The recent de-risking wave by Wall Street is a good opportunity for investors to snap up some high-risk, high-reward stocks at cheap prices. Smart investors have a small portion of their portfolio allocated to these stocks for outsized gains if the stars align for these small businesses. There’s a good chance that this can happen, as many of the biggest companies today were once overlooked.
We’ll be looking at the following three penny stocks under $5 with triple-digit upside potential or more in the next three years. It goes without saying that the more upside potential you want, the more risk you have to take. You’ll have to keep that in mind while deciding how much you wish to allocate to these stocks, if any.
This post originally appeared at Money Morning.