#1: A leading light in responsible investing

There’s no doubt that responsible investing is becoming more and more important for share pickers. Plenty of evidence exists to back up this line of thought too. And green stocks that are helping to solve the climate crisis are particularly popular right now. This is where Renewi (LSE: RWI) comes in, a penny stock that helps to turn waste products into something useful again. Recycling is a critical part of lawmakers’ strategies to help the environment and Renewi is riding this phenomenon in both Europe and North America. Be aware though, that this UK share has a lot of net debt (around €350m worth, according to latest financials) to tackle. It’s a sum that could have a significant impact on the firm’s future growth plans, as well as the size of dividends.

#2: Life in the fast lane

A bright outlook for car production makes me think Surface Transforms (LSE: SCE) could be another top penny stock for me. Around 92m light vehicles rolled off production lines across the globe in 2019, according to Statista. The research house thinks that strong demand in Asia will drive production to 110m vehicles by 2025 and to 117m by 2030. It’s an environment that will play into the hands of Surface Transforms, a company that builds ceramic brakes for major car manufacturers. I like the steps the business has taken to exploit this ripe trading landscape by building capacity at its site just outside Liverpool too. Product failure is a risk for any company. But a malfunctioning of this UK share’s goods might pose a significant safety risk. And as a consequence, any problems on this front could be particularly catastrophic for the brake-maker.

#3: A penny stock for the video games explosion

I also think Bidstack Group’s (LSE: BIDS) a penny stock that could enjoy mighty profits growth this decade. I myself bought games developer Keywords Studios this month to make money from the staggering growth in the video games market. And I’d buy this UK tech share too, one that allows companies to advertise their brands, products and services during in-game play. The company has added 14 new titles to its portfolio since the end of 2020. And it is also making headway in the fast-growing e-sports arena, an industry that’s tipped to grow by around 8% a year by 2024. Even if some of its rivals have better financial (and thus technological) resources — a problem that could result in lots of failed business bids and client losses — I still think this penny stock is a great buy for the tech revolution.

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Still no sparkle

Followers of Petra Diamonds (LSE: PDL) will know this UK penny share has been in the wars in recent years. Diamond prices have been under pressure on a mix of plentiful supply and sinking demand, the latter issue worsening significantly following the Covid-19 outbreak.

Revenues at Petra Diamonds have also been whacked by a raft of production problems at its South African mines, pushing the business close to collapse.

But news flow from Petra has been sunnier in recent weeks. And an improvement in diamond values helped turnover rise 16% in the three months to March. Some analysts think that stone prices will continue to rise too, as improving economic conditions drive jewellery demand.

News that demand for synthetic diamonds has also slowed is another good sign for this penny stock. Overall though, I think Petra Diamond’s gigantic debt pile, its history of production problems, and the long-term threat posed by lab-grown diamonds make this UK share a risk too far.

A safer penny stock

I try to make investing in shares as stress-free an experience as possible. And this is why I think Premier Foods (LSE: PFD) is an ideal penny stock for investors like me.

Firstly, food production is one of the most defensive sectors out there. We all need to eat, regardless of what social, economic or political meltdown might be raging outside out windows, right?

Secondly, Premier Foods owns some of best-loved brands out there, like Mr Kipling cakes and Homepride and Sharwoods cooking sauces. This gives it the confidence to lift prices to keep growing margins even when consumer spending power is under pressure.

I’d buy this UK share despite the threat of changing pricing and promotional policies by supermarkets can pose. This can have a significant impact on demand for its products and, as a consequence, earnings growth.

A gaming great

In a recent piece I explained how the technological revolution creates huge opportunities for Ocean Outdoors. This is a company whose outdoor screens allow companies to use visual tricks to reach their customers.

In the same vein I think fellow penny stock Bidstack (LSE: BIDS) could be another top UK share to buy. This UK tech share provides a platform for advertisers to plaster pictures and their product logos into video games. It’s a market which has the potential to grow strongly as the global gaming market explodes.

Analysts at Grand View Research reckon the video games industry will grow at a compound annual growth rate of 12.9% through to 2027. Be aware though, that people’s preferences can change rapidly. The gaming boom of the past decade may run out of steam and Bidstack’s profits outlook could take a serious hit.

The post Are these 3 of the best UK penny stocks to buy right now? appeared first on The Motley Fool UK.

The problem with cheap UK shares like these is they can experience huge price volatility. However, eagle-eyed investors can use this characteristic to their advantage. Such choppiness means penny stocks tend to be avoided by many investors, despite their excellent long-term profits outlooks.

Consequently those who are on the ball can nip in and grab a bargain or two. So here are a couple of top penny stocks I’d happily snap up for my own Stocks and Shares ISA today.

A penny stock for soaring sports car sales

Investing in the sports car market is a brilliant idea for UK share investors like me, in my opinion. But rather than looking at the Aston Martin share price, for instance, I’d much rather buy shares in Surface Transforms (LSE: SCE). This engineer produces patented carbon-ceramic materials and brakes that allow drivers to keep their performance vehicles on the road.

The global sports car segment looks set to experience stunning growth over the next several years, at least. Analysts at Knowledge Sourcing Intelligence reckon the market will expand at a compound annual growth rate of 10.1% through to 2025 as the number of millionaires and billionaires continues to rocket. Therefore, Surface Transforms can expect demand for its products from OEMs to keep flying.

This penny stock’s goods are proven to be of an extremely high standard. But remember that a failure of its critical components could cause demand to fall off a cliff. Right now, Surface Transform’s shares sell for 74.5p apiece.

Making a bid for big returns

The Covid-19 outbreak has improved the long-term outlook for a great many industries. The global video games market is one of these, with demand for entertainment software booming from new and existing gamers during lockdowns. Studies suggest that rampant sales growth is here to stay too.

For this reason I’d invest in Bidstack (LSE: BIDS), a tech company which allows advertisers to beam their messages into virtual worlds. Indeed, this particular penny stock could perform really strongly in the next few years as advertising spending usually recovers very strongly during the early stage of economic recoveries. Today this UK share trades at 5.25p per share.

Remember though, this UK share is smaller than many of its competitors. This means it has less firepower to develop better technology than its rivals. This issue could well affect its ability to secure business in the future.

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