2 of the best penny stocks to buy in October!

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As the UK stock market continues to fall on the back of more interest rate hikes, penny stocks continue to gain the upper hand. These mostly small businesses often struggle in the first place and can be at a loss during economic turmoil.

So it’s no surprise that many such stocks have sold off in recent months.

While penny stocks are known for their high risk, this comes coupled with the potential for high returns. And despite what some price movements suggest, not all companies in this segment of the stock market will fail.

In fact, I’ve got a couple of penny stocks that are rallying pretty well right now. It makes them the best investments for my portfolio in October and beyond.

One of the best coin stocks to buy right now?

It was a rough year for that. Water intelligence (LSE:WATR) share price. As a reminder, the company is a provider of non-invasive drain detection and repair services for the residential and commercial sectors.

With investor sentiment falling off a cliff, this coin has fallen 50% over the past year. However, this flexibility does not seem to be supported by rational thinking. That’s the feeling when looking at the latest results as revenue and profit continue to grow by 44% and 10% respectively.

Regardless of the economy, the blast pipe must be fixed, proto. And as we approach the winter season, the demand is already increasing. In addition, profits and cash flow are strictly in the black, the dependence on external financing seems less. Even more so when you look at the $21.9m (£19.4m) in cash reserves on the balance sheet.

Obviously, this is not a risk-free investment. If the size is small, it will pose challenges compared to its rivals. And its global presence opens the door to currently unfavorable foreign exchange rates. However, given the strong track record, even in the current market conditions, these are risks I am willing to take for my portfolio.

Choose #2

Another stock that has lost a lot of momentum this year is the coin. Strong state (LSE:SOLI) is a designer and manufacturer of electronic components serving the commercial, industrial and military sectors.

Over the past 12 months, the share price has increased by around 9%. As of early 2022, it has fallen more than 20 percent and is on a downward trajectory. what happened?

Like many of its peers, the group has been struggling with supply chain disruptions, particularly when it comes to semiconductors. As customer order fulfillment slows, investors seem to be jumping on the bandwagon of fears that customers will turn to a larger competitor that can deliver faster.

While this is a valid concern, it is worth pointing out that the order book continues to grow, even from customers who know there will be delays. In fact, in fiscal 2022, which ends in March, the order book grew by 75.9 percent. And despite the performance lags, the revenue stream continued to grow 28.2%, while the dividend grew 21.9%.

As far as I can tell, the main issues surrounding this business are all short-term setbacks. And with the long-term picture still intact, coupled with a double-digit discount, I can’t help but feel a buying opportunity for my portfolio.

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