3 Penny Stocks Rated “Buy” by Analysts

Penny Stocks WatchThere are a lot of penny stocks out there. And the vast majority of them are penny stocks for a reason. In fact, with the broader markets still at or near record levels, you have to wonder what’s keeping most penny stocks in penny stock territory.

It could simply be that it’s a small company or it operates in an industry that is under pressure. Those are good reasons why a company is in penny stock territory. Both can be remedied through growth and a change in the economy.

Unfortunately, most are penny stocks because they have shaky operations, no money, and no future. Read their press releases and you might be forgiven for thinking you’ve stumbled on an unjustly-overlooked penny stock that is going to soar!

It’s not.


Granted, with the stock market trading in a tight range and meaningful earnings and revenue growth on the S&P 500 a rarity this quarter, investors are looking for stocks with great long-term growth potential. Fortunately, there are a small number of penny stocks out there with great long-term growth potential that some analysts follow. Below are three such penny stocks.

3 Penny Stocks Analysts Love

B2Gold Corp. (NYSE/BTG)

Gold prices are getting hammered. Trading near $1,085 per ounce, gold prices fell by the most in two years in July against the backdrop of a rising U.S. dollar and the timing of a hike in U.S. interest rates.

When it comes to the stock market and different sectors, it’s important to remember that the markets are cyclical. The markets go up, correct, and hit new highs. Precious metal penny stocks go up, get hammered, and eventually are back in favor.

B2Gold Corp. (NYSE/BTG) is no exception.

B2Gold Corp. is a Canadian-based gold producer with four operating mines (two in Nicaragua, one in the Philippines, and one in Namibia) and strong exploration assets in Nicaragua, Mali, Burkina Faso, and Colombia. (Source: B2Gold Corp., August 3, 2015.)

In 2014, B2Gold achieved another record year of production, producing 384,003 ounces of gold and finished the year with a record fourth quarter, producing 111,804 ounces of gold.

In February of this year, the company’s new Otjokoto Mine started commercial production. Company-wide production in 2015 is expected to be in the range of 500,000 to 540,000 ounces of gold, a year-over-year increase of 35%.

In the current month, six analysts are following B2Gold Corp.: two have rated B2Gold Corp. a “Strong Buy,” three a “Buy,” and one a “Hold.” (Source: Yahoo! Finance, August 3, 2015.)

Avino Silver & Gold Mines Ltd.(NYSE/ASM

I last mentioned Avino Silver & Gold Mines Ltd. (NYSE/ASM) back in July when silver was trading at a lofty $15.40 per ounce. It’s currently trading at around $14.40 per ounce. Aside from the slide in silver prices, nothing has changed with Avino—it’s still a great penny stock with great potential.

Avino has operations in Canada and Mexico with two producing precious metal projects and another one in trial production.  In Mexico, Avino has total measured and indicated silver resources of 13.63 million ounces and 90,758 ounces of gold.  It has total inferred reserves of 21.88 million ounces of silver and 164,937 ounces of gold. (Source: Avino Silver & Gold, August 3, 2015.)

In 2014, the company delivered its third consecutive year of production growth. Silver production increased 39% year-over-year to 969,524 oz.  Gold production was up 60% year-over-year at 5,180 oz. Consolidated all-in sustaining cash cost per ounce of silver equivalent was $12.24 in 2014 compared to $14.39 in 2013. (Source: Avino Silver & Gold, March 23, 2015.)

2015 is shaping up to be even more productive. In July, Avino recorded record second-quarter and year-to-date production. Silver equivalent production in the second quarter increased 167% year-over-year to 819,299 oz. while silver equivalent production for the first two quarters was up 134% at 1,471,919 oz. The company will be announcing its financial results for the second quarter on August 18th. (Source: Avino Silver & Gold, July 13, 2015.)

With support near $0.90, Avino has two analysts rating the company a “Buy.” (Source: Yahoo! Finance, August 3, 2015.)

Great Lakes Dredge & Dock Corporation (NASDAQ/GLDD)

Great Lakes Dredge & Dock Corporation (NASDAQ/GLDD) entered 2015 trading at around $8.60 per share and has been trending downward ever since. In fact, Great Lakes Dredge was a penny stock when I first looked at it yesterday (trading near $5.00 per share). But then it went and released solid second-quarter results and popped above the $5.00 threshold. Still, it would be a bad idea to ignore the company simply because it reported strong financial results.

Great Lakes Dredge & Dock Corporation is the leading provider of dredging services in North America and is the only U.S. company with substantial dredging operations overseas. In addition to dredging services, the company provides beach restoration, rock dredging, harbor excavation, land reclamation, demolition, and restoration of aquatic and wetland habitats. (Source: GLDD.com, August 4, 2015.)

On August 4, Great Lakes Dredge announced that second-quarter revenue increased 29% to $238.9 million. Net income was $2.7 million for the second quarter of 2015 compared to $3.9 million of net income from continuing operations in the same period in 2014. Total contracted backlog at quarter end was a record $752.0 million. (Source: GLDD.com, August 4, 2015.)

Looking ahead, the company expects robust revenue and earnings to continue and achieve total adjusted EBITDA in the range of $97.0 million to $107 million for the year.

Currently, there are four analysts covering Great Lakes Dredge & Dock Corporation; one has rated the company a “Buy” and three a “Hold.” (Source: Yahoo! Finance, August 4, 2015.)