3 of the best penny stocks to buy after recent falls!

Two of these three falling penny stocks look impressively cheap at current prices. Here’s why I’d buy them for my shares portfolio in April.

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I’m searching for the best penny stocks to buy following recent share price weakness. Here are three growth heroes on my radar right now.

Looking good

The Coats Group (LSE: COA) share price recently closed at its most expensive since July 2019 before profit taking set in. Yet despite these gains the clothing material manufacturer still looks exceptionally cheap on paper.

Today it trades on a forward price-to-earnings growth (PEG) ratio of 0.9. This is just below the benchmark of one that suggests a UK share could be undervalued.

I think Coats Group has a very bright future. As one of the world’s leading manufacturers of threads, zips, yarns, and trims it will play a critical role in clothing a rapidly-growing world population.

Furthermore, Coats Group’s pan-global operation also leaves it well placed to profit from soaring consumer spending levels in emerging markets. I’d buy the penny stock even though the cost of living crisis clouds its sales outlook in the nearer term.

Sports star

Science in Sport’s (LSE: SIS) share price has plummeted in recent sessions. The sports nutrition specialist recently closed at one-year lows following a frosty reception to its latest financials.

It’s no shock as to why investors headed to the exits. SIS’ pre-tax losses swelled to £5.3m in 2021, it said, caused by “investment in technology and data science” and share-based bonus payments to employees. This was up considerably from £2.3m the year before.

I’ve been weighing up whether SIS’ plunging share price represents an attractive dip buying opportunity. And I think the answer is yes. I think it’s a great way to capitalise on the rapidly growing sports nutrition market. Last week SIS said that it expected revenues in March to set a new monthly record.

Science in Sport has excellent brand recognition through its own-branded and PhD Nutritionlabelled products. It has also invested heavily in technology to boost online sales.

FInally, SIS has spent huge sums in the supply chain to eventually help it accommodate £200m worth of yearly sales. The firm reported revenues of £62.5m in 2021.

Sure, the business operates in a highly-competitive industry. But I think its excellent momentum in a fast-growing industry merits a close look.

Another cheap penny stock to buy

Building materials supplier Breedon Group (LSE: BREE) hasn’t suffered the sort of shocking sell-off as SIS. But recent share price falls still leave it looking mighty cheap.

For 2022 Breedon trades on a forward PEG ratio of 0.5. I think it could prove to be a brilliant penny stock to buy as construction activity in the UK grows. More specifically I expect it to thrive from healthy infrastructure investment and a step-up in house building.

Breedon supplies bricks, tiles, aggregates, concrete, and a wide range of other essential building products. Profits might suffer if broader economic conditions deteriorate. However, I think this risk is baked into the company’s dirt-cheap share price. I think its a great growth stock for me to buy today.

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 assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Coats Group. 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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