4 penny stocks to buy in 2022!

Here are what I believe could be four of the best penny stocks to buy at the beginning of 2022. I think they could make big long-term returns.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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I’m searching for the best penny stocks to buy for this new year. Here are four low-cost UK shares on my watchlist today.

Strike gold

I’m convinced that getting exposure to gold remains a good idea as inflation rockets. According to the Organisation for Economic Co-operation and Development, prices in the 30-odd countries that make up the bloc rose in November at their fastest pace since 1996.

The scale of inflation in developed and emerging economies is so scary that, despite the prospect of central bank rate hikes to reduce the problem, I think prices of safe-haven assets like bullion could still soar.

This is why African gold miner Centamin is on my watchlist today, though it’s not the only reason. As a long-term investor, I’m encouraged by the company’s efforts to supercharge annual production to 500,000 ounces a year. This is up from the 415,000 ounces it was targeting for 2021.

I’d buy the business despite the threat that its share price could sink if its plans to raise output encounter problems.

National treasure

Investing in news publishers can be risky business as print volumes decline. But I think National World could prove a top growth stock for me to buy as online revenues take off (digital sales jumped 20% in 2021, latest financials suggested).

I’m encouraged by the quality of National World’s titles, a benefit that cannot be underplayed in this age of ‘fake news’. Papers such as The Scotsman and The Yorkshire Post have built substantial reader bases over a number of centuries. But the group is also launching new news sites (including seven last year) in major metropolitan areas to give earnings growth a shot in the arm.

A high energy UK share

I believe strong economic progress in India might supercharge shareholder returns at OPG Power Ventures. Urbanisation and industrialisation in the Asian nation is growing rapidly and, as a consequence, so is the energy that this power station operator provides.

The company’s latest update showed Indian energy consumption rose to 100.42 billion units (BU) in November. That was up from 96.88 BU and 93.94 BU in the same months in 2020 and 2019 respectively.

A word of warning however. Profits are taking a hit due to higher coal and freight prices at present. This is a problem that could resurface at a later date too.

A penny stock for XL profits

A strong outlook for advertising and marketing budgets is encouraging me to pay XLMedia close attention too. This penny stock operates news websites across the sports, gambling and personal finance arenas and sells digital marketing data to other companies. Revenues jumped 16% between January and June 2021 as industry conditions improved, latest financials showed.

I’d also buy XLMedia as its transformation plan continues through internal restructuring and accelerated acquisition activity. Its most recent acquisition in September saw it snap up gaming, retail and travel specialist BlueClaw Media for $1.8m.

I’d buy XLMedia despite the threat that ad spending — and by extension, turnover at the firm — could slump if economic conditions worsen again.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

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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