3 Penny Stocks That Could Go Parabolic With the risk-off trade dominating amid economic uncertainty, investors’ enthusiasm for penny stocks has dwindled. The focus has instead been on blue chips and deeply undervalued growth stocks. In any market conditions, though, there are penny stocks that will outperform. Allocating a small portion of your portfolio to select penny stocks could boost your overall returns. Take HIVE Blockchain Technologies (NASDAQ: HIVE ), for example. Shares of the cryptocurrency mining company are up 133% in the past two months. The key to picking the penny stocks most likely to deliver big returns is to focus on companies with decent business fundamentals and oversold stocks. Below are three penny stocks that could surge higher over the next few quarters thanks to specific catalysts. And depending on how those catalysts play out, these names may be worth holding beyond that. RIG Transocean $3.40 TLRY TilrayBrands $4.20 HUT Hut 8 Mining $3.33 Transocean (RIG) Source: Arild Lilleboe | Shutterstock.com After a dramatic run-up in the first half of the year, oil prices recently hit a six-month low , weighed down by fears of recession.