2 Penny Stocks With Massive Upside Potential to Watch Out for in 2023

Author: Finscreener

Estimated read time: 4 minutes

Publication date: 26th Jan 2023 11:24 GMT+1

Penny stocks are a type of investment that is typically characterized by their low price per share, typically less than $5. Generally, these stocks trade on over-the-counter (OTC) markets, as opposed to major exchanges like the NYSE or NASDAQ.

While penny stocks can certainly offer investors the opportunity for high returns, they also come with a high level of risk. As these stocks are not listed on major exchanges, they are not subject to the same level of regulatory oversight, and hence, the information available to investors about these companies may be limited.

Another major risk associated with penny stocks is the potential for fraud. Due to the lack of regulation and oversight, some unscrupulous companies and individuals may use these stocks to take advantage of unsuspecting investors.


Should you invest in penny stocks?

It's important to do your due diligence and research any penny stock investment thoroughly before putting your money into it. These stocks can be highly speculative and can experience significant price fluctuations, making it difficult to predict their value in the short term. 

Additionally, many penny stocks are issued by small, thinly traded companies that may not have a proven track record of profitability. While the risks associated with penny stocks can be significant, investors who are willing to do their homework and are comfortable with a higher level of risk may find them to be an attractive investment opportunity.

However, it's important to remember that penny stocks should only make up a small portion of a diversified investment portfolio. 

Keeping these factors in mind, let’s take a look at two top penny stocks you can buy right now.



Wall Street experts anticipate great success for Precigen (NASDAQ: PGEN)  in 2023. The driving force behind this optimism is the company's cutting-edge platforms, UltraCAR-T and AdenoVerse, which aim to overcome major challenges in the field of cell and gene therapy.

UltraCAR-T, for example, has the potential to reduce the delivery time for next-generation anti-cancer cell therapies from weeks to just one day. AdenoVerse, on the other hand, holds the key to creating powerful new genetic therapies for a wide range of difficult-to-treat indications. 

Analysts following the stock believe that Precigen's shares could experience growth of up to 264% in the next year.


Rigel Pharmaceuticals

Recently, Rigel (NASDAQ: RIGL), a biopharmaceutical company at the commercial stage, has been gaining momentum. The company's shares have seen a 23% increase since the beginning of the year. Wall Street is taking notice of Rigel for several reasons.

One significant factor is the FDA approval of Rezlidhia for patients with relapsed/refractory acute myeloid leukemia with a susceptible isocitrate dehydrogenase-1 mutation. Although the drug will be facing competition from Servier's Tibsovo, its superior profile could lead to approximately $90 million in annual sales, as estimated by some analysts. This is a substantial amount for a company with a market capitalization of $320 million.

Additionally, Rigel's first commercial-stage drug, Tavalisse, which is used to treat chronic immune thrombocytopenia, has been performing well in the market. Together, Rezlidhia and Tavalisse could help the company achieve a break-even point in terms of cash flow as early as 2024.

Lastly, Rigel has several upcoming clinical catalysts that could cause its shares to soar in the next two years. As of now, the average analyst estimate suggests that this small-cap biotech stock could appreciate by 98% in the next 12 months.

Penny stocks can be a high-risk and high-reward type of investment, but investors should be aware of the risks involved and should thoroughly research any penny stock investment before putting their money into it. It's important to remember that penny stocks should only make up a small portion of a diversified investment portfolio and to invest wisely.

Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.org. The observations he makes are his own and are not intended as investment or trading advice.