Elsie UdohThe year is gradually ending and we’ll be in 2025 in a few days. Have you thought of the best gift to spend your money on for yourself? We have an idea for you. You could invest your money in stocks. Contrary to what you might think, you do not need to have a lot of money stashed aside to start investing.
Ever heard of penny stocks? Well, these are the best “budget stocks” that could make the best investment options for you before 2024 runs out. Penny stocks are stocks of smaller companies with very low prices, often under ₦5 per share in Nigeria, which makes them easy to purchase on a budget.
Join our WhatsApp ChannelThe best part of penny stocks is that if the company grows or does well in the long run, then the value of these stocks can increase a lot and result in big profits for you.
Penny stocks have also been proven to perform quite well in Nigeria, regardless of the current high inflation rate. We’ve done the work of extensively finding the best-performing penny stocks that you can invest in this December to make good use of your money.
The Top 10 Best Performing Penny Stocks to Invest in this December
If you want to invest your money in stocks that have high growth potential, are affordable, and are accessible, then here are the best-performing penny stocks for you to consider:
- AIICO Insurance
If you’re not familiar with the AIICO group, then here’s what they are about: AIICO Insurance offers life and non-life insurance products, as well as investment management services.
There are many reasons why this financial company is ranked as one of the best-performing penny stocks that you can gift yourself this December.
For starters, the company was trading at ₦1.24 per share as of December 12. The stock has also climbed by 55% this year alone, meaning that it’s steadily growing in value.
There are also expert predictions that this price could rise further to ₦1.54.
Here are other reasons why AIICO is a best-performing stock this December:
- It made a net profit of ₦12.4 billion in just the first nine months of 2024. This is more than double what it made during the same period last year, which equates to 110% growth.
- AIICO Insurance also rewards its shareholders generously. For example, last year it paid out a small dividend of 5 kobo per share to shareholders and this is even expected to increase with the performance rise.
READ ALSO: How To Start Investing In Stocks As A Beginner
- Veritas Kapital Assurance
Veritas Kapital Assurance is another industry that has shown robust performance in the insurance sector.
This year the stock skyrocketed by 245.95%, which makes it the third-best-performing penny stock on the Nigerian Exchange (NGX).
See other reasons why this stock is best-performing:
- Its market value went up this year to ₦17.2 billion, which is an 85% gain from last year.
- Veritas Kapital is also the 18th most-traded stock on the NGX, with over 543 million shares valued at an impressive ₦762 million in the past three months.
- Its share price is ₦1.24, which is 31.11% below its 52-week high of ₦1.80, set back in October.
- The stock is also less volatile compared to many others so you can get returns without losing a lot of money.
- Jaiz Bank
Jaiz Bank is the first non-interest (Islamic) bank in Nigeria. It is also part of the top-performing stocks in the banking sector. Here’s why:
- It offers the second-cheapest banking stock on NCX with ₦2.40 per share.
- Meristem Research projects that the stock could climb to a target price of ₦2.88.
- Jaiz Bank also has a return of 23.7% this year.
- International Energy Insurance
While this stock may have witnessed a slow performance due to management struggles that disrupted its operations, the company is now owned by Norrenberger and has begun to witness a peak in its performance.
Although it has a year-to-date growth of 5.76%, there’s a high potential for growth in the months ahead, and now would be a great time to get yourself locked in.
- Unity Bank
Unity Bank has been making headlines as a banking stock with promising potential, and this is expected to increase with its upcoming merger with Providus Bank.
See why it’s a top-performing penny stock:
- It’s priced at ₦1.51. This makes it the cheapest banking stock on NGX.
- Although Unity Bank’s stock saw a decline of 6.79% in 2024, the Providus Bank merger is expected to set the stage for significant value appreciation.
- Champion Breweries
Champion Breweries also has a promising performance in Nigeria’s brewing industry, making it one of the best-performing penny stocks to invest in.
- It’s currently trading at ₦3.90 per share.
- The company ended 2023 as Nigeria’s only profitable brewer and did not relent in sustaining its profitability in 2024.
- Guinea Insurance
Guinue Insurance is a standout penny stock in 2024 for the following reasons:
- It has a year-to-date gain of 110.34% and is ranked as the 5th best-performing penny stock on the NGX.
- It is also the 27th most-traded stock, with a volume of 305 million shares over the past three months.
- Guinea Insurance currently holds a market capitalisation of ₦3.745 billion and this positions it as the 110th most valuable stock on the NGX.
- Although the stock faced challenges in 2023, its pre-tax profit skyrocketed by 854% year-on-year, reaching ₦568 million in the first nine months of 2024. This is a 14% increase to its full-year 2023 pre-tax profit.
- Cornerstone Insurance
Cornerstone Insurance has recorded significant growth that makes it one of the top-performing penny stocks in 2024.
- It has a 123.57% year-to-date gain, which follows a 133.33% gain in 2023.
- Cornerstone is ranked as the 48th most valuable stock on the NGX with a market capitalisation of ₦57.2 billion.
- It also has a trading volume of 98.8 million shares over the past three months.
- Cornerstone’s pre-tax profit also increased by 57% year-on-year, reaching ₦26.59 billion in the first nine months of 2024.
- RT Briscoe
RT Briscoe is involved in the sales and service of motor vehicles and industrial equipment in Nigeria.
- It had a 264.18% year-to-date gain as of December 13, 2024.
- RT Briscoe stock price closed at ₦2.44 on Monday, which is 43.65% below its 52-week high of ₦4.33, set on August 30, 2024. This gives you the chance as an investor to enter the stock market at an affordable price before it potentially climbs again.
- The company also recorded a pre-tax profit of ₦843 million which is a significant turnaround from the ₦513 million loss it experienced previously.
- Tantalizers
This is a restaurant company that has shown significant growth this year:
- It had a year-to-date gain of 268% as of December 13, 2024.
- It was trading at ₦1.85 per share on December 16 with a slight 0.5% gain from its previous close of ₦1.84.
- Tantalizer also has a three-month trading volume of 499 million shares.
What to Consider When Investing in Penny Stocks
Before investing in penny stocks, it is important to consider the following to reduce risks and help increase the return potential:
- The company’s financial health, such as its revenue, profit margins, and debt levels.
- Market volatility: Penny stocks are highly volatile so be prepared for price fluctuations.
- Liquidity: Ensure there’s enough trading volume to buy and sell without significant price changes.
- Risk Tolerance: Penny stocks carry high risks, so invest only what you’re willing to lose.
- Diversification: Spread your investment across multiple stocks to reduce risk.
Conclusion
Replace the traditional gifts and gift yourself or your loved ones penny stocks this December.
You can start with these best-performing penny stocks that have been provided here and start growing wealth for yourself ahead of 2025.
Elsie Udoh is an SEO content writer who specialises in writing engaging stories that resonates with diverse audiences. She studied mass communication at the Lagos State University.
