5 Penny Stocks With the Potential to 10X in 2022

While never entirely out of fashion, penny stocks are drawing new-found attention from retail investors. One reason for this interest is that many new traders see the penny stock market as a way of turning a small investment into a big payout. Another reason is that, despite their volatility, penny stocks may seem like a safer alternative to cryptocurrencies.

While meme stocks tend to get most of the attention, many other penny stocks are drawing significant attention from investors. And as the broader market continues to look expensive and overvalued, these low-priced shares may look like a more attractive option.

Despite the volatility, if you’re an investor with the time to react to these rapid price swings, trading penny stocks can be a profitable gambit. With the same amount of money it would take to buy one share of Tesla (NASDAQ:TSLA), investors can buy hundreds of shares in multiple penny stocks. And in their mind, only one of their picks needs to take off.

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But which one will deliver the returns that investors covet? Here are seven penny stocks that appear to have the potential to achieve 10x gains:

Penny Stocks: Senseonics (SENS)

A woman wearing a continuous glucose monitor device holds a phone displaying a glucose monitor app.

Source: Andrew_Popov / Shutterstock.com

Like CES Energy, Senseonics is another stock that has shown tremendous growth in the past year. Retail investors were attracted to the low share price and high short interest.

However, the company is awaiting U.S. Food and Drug Administration (FDA) approval for a 180-day version of its continuous glucose management (CGM) system. That could change the narrative on SENS stock completely.

The company was affected by the pandemic. Many patients and prospective patients were unable to access care at doctors’ offices and medical facilities. Senseonics was also forced to stop its sales to new patients and medical practices.

But that was then. Management is now bullish that 2022 revenue could triple from 2020 levels, and the analysts seem to agree. SENS stock is even with its consensus price target.

However, recent analyst ratings give the stock a higher upside. Short interest remains high on SENS stock, so if you’re thinking of entering a position, be aware that volatility may still exist.

Electrameccanica Vehicles Corp (SOLO)

The Solo vehicle from Electra Meccanica Vehicles (SOLO) drives through Vancouver

Source: Luis War / Shutterstock.com

I’ll admit to being skeptical of Electrameccanica earlier this year. I wasn’t sure if the company’s vision for a single-seat vehicle would capture the imagination of buyers. And with so many companies entering the electric vehicle (EV) space, there seemed to be better investments on the market.

In March, I wrote the following regarding the company’s vehicle:

“There is no proven market for the company’s three-wheeled motorcycle/car. If the next words out of your mouth are ‘this time it’s different,’ just be advised that both of us are making assumptions.”

However, profitable investing is about dealing with facts, not assumptions. Electrameccanica is starting to deliver vehicles. And that means the revenue they received from pre-orders will turn into full-fledged revenue, which should go immediately to the top line.

The company announced they were beginning to deliver vehicles on Oct. 14. To date, that news isn’t moving the SOLO stock price much. However, with a consensus price target of $8.91 according to five analysts, it may be time to hop on on what looks like a bullish ride for Electrameccanica.

Penny Stocks: PaySign (PAYS)

a stack of three credit cards representing payments stocks to buy

Source: Teerasak Ladnongkhun / Shutterstock.com

If you’re familiar with the plasma donation process, you know that donors receive compensation. And if you’ve ever given plasma, PaySign is a penny stock you want to become familiar with.

The company provides prepaid gift cards to plasma donation centers that are used to incentivize potential donors. PaySign earns revenue from the fees on the prepaid cards.

The market for blood plasma products is worth more than $20 billion per year and expected to grow significantly. In 2020, the market took a hit as donations plummeted at the height of the Covid-19 pandemic. However, PaySign is forecasting revenue between $29 million to $32 million for the remainder of 2021 and beyond.

Analysts give PaySign a $4.42 price target, which would be a gain of over 73% compared to today’s price. And prior to the pandemic, PAYS stock was trading at more than $9 per share. It may take some time to get back to that level, but this has a chance to be one of the best-performing penny stocks of 2022.

Surgalign (SRGA)

SRGA stock: a model of a spine in front of a doctor who is holding their hands up to the spine

Source: Natali_Mis / Shutterstock

The last two stocks on our list are true penny stocks. The first is Surgalign, a medical technology company that designs, develops and manufactures biologic, metal and synthetic implants including its cervical spinal fixation system.

Surgalign is a recovery stock. Millions of Americans put off medical procedures at the onset of the pandemic. This is reflected in the revenue and net losses of Surgalign, but the company is inching back toward profitability.

Prior to the pandemic, SRGA stock was trading for more than $4 a share. But now, it’s trading for less than a dollar. The stock has suffered from analysts lowering their price targets in August.

But even with those lowered targets, the stock still has a consensus price target of $3.14, which is a 225% increase from its current level.

Penny Stocks: CohBar (CWBR)

Image of two scientists in lab coats studying results in a lab

Source: Shutterstock

The last of the penny stocks on this list is CohBar, which uses its proprietary platform technology in the research and development of mitochondria-based therapeutics. The company’s focus is on treating diabetes, obesity, cancer and other chronic or age-related diseases. These are some of the most common conditions that contribute to shorter lifespans and a poorer quality of life for many people.

CohBar is a pre-revenue company, and if you’re looking for an immediate payoff, you could be waiting awhile. The company has several therapeutics in its pipeline, but many are not yet in clinical trials.

The most advanced treatments CohBar is working on are still in phase one of their trials. However, the company did see positive results from those trials in October.

This is another time when it’s important to hear what the analyst community has to say. In this case, there is bullish sentiment that includes a price target of $6.60, an increase of more than 1,000% from CWBR stock’s current price.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

On the date of publication, Chris Markoch 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.

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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