Often investors are wary of the low prices of penny stocks. It’s hard to imagine that anything selling for under $5 a share could turn a serious profit. And more often than not, penny stocks remain on the smaller end of the value spectrum.
However, every now and then penny stocks return massive profits to their investors. It’s hard to predict who might be the next big winner, but it has happened, so here are some penny stocks that did big things!
Penny Stocks Gave Returns
In 2016, Advanced Micro Devices (NASDAQ:AMD) was trading for less than $2 per share. Now, in 2018, it trades at almost $20 per share. The growth this penny stock has experienced equals a staggering 1,300% over three years.
The company owes its advances to taking market share away from companies that had vastly bigger names and resources than it did. It has surpassed Intel (NASDAQ:INTC) in both PC and data-center markets. It is also rivaling NVIDIA (NASDAQ:NVDA) in the graphics card market. No doubt the increased demand for graphics cards for cryptocurrency mining has played a part here.
Bank of America (NYSE:BAC)
Bank of America was once trading for just shy of $5 USD. Seven years later, this penny stock sells for $30 a share. Yes, it has taken a long time, but it shows that it can be done!
The real downfall for Bank of America was the role it played in one of America’s biggest recession seven years ago. As America has steadily rescued its economy, so has this bank.
The growth of this penny stock is quite remarkable when you consider that BoA paid out more than $90 billion in damages in fines over the past decade. This was thanks to fines, lawsuit settlements, and court penalties all off of the back of that horrible economic depression.
Today tells a different story, however. The fines and legal implications have been dealt with. Overall the Bank of America balance sheet is much stronger, and its asset quality has improved.
Noodles & Co (NASDAQ:NDLS)
This is a simple case of popularity. In the last year alone, Noodles & Co has tripled its stock value. This stock has a 52-week low of $3.50 but has traded at over $10 in recent months. There is no definite reason for this penny stock’s value increase other than the increasing demand for fast-pasta casual chains.
Featured Image: Depositphotos/fotoall