Is Northern Dynasty Minerals (NAK) the Best Penny Stock to Invest in Under $1?
We recently published a list of the 11 Best Penny Stocks to Invest in Under $1. In this article, we are going to take a look at where Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) stands against other penny stocks to invest in under $1.
Earlier on February 12 this year, Chief Investment Officer at Cetera Financial Group, Gene Goldman, discussed how he thinks small-caps are a good investment. Goldman thinks that the Fed is now a friend to the market instead of a foe, even if not the best of friends. This stance came from the anticipation that although the Fed might not lower rates this year, they're not expected to raise them either. The Fed had projected four rate cuts in September last year, but this was later lowered to two in December. Goldman now thinks that market expectations now suggest just a zero to one rate cut in 2025, and the end-of-year interest rates are likely to be around 4%. According to him, higher inflation and the uncertainty because of tariffs are what's causing the Fed's cautious approach.
In this conversation, Goldman highlighted the healthcare sector with its advancements in biotech, personalized medicine, and health solutions. He also addressed concerns about AI investments and acknowledged that while AI has faced challenges this year, especially within the MAG7, AI's long-term potential remains intact. This is especially fueled by the ongoing data revolution. Goldman recently started using an acronym for his new investment strategy, called SHAQ, to support 4 sectors — Small Caps, Healthcare, AI, and Quality investments. Goldman is enthusiastic about small caps due to their cheap valuations and improved business sentiment. Goldman thinks that small caps remain attractive even without rate reductions because of their valuation, although, of course, they could benefit from rate cuts as well. Goldman thinks that quality investments are crucial in this investment strategy as well.
We used the Finviz stock screener to compile a list of the top penny stocks that were trading below $1 as of April 10. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An aerial view of the 1,840 mineral claims spread out over a 274 square mile area for the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project.
Share Price as of April 10: $0.91
Number of Hedge Fund Holders: 6
Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) explores mineral properties in the US. It explores for copper, gold, molybdenum, silver, and rhenium deposits. It holds 100% interest in the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project that comprises 1,840 mineral claims that cover an area of ~274 square miles in southwest Alaska in the US.
The company's core business revolves around the Pebble project. This is a world-class, undeveloped copper deposit that Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) claims is among the world's largest currently. It's entirely held by the company's subsidiary called the Pebble Partnership. It has 6.5 billion tonnes of measured and indicated resources, and 4.5 billion tonnes are still inferred.
However, this project involves disputes with the EPA and USACE concerning necessary permits. While these regulatory and legal challenges slow down the company a bit, it remains focused on advancing the Pebble Project with hopes that the new EPA administration will allow the project to proceed. Pebble Limited Partnership (PLP) recently agreed to a 90-day delay in the proceedings to give the new EPA admin time to review the case.
Overall, NAK ranks 11th on our list of the best penny stocks to invest in under $1. While we acknowledge the growth potential of NAK, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NAK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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