What are the best penny stocks to buy

Screening Filters & Rationale

1. Market Cap (max: $500M):

   • Purpose: Focus on small-cap companies typically classified as penny stocks.
   • Rationale: Smaller market cap stocks often have higher growth potential but come with increased risk.

2. Price (max: $5):

   • Purpose: Identify stocks that are affordable and meet the definition of penny stocks.
   • Rationale: Low-priced stocks are more accessible to retail investors and align with the penny stock category.

3. Net Margin (min: 0%):

   • Purpose: Ensure the company is at least breaking even or generating profit.
   • Rationale: Positive or neutral net margins indicate financial stability and reduce the risk of investing in loss-making companies.

4. Weekly Average Turnover (min: $1M):

   • Purpose: Focus on stocks with sufficient liquidity for easier buying and selling.
   • Rationale: High turnover ensures better trade execution and reduces the risk of illiquid investments.

5. Annual Revenue YoY Growth (min: 15%):

   • Purpose: Target companies with strong and consistent revenue growth.
   • Rationale: High growth rates suggest business expansion and potential for future profitability.