As we head into October 2024, investors are getting more inclined to turn their attention towards certain cheap buys offering immense growth potential in the market. Consequently, penny stocks continue to offer attractive opportunities for these investors, ideally their affordability criteria while also showcasing scope for explosive future growth. While these opportunities come with significant degrees of risk, the well-researched picks often provide highly compelling risk to rewards ratios for the investors.

We have selected 5 highly sought after and high growth potential penny stocks that you should consider adding to your portfolio. 

VOC Energy Trust (VOC)

Price: Less than $5

Industry: Energy

Market capitalization: ~$80 million.

VOC Energy Trust operates within the oil and natural gas sector, with a specific emphasis on assets located in Kansas and Texas. It is a special opportunity for investors looking for income, as the trust gives a large portion of its earnings to shareholders. As a result, VOC also boasts a highly attractive dividend yield, consistently sustaining its double-digit levels. Moreover, with favourable energy prices and with oil demand remaining strong, VOC remains an attractive pick for investors seeking to capitalize on the energy market at an affordable cost.

What is the rationale for buying? VOC offers both growth potential and regular income through its dividend payments. Its involvement in the reliable energy industry makes it an interesting choice for investors looking for both value and income.

MIND CTI Ltd. (MNDO)

Price: Less than $5

Industry: Technology

Market capitalization: ~$45 million.

MIND CTI is an emerging player in the tech and telecommunications industry with a niche and concentrated focus on software service and solutions for billing and customer service requirements positioning the company in a thriving market sector and opportunity. This has already supported the company in remaining profitable and consistently producing robust cash flows throughout the years. Consequently, it provides its shareholders with an attractive dividend yield, often a rare quality among penny stocks, making it an appealing option also for dividend focused investors.

What is the rationale for buying? MNDO is a financially successful company with a steady dividend yield, which makes it a more secure choice in the unpredictable world of penny stocks. The telecom industry offers great growth potential and, combined with its proven profitability, presents a strong investment opportunity.

Geron Corporation (GERN)

Price: Less than $5

Industry: Biotechnology

Market capitalization: ~$1.2 billion.

Geron Corporation specializes in biotechnology stocks and is dedicated to creating therapies for blood cancers. Imetelstat, the main drug of the company, has demonstrated great potential in the treatment of myelodysplastic syndromes (MDS) and myelofibrosis, two severe blood disorders. Having completed late-stage trials, Geron is close to receiving FDA approval, which could significantly impact the stock. If GERN succeeds, it may experience a significant rise in worth, establishing itself as an important figure in the biotech industry.

What is the rationale for buying? The imminent FDA rulings stand to deliver both significant risks for Geron but also maintain potential for an extraordinary breakthrough for the company. Given this growth potential, Geron notably stands out in the biotech industry, particularly with an increasing demand for newer and more effective cancer therapies.

Gulfport Energy Corporation (GPOR)

Price: Less than $5

Industry: Energy

Market capitalization: ~$400 million.

Gulfport Energy is involved in exploring and producing natural gas, with a main focus on assets located in the Utica Shale region. Following a difficult period, the company is now ready for a comeback, thanks to the increase in natural gas prices. By prioritizing cost reductions and debt repayment, GPOR may experience notable enhancements in its financial performance in the upcoming quarters. With the surging demand for natural gas, especially amidst the worldwide energy crisis, Gulfport emerges as a promising choice with high potential for rewards.

What is the rationale for buying? Gulfport may potentially witness a substantial rise over the coming years primarily due to its efforts to restructure and improve the energy market conditions. Although this pick remains a rather risky one, it provides investors with the opportunity to find a significant growth exposure in the natural gas market.

Exela Technologies (XELA)

Price: Less than $1

Industry: Tech

Market Capitalization: ~$50 million

Exela Technologies offers digitalization solutions to businesses in various industries such as healthcare, finance, and government. Although Exela has faced challenges recently, the company is making efforts to update its business approach by concentrating on high-profit services and making its operations more efficient. Post-pandemic, there is an increasing need for automation and digitalization in industries, and Exela is in a prime position to take advantage of this growth. Potential for significant gains in XELA for investors open to higher risk, contingent on success of company’s restructuring strategy.

What is the rationale for buying? While this security also remains a risky pick primarily due to its challenging balance sheet position, Exela’s drive towards automation services as a commercial opportunity remains attractive and positions it in an exponentially growing industry which has the potential to create significant value for the investors if executed successfully.

Concluding Remarks

Penny stocks often stand out among the more adventurous investors who are capable and willing to accept significant short term fluctuations in price changes and volatility for the mere prospects of compelling and heft long term profits. Our curated list of penny stocks such as VOC Energy Trust, MIND CTI Ltd., and Exela Technologies provide exposure to various industries such as energy, telecom and biotech while also providing both income as well as growth, providing a diversified approach towards exhilarating growth for investors.

When investing in penny stocks, it is essential to conduct thorough research and have a robust risk management strategy. Taking into consideration that October 2024 might be the ideal opportunity to include some of these promising picks to your portfolio.