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2 top penny stocks to buy for 2022!

British Pennies on a Pound Note
Image source: Getty Images

I think UK share investors need to be careful buying penny stocks for 2022. The worsening Covid-19 crisis casts a shadow over the global economy for next year.

But there’s other issues that could derail corporate profits like China’s economic cooling and soaring inflation. News that US inflation hit 40-year highs last month certainly caught my attention.

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.

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Personally, I don’t plan to stop looking for penny stocks to buy. A company’s low share price doesn’t mean it’s in danger of significant profits trouble in 2022. Nor does it mean that it doesn’t have the financial strength to survive further economic volatility.

With this in mind, here are two top penny stocks I’m considering buying for 2022. I think they could help me make terrific returns beyond the next 12 months too.

A penny stock for the eco revolution

The growing importance of greener energy and waste reduction means Powerhouse Energy Group (LSE: PHE) could have a very bright future. It is a specialist in the field of creating synthetic gas from waste products like plastics. Gas which is then used to make hydrogen.

The waste-to-energy market is tipped for huge growth as concerns over the environmental impact of landfill sites increase. Analysts at Grand View Research think it’ll be worth $54.8bn by 2027, up from $33bn today.

Powerhouse is hoping its under-construction Protos project in Cheshire — which it expects will power up to a quarter of a million homes when it starts up in 2024 — will allow it to exploit this fast-growing market.

Powerhouse Energy’s share price could suffer significant weakness if delays in getting Protos up-and-running develop. This would be particularly problematic if costs spiral as a result. Still, as things stand today, I think there’s a lot to get excited about with this cheap UK share. Today, the company trades at 4p per share.

Turkish delight

I’m also considering buying DP Eurasia (LSE: DPEU) for my shares portfolio in 2022. This penny stock (which trades at 88p per share) looks particularly delicious in terms of value today. City analysts think earnings at the pizza seller will rocket 320%-plus next year. This leaves it trading on a forward price-to-earnings growth (PEG) ratio of just 0.1.

DP Eurasia is the master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan, Georgia and Russia. It thus has considerable brand power in an industry tipped for explosive growth in the years ahead. Latest financials showed system sales leapt almost 52% year-on-year during the 10 months to October.

My main concern for DP Eurasia is the growing economic instability in its key market of Turkey. Last week, ratings agency S&P slashed its outlook on the economy there due to soaring inflation. Still, I’m encouraged by the penny stocks impressive recent momentum, in spite of worsening conditions in its Turkish market.

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.

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