3 High-Potential Penny Stocks to Turn $100,000 Into $1 Million: April 2024 (2024)

Penny stocks can be massive wealth creators. High-potential penny stocks that deliver 10x or 20x returns can have a huge impact on the overall portfolio. However, in an ocean of penny stock ideas, only dozens will deliver. The others will fizzle out and will be forgotten. There are ideas from the euphoria of 2021 that skyrocketed and subsequently crashed.

My focus in this column is on penny stock ideas that are worth holding until 2030. In my view, these high-potential penny stocks can deliver at least 10x returns by the end of the decade. Of course, with penny stocks, it’s difficult to judge the upside potential.

The key however is to identify penny stocks that represent companies with a strong fundamental and a quality business. Further, if industry tailwinds exist, the growth story can be exciting. Also, it’s important to continue holding with patience. Penny stocks are high-beta and 20% to 30% corrections are natural in a larger uptrend.

Let’s discuss three penny stocks to buy and hold for multibagger returns.

IAMGOLD (IAG)

Gold was surging higher on the back of potential rate cuts in the second half of 2024. While inflation remains stubborn, gold has inched towards $2,400 an ounce. Recently, Saxo Bank opined that the precious metal is likely to touch $2,500 an ounce.

Among the high-potential penny stocks, IAMGOLD (NYSE:IAG) is worth grabbing at current levels around $3.80. The company has quality assets, strong fundamentals and the positive tailwind of gold upside. With higher realized prices, free cash flows are likely to increase and will support further growth.

From a financial perspective, IAMGOLD ended 2023 with a liquidity buffer of $754.1 million. The company has a strong pipeline of projects that includes Gosselin, Nelligan and Chibougamau district. With the possibility of robust cash flows, there is ample flexibility for aggressive investment in exploration and development.

Further, the Côté Gold asset has been commercialized with initial production in March. The mine life of the asset extends until 2041. For the current year, IAMGOLD expects production of 220,000 to 290,000 ounces of gold from Côté. The production bump-up will ensure healthy revenue and EBITDA growth. With all these positives, I expect IAG stock to remain in an uptrend.

Curaleaf Holdings (CURLF)

The U.S. Food and Drug Administration recently opined that there is “no reason” for the Drug Enforcement Administration to delay moving cannabis from Schedule I to Schedule III. The rescheduling seems very likely in the coming months and will be a major catalyst for cannabis companies with strong U.S. presence.

With Presidential elections round the corner, there is a strong case for potential federal level legalization of cannabis next year. Amidst these positives and with regulatory headwinds waning in Europe, I am bullish on cannabis stocks. Curaleaf Holdings (OTCMKTS:CURLF) stock trades just below $5 and is among the high-potential bets for multibagger returns.

The first positive is that Curaleaf is present in 17 states in the U.S. Further, the company has been aggressively expanding presence in the European markets with focus on the medicinal cannabis business. The addressable market is therefore significant for pursuing accelerated growth.

It’s worth noting that Curaleaf has indicated that 2024 is likely to be a “catalyst year” for the company. It’s therefore likely that growth will accelerate after being subdued last year. At the same time, Curaleaf has been delivering robust EBITDA margin and improved cash flows.

Joby Aviation (JOBY)

The flying car market is at a nascent stage with multiple companies preparing to commence commercial operations in 2025. The market potential is however huge with estimates pointing to a market size of $9 trillion by 2050. Of course, that’s more than two decades away. However, the key point is that the industry will continue to grow at a steady pace. Further, early movers with a good management and focus on innovation will create massive wealth.

Joby Aviation (NYSE:JOBY) is among the flying car stocks with high-potential. JOBY stock has been largely subdued with an upside of 13% in the last 12 months. However, with steady business progress, I believe that the stock is poised for a big breakout rally.

In February, Joby announced the completion of third stage of certification from the Federal Aviation Authority. With two more stages of certification due, it’s likely that commercialization of eVTOL will happen in 2025.

In anticipation of this, the company has acquired facility in Ohio. The facility will support building 500 aircraft annually. The company’s first international market will be Dubai where an exclusive agreement has been signed to operate air taxis in the Emirate for six years.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.