Penny stocks sometimes get a bad rep due to their inherent risk. They are cheap but are considered highly volatile and have a low chance of providing substantial profit. However, there are some penny stocks that, while still containing risk, are much more likely to see real success in the future, potentially leading to significant financial gains for investors.
These three penny stocks have solid foundations and are poised to do great things within their respective markets. While they are still accompanied by risk, these stocks will likely graduate to the next level in a matter of time due to the demand surrounding their products and favorable market shifts.
Let’s learn about the events and projected successes that showcase these stocks’ exciting potential to grow tremendously in the coming years.
Tilray Brands (TLRY)
Following the announcement that the Drug Enforcement Administration in May proposed the rescheduling of marijuana to a Schedule Three controlled substance, there has been a lot of buzz in the cannabis industry.
An established brand like Tilray Brands (NASDAQ:TLRY) would be in a prime position to benefit and profit exponentially from an expansion into the U.S. market.
Tilray is a Canadian cannabis producer that has established a name for itself within the market. So far this year, Tilray has seen decent success, reporting a 30% revenue increase year-over-year and encouraging sales in all three of its primary business segments: cannabis, distribution and alcohol.
The company has excellent diversity within its revenue streams and is in a phase of strong emphasis on making new acquisitions to expand its business. While this strategy has garnered some success, it has also caused trouble for Tilray this year. One of the companies in Tilray’s portfolio declared bankruptcy in April, causing a considerable snag in Tilray’s U.S. expansion.
Tilray will need to do some serious damage control and cover much more ground to reach the U.S. market in the capacity it had initially planned. However, the company is already reassessing and implementing an updated expansion plan. Rescheduling from the DEA will create a massive opportunity for Tilray, and investors can easily take advantage of it now.
Rigel Pharmaceuticals (RIGL)
Rigel Pharmaceuticals (NASDAQ:RIGL) is an up-and-coming biopharma company with an exciting collection of treatments for hematologic disorders and cancer. The conditions that Rigel sets out to treat have little to no available therapies and are in high demand.
Rigel has two prized sellers on the market right now that have already been granted FDA approval. Tavalisse treats chronic immune thrombocytopenia, or ITP, and Rezlidhia treats acute myeloid leukemia, or AML. Tavalisse makes up most of the company’s revenue, accounting for $21.1 million in net product sales last quarter, but Rezlidhia still contributed sales of $4.9 million.
Rigel has significantly reduced its net loss from a year ago, reporting a $5.3 million difference. The company also continues to share exciting news from the pipeline, including a presentation it recently gave at the 2024 ASCO Annual Meeting that showcased strong data showcasing the effectiveness of Rezlidhia in treating a series of difficult conditions.
The other exciting news Rigel announced this year is the appointment of Lisa Rojkjaer, M.D., as executive vice president and chief medical officer. Dr. Rojkjaer brings years of clinical development experience and should give Rigel investors hope.
Overall, Rigel has many exciting new developments and movements that could propel it to a whole new level this year. Investors don’t want to miss the opportunity and should consider buying.
Eledon Pharmaceuticals (ELDN)
Organ transplants are among the most complex medical procedures, even outside of the operating room. Many things must go right to ensure success. Eledon Pharmaceuticals (NASDAQ:ELDN) has made the success of organ transplants its mission and is developing the latest treatments in this field.
The company reported positive results in an ongoing trial for Eledon’s product, Tegoprubart. The treatment is supposed to prevent rejection in kidney transplant patients. The company estimates that it will be finished enrolling patients for phase 2 of the trials for Tegoprubart by the end of the year.
Eledon reported an okay first quarter with a primarily flat net loss year-over-year but shared the exciting news of $50.0 million in gross proceeds from private placement financing. The company could be on the cusp of a major breakthrough in the coming years and is receiving cash from multiple outlets to support its continued research and development.
Investors can keep their eyes on Eledon as the chance to win big may be coming soon.
On the date of publication, Joel Lim did not have (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.com Publishing Guidelines.