Are you looking for the next big investment opportunity in Canada but don’t have much money to spare? Well, have you considered the best penny stocks Canada offers?
As someone who has dabbled in penny stock investing, I can tell you it can be a thrilling and potentially profitable adventure. Yes, penny stocks can be high-risk investments, but with the right knowledge and strategy, they can also be a lucrative addition to your portfolio.
In this article, we will dive into the world of penny stocks and explore the top-performing penny stocks in Canada. I’ll share detailed analyses of each stock, their current market trends, and what makes them stand out from other penny stocks in Canada. I’ll also provide some tips on investing wisely and avoiding common pitfalls.
So, let’s get started on finding the best penny stocks in Canada together!
What are Penny Stocks in Canada?
Penny stocks are stocks that trade for $5 or less per share and are often very volatile, making them a popular topic for day traders in Canada. These small companies have market capitalisations of between $50 and $300 million and typically rely heavily on debt or unproven technology to propel them forward.
They can be companies just starting, companies that have lost most of their value and need an infusion of capital, or simply a company you have decided to bet on.
Penny stocks usually trade on Over-The-Counter markets rather than major stock exchanges like the NASDAQ or New York Stock Exchange in the US. In Canada, penny stocks still trade on the Toronto Stock Exchange or other Canadian exchanges.
While some investors may see penny stocks as a way to make money, there is always the risk of losing your investment. These companies often take huge risks to get off the ground and are likelier to fail than exhibit long-term growth.
It’s essential to note that while the term penny stock may suggest a stock that trades for actual pennies, most trade between $1.00 to $5.00. They tend to be riskier than stocks traded on major exchanges, but the percentage payback can be enormous for those willing to take that risk.
10 Best Performing Canadian Penny Stocks to Buy in 2024
Canada is a phenomenal place to find hot stocks offering significant opportunities. Below, we’ve identified 15 of the most promising Canadian stocks that are certain to give you a solid return on your investment:
1. WELL Health Technologies
- Symbol: WELL
- Sector: Healthcare
- Exchange: CVE
- Price: $5.50
- Market Cap: $1.21 Billion
WELL Health Technologies is a Canadian healthcare technology company that focuses on improving the delivery of healthcare services through digitization and technological advancements. Its services include telehealth, electronic medical records, and digital tools for patients to connect with healthcare providers.
The stock has shown significant growth potential, with a 371% increase in value between September 2019 and January 2024.
WELL Health Technologies is a relatively liquid stock, with an average daily trading volume of approximately 1.3 million shares and a market capitalization of around $2.7 billion. The company has a diversified revenue stream and is involved in various aspects of healthcare technology.
WELL Health Technologies is a promising stock with strong growth potential, but investors should consider its high valuation and volatility before investing.
2. Kraken Robotics
- Symbol: PNG
- Sector: Tech
- Exchange: CVE
- Price: $0.54
- Market Cap: $106.81 million
Kraken Robotics (PNG) is a Canadian company that produces underwater sensors, robots, and other technologies for the defense, oil and gas, and ocean science industries.
The company has shown steady growth potential, with a 115% increase in value between January 2021 and January 2024 and has made strategic acquisitions and partnerships to expand its offerings and market reach.
The company is relatively illiquid, with an average daily trading volume of approximately 73,000 shares and a market capitalisation of around $160 million.
Despite this, Kraken Robotics provides investors with diversification opportunities in the technology and defense sectors, with a broad range of applications for its products and services.
Before investing in this promising stock, potential investors should know the high valuation and lower liquidity.
3. H20 Innovations Inc.
- Symbol: HEO
- Sector: Healthcare
- Exchange: CVE
- Price: $2.38
- Market Cap: $209.72 million
H2O Innovation (TSXV: HEO) provides water treatment solutions for industrial, municipal, and commercial clients. The company has a track record of consistent revenue growth and has expanded its reach through strategic acquisitions and partnerships.
H2O Innovation’s sustainability focus has helped it attract clients. The stock has relatively low liquidity, with an average daily trading volume of 22,000 shares.
H2O Innovation is a good option for investors seeking diversification in the water treatment sector, with a broad range of products and services.
4. Hamilton Thorne
- Symbol: HTL
- Sector: Healthcare
- Exchange: CVE
- Price: $1.76
- Market Cap: $256.03 million
Hamilton Thorne is a US-based company specialising in precision laser and medical diagnostic tools. It has a decent product range, a geographically diverse consumer base, and distributors worldwide.
