Penny stocks with high potential

Screening Filters

1. Price: 0.50 – 5 USD

   • Purpose: Capture “penny stocks” while avoiding the most extreme micro‑priced names.
   • Rationale: In the U.S., penny stocks are generally defined as stocks trading under $5. Setting the upper limit at $5 aligns directly with that definition. The lower bound at $0.50 filters out ultra‑low‑priced securities that are often highly illiquid, prone to manipulation, and operationally very weak, improving the overall quality of the list while keeping it in the penny‑stock universe.

2. Market Cap: 30M – 1B USD

   • Purpose: Focus on smaller companies where upside potential is typically higher, but avoid the most speculative shells.
   • Rationale:
     • A maximum of $1B keeps you in small‑cap and micro‑cap territory, where “high potential” multi‑bagger stories are more common than in large caps.
     • A minimum of $30M excludes tiny shell companies and ultra‑micro caps that often have limited operations, poor disclosures, and extreme risk, improving the chance that you’re seeing real operating businesses.

3. Monthly Average Dollar Volume: ≥ 500,000 USD

   • Purpose: Ensure a basic level of liquidity so the stocks are actually tradable.
   • Rationale: By requiring at least $500k in average monthly traded value, the filter avoids completely illiquid names where entering or exiting a position could be very difficult or cause large price swings. For penny stocks, this is a modest but meaningful liquidity floor that balances access to small names with practical tradability.

4. Region: United States

   • Purpose: Keep the universe limited to U.S.-listed companies with U.S. regulatory and reporting standards.
   • Rationale: U.S. markets (and the SEC framework) generally provide better disclosure and investor protections than many OTC or foreign penny‑stock venues. This aligns with finding “high potential” ideas in a more transparent environment.

5. Listed Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)

   • Purpose: Exclude OTC/pink-sheet stocks and focus on penny stocks listed on major U.S. exchanges.
   • Rationale: Major exchanges have listing requirements around financials, governance, and reporting. Penny stocks on these exchanges tend to be of higher quality and more scrutinized than those trading OTC, which is important when looking for “high potential” rather than purely speculative lottery tickets.

6. Quarter Revenue YoY Growth: ≥ 20%

   • Purpose: Identify companies already showing strong business momentum.
   • Rationale: “High potential” often implies underlying business growth. Requiring at least 20% year‑over‑year revenue growth in the latest quarter filters for companies whose sales are expanding meaningfully, which can be an early indicator of future earnings growth and investor interest.

7. One-Month Predicted Return: ≥ 15%

   • Purpose: Highlight names that a quantitative model flags as having relatively strong short‑term upside potential.
   • Rationale: While no model can guarantee returns, using a minimum predicted 1‑month return of 15% focuses on stocks that, based on historical data and patterns, may have favorable near‑term risk/reward. This directly ties into the “high potential” angle by emphasizing names with statistically elevated expected returns versus the broader penny‑stock universe.

Why Results Match “Penny Stocks with High Potential”

• The price and market cap filters explicitly define a penny‑stock, small‑company universe where big percentage moves are more plausible.
• The exchange and region filters keep you in U.S. major exchanges, improving quality and transparency compared to typical penny‑stock venues.
• The revenue growth filter targets companies with strong fundamental momentum, not just low prices.
• The predicted return and liquidity filters emphasize tradable names that a model suggests have elevated upside potential in the near term.

Together, these filters narrow the list down to U.S.-listed penny stocks that are small but not purely speculative, with real growth and model-identified upside—aligning well with the idea of “high potential” within this risky segment.