Investing in penny stocks can be a thrilling and potentially lucrative venture. These are stocks that trade at a low price per share, often below $5. In 2018, several penny stocks soared in value, offering investors substantial returns. This article delves into the best US penny stocks of 2018, providing insights into their performance and potential for future growth.
Top 5 Best US Penny Stocks of 2018
- Greenlight Capital Inc. (GLHT)
Greenlight Capital Inc. was one of the top-performing penny stocks in 2018. The company, founded by David Einhorn, specializes in hedge fund management. Its stock price surged significantly during the year, offering investors substantial gains.
- Meadowbrook Bancorp Inc. (MBK)
Meadowbrook Bancorp Inc. is a financial institution that provides various banking services. Its stock experienced a remarkable rise in 2018, making it one of the best penny stocks of the year. The company's solid financial performance and growth prospects contributed to its impressive stock price increase.
- Nordson Corporation (NDSN)
Nordson Corporation is a global company that designs and manufactures precision dispensing equipment. Its stock saw a significant surge in 2018, driven by strong earnings reports and positive market sentiment. Investors who bought Nordson Corporation's stock in 2018 reaped substantial returns.
- Vista Outdoor Inc. (VSTO)
Vista Outdoor Inc. is a leading outdoor sports and recreation products company. Its stock experienced a meteoric rise in 2018, propelled by strong sales and earnings growth. Investors who invested in Vista Outdoor Inc. during this period witnessed substantial gains.
- Lumentum Holdings Inc. (LITE)
Lumentum Holdings Inc. is a provider of optical networking and communication products. Its stock soared in 2018, driven by strong demand for its products and positive market sentiment. Investors who invested in Lumentum Holdings Inc. during this period reaped substantial returns.
Factors Contributing to the Success of These Penny Stocks
Several factors contributed to the success of these penny stocks in 2018:
Strong Earnings Reports: Companies with strong financial performance often see their stock prices rise. In 2018, several penny stocks reported impressive earnings, leading to increased investor interest.
Market Sentiment: Positive market sentiment can drive stock prices higher. In 2018, the overall market was bullish, which helped many penny stocks perform well.
Industry Trends: Investing in penny stocks often involves identifying companies with strong growth potential in their respective industries. In 2018, several penny stocks benefited from favorable industry trends.
Management and Strategy: Companies with strong management teams and effective strategies tend to perform better. Investors in 2018 favored penny stocks with capable leadership.
Conclusion
Investing in penny stocks can be a risky endeavor, but it can also be highly rewarding. In 2018, several US penny stocks outperformed the market, offering investors substantial returns. By understanding the factors that contributed to their success, investors can identify promising penny stocks for future investments.
