3 Promising Penny Stocks With Millionaire-Maker Potential by 2028 (2024)

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The biggest headwind in the way of making millions from the market is not volatility or poor stock selection — it’s impatience and exiting massive value creators early. In a world of meme stock investing, the horizon is possible in a few weeks or months. However, for wealth creation, nothing works like buying and holding with patience. This column focuses on potential millionaire-maker penny stocks to buy for multibagger returns by 2028.

Within the universe of penny stocks, there are hundreds of purely speculative ideas. However, there are businesses that can be listed among the high-quality growth stocks in the next few years. Of course, since we are dealing with penny ideas, it’s important to keep a close watch on business developments.

Therefore, the focus should be on how the business is progressing and not on how the stock is moving. I am emphasizing this point because industry headwinds can impact stock sentiment. However, any time or price correction will be compensated for swiftly when sentiments turn bullish. Therefore, let’s talk about three millionaire-maker penny stocks to buy.

Lithium Americas (LAC)

An interesting point about mining companies is that even if the market valuation declines significantly, the underlying mining assets are intact. This holds true for a company like Lithium Americas (NYSE:LAC) that trades at a market valuation of $660 million. However, the after-tax net present value of lithium assets of the company is $5.7 billion. With depressed sentiments on the back of a sharp decline in lithium prices, it’s a good time to accumulate LAC stock.

The lithium mining company’s asset, Thacker Pass, is a potential cash-flow machine. The asset has a mine life of 40 years. Further, once both phases are operational, the annual EBITDA visibility is $2 billion.

Specific to the company, the biggest challenge was financing the construction of the asset. In March, Lithium Americas received a conditional commitment for a $2.26 billion loan from the U.S. Department of Energy. Further, in April, the miner closed a $275 million equity offering. General Motors (NYSE:GM) has also infused $650 million in two tranches. With financing secured, LAC stock is likely to go ballistic once lithium reverses.

Bitfarms (BITF)

In January, Cathie Wood opined that Bitcoin (BTC-USD) is likely to touch $1.5 million by 2030. While this call is debatable, there is no doubt that the cryptocurrency will continue to trend higher.

Wider adoption, limited supply, geopolitical tensions and a weaker dollar are just some factors that will support the rally. It’s therefore a good time to consider fresh exposure and remain invested in Bitcoin mining stocks.

Bitfarms (NASDAQ:BITF) is an undervalued miner that seems poised for multibagger returns. The crypto mining company was in the news recently as it rejected the proposal from Riot Platforms (NASDAQ:RIOT) to acquire 100% shares at $2.30 per common share. This underscores the confidence of the company to create value and indicates that BITF stock is undervalued at current levels.

Bitfarms has strong fundamentals with a zero-debt balance sheet. Further, the Bitcoin miner ended Q1 2024 with a liquidity buffer of $124 million. This provides ample flexibility to pursue aggressive expansion plans. Bitfarms is targeting to increase mining capacity from 7.5EH/s as of Q1 2024 to 21EH/s by the end of the year. This is likely to translate into stellar revenue and EBITDA growth.

Cronos (CRON)

The cannabis story just seems to be unfolding as regulatory headwinds decline. Recently, Germany legalized cannabis and it’s likely that other European countries will follow suit. Further, there is an impending reclassification of cannabis as a Schedule III drug in the U.S.

With upcoming presidential elections, there is a strong case for federal level legalization being a hot topic of discussion. Amidst these positives, Cronos (NASDAQ:CRON) seems like a millionaire-maker.

It’s worth noting that Cronos has remained conservative in terms of expansion plans. The cannabis company has a robust cash buffer of $855 million that’s likely to be utilized for organic and acquisition driven growth. With regulations becoming relatively investment friendly, some big investments might be on the cards.

Further, Cronos has presence in Canada, Israel, Germany, Australia and the United Kingdom. The company has entered three new countries in the last few quarters. This will have a positive impact on growth and with operating leverage, EBITDA break-even is close. Therefore, with multiple catalysts for stock upside, it’s a good time to take a plunge.

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 InvestorPlace.comPublishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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