While most investors may prefer to stick with stocks listed on major U.S. exchanges, it is sometimes possible to find good investment opportunities in the over-the-counter (OTC) market, which is a platform for equity transactions through broker-dealer networks.
OTC stocks trade on decentralized platforms that are subject to less regulation and oversight than major exchanges, which can present risks for investors in the form of wide bid-ask spreads and potential liquidity issues. Despite these risks, it is possible to find interesting investment opportunities in the OTC market, and it may be worth considering the best OTC stocks to buy.
Panasonic (PCRFY)
Panasonic, a Japanese consumer electronics company that is trading its securities over the counter, has a good reputation for its partnership with Tesla as a battery maker. This relationship has played a significant role in Tesla’s success in the electric vehicle industry and is expected to continue.
While Panasonic has struggled in terms of market performance in 2022, with a 28% decline in shares since the beginning of the year, it is still considered a good investment opportunity for those who believe in the broader adoption of electric vehicles.
Orsted (DNNGY)
Orsted, a renewable energy company that specializes in wind turbines and has a portfolio of onshore and offshore wind power infrastructure, is considered a good long-term investment opportunity among OTC stocks. While renewable energy sources like wind and solar typically have low capacity factors, the ongoing global energy supply restrictions make all energy sources worth considering. However, Orsted does carry a high level of risk, with shares down 24% year-to-date. Despite this volatility, the worst may have passed, making it a potentially interesting speculation opportunity.
Nintendo (NTDOY)
During the peak of the Covid-19 pandemic, video game companies like Nintendo saw a surge in demand as people spent more time at home with limited entertainment options. However, since the pandemic has subsided, Nintendo’s performance has not been as strong, with shares down 13.5% year-to-date.
Despite this, Nintendo is considered “modestly undervalued” by Gurufocus and has strong profitability metrics, which suggests that it may be able to increase prices while still maintaining customer loyalty. Experts also predict that the console gaming sector will reach a valuation of $51.15 billion by 2027, making Nintendo, a popular player in the segment, a potentially good OTC stock to consider.
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