Penny stocks are one of the easiest ways to make multibagger gains in the market. However, when looking at penny stocks to buy, you have to be comfortable taking the risk that comes with these speculative names. These stocks are extremely sensitive too, and disproportionately impacted by, economic volatility which ends up crushing many of these up-and-coming businesses.

I believe the current environment is a great time to get in on some of these businesses at their trough before they start to rebound. Volatility goes both ways, and many penny stocks with solid fundamentals will deliver exceptional gains as a recession is unlikely within the next few months.

With that in mind, I’ve chosen three penny stocks to buy that can double within that timeframe:

PARTS iD (ID)

This is not the first time I have mentioned PARTS iD (NYSEMKT:ID) when looking at which penny stocks to buy. The aging U.S. civilian vehicle fleet, combined with a rise in auto-related crimes and a shortage of auto parts in local businesses will lead to explosive gains.

Even though the company’s earnings declined in Q4 2022, ID stock deserves a higher valuation. It has relatively little debt, which will allow it to easily weather volatility, while long-term trends in the auto parts market will continue to play in its favor. PARTS iD’s revenue did drop to $340.6 million in 2022, down from $448.7 million in 2021. However, the company is expected to rebound with revenue increasing this year to $370.7 million and $393 million in 2024.

Additionally, vehicles are aging rapidly in the U.S.; this is not the environment where people will buy new cars. If consumers can repair their existing vehicles for much cheaper and retain their lower insurance premiums, there is no reason for them to buy a new car. The average U.S. civilian car was 13.1 years old last year, which I expect to keep increasing. This fact puts the companies who help provide the parts for used cars in a very strong position.

All things considered, a $13.8 million market capitalization seems too low right now. ID stock could comfortably double or more, given these metrics.

Tenaya Therapeutics (TNYA)

Tenaya Therapeutics (NASDAQ:TNYA) is a speculative bet, but one that I believe is a solid contender for penny stocks that will double within the next few months. The company specializes in therapies for various heart diseases. Their researchers are developing treatments which aim to regenerate heart cells that are lost from a heart attack, restore defective heart cells and other gene therapies.

TNYA stock has quite the momentum right now, up nearly 60% in a week. Thanks in part to Yasmeen Rahimi from Piper Sandler who gave a $40 price target, and she’s not the only one with that view. The average price target for the stock is $21.50, a 375.7% upside. The lowest price target is $13, which is still nearly triple its current price.

iHeartMedia (IHRT)

iHeartMedia (NASDAQ:IHRT) is likely bottoming out as the stock price is lingering below where it was during the peak of the 2020 recession. Analysts have mixed feelings about this company, as it depends on ad revenue. The advertising industry is combating a lot of headwinds, and the radio industry is too. iHeartMedia also went bankrupt in 2018 with $20 billion in debt but emerged from bankruptcy a year later. However, it still has a considerable $6 billion in debt.

I see no reason for panic right now. iHeart’s cash position is strong with positive operating cash flow. There is also some good signs for growth, such as the increased interest in podcasts, with the segment’s sales up 17% in Q4 2022. Considering their healthy top-line growth, there’s no reason why IHRT should change hands this low. The company’s price-to-sales ratio is a bargain 0.02x, better than 99.8% of its peers.

The average price target of $7.83 still presents an 88.2% upside despite the bearish sentiment. There are also insider buying reports, signaling that the company’s management is optimistic about IHRT.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Omor Ibne Ehsan 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.