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Tuesday, 05/03/2022 9:28:02 AM

Tuesday, May 03, 2022 9:28:02 AM

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3 Under-$10 Penny Stocks Investors Should Consider Buying In 2022

Source: Finscreener.org
Penny stocks are those priced under $10 but are considered high-risk investments due to the volatility associated with these tickers. However, ever the world’s largest companies such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) were once penny stocks and now command trillion-dollar valuations.

While investing in penny stocks you need to analyze the company’s business model and its ability to gain traction in the market where they operate. Let’s take a look at three penny stocks investors can consider buying right now.



SoFi Technologies

Valued at $5 billion by market cap, shares of SoFi Technologies (NASDAQ: SOFI) are priced at $6.33 at the time of writing. The fintech company went public last year and is currently trading 75% below all-time highs.

SoFi offers customers a wide range of financial products that include refinancing of student and auto loans. It also provides mortgages, credit cards, personal loans, and investing services on its platform.

The company’s sales grew by 63% year over year to $1.01 billion in 2021. SoFi ended the last year with a customer base of 3.5 million, indicating year-over-year growth of 87%. But similar to most other growth stocks, SoFi also reports an adjusted loss.

In 2021, its loss per share stood at $1 and is forecast to narrow to $0.45 in 2022 and $0.24 in 2023. Comparatively, its revenue is estimated to rise by 45% to $1.47 billion in 2022 and by 42.4% to $2.1 billion in 2023.

SoFi’s widening product portfolio allowed the company to onboard 523,000 customers in Q4. It also added 900,000 product accounts bringing its total to 5.2 million, compared to 2.5 million in 2020.

SoFi is valued at an attractive forward price to 2022 sales multiple of 3.4x and continues to grow at an aggressive pace. Compared to Wall Street estimates, SoFi stock is trading at a discount of 120% right now.

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