I think these four penny stocks are all top buys following recent share price weakness. Let me explain why.
Property powerhouse
The Empiric Student Property share price has slipped 8% over the past month, trimming gains for the past year to 54%. As a long-term investor I’m looking past the possibility that a leap in Covid-19 infection rates could hit occupancy rates at its properties. I’m more interested in the fact that demand for places at British universities is soaring.
Pleasingly for low-cost Empiric Student Property, the number of students from overseas has been growing particularly strongly for several years. These are the ones who are in particular need of accommodation when they start studying.
Parklife!
Ediston Property Investment Company is another real estate giant on my radar today. Okay, it’s only dropped fractionally in value since early September, so gains on a 12-month basis still stand at an impressive 46%. I expect this penny stock’s share price to rocket in value through the 2020s too, as e-commerce takes off.
Why? Well Ediston specialises in operating retail parks. It’s therefore well-placed to capitalise on the steady growth of click and collect as e-commerce clicks through the gears. I’d buy it despite the threat of rising inflation to the retail sector and by extension rents at the business.
The X-Factor
Freight management services provider Xpediator (LSE: XPD) rose 120% in value over the past 12 months as the outlook for global trade improved. But this penny stock’s dropped 14% during the last month as concerns over recovery have risen. The IMF’s decision to cut its growth estimates this week hasn’t improved the mood music either.
From a long-term perspective though, I think this penny stock has a lot to offer. After all, global trade remains on an upward trajectory as populations grow and global wealth levels rise. In particular I’m excited by its sizeable exposure to Eastern Europe, a region whose emerging markets look set for stratospheric GDP growth.
A penny stock for the green revolution
It’s no surprise that Sylvania Platinum’s share price has slumped 11% over the last month. Like many other shares exposed to the global car industry, investors are concerned about whether the supply chain problems (and more specifically a shortage of semiconductors) dogging auto production will drag on for a long time.
However, these problems haven’t dented my appreciation for this penny stock. Again, I look for the best stocks to buy, according to what returns I expect to make over a number of years, perhaps a decade or more. From this viewpoint, I think Sylvania Platinum’s sitting pretty as the climate crisis is forcing lawmakers to bulk up their environmental legislation.
As a consequence, the amount of platinum and palladium needed in catalytic converters is rising sharply. Sylvania shares are up 45% on a 12-month-basis. I expect them to rise strongly as the decade progresses too.