Investing in penny stocks—shares of small companies trading below ₦5 per share in Nigeria—can offer significant growth potential but also comes with higher risks due to their volatility and often limited liquidity. It’s crucial to conduct thorough research and consider your risk tolerance before investing. Here are some of the top-performing penny stocks on the Nigerian Exchange (NGX):
Tantalizers Plc
A leading quick-service restaurant company, Tantalizers achieved a year-to-date (YtD) gain of 268% as of December 13, 2024. Despite this impressive performance, the company reported a pre-tax loss of ₦231.56 million in the first nine months of 2024, continuing its loss-making trend from previous years.
RT Briscoe Nigeria Plc
Involved in the sales and service of motor vehicles and industrial equipment, RT Briscoe recorded a 264.18% YtD gain as of December 13, 2024. The company returned to profitability in 2024, with a pre-tax profit of ₦843 million, a notable recovery from a ₦513 million loss previously.
Veritas Kapital Assurance Plc
An insurance firm, Veritas Kapital achieved a 245.95% YtD gain, making it the third best-performing penny stock on the NGX. The company reported a pre-tax profit of ₦2.96 billion in the first nine months of 2024, continuing its profitability trend over the past five years.
Cornerstone Insurance Plc
This insurance company achieved a 123.57% YtD gain, following a 133.33% gain in 2023. Cornerstone’s pre-tax profit surged by 57% year-on-year to ₦26.59 billion in the first nine months of 2024, reflecting solid financial performance.
Guinea Insurance Plc
With a YtD gain of 110.34%, Guinea Insurance is among the top-performing penny stocks. The company’s pre-tax profit surged by 854% year-on-year to ₦568 million in the first nine months of 2024, surpassing its full-year 2023 pre-tax profit by 14%.
Sovereign Trust Insurance Plc
This insurance firm recorded a 102.38% YtD gain, reflecting strong investor interest in the insurance sector.
Wapic Insurance Plc
Wapic achieved a 97.06% YtD gain, indicating robust performance in the financial services sector.
Deap Capital Management & Trust Plc
This financial services company recorded a 96.55% YtD gain, showcasing significant growth potential.
TIP Initiatives Plc
TIP Initiatives achieved a 95.65% YtD gain, reflecting positive investor sentiment.
Consolidated Hallmark Insurance Plc
This insurance company recorded an 88.44% YtD gain, indicating strong performance in the insurance sector.
Please note that while these stocks have shown impressive gains, past performance is not indicative of future results. Penny stocks can be highly volatile and may carry significant risks. It’s essential to conduct thorough due diligence, assess each company’s fundamentals, and consider your investment goals and risk tolerance before making any investment decisions.