Investing in penny stocks can be a great way to get multi-bagger returns on a small investment. But it can also be incredibly risky, especially in the current market environment, as penny stocks are notoriously volatile.
It can be challenging to estimate the fair value of penny stocks’ underlying businesses. But just because something is difficult doesn’t mean you should avoid it. The key to successfully investing in penny stocks is to do your research, carefully analyzing the company you are investing in and attempting to purchase shares when they are trading at a trough. Doing so can result in outsized profits once the market regains its bullish momentum.
While the risk-on trade appears to be coming back into vogue, a number of penny stocks are still trading at deep discounts. Here are the top three to buy right now.
This post originally appeared at InvestorPlace.