From Business Insider:

Warren Buffett attributes his success to investing in small-cap stocks, or penny stocks, for years. Small caps can bring significant returns, especially during bullish business cycles influenced by changes in monetary policy from the Fed. The Fed’s potential interest rate cuts this year may drive investors to seek opportunities in penny stocks.

Air China (AIRYY) is currently trading at $11.24 a share, showing promise for growth amidst expectations of a Chinese economic comeback. Analysts project 32.63% earnings per share growth this year, with a price target set at CNY 5.6, 27.8% higher than the current price.

Nio (NIO), trading at $5.42 a share, presents another opportunity for outsized returns. With a consensus EPS growth projection of 60.2%, analysts have set price targets at $12.7, indicating a potential rally of over 110% from current prices. The stock trades at just 37% of its 52-week high.

Paladin Energy (PALAF) provides exposure to the energy megatrend with uranium mining operations. Trading below $1.00 a share, the stock is positioned for growth with a projected 150% EPS jump this year. Trading at 79% of its 52-week high, there is at least 21% upside potential to reach previous highs.



Read more at Business Insider: The 3 Penny Stocks That Could Make Your February Unforgettable