3 top penny stocks I’m buying in May!

Investing in penny stocks can be a great way to build wealth over the long term. As such, I’ve found three attractive companies that could deliver growth within my portfolio.

| More on:

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.

British Pennies on a Pound Note

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

Purchasing penny stocks can be a great way for me to find growth opportunities for my long-term portfolio. Defined as a company with a share price under £1, penny stocks are found across the whole London Stock Exchange. I think I’ve found three such firms that I’ll add to my portfolio in May. Why am I attracted to these businesses? Let’s take a closer look.

Penny stock #1: PetrolTal

An oil and gas production company focused on operations in Peru, PetroTal (LSE:PTAL) is listed on the AIM 100 index. It is currently trading at 40p and is in prime penny stock territory.

From 2020 to 2021, crude oil revenues increased over two times, from $76m to $159m. Despite this, profit before tax has declined between 2019 and 2021, falling from $20m to a loss of $1.45m. This is a trend I would like to see reverse in the near future. 

In better news, the company recently reported that its Well 10H in Peru set a new record of over 10,000 barrels per day. This well was also constructed for 17% less than expected.

In addition, for the three months to 31 March, production and sales were up 58% and 48%, respectively, year on year.

Penny stock #2: Breedon

The second penny stock I’m buying in May is UK construction materials producer Breedon (LSE:BREE). It currently trades at 81.8p and specialises in cement.

Between 2017 and 2021, revenue increased markedly from £650m to £1.2bn. Furthermore, profit before tax grew from £71m to £114m. 

It should be noted, however, that past performance is not necessarily indicative of future performance.

For the three months to 31 March, revenue rose 16%, year on year. Additionally, the company announced that there was stable long-term demand for projects.

There is the added risk of further volatility in relevant commodities and the potential for rising costs of raw materials.

Penny stock #3: Jubilee Metals

Finally, Jubilee Metals (LSE:JLP) is a penny stock firm engaged in the metals recovery industry in South Africa and Zambia. 

For the years ended June, between 2017 and 2021, the company swung from a £20.42m loss to a £43m profit. 

What’s more, revenue has surged from £9.81m to £132m over the same period. This performance, together with the firm’s sustainable business model, prompted investment bank Berenberg to initiate a target price of 21p. This penny stock currently trades at 15.3p. 

There is always the risk, however, of political and military instability in the areas where Jubilee Metals operates. If any of these risks come to fruition, this could be bad news for the share price.   

Overall, each of these businesses is strong and in prime penny stock territory. They could provide me with growth over the long term and I will be buying shares in each firm in May.


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.

Andrew Woods 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.

More on Investing Articles

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

Up 350% in 3 years but my favourite FTSE growth share is still on a low P/E of just 10!

Harvey Jones can't tear his eyes away from this former penny stock turned growth share superpower. But can it carry…

Read more »

Santa Clara offices of NVIDIA
Investing Articles

Up 83% in months, could Micron stock be the next Nvidia?

Chipmaker Micron Technology's stock price has surged by over 80% in just a few months. Could this be a possible…

Read more »

Tesla car at super charger station
US Stock

£1k invested in Tesla stock at the start of the year is currently worth…

Jon Smith reveals the performance of Tesla stock in 2025 and explains why he doesn't believe the move lower is…

Read more »

Woman riding her old fashioned bicycle along the Beach Esplanade at Aberdeen, Scotland.
Investing Articles

What sort of return could someone get by investing £20,000 in UK dividend shares?

Should UK savers consider dividend shares over cash? Stephen Wright thinks those looking for long-term passive income would be wise…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Around a 15-year high, is Barclays’ share price still too cheap to ignore?

Barclays’ share price is at a level not seen since 2010, but price and value aren't the same thing, so…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

47% below fair value and with an 18% earnings growth forecast, should investors consider this FTSE retail institution now?

This FTSE 100 British retail institution lost its way for a while but has bounced back in recent years, and…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Lloyds share price: up 40% this year, is it time to take profits?

The booming Lloyds share price is up nearly 40% in 2025, outperforming its UK banking peers. Our writer asks whether…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

If the stock market crashes tomorrow, here’s what I’ll do with my portfolio

A stock market crash can feel terrifying. Here’s why staying calm matters – and how this recovering FTSE 100 company…

Read more »