Penny stocks to buy have been the talk of the town in recent weeks as cyclical assets have started to make a comeback this year. Penny stocks tend to perform poorly during market downturns. The sell-off that began in late 2021 and the ensuing bear market in 2022 were not kind to penny stocks, as investors shied away from risk. But growth names have run hot in 2023, driven higher by hopes of looser monetary policy from the Federal Reserve.
Today, I will discuss three penny stocks to buy that have the fundamentals to continue performing well even in the event of a market downturn. I believe these stocks are too undervalued to decline much further and could offer investors multibagger returns.
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