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3 Hot Penny Stocks That Can Double in the First Quarter of 2024

As an investor, I would like to start the year on a high note. There would be no better deal than having a few stocks in the portfolio that skyrocket in the first few months of the year. I think this is entirely likely with few hot penny stocks in the portfolio.

The idea is to identify penny stocks that represent companies with business or industry-specific catalysts. Therefore, the focus is on non-speculative penny stocks with good business fundamentals and there are several such ideas on my radar.

It’s worth noting that even with relatively challenging market conditions in 2023, multiple penny stocks delivered multibagger returns. I expect the coming year to be similar where careful stock selection is the key to witnessing a broad-based rally in growth or penny stocks.

Let’s discuss the reasons that make these penny stocks worth considering for a big rally relatively soon.

Hecla Mining (HL)

Macro of silverSource: Phawat /

I am bullish on precious metals surging higher next year. My view is underscored by the expectation that there will be 152 rate cuts globally next year. Hecla Mining (NYSE:HL) is among the most undervalued names in the silver and gold mining sector. After remaining sideways for the last 12 months, a big breakout on the upside is likely.

Besides the bullish outlook for precious metals, there are two reasons to be positive on Hecla. First, Lucky Friday operations were suspended in 2023 has been guided for resumption early next year. Further, Keno Hill ramp-up is due next year and will translate into a silver production bump-up.

For the first nine months of 2023, Hecla reported operating cash flow of $74 million. Considering potentially higher realized price coupled with production growth, annual operating cash flow next year is likely to be $130 to $150 million. This will also translate into higher dividends. I am therefore bullish on this largest silver miner in the United States.

Tilray Brands (TLRY)

Close view of Tilray (TLRY) logo on a smart phone. Tilray specializes in cannabis research, cultivation, processing and distribution. TLRY stockSource: Lori Butcher /

I have remained bullish on Tilray Brands (NASDAQ:TLRY) stock in the recent past. It’s worth noting that in the last month, TLRY stock has surged by 28% from deeply oversold levels. I remain bullish on the rally sustaining next year on the back of positive business metrics.

I believe that the current year for Tilray was that of business diversification and cost-cutting initiatives. The results will be seen in the coming years in the form of accelerated growth and swelling cash flows.

Tilray has already established itself as the fifth-largest craft beer brewer in the United States. The craft beer market is expected to grow at a CAGR of 7.2% through 2030 and Tilray is positioned to benefit.

Further, for Q1 2024, Tilray reported healthy growth in the Canadian and international cannabis businesses. The Company’s international growth was driven by the medicinal cannabis segment. Tilray has also guided for positive adjusted free cash flow for the current financial year. With these positives, I expect the momentum for TLRY stock to remain bullish.

Bitfarms (BITF)

Bitcoin and crypto mining farm. Big data center. High tech server computers at work. Bitfarms (BITF) mines crypto.Source: PHOTOCREO Michal Bednarek /

Bitcoin (BTC-USD) has skyrocketed by 153% for year-to-date. I expect the positive momentum to be sustained with halving which is due in 2024. Assuming a scenario where Bitcoin trades above previous highs, I believe that Bitcoin mining stocks will surge further.

Bitfarms (NASDAQ:BITF) is among the hot penny stocks to buy. From current levels of $3, I expect the stock to double in the next few years. Besides the Bitcoin rally, I am bullish on the stock considering the expansion plans.

To put things into perspective, Bitfarms reported a mining capacity of 6.3EH/s as of November. It’s expected that capacity will increase to 17EH/s in the second half of 2024.

As the capacity almost triples coupled with the upside in Bitcoin, the company is positioned for stellar revenue and cash flow growth. Further, with a strong liquidity buffer, I expect expansion to continue beyond 2024. It’s worth adding here that Bitfarms expects to be debt-free by February 2024.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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