Become a Penny-Stock Millionaire: 3 Stocks Under $5 Poised to Skyrocket This Summer

Looking for big upside? This group of beaten-down penny stocks, including Yamana Gold Inc. (TSX:YRI)(NYSE:AUY), might provide the pop you’re looking for.

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Hi there, Fools. I’m back to highlight three stocks under $5 hitting new 52-week lows. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for

If you have big dreams of turning an average $27K TFSA into a million bucks in 20 years, you’ll need an annual return of at least 20% to do it. Although low-priced stocks are on the volatile side, the upside return potential might be worth the risk.

Let’s get to it.

Golden guidance

Leading off our list gold producer Yamana Gold (TSX:YRI)(NYSE:AUY), which currently sports a price of $3.31 per share.

Yamana shares have rallied nicely over the past month. Two weeks ago, in fact, management raised gold production guidance for its key Jacobina mine in Brazil. The company plans to increase sustainable production to 150K oz./year and now sees life of mine production of more than 170K oz./year beyond 2021.

“We believe that it is on the cusp of becoming a world class mine, particularly once a decision is made to proceed with the phase two expansion, given strong production, production growth, increasing mineral inventory at improving grades, and continuous increases in cash flow,” said CEO Daniel Racine.

Yamana shares are up 3% in 2019.

Fueling up

With a lowly price of $3.67 per share, alternative fuel technologist Westport Fuel Systems (TSX:WPRT)(NASDAQ:WPRT) is next on our list.

After a volatile 2018, Westport shares have rocketed in 2019 on impressive growth. In the most recent quarter, revenue improved 15% to $73.2 million, while adjusted EBITDA jumped to positive $7.3 million. Moreover, gross margins were maintained at 23%, suggesting that Westport’s competitive position remains strong.

“Our diversity of commercially available products applicable to the full range of transportation applications and available in markets around the world are the key to our improving results,” said CEO David Johnson. “Favourable macro-economic factors and stricter emissions regulations are driving OEM and consumer demand for our market-ready alternative fuel technologies.”

Westport shares are up a whopping 103% in 2019.

Good point

Rounding out our list is oil and gas provider Crescent Point Energy (TSX:CPG)(NYSE:CPG), which currently sports a per-share price of $4.11.

The stock has slumped over the past year on soft oil prices and Alberta output curtailment, but now might be a good time to jump in. Curtailment was recently eased by 25K bbl/day, and in the most recent quarter, Crescent’s adjusted funds flow jumped 20%.

Looking ahead, management expects to generate roughly $600 million in free cash flow for 2019.

“By being disciplined in our capital allocation and focused on cost reductions, we have enhanced our financial flexibility,” said CEO Craig Bryksa. “We plan to use the excess cash we generate this year to reduce net debt and repurchase additional shares under our normal course issuer bid.”

Crescent shares are flat in 2019.

The bottom line

There you have it, Fools: three amazing stocks under $5 worth checking out.

As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Low-priced stocks are particularly fickle beasts, so plenty of homework is still required.

Fool on.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.   

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