The Motley Fool

2 top penny stocks to buy right now!

British Pennies on a Pound Note
Image source: Getty Images

The fight against climate change provides plenty of profits opportunity for penny stock Jubilee Metals Group (LSE: JLP). This UK share is a major supplier of platinum group metals (PGMs), essential elements in the reduction of pollution levels in catalytic converters. Approximately 40% of all platinum is used in the manufacture of car exhaust systems.

I expect demand for Jubilee’s product to rise strongly over the next decade. Firstly, more cars on the road — predominantly in response to rising population and wealth levels in emerging markets — means more catalytic converters will be needed.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Secondly, the amount of PGM content needed in each auto system could continue to climb as legislators try to combat global warming. China’s Stage 6 strict emissions brought in this year could soon draw a response from European and US lawmakers.

I also like Jubilee Metals because production from its South African assets is soaring right now. Total PGM output leapt 23% between January and June from the same 2020 period, to 50,162 ounces.

The process of hauling metal from the ground can be extremely problematic, resulting in lost revenues and unexpected costs. But it’s my opinion that the rewards of owning Jubilee Metals could well offset these potential problems.

A cheap penny stock on my radar

UK retail share Theworks.co.uk (LSE: WRKS) is a penny stock with the wind in its sails. Rocketing demand for its shares following last week’s latest financials means it’s now trading at its most expensive since mid-August. The Works has now gained 115% in value over the past 12 months.

Let’s look at those financials first of all. In better-than-expected trading, The Works said like-for-like sales in the six months to October were 14.5% higher than they were in the same period in 2019. It also said online sales were double the level recorded two years previously.

There’s a lot I like about The Works. I like its decision to scale back store openings in favour of investing in its internet proposition. I like its focus on the value-end of the books, games and crafts market, one which should serve it well in an environment where consumers demand more and more bang for their buck.

I’m also encouraged by the rate at which physical games are selling following the Covid-19 outbreak. The global board games and playing cards market is tipped to grow at an annualised rate of almost 9% through to the middle of the decade.

Today, The Works trades on a forward price-to-earnings (P/E) ratio of just 7.3 times. It’s true that the retailer faces higher freight costs because of a shortage of shipping and road capacity. This also throws up the spectre of stock shortages that could hit earnings hard. Still, it’s my opinion that these risks are more than baked into the penny stock’s rock-bottom valuation.

Like Jubilee Metals, I’d happily buy The Works for my own shares portfolio right now.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.