Best UK penny stocks to buy and hold in 2024

UK stocks are not doing well this year even as their global peers like the Nikkei 225, Euro Stoxx 50, and the S&P 500 indices have surged to their all-time high.

The big-cap FTSE 100 index has outperformed the small-cap FTSE 250.

This article looks at some of the top UK penny stocks to buy in 2024.

Boohoo

Boohoo (LON: BOO) share price has had a rough ride in the past three years as the company has battled numerous issues.

Its growth has slowed, competition from the likes of Temu and Shein has risen, and it has battled more shipping returns.

Most importantly, it has moved from being a highly-profitable company into a loss-making organisation.

Still, as I wrote in my last article, there are signs that the stock has bottomed and that it could bounce back in the coming months.

Technically, it has formed an inverse head and shoulders pattern, which is one of the most bullish signs in the market.

By measuring the distance between the neckline of the inverse H&S pattern and the head, we can estimate that the shares will jump to about 54p, which is about 44% from the current level.

This view will be confirmed if the stock rises above the neckline of the pattern at 42p.

Fundamentally, the company’s turnaround will likely continue this year, a move that could see it narrow its losses, grow sales, and boost its margins.

Boohoo stock chart 

Man Group

Man Group (LON: EMG) is not necessarily a penny stock since this is the biggest publicly traded hedge fund in the UK with over £2.3 billion.

However, its stock stands at 236p or £2.36 and a penny stock is defined as a company trading below £5. 

Man Group’s share price has dropped by over 14% from its highest point in 2023 even as its assets under management (AUM) has jumped recently.

It ended the third-quarter with over $161 billion, up from $151 billion in the previous quarter. Most of these funds are in its alternatives business and the rest are in the long-only account.

I expect that Man Group’s financials will do well this year now that global equities are soaring.

Technically, the stock remains above the 50-day and 200-day moving averages. It is also attempting to move above the key resistance point at 237.5p.

Therefore, there is a likelihood that the shares will rebound this year.

Tullow Oil

Tullow Oil (LON: TLW) has struggled in the past few months, which has turned it into a penny stock trading at £0.3.

It has plunged by over 25% from its highest point in September last year. It has also fallen by over 97% from its all-time high and is still one of the most shorted companies in the UK.

The company has faced numerous challenges such as its operations in some countries like Kenya.

On the positive side, there are chances that the price of crude oil will be stable for a while.

Brent has remained above $80 this year. Tullow will likely continue generating strong numbers this year.