3 penny stocks I think will keep soaring in price!

A pile of British one penny coins on a white background.

UK share markets have been caught in a tempest in recent weeks. Companies of all sizes, from the FTSE 100 bruisers to tiddlers like penny stocks, have all been hit hard by sinking investor confidence.

But not all British stocks have suffered in the broad washout. Indeed, the following selection of penny stocks have actually risen strongly over the past month. Here’s why I think these top cheap stocks could keep climbing in value too.

Gold star for bucking the downtrend

Times have been tough for many UK gold-producing shares of late. A combination of rising bond yields and a bouncing US dollar have pulled gold and gold-producing stocks lower. But Scotgold Resources (LSE: SGZ) hasn’t faced any such misfortune. It’s risen 16% in value since 8 September. This has trimmed total 12-month losses to 45%.

Scotgold’s share price has risen as a steady stream of positive operational updates have continued. And I think the penny stock’s recent resurgence could continue as global inflation heads through the roof. The Bank of England’s new chief economist just said that the recent inflationary spike could be larger and last longer than previously expected. This has the potential to drive gold prices through the roof again.

Of course bullion values could fall instead if bond yields and the US dollar keep increasing. An improving outlook for the global economy could also hit demand for safe-haven assets like this. That said, I’d still buy Scotgold on its impressive operational performances of late and that increasingly-inflationary environment.

Hand holding pound notes

A penny stock for the digital age

Fintech payments specialist Equals Group has soared almost 160% in value during the past month, taking total 12-month gains to 11%. The penny stock’s doing a roaring trade as society becomes increasingly cashless and the digital revolution clicks through the gears. Latest financials last month showed revenues soar 23% year-on-year between January and June.

The penny stock’s decision to move away from retail and travel and towards B2B is paying off handsomely. It’s been busy expanding its product ranges to win business too. And its balance sheet is also robust enough to allow it to keep investing for growth. I think it’s a top stock to buy, despite the intensely-competitive market in which it operates and the danger this poses to future sales.

Raven flies

Raven Property Group has risen a decent 9% over the past month. And so gains on a 12-month basis have improved and now stand at 20%. This penny stock provides warehousing assets in the major Russian metropolitan areas of Moscow and St Petersburg. I believe profits here will soar as e-commerce activity in Russia balloons. Late August’s financials showed occupancy improved to 96% as of June, up two percentage points from the end of 2020.

The outlook for the Russian economy (and, by extension, consumer spending power) has also improved following the recent surge in gas prices. But fossil fuel prices threaten to steadily fall as green energy becomes more popular in the coming decades.

That said, I still think the e-commerce takeover makes Raven Property an attractive buy.

The post 3 penny stocks I think will keep soaring in price! appeared first on The Motley Fool UK.

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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.