1. A buy?
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
