2 penny shares I think could shine in 2025

I have my eye on a few penny shares, as I’m thinking that the year ahead could turn out to be a good one for smaller-cap stocks.

| 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.

Stack of one pound coins falling over

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.

Penny shares have greater profit potential, right? And there’s less to lose? Hmmm. Those are both mistaken thoughts.

The maximum we can lose from a penny share is 100%, exactly the same as with any stock. And I’d say there’s probably a greater chance of a wipeout, as something has usually gone wrong to send them to such low levels.

I’ll briefly mention one as a caution. I won’t name the company, but five years ago its shares were priced at around 1p. Not much to lose? They’ve crashed more than 95% since then.

Should you invest £1,000 in Rightmove right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rightmove made the list?

See the 6 stocks

The value of an investment depends on a company’s performance, not just the share price. Here are two that I like.

Venture capital

Created with Highcharts 11.4.3Triple Point Venture Vct Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

When you think of investing in venture capital, what comes to mind? Visions of millionaire investors ploughing serious cash into private equity firms?

With Triple Point Venture VCT (LSE: TPV), we can have a go with even modest sums.

I’d never heard of it until I read my colleague Jon Smith’s article, “This penny stock invests in start-ups. Here’s why I think it could surge“. But we Foolish investors learn from each other, right?

Investing in venture capital can be a risky business. The things they put our money into might not be easy for us to investigate and understand ourselves. We have to hope the managers are on the ball.

Trust a trust?

If trusting our cash to folks in the City without being able to properly understand what they’re doing with it sounds out of touch with the Foolish approach… well, yes, that’s a good point.

Still, the trust has put money into forestry management using artificial intelligence (AI). And some has gone to a company working on cost-effective electric vehicle (EV) schemes for businesses.

Those are high-profile right now. And it might not need much for one of them to take off and give the Triple Point share price a boost.

Things can go wrong with start-ups, of course. But I might put a small amount of my 2025 investment cash into this penny stock.

Down to earth

Created with Highcharts 11.4.3Topps Tiles Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I’ve followed Topp’s Tiles (LSE: TPT) for a long time.

I’ve bought its products, and I like them. A lot of others do too. And over the long term, it’s built up a strong following.

The problem is, the business has been hit by multiple external crises. The most recent is the fallout from the pandemic, which immediately stopped us doing anything more than essential shopping.

Inflation, high interest rates, expensive mortgages, depressed building sector… they’ve all taken their toll.

Upbeat outlook

But at FY time in November, the company told us it’s “continuing to take market share in a difficult trading environment.” And though the market is “c. 20% down on pre-Covid levels,” Topps saw revenue 14.9% ahead of 2019.

That difficult trading environment is still a big threat, and stubborn inflation could hold the share price back in 2025. But the City expects earnings growth in the next few years, and predicts a 9% dividend yield.

That might finally move me to buy some.

Should you buy Rightmove now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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.

Alan Oscroft 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

Investing Articles

This FTSE AIM stock has £2.3bn in net cash, and a market cap of £2.4bn!

I love this FTSE AIM stock, but it really hasn’t delivered for me yet. The stock trades with crazily low…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Down 15% in a week! Are these 5 FTSE 100 fallers screaming buys as markets plunge?

Five of Harvey Jones's favourite FTSE 100 stocks all have the same thing in common – they've fallen around 15%…

Read more »

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

2 stocks that have been crushed and now offer a ton of value

Edward Sheldon has been scanning the market for stocks that offer value after the sell-off. Here are two shares he…

Read more »

Light trails from traffic moving down The Mound in central Edinburgh, Scotland during December
Investing Articles

£10,000 invested in Aston Martin shares at Christmas is now worth…

Aston Martin shares have fallen from above £10 in early 2020 to pennies today. Is this the perfect time for…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

Up 5% in the last crazy week! Are these 2 income stocks the ultimate FTSE defensive plays?

Harvey Jones picks out two FTSE 100 dividend income stocks that have actually climbed while stock markets are heading in…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

2 beaten-down UK shares that now look really cheap

Looking for cheap shares to consider for the long term? These two British stocks offer a lot of value right…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

As stocks tank, is this a rare chance for ISA investors to get rich?

Shares have collapsed globally and valuations are becoming, on paper at least, a lot more attractive. Dr James Fox explores…

Read more »

Investing Articles

2 strong FTSE 100 dividend shares to consider as recessionary risks increase

Looking for secure passive income stocks to consider buying as thumping trade tariffs loom? Here are two FTSE 100 dividend…

Read more »