The stock has traded between $1.60 and $2.20 over the last twelve months and has had a strong growth run in the past, growing by about 970% between Sep 2016 and Nov 2022.
The company generates most of its revenue through the consumables of the instruments/products it sells, which provides a stable income stream.
Overall, Hamilton Thorne is a potential investment opportunity in the healthcare sector due to its growth potential and market leadership in its niche.
5. American Lithium Corp
- Symbol: LI
- Sector: Materials
- Exchange: CVE
- Price: $3.30
- Market Cap: $719.56 million
American Lithium is a Canadian penny stock engaged in the exploration and development of lithium resources in the Americas, with two major projects in the US and Peru.
Lithium is in high demand for batteries in EVs and renewables, and American Lithium’s stock has seen exceptional growth in recent years, rising over 6,400% from Nov 2019 to Nov 2022.
The company also has a newly acquired mine in Nevada and a diverse geographical portfolio. It has been operating since 1974 and has diversified into uranium, including the fifth-largest undeveloped uranium deposit in the world in its Macusani project in Peru.
The company is well-positioned to capitalise on the rising demand for lithium and uranium, making it a potential investment opportunity in the tech sector.
6. Exro Technologies
- Symbol: EXRO
- Sector: Materials
- Exchange: CVE
- Price: $2.51
- Market Cap: $376.49 million
Exro Technologies (EXRO) is a Canadian company that develops electric motor control systems for various industries. The company has shown significant growth potential, with a 300% increase in value between September 2021 and December 2024.
Exro Technologies has secured several patents and partnerships with leading companies in the industry, indicating strong market recognition and potential.
They are a good option for investors looking to diversify in the electric motor control system sector. The company’s innovative technology has broad applications in various industries, including electric vehicles and renewable energy.
7. B2Gold
- Symbol: BTO
- Sector: Materials
- Exchange: CVE
- Price: $2.9
- Market Cap: $7.09 billion
B2Gold is a Vancouver-based gold mining company operating in Mali, Namibia, and the Philippines. It’s considered a penny stock because it trades below $5.00 per share.
The company has a decent portfolio of properties, with three mines producing gold and two in development and a few exploration projects.
B2Gold has shown decent growth during solid market conditions, with over 220% growth between Sep 2018 and July 2022. The stock also pays dividends with a solid 4.74% yield.
As the company continues to develop and explore new sites, its stock could trade higher in the future, making it a nice addition to any penny stock list.
8. POET Technologies
- Symbol: PTK
- Sector: Tech
- Exchange: CVE
- Price: $1.31
- Market Cap: $221.38 million
POET Technologies is a Toronto-based company specialising in optics-based communication within electronic devices. It offers integration services through its proprietary POET Optical Interposer platform and has developed a strong place in the Internet of Things market.
The company has a strong balance sheet, nearly zero debt, and owns patents for most of its technology. While the stock has shown growth potential, it may take some time for many devices using its tech to become mainstream.
The company is well-positioned to be a strong player in the future of connected devices and automation. Its lack of debt provides a safety net despite being pre-revenue, but investing in pre-revenue companies is inherently volatile.
The company’s future prospects in the rapidly growing cloud computing sector offer ample opportunities for growth.
9. Converge Technology Solutions
- Symbol: CTS
- Sector: Tech
- Exchange: CVE
- Price: $3.03
- Market Cap: $704.56 million
Converge Technology Solutions (CTS) is a Canadian company that offers software-enabled IT and professional services across North America. It has reported strong revenue growth, with a 56% increase in revenue in the last quarter.
CTS has diversified revenue streams, made strategic acquisitions, and focuses on cloud solutions and cybersecurity. The company is relatively liquid, with a market capitalisation of around $1.2 billion and an average daily trading volume of 300,000 shares.
Investors seeking diversification in the IT and professional services sector may find CTS an attractive option. CTS has the potential for significant growth and a broad range of services and solutions to attract clients across industries.
10. Hive Blockchain
- Symbol: HIVE
- Sector: Crypto
- Exchange: CVE
- Price: $2.06
- Market Cap: $886.54 million
Hive Blockchain Technologies is a Canadian publicly traded crypto mining company that uses 100% green power. It operates in the crypto mining industry and mines Bitcoin, Ethereum, and Ethereum Classic.
The company operates across North America and Scandinavian countries, especially Iceland, where green energy is cheap and readily available.
