Although the overall stock market continues to be affected by macro uncertainties, some of the best penny stocks have already been off to a good start thus far in 2023.

In fact, some of the names covered in past penny stock coverage have made their exit from penny stock territory. For instance, Comstock (NASDAQ:CHCI), a commercial real estate manager that many investors have previously misclassified as a homebuilder, has zoomed from just under $4 per share at the start of the year, to around $5.25 per share today.

But even if you missed out on names like CHCI, you’ve far from missed the boat completely when it comes to undervalued, under-the-radar stocks trading for $5 per share or less. There are plenty more opportunities out there in this space.

Whether from the market finally catching onto their respective mispricings, or from company-specific catalysts that help to improve sentiment, these seven of the best penny stocks have ample room to run, in 2023 and beyond.

American Shared Hospital Services (AMS)

American Shared Hospital Services (NYSEAMERICAN:AMS) is a lessor of radiation therapy equipment to hospitals and other medical facilities. A fairly small company, AMS for quite a while was largely ignored by the market, despite its super-low valuation.

However, over the past twelve months, AMS stock has garnered a greater level of attention. Shares have rallied by around 31.2% during this timeframe. As Louis Navellier pointed out last month, this company has experienced a high level of earnings growth in recent quarters. Last quarter alone, earnings more than doubled.

Yet even with its big run-up and resultant move to a much higher valuation (around 15 times earnings), AMS may have more room to run from here. As CEO Raymond Stachowiak discussed on the company’s most recent earnings call, AMS is at work leveraging a total of $18 million in liquidity to pursue further organic growth for the business.

I-80 Gold (IAUX)

Shares in junior miner I-80 Gold (NYSEAMERICAN:IAUX), after surging at the tail end of 2022, have pulled back in recent months. Yet while the drop in spot gold prices during this time explains this recent move, it’s possible that the market has overreacted with this particular gold mining stock.

Why? This gold miner has strong long-term growth potential. As a Seeking Alpha commentator recently argued, I-80’s latest mining discoveries may enable it to, within a few years, increase its annual gold production to 250,000 ounces, or perhaps even 400,000 ounces.

This could have a tremendous impact on the price of IAUX stock in the long-term. Even at its current level of output, I-80 appears undervalued. At current prices, shares trade for only 6.6 times earnings. Even if you aren’t a “gold bug,” consider IAUX one of the best penny stocks to buy.

IWG plc (IWGFF)

A global provider of workplace solutions, think of IWG plc (OTCMKTS:IWGFF) as WeWork’s (NYSE:WE) less glamorous older cousin. Much like its more hip competitor, the pandemic and its impact on office space demand has resulted in poor fiscal performance in recent years.

Even so, while its current fundamentals don’t appear impressive, IWGFF stock may be severely undervalued. At least, that’s the view of one fund manager (Yaron Naymark of 1 Main Capital). In an interview on a value investing podcast, Naymark laid out the bull case for IWG.

In a nutshell, Naymark believes that IWG, as it moves to a less capital-intensive managed locations model, could experience an outsized improvement in its operating performance. Alongside a possible sale of its digital unit (The Instant Group), this could send IWGFF, up big since the fall but still trading for 60% below pre-Covid price levels, substantially higher.

Jerash (JRSH)

Jerash (NASDAQ:JRSH), much like CHCI mentioned above, is another of the best penny stocks that has soared since the start of 2023. Shares in the apparel maker are up around 20.5% year-to-date, and are in fact close to escaping penny stock territory.

Nevertheless, the opportunity to “buy low, sell high” with JRSH stock remains. This company operates in a cyclical industry, and the apparel industry downturn is likely to carry on during 2023. However, in 2024 and 2025, profitability could swing back. Sell-side forecasts call for Jerash to report earnings of 57 cents per share in 2024, and 76 cents per share in 2025.

A return to this level of profitability is likely sufficient to send JRSH not only back above penny stock price levels but possibly up above $10 per share as well. With this, consider it a buy, whether now, or on any further weakness.

Sachem Capital (SACH)

When it comes to penny stocks, share price appreciation is typically the main focus. However, one may be able to generate market-beating returns with Sachem Capital (NYSEAMERICAN:SACH), merely from its double-digit dividend yield (13.6%).

Sure, success with investing in high-dividend stocks is a lot harder than it looks. You can’t just buy a basket of the highest-yielding names and hope for the best. That said, dive into the details with this mortgage real estate investment trust (or REIT), and you’ll see that Sachem’s current rate of payout appears sustainable.

As I argued back in January, with this mortgage REIT’s focus on making short-term, so-called “hard money” loans backed by good collateral, SACH stock (in terms of both its share price and dividend) could prove to be much more resilient than other mortgage REITs. Besides its high yield, SACH also trades at a 30% discount to book.

SGHC Limited (SGHC)

SGHC Limited (NYSE:SGHC), also known as Super Group, is an online gambling company. Based out of the British Crown Dependency of Guernsey, SGHC operates sportsbooks around the world under the Betway brand, as well as online casinos under the Spin brand.

In more recent years, the company has been capitalizing on the legalization of sports betting across the United States. Yet unlike its stateside-based peers, which have focused on market share growth ahead of profitability, Super Group has focused on the latter.

As a result, the company has been consistently profitable. Still, the market has knocked down SGHC stock, much as it has knocked down shares in other sportsbook operators. With this, I concur with InvestorPlace’s Josh Enomoto, who last month pointed out that, with this low valuation, and the prospect of continued growth, SGHC is one of the best penny stocks to buy.

Vaso (VASO)

Although most, if not all, of the penny stocks listed above, are “under-the-radar,” this is especially the case with Vaso (OTCMKTS:VASO). This OTC-listed nanocap is hardly a household name. Few are likely familiar with Vaso’s underlying business, either.

But while this provider of healthcare equipment and IT services may not be famous, investors in the know have generated massive profits, from buying and holding VASO stock over the past year. Since last month, the stock has skyrocketed by more than three-fold, from just under 7 cents per share, to around 26 cents per share.

Better yet, further big upside may be ahead for VASO. As was the case when I last wrote about it, shares remain undervalued despite the surge. Shares today trade for only 6.8 times earnings. After uplisting to the mid-tier OTCQB last October, further uplistings in the future could give the stock another massive boost.

On the date of publication, Thomas Niel held a long position in IWGFF. He did not hold (either directly or indirectly) any positions in the other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.