I’m searching for the best penny stocks to buy for my portfolio in March. Here are two top low-cost shares on my radar today.
A top e-commerce share
Online shopping is predicted to carry on growing strongly in the post-pandemic era. So I’m continuing to pay Attraqt Group (LSE: ATQT) close attention. This UK tech stock allows internet retailers to create a personalised experience for their cyber shoppers.
Giving the best customer service is becoming ever-more critical as competition online grows. So I expect demand for this penny stock’s services to grow strongly over the next decade. Indeed, the penny stock chalked up 35 more multi-year contract renewals in 2021. This was on top of the 38 it sealed the year before.
I am concerned about the impact of runaway inflation on online retailers and by extension orders at Attraqt Group. Also, while Attraqt is expected to finally move into profit in 2022, the business trades on a high forward price-to-earnings (P/E) ratio of 105 times. Such a high multiple could cause a sharp share price reversal if trading shows signs of cooling down.
Playing the gold boom with penny stocks
I’d also stock up on Serabi Gold (LSE: SRB) shares as the outlook for gold improves. Sinking bullion prices around the turn of the year meant that this mining stock is 21% cheaper than it was at this time last year. As a long-term investor, I think this represents an attractive buying opportunity.
Firstly, let’s look at the gold price picture. The precious metal recently hit its most expensive since September 2020, above $1,970 per ounce as the tragic conflict in Ukraine escalated. Further sizeable gains for the safe-haven metal can’t be ruled out as the war continues, either. Indeed, analysts at Goldman Sachs now think the yellow metal will reach new record highs of $2,150 in the coming months.
It’s not just the worrying geopolitical landscape that’s forcing investors to run for cover with gold. Western sanctions placed upon Russia have raised fears over inflation rising still higher as energy prices have jumped. In fact co-ordinated financial action over the weekend has increased the chances of a ‘stagflationary’ storm, i.e., one of fast-rising prices and weak economic growth. This is the perfect scenario for gold prices to thrive in.
As I say, though, I’m a long-term share buyer. So I’d buy Serabi not solely on the gold price outlook for the next year or so. Mining for metal is a highly complex business that’s fraught with danger to a company’s profits. Output issues can hit revenues hard and drive costs through the roof. But I’m excited by the progress Serabi is making on the operational front. Total output rose 7% year-on-year in 2021. And development of its high-quality Coringa asset is coming along nicely too.
City analysts think earnings at the company will rise 4% in 2022. This leaves the penny stock trading on a forward P/E ratio of just 4.9 times. I think this could make it too cheap for me to miss.