Hive has taken significant stakes in companies like DeFi Technologies and Network Media Group, making it one of the top penny stocks in Canada.
The stock prices have ranged between $1.91 and $6.57 over the last year, and it generally follows the price of Bitcoin and Ethereum.
Despite its IPO in 2017 and mediocre performance, Hive is considered one of the more stable and experienced crypto mining companies in the penny stock market.
Are Penny Stocks Safe for Investing?
Penny stocks are generally considered to be riskier than other types of investments. They are typically issued by small companies with a lower market capitalization, which can make them more volatile and susceptible to fluctuations in price.
Additionally, penny stocks are often traded on over-the-counter markets, which may have less regulation and transparency than major stock exchanges. They are often subject to price manipulation, which can be detrimental to investors.
Due to their low trading volume and market capitalization, it is easier for a small group of investors to manipulate the price of penny stocks by spreading false information or engaging in other illegal activities.
Investing in penny stocks can be considered a high-risk, high-reward strategy. While some investors have made significant profits from investing in penny stocks, others have lost their entire investment.
So, if you are considering investing in penny stocks, it is important to research, understand the risks involved, and be prepared to lose your investment potentially. It is also important to consult with a financial advisor before making any investment decisions.
RELATED: 12 Top Safe Investments With High Returns in Canada for 2024
Can you Get Rich Through Penny Stocks?
Penny stocks can pay off big. But there’s no magic formula for getting rich on penny stocks. It’s pretty hard to do so. Some investors have made millions of dollars on the stock market. However, the likelihood of something similar happening to you is very slim.
Although, one does hear the occasional stories about people who started with $50,000 and ended up with $10 million through speculative investments in various companies.
The term “penny stock” has a lot of baggage: small value, large risk. It’s a small market, anyone can join it, but only the most seasoned investors can come out on top.
It’s essential to remember that penny stocks are risky and very volatile. They are usually unsuitable for someone with limited investment experience or trading discipline. So, if you’re looking to get rich off your penny stocks, think again. Only a few penny stocks earn enough return to compensate for the high risk involved.
RELATED: 8 Best Investments in Canada for 2024
How Do I Buy Penny Stocks Canada?
There are several ways to invest in Canadian penny stocks. One option is to buy Canadian penny stocks that are listed on U.S. exchanges.
Alternatively, if the company you’re interested in is only listed on a Canadian stock exchange, you can open an account with a reliable Canadian trading platform.
Another option is to open a brokerage account with a reputable U.S. broker that allows you to trade Canadian stocks. This will enable you to buy and sell Canadian stocks online, over the phone, or by fax.
Below are some of the best brokerage platforms in Canada to buy penny stocks:
Qtrade is a Canadian online brokerage platform that offers a variety of investment services, including trading stocks, ETFs, mutual funds, options, and bonds. It was founded in 2001 and is known for its user-friendly platforms and exceptional customer service. Questrade is a Canadian online brokerage platform that offers a range of investment services, including trading stocks, ETFs, mutual funds, options, and bonds. It was founded in 1999 and is known for its low fees and user-friendly platforms. Wealthsimple Trade is a Canadian online brokerage platform that offers commission-free trading of stocks and ETFs through a user-friendly mobile app. It was launched in 2018 by Wealthsimple, a Canadian financial technology company.
RELATED: 10 Best Trading Platforms in Canada (2024)
Final Thoughts on the Best Penny Stocks in Canada
Are you ready to invest in the best penny stocks Canada has to offer? These exciting and high-potential penny stocks can be a great way to diversify your portfolio and potentially reap big rewards.
Whether you’re a seasoned investor or just starting out, keep an eye on industry trends, stay up-to-date on news and events that could impact the market, and consult with financial professionals as needed.
With the right strategy and a little bit of luck, penny stocks can be a thrilling and rewarding investment opportunity. So what are you waiting for? Start exploring the best penny stocks in Canada today and see where your investments can take you!
Ready to start investing? Sign up for a brokerage account today and take the first step towards building your financial future.
Surely this is a good collection of penny stocks for investors to invest in. Investors often consider penny stocks when aiming for short-term gains to benefit from the favourable market environment.But some penny stocks I would like to add which rose over 300% such as Razor Energy Corp (TSXV: RZE), Journey Energy Inc (TSX: JOY) & Graphene Manufacturing Group Ltd (TSXV: GMG). it would be great if you could add these to your list as well sharing pros and cons of each.
Thanks in advance