Any stock with a price under $5.00 is known as Penny Stock. Ever since the win of Doland Trump, penny stocks have become the center of attention for all investors.
The perception is that the reduced tax and relaxation of the regulatory barriers will help these low-cap companies. If we look back, the Russell 2000 index had a 16% return in the year 2024. However, the Russell 2000 index was still below the S&P 500 by almost 68%, as the former closed the year with 27% gains.
With that in mind, experts have chosen 2 penny stocks with the potential for long-term growth in 2025. These stocks are Globalstar (GSAT) and B2Gold Corp (BTO).
The first penny stock is Globalstar (GSAT), which is involved in mobile satellite services. The services from Globalstar (GSAT) are very helpful in enabling LEO (Low-Earth Orbit) comm.
The connectivity provided by Globalstar (GSAT) is very helpful for remote areas. In November 2024, the stock of GSAT made some ground after the announcement of the Apple Inc. partnership.
The partnership will provide Apple with funding of $1.5 billion which will be used to expand the network of satellites.
Gold had really good years and gained around 28%, which is higher than the returns of the S&P 500. With that in mind, many believe that XAUUSD is ready to cross the $3000 level in 2025.
bullish gold will also translate into a bullish phase for the gold mining stocks. To benefit from it, one particular penny stock that comes to mind is B2Gold Corp.
However, its worth noting that the mining operations of B2Gold Corp are in highly unstable (geopolitically) areas. So, there's a certain degree of risk involved on top of owning a pnny stock.
The B2Gold Corp is expecting a 30% y/y jump in its production due to a recent project in Canada. If this happens, the stock price of B2Gold Corp will receive a boost in 2025.