3 high-risk/high-reward stocks to consider buying in 2025

Penny stocks are often risky investments. But they may be worthy of inclusion in the portfolio because of their strengths a blockbuster advantages.

Recently, I’ve been scanning the market for penny stock opportunities to consider in 2025. Here are three stocks that caught my eye.

DP Poland

First, we have it DP Poland (LSE: DPP). Works for Domino’s Pizza series in Poland and Croatia. This company is growing fast. This year, revenue is expected to come in at £53.7m compared to £44.6m last year. By 2025, analysts expect revenue of £65.8m. That would represent a growth of more than 20%.

If the company can continue to grow like this, its share price should rise. It is worth noting that the company plans to open hundreds of stores in the coming years – this should increase growth significantly.

Now, while Domino’s Pizza has been successful in the US and the UK, there are no guarantees that the brand will continue to do well in Poland and Croatia. Just because a product works in one market doesn’t mean it will work in another.

The company is seeing success at the moment, having registered year-on-year order growth of 15% in the first nine months of 2024. So I am very optimistic about its potential.

1 Place

Next we have 1 Place (LSE: SPA). It is a technology company that helps government, utilities, and transportation organizations make sense of their geospatial (location) data.

The company has grown at a healthy rate in recent years as it has acquired new customers. Between FY2019 and FY2024, revenue increased from £17.6m to £32.3m. This has led to good returns for investors. Over the past five years, the share price has been approx in threefold.

But what caught my eye is the fact that near-term earnings are expected to grow. For the year ending January 31, 2026, analysts expect earnings per share to grow 63%. That growth is set to reduce valuations significantly. At today’s share price, the forward price-to-earnings (P/E) ratio is only 26, which is not very high for a software company.

The risk with a business like this is that the contract wins less, which can lead to volatility in the share price. But the company believes it has “big chance” forward, so I think it’s worth a closer look.

Calnex Solutions

Finally, we have it Calnex Solutions (LSE: CLX). It provides assessment and measurement solutions for the global telecommunications and cloud computing markets.

This stock has been a dog in recent years. I know, because I have a few shares and they have been sold. The problem has been the challenging conditions in the telecommunications market. This led to a sharp decline in growth.

But I continue to see the potential here. Calnex operates in an important, growing market. And the company believes it will return to growth in the second half of the fiscal year ending March 31, 2025. If it does, the shares could see a major re-rating.

Now, this stock is high on the risk spectrum. If conditions in the telecommunications market remain challenging and growth does not continue, the share price may rise again.

Taking a three to five year view though, I am very optimistic about the potential. Finding the right global mobile phone networks for the digital age may require a lot of testing.