- Penny stocks are low-priced stocks of companies with a small market cap.
- Livestock Improvement, Accordant Group and Good Spirits have given the highest YTD returns within consumer stocks.
- Investors must conduct proper due diligence and thorough analysis before investing in penny stocks.
Penny stocks are low priced and small-cap company stocks. They can be good bets for those who don’t want to spend much on stocks but expect to earn good profits in the short term.
However, investing in penny stocks comes with a high risk due to their volatile nature. These stocks are highly susceptible to price changes and are unpredictable.
The consumer sector involves the sector where products and services are given to consumers directly. With Kiwis eyeing a long weekend of Good Friday and Easter, we bring to you a list of 3 NZX consumer penny stocks with the highest YTD returns that can be considered by investors.
Source: © 2022 Kalkine Media®
Livestock Improvement Corporation (NZX:LIC)
NZ-based agri-tech and herd development co-operative, LIC, has a market cap of $236.29 million and has given a YTD return of 27.69%.
LIC registered a rise of 5.4% in revenue and an increase of 4.7% in EBITDA in H1 ended 30 November 2021. The Company delivered strong results that were driven by its premium artificial breeding products despite COVID-19 and increasing cost pressures.
The Group expects an NPAT between $22 million-26 million and underlying earnings between $20 million-$26 million for FY22.
LIC ended the day flat to close at $1.66.
Accordant Group Limited (NZX:AGL)
NZ’s biggest recruiter and staffing provider, Accordant Group, has a market cap of $70.32 million and has given a YTD return of 16.85%.
The Group reported a $4.5 million increase in revenue to $110.4 million for the 6 months ended 30 September 2021. AGL was most impacted by Level 4 lockdowns amid border closures and a scarcity of candidates.
The Group has plans to source migrant labour and skilled IT workers as borders open gradually for international tourists. The Group has a good pipeline of work going into H2 of FY22.
AGL ended the day flat to close at $2.08.
Good Spirits Hospitality Limited (NZX:GSH)
Operating in NZ’s hospitality sector, Good Spirits Hospitality has a market cap of $4.33 million and has given a YTD return of 2.74%.
GSH had expected to complete the purchase of all shares in Nourish Group Limited, which owns many hospitality venues throughout NZ, in Q1 of 2022. However, the Group witnessed delays in fulfilling conditions related to the acquisition due to the COVID-19 pandemic and now expects to complete it in Q2 subject to obtaining satisfactory equity investor commitments.
GSH is well positioned to scale up its operations as COVID-19 curbs have begun to ease.
GSH ended the day flat to close at $0.075.
Investors must conduct proper due diligence and thorough analysis before investing in penny stocks.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)