7 Little-Known Penny Stocks With Massive Upside Potential Investing in little-known penny stocks can facilitate stock ownership in relatively unknown industries. Though they tend to be wildly risky, these inexpensive stocks tend to offer the potential for outsized gains down the road. Hence, hunting for little-known penny stocks is a good way to add a new dynamic to your portfolio. Investment professionals are likely to be averse to penny stocks due to the risks involved in such investments. Though that holds some truth, it is also important to understand how penny stocks can add new gear to your portfolios. The current stock market is remarkably volatile, and one of the best plays at this time is to use the volatility to your advantage and invest in stocks that have become oversold due to market headwinds. Furthermore, penny stocks tend to be mispriced in bear markets. When the markets are bullish again, these stocks can produce outsized gains. Investing in penny stocks with favorable risk|return propositions is imperative. Additionally, considering how many blue-chip stocks started off as penny stocks, it’s perhaps always a wise idea to invest in unknown penny stocks.