3 Penny Stocks That Can Beat the S&P 500 In the Next Decade

Author: Finscreener

Estimated read time: 3 minutes

Publication date: 27th Aug 2021 21:05 GMT+1

Penny stocks are a popular choice among retail traders as you can invest in these companies with a small amount of capital, diversifying your portfolio in the process. Generally, stocks that have a price of below $5 are called penny stocks.

While most penny stocks are micro or small-cap companies, here we try to analyze companies that have a higher capitalization and the potential to generate wealth at an exponential rate in 2021 and beyond. Finscreener’s penny stock screener will also allow you to shortlist companies on the basis of several metrics. So, let’s see which lower-priced stocks should be on your radar right now.



Valued at a market cap of $1 billion, Trivago (NASDAQ: TRVG) is a stock that is poised to make a comeback once the world economy reopens. An online travel platform, Trivago saw its sales fall from $838 million in 2019 to $248.9 million in 2020. Now, Wall Street expects Trivago to increase sales by 19.3% to $353 million in 2021 and by 73% to $610 million in 2022. Its bottom-line is also forecast to improve from a loss per share of $0.82 in 2020 to earnings per share of $0.03 in 2022.

Trivago stock has already gained 51.6% in the last year but is also trading 46% below its 52-week high. In the second quarter of 2021, Trivago sales were up 493% year over year at 95.5 million euros but were also down 57% compared to Q2 of 2019. Investors should note that the company managed to surpass its own guidance and report an adjusted EBITDA profit of 4.3 million euros in the June quarter. The qualified referrals which is basically the number of clicks on Trivago’s platform to its bidding partners more than tripled to 73.4 million but were down 44% compared to the same period in 2019.

International travel restrictions are hampering overall recovery but this is expected to remain a near-term headwind for Trivago and investors.


HEXO is poised for a comeback

A cannabis giant, HEXO (NYSE: HEXO) stock is trading at a price of $2.56. It’s in fact down over 94% from record highs making it a top bet for contrarian investors. HEXO has been on an acquisition spree in 2021 which has also meant the company has to raise capital to fund organic growth and cash burn.

In the company’s fiscal third quarter of 2021 ended in April, HEXO’s sales were $22.7 million which is similar to the year-ago period. But it narrowed its operating loss to $16.1 million from $25.6 million in the prior-year period.

HEXO recently acquired Redecan which is Canada’s largest privately-owned cannabis company. Redecan will be highly accretive to HEXO’s top-line as its Q1 sales rose 146% year over year to $24.7 million while net income stood at $6.9 million.


HIVE Blockchain

The final penny stock on my list is HIVE Blockchain Technologies (TRADEGATE: HBF), a company valued at a market cap of $1.19 billion. HIVE mines cryptocurrencies and is up 470% in the last three years. The price of HIVE stock is closely tied to the price of Bitcoin making it highly volatile. In case you are bullish on the cryptocurrency market, it makes sense to place your bets on HIVE stock right now to derive market-thumping gains. HIVE is also trading 42% below its weekly high and its stock is priced at $3.16.

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.