This article focuses on two of the best Canadian penny stocks that analysts are highly bullish on and expect significant share price appreciation over the next twelve months. Penny stocks are often considered high-risk, high-reward stocks. In Canada, a penny stock is defined as a company whose shares are trading at less than C$5 per piece. Most of these stocks belong to start-up companies or disruptive segments that have the potential to outgrow the market. Also, penny stock price movements are very volatile in nature and could lack transparency in cases where they trade over the counter (OTC).
CareRx Corp. (TSE:CRRX)
Toronto-based CareRx provides pharmacy services and solutions to home operators and residents, especially in the senior living and housing domain. As of date, CareRx has provided services to 94,000 residents in over 1,500 seniors’ communities, long-term care homes, retirement homes, assisted living facilities, and group homes.
In Fiscal 2023, CRRX’s revenues fell 2.9% to C$370.75 million, mainly due to fewer beds serviced in the period and a change in the mix of branded and generic pharmaceuticals dispensed. Meanwhile, adjusted loss per share improved meaningfully to C$0.09 per share from C$0.72 per share in FY22.
Is CareRx a Good Buy?
With three unanimous Buy ratings, CRRX stock commands a Strong Buy consensus rating on TipRanks. The average CareRx Corp. price target of C$4.25 implies a 123.7% upside potential from current levels.
# Lithium Ionic Corp. (TSE:LTH)
Toronto-based Lithium Ionic is a junior exploration company engaged in the acquisition, exploration, and development of lithium properties in Brazil. The lithium mining company is committed to the global energy transition and is developing a high-quality commercial-grade lithium operation to support the electric vehicle (EV) and battery supply chains.
In its Q3 FY23 results ending September 30, 2023, the pre-revenue company posted a net loss of $0.09 per share.
Is Lithium Ionic Corp a Buy?
Three analysts have a Buy recommendation on LTH stock, giving it a Strong Buy consensus rating on TipRanks. The average Lithium Ionic Corp. price target of C$3.83 implies a massive 447.1% upside potential from current levels.
Ending Thoughts
The above two Canadian penny stocks have magnificent upside potential over the next twelve months, as per analysts. Investors seeking exposure to high-risk, high-reward penny stocks can consider investing in them after thorough research.
