The search for top penny stocks to buy in April, or in any month, is certainly an intriguing one. There are thousands of small and micro-cap stocks to choose from. Investors can certainly go down some pretty intriguing rabbit holes in assessing these penny stocks.

Some are obviously better than others. But most are unprofitable companies with a plan in place to get to breakeven and earnings growth. Thus, these penny stocks are higher-risk, higher upside bets. There are certain investors who like this sort of tradeoff.

I’ve got the following three penny stocks on my watch list, for various reasons. Each of these companies are in different industries. However, I do think these penny stocks are among the highest-quality options in their respective sectors.

Let’s dive in!

The Metals Company (TMC)

The Metals Company (NASDAQ:TMC) is a lesser-known small cap stock in the mining space. The company focuses on deep-sea exploration of key minerals such as nickel, cobalt, copper, and manganese. 

These are commonly used in key areas supporting electrification, such as the EV sector, making the company a potential key supplier of these key minerals. Indeed, much of the world’s oceans haven’t been explored, and could contain massive amounts of these key minerals.

According to American Metals and Mining analysts, The Metals Company is projected to achieve breakeven soon. Their forecast suggests that the company may incur a final loss in 2024 but is expected to profit $43 million in 2025.

It is uncommon for a metals and mining company that operates at a loss to have no debt on its balance sheet, yet TMC stands out for this reason. The company relies solely on funding from its shareholders. 

It has no outstanding debt obligations, making it a less risky investment option due to the reduced concerns around repayments. This is a notable advantage in the industry, where high debt levels are typical relative to equity.

According to 8 stock analysts, the average rating for TMC, the metals company Inc. stock is “sell”, showing that the store is expected to generate lower returns than the overall market. 

However, for those thinking long-term, this is a potential cash cow that’s now trading at rock-bottom levels. I think it could be a great potential speculative buy.

Mind Medicine (MNMD)

Companies like MindMedicine (NASDAQ:MNMD) are certainly not for everyone. The company focuses on developing a diverse range of psychedelic drugs targeted. These drugs treat conditions such as addiction, depression, and anxiety. 

In the upcoming years, several industries are anticipated to have substantial developments. If MindMed successfully advances its drug pipeline, it has the potential to expand its revenue streams considerably.

Mind Medicine shares experienced an uptick on April 14 following the release of promising results from its Phase 2 clinical trial. 

The investigation examined the effectiveness of curing Major Depressive Disorder (MDD) with LSD. The company reported observing “significant, rapid, durable, and beneficial effects” when using lysergide as a treatment for MDD.

The positive clinical trial results released by Mind Medicine are being well-received by investors, resulting in heavy MNMD stock trading and increasing share prices. Currently, around 662,000 shares are in motion, exceeding the company’s daily average trading volume of approximately 455,000.

Canopy Growth (CGC)

One of the top cannabis stocks investors have lost interest in during this decline in high-growth pockets of the market is Canopy Growth (NASDAQ:CGC).

Based in Canada, Canopy Growth is among the top players in this regulated market, leading to hopes that the company could break into the U.S. and other jurisdictions, when federal legalization legislation is passed.

Even though Canopy Growth’s latest profits might not have been noteworthy, writing the business off completely might not be brilliant. 

Canopy Growth might be an excellent permanent investment choice given its continued efforts to expand worldwide, the possibility of accessing a $50 billion market in the United States, and aspirations for regulation by local and nationwide governments.

CEO David Klein has stated that achieving profitability is essential for Canopy to become a long-term leader in the North American cannabis market. 

To do this, the business is undergoing considerable adjustments, such as switching to an investment-light structure and shrinking the company’s scale. These changes may be challenging but necessary to drive Canopy’s growth and profitability.

In recent months, the company revealed that it finished the fourth quarter with $789 million in cash and equivalents, which allows it to expand organically and inorganically. By cutting costs by an expected $140 million to $160 million, the business hopes to reduce its EBITDA losses in 2023.

Based on Yahoo! Finance analysis of Canopy Growth, its high price-sales ratio is justified by its promising future revenues. The present value of the company shares appears to represent investors’ optimism toward its future. There is little cause to think that shares will decline if the projected earnings remain true.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.