Investors concerned about greenhouse gas emissions may prefer investing in companies that follow environmentally friendly practices. Governments have imposed restrictions on carbon emissions, making some polluting companies less desirable investments.
As a result, many companies specializing in green technology and manufacturing products that use renewable sources of energy have become alluring investments. Zero-emission companies may raise capital by offering their stocks to the public. Benzinga discovered five of the best green energy penny stocks and detailed the benefits of investing in these assets.
The Best Green Penny Stocks
Benzinga searched the market for investments meeting its environmental criteria and found the five best green penny stocks.
1. American Battery Technology Company (OTCMKTS: ABML)
The American Battery Technology Co. (OTCMKTS: ABML) recycles lithium-ion batteries and extracts metal batteries. It produces domestically sourced battery-grade metals that minimally impact the environment and cost less than conventionally sourced battery metals.
The company has developed a closed-loop battery recycling process that recovers vital materials from end-of-life batteries and purifies metals to the quality specifications required to sell them back to the manufacturing supply chain.
ABML uses novel extraction technologies to extract lithium for sedimentary claystone resources to manufacture battery cathode-grade lithium hydroxide. It has received government funding of $4.5 million to expand its production of battery materials.
American Battery Technology Company has made progress in its Q3 FY2023 financial report, bringing new battery metal products to the market, and has pursued commercialization in its core businesses. It acquired a new facility for expanding recycling operations and identified a large lithium resource in the U.S., leading to plans for constructing a commercial-scale lithium hydroxide refinery.
Financially, ABML demonstrates positive indicators with cash reserves, reduced operating costs, increased investments in research and development and potential government grants. ABML's dedication to innovation and sustainability in battery recycling and manufacturing processes positions it favorably in the market and aligns with the growing demand for domestic battery metals.
2. SPI Energy (NASDAQ: SPI)
SPI Energy Co. (NASDAQ: SPI) provides solar storage and electric vehicle (EV) solutions to governments, businesses, residents and utility customers. Its focus is on the photovoltaic (PV) markets, and it develops, finances and installs residential power projects in China, Japan, Europe and North America.
The company generates revenue from manufacturing EVs and EV charging solutions. Another income stream is its engineering and construction services to independent power developers. SPI reported strong financial performance in Q1 2023, with a 24.4% increase in net sales and a significant improvement in gross profit and margin. The company remains confident in its growth strategy as a global renewable energy provider and has reaffirmed its full-year guidance for 2023.
SPI Energy's strong foundation in the renewables sector positions it favorably for future opportunities and long-term success.
3. CBAK Energy Technology (NASDAQ: CBAT)
CBAK Energy Technology Inc. (NASDAQ: CBAT) is the first publicly listed Chinese lithium stock in the U.S. market energy sector. This Chinese high-tech corporation is involved in the development, manufacturing and sales of lithium batteries and raw materials used for manufacturing high-power lithium batteries.
CBAK Energy Technology, a leading lithium-ion battery manufacturer and electric energy solution provider in China, has reported impressive financial results for Q1 2023. The company experienced significant growth in net revenues, with sales of batteries reaching $29.60 million, a 97.1% increase compared to the same period in 2022.
The green energy company's revenues from batteries used in light EVs surged by 2,117.2%, reaching $1.97 million, and revenues from batteries used in EVs rose by 5889.8 times, amounting to $1.82 million. The battery business also showed a positive trend in terms of gross margin, improving to 10.85% from 6.54% in the same period of 2022. CBAK Energy's collaboration with PowerOak, a globally recognized brand in the portable power supply market, further strengthens its growth prospects.
Despite a decline in net revenues from falling raw material prices, the company remains optimistic, anticipating the stabilization of raw material prices and enhanced profitability in the future. Overall, CBAK Energy's Q1 2023 results demonstrate bullish aspects and underscore its position as a key player in the lithium-ion battery industry.
4. Orbital Infrastructure Group Inc. (NASDAQ: OIG)
Orbital Infrastructure Group, Inc. (NASDAQ: OIG) provides engineering, design, construction and maintenance services to industries such as electric power, telecommunications and renewables.
It aims to support the growth and sustainability of these sectors by offering innovative solutions and reliable services. OIG is a leading player in the industry and strives to meet the evolving needs of its customers. It had a successful Q1 2023, with revenue of $80.2 million and an increase in adjusted EBITDA from continuing operations to $5.6 million.
OIG also had a positive net cash flow of $0.8 million in the current quarter, compared to a negative net cash flow of $1.6 million in the same period last year. This change shows improved cash flow management and the ability to generate cash from core operations, allowing for investment in growth opportunities and strengthening of the balance sheet.
It is currently looking into strategic alternatives to improve growth prospects. While not guaranteed, this approach shows its commitment to expansion and value creation. OIG is well-positioned in the infrastructure services industry and has had a positive Q1 2023 performance with revenue growth, improved EBITDA, positive cash flow and a focus on future growth initiatives.
