<div id="readability-page-1">Penny stocks are classified as stocks that trade for less than $5 and are typically some of the riskiest stocks on the market. Many deserve their extremely low valuations, and investors avoid them as a result. However, some rare finds are worth watching. These three penny stocks offer some of the cheapest stocks with the most promise. Investors can enjoy continued profit and growth from the recent momentum that all three have displayed. Let’s explore each company’s earnings and the impact that global economics and consumer demand have created as a pathway for their growth. <h2>Ardelyx (ARDX)</h2> <div id="2794520"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: MacroEcon / Shutterstock.com</div>Ardelyx (NASDAQ:ARDX) is a biopharmaceutical company whose most popular products gained Food and Drug Administration (FDA) approval in recent years. Since then, sales have taken off. Hence, the stock has seen a favorable increase and shows few signs of slowing. The company’s most popular treatment is Ibsrela, which is meant to treat irritable bowel syndrome (IBS) with constipation. The drug received FDA approval in 2019 and made a dramatic impact on ARDX’s revenue. Further, Ardelyx reported $28.4 million in net product sales revenue for Ibsrela in Q1 this year. New growth is being fueled by an expanding list of prescription healthcare providers subscribing Ibsrela. And the sales don’t stop there. Ardelyx’s other popular treatment, Xphozah, for chronic kidney disease, received FDA approval last October. The medicine brought in $15.2 million in net product sales revenue in the first quarter. Branching out overseas, Ardelyx expects approval from China’s Center for Drug Evaluation this year. Presently, Ardelyx is undervalued, considering its explosive growth and prospects coming down the pipeline this year. <h2>Sirius XM (SIRI)</h2> <div id="1408835"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Shutterstock</div>Sirius XM (NASDAQ:SIRI) is a satellite radio provider that has been a popular penny stock for many years. However, since the beginning of 2024, the stock has seen a major dip in price. This is due to many investors fearing the demand for satellite radio is diminishing. Despite that, Sirius XM remains a solid business. The company has been profitable for over 10 years and has no reason to expect a sudden profit drop. SIRI still maintains a subscriber count of almost 34 million. Although the subscriber number has leveled off in recent years, many are loyal fans who appreciate Sirius XM’s offering. Thanks to customer loyalty, SIRI generated revenue of $2.16 million and free cash flow of $132 million in the first quarter of this year. According to its guidance, Sirius XM is confident that it will reach approximately $8.75 billion in revenue for the entire year of 2024. The company continues to increase the presence of its 360L platform integrated into vehicles through deals with brands like Hyundai and Genesis. Additionally, Sirius XM’s streaming app Pandora generates a sizable ~25% of Q1 revenue. Therefore, before you count Sirius XM out, consider it’s solid track record as it continues profitability year after year. <h2>VAALCO Energy (EGY)</h2> <figure><img width="300" height="169" src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2023/05/social_image_resized-300x169.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2023/05/social_image_resized-300x169.jpg"/></figure>VAALCO Energy (NYSE:EGY) is an independent oil and gas producer with facilities in several parts of the world, such as Gabon, Egypt, Equatorial Guinea and Canada. Since Russia invaded Ukraine in 2022, countries worldwide have experienced effects from the resulting impact on energy supply and prices. As a result, the war has created a profitable demand surge for businesses in the energy sector, including VAALCO Energy. The company reported a net income of $7.7 million in its first quarter earnings, up from $3.4 million in Q1 of 2023. Net income is down significantly from the end of 2023 due to high depreciation and operating expenses. But VAALCO Energy projects a healthy remainder for 2024. For example, the company resumed production in its oil field in Baobab, with a production capacity of 5,000 oil barrels a day. As revenue and production capacity increase, EGY maintains its excellent dividend yield of 4%. The global economy and demand trends favor the company’s continued growth. Therefore, investors don’t have to spend too much to share in the profits. On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.Biotech, Communications, Energy, Healthcare, Media, Natural Gas, Oil, StreamingDividend Stocks, Penny Stocks </div>

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InvestorPlace highlights the 3 best penny stocks to buy in May 2024. The first pick is Ardelyx, a biopharmaceutical company with FDA-approved products and strong revenue growth. The second pick is Sirius XM, a satellite radio provider with loyal customers and a profitable track record. The third pick is VAALCO Energy, an independent oil and gas producer benefiting from the surge in energy demand. These penny stocks offer potential for solid profits and growth.

The 3 Best Penny Stocks to Buy in May 2024