5. Aqua Metals Inc. (NASDAQ: AQMS)
Aqua Metals Inc. (NASDAQ: AQMS) provides clean and safe metal recycling services through technology innovations that deliver high-value raw materials back into the manufacturing supply chain.
The company has been awarded 68 patents for its AquaRefining technology, which recovers high-valued metals from recycled lithium-ion batteries. Its investments in metal recycling methodologies should help retain strategic metals within the U.S. and encourage lower reliance on toxic mining operations.
Besides offering one of the most cost-efficient recycling solutions for lithium-ion batteries, Aqua Metals will produce high-quality nickel and lithium hydroxide from lithium-ion batteries. This development is a key innovation step since present recycling processes cannot recover lithium.
What is a Green Penny Stock?
Companies offering penny stocks have a low market capitalization. Penny stocks usually trade under $1 and are highly speculative because of their volatility. Green penny stocks are issued by companies specializing in products and services with low carbon emissions and that follow environmentally friendly practices.
Initially, stocks under $1 were classified as penny stocks. But the U.S. Securities and Exchange Commission (SEC) amended the definition to include equities trading under $5.
Why Invest in Penny Stocks?
Popular stocks such as Amazon and Google can cost several thousand dollars per share. That makes the barrier to entry for investment too high for investors with limited funds. Penny stocks are cheap, enabling investors with a few hundred dollars to own thousands of shares in certain companies.
Because of their high volatility, penny stocks offer significant growth potential. They can provide high returns in short periods, but they’re also highly risky.
In summary, penny stocks are:
- More affordable than high-priced stocks
- Offer significant growth potential because of high volatility
- Feature low prices to enable potential massive capital appreciation in short periods
Drawbacks of Penny Stocks
Besides their inherent risk, penny stocks lack key components investors require to make a sound investment.
Limited Public Information
Penny stock companies are usually listed on pink sheets, so they’re not required to file financial statements to the SEC. That provides the public with limited financial information about these companies, which don’t follow the same regulations as SEC-regulated companies.
Selling your penny shares might be challenging because of low liquidity as a result of infrequent trading. Low liquidity also opens the door to price manipulation and could result in a pump-and-dump scheme.
No Minimum Standards
Companies listed on pink sheets don’t need to meet the minimum standard requirements to continue trading on over-the-counter (OTC) exchanges. That enables a penny stock company to move from a major exchange to a smaller OTC exchange if it cannot maintain its listing position.
Investing in the Future with Green Penny Stocks
Green penny stocks have become popular investment options because of concerns about greenhouse gas emissions and government restrictions on carbon emissions. Benzinga has identified some of the best energy penny stocks, including companies specializing in battery recycling, solar storage solutions, lithium battery manufacturing, EV production and metal recycling services. Although penny stocks have risks, they can provide an affordable entry point for investors with the potential for significant growth while supporting sustainable practices.
Compare the Best Penny Stock Brokers
Reduce the risk of investing in penny stocks by choosing the right broker. Benzinga found the best penny stock brokers.
- Best For:Active and Global TradersSecurely through Interactive Brokers’ website
- Best For:Traders of All Levelssecurely through Moomoo's website
- Best For:Mobile Userssecurely through Plus500's website
- Best For:Momentum traderssecurely through Centerpoint Securities's website
- Best For:Intermediate Traders and Investorssecurely through Webull's app
Frequently Asked Questions
Can you get rich on penny stocks?
Getting rich with any asset depends on the amount you own and its volatility. Investors who own a large number of penny stocks with low a market cap experience high volatility but can also make significant returns.
What stocks are green right now?
Some of the popular green penny stocks Benzinga found are SPI Energy, American Battery Technology Company and CBAK Energy Technology.
Should you invest in greenenergy?
Investing in green energy stocks can provide potential long-term growth and align with socially responsible investing, but they can also be volatile and affected by regulatory changes. It’s important to research and consult with a financial adviser before making a decision.
For brokerage reviews, Benzinga created a weighted scale based on the following criteria: usability, services offered, customer service, education, research, mobile app, account minimums and fees. Benzinga aims to provide the most up-to-date, impactful and trustworthy reviews. For an in-depth look at the process, read the full methodology process.
Disclaimer: Stocks featured on our content are not stock picks and are not recommendations to buy or sell a stock. Rather, these ideas should be viewed as potential opportunities for elevated levels of volatility and trader interest and thus increased liquidity. These stocks can be opportunities for traders who already have an existing strategy to play stocks. Benzinga does not recommend trading or investing in low-priced stocks if you haven’t had at least a couple of years of experience in the stock market. For a full statement of our disclaimers, please click here.
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About Goran Radanovic
Equities, Forex, Crypto