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Best Penny Stocks Under $1

Check in daily to find the best stocks under $1. This list is updated and active throughout the day. It includes premarket, aftermarket, movers and best-performing stocks.

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Sonnet BioTherapeutics (NASDAQ: SONN)

Sonnet ended last week on a good note, surging into Friday’s close with a late midday rally of more than 10 percent. Aftermarket trading brought the high up to $2.81. The surge came on no special news other than Sonnet reporting good results for its SON-1010 safety and dosing trials. This was back in early September, but the stock perhaps experienced a delayed reaction.

Analysts reacted to the push with a bullish stance, with Chardan Capital raising its target on Sonnet to $8 from $7. Monday premarket shows a bit of a pullback, but NASDAQ futures in total are down more than 1.8 percent at the time of this writing. Since we know this will probably be a very red day, it can be a good strategy to pick up great performers at a discount.

2.70 0 (0%)
Volume 1.93K Market Cap 24.84M
-
2.23 - 16.2
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Tellurian (NASDAQ: TELL)

Tellurian is a Houston-based liquified natural gas (LNG) development company. The company is developing the massive Driftwood LNG terminal near Lake Charles, LA.

Tellurian’s fate is likely tied entirely to its proposed $30 billion Driftwood plant. If the company can come up with the funding to complete the plant, the penny stock could see huge long-term upside. If not, it is likely headed to zero. Tellurian investors got some good news in July when the company reported that it re-entered a memorandum of understanding with Indian energy company Petronet LNG to potentially close a funding deal before the end of 2020.

Tellurian also secured $32.5 million in much-needed cash via a private placement. For now, upside for Tellurian stock is all about getting the cash needed to advance its Driftwood plans.

0.90 0 (0%)
Volume 0.00K Market Cap 239.67M
-
0.6664 - 8.69
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Freeman Gold (OTC: FMANF)

September is known for being a rocky month for stocks historically. 2020 has not disappointed. Tech fell from its lofty highs and brought everything else down with it. When the going gets tough, the tough get gold. Freeman Gold Corp. stands to benefit from continued volatility in the market, and they have plenty of upside to tempt investors.

FMANF has been playing in a range between $0.42 and $0.47 for the past 6 months. The catalyst it needs for a trading volume increase and breakout could come after its acquisition announcement of the unpatented mining claims within the historical resource area of the Lemhi gold project in Idaho.

0.45 0 (0%)
Volume 0.00K Market Cap 0.00K
-
0.179975 - 0.88747
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Transocean (NYSE: RIG)

Transocean is one of the largest offshore drilling contractors in the world. The company’s fleet consists of 30 ultra-deepwater vessels, 13 harsh environment floaters and one midwater floater.

Oil demand, oil prices and oil stocks have been crushed in 2020, and few analysts expect a sharp rebound in the near future. However, a coronavirus vaccine could have a bullish impact on oil investor sentiment, and the number of US offshore rigs has seemingly stabilized for now.

At a share price under $1, investors seem to be pricing in a significant risk of bankruptcy for Transocean. If the company is able to right the ship in the long-term, the speculative gamble could pay off with tremendous upside for investors given the company was profitable as recently as 2016.

0.77 0 (0%)
Volume 0.00K Market Cap 491.72M
-
0.7319 - 7.28
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Ocugen (NASDAQ: OCGN)

The eyes of the market have been on iBio, Moderna and Novavax for the past few weeks, and they will be until COVID cure mania wears off again. If you really want to speculate in biotech, it is sometimes best to ignore the headliners and go for a steady performer that has been unrightfully punished. That steady play is Ocugen, a biotech company focused on a niche set of retinal conditions.

Ocugen’s most exciting program is perhaps its OCU200 treatment, which treats diabetic retinopathy, diabetic macular edema and wet age related macular degeneration. You may not know what those are, but the market around curing them is $31 billion. At a current price tag of $0.34, it won’t hurt you much to pick up a few shares of a leader in the space and wait for the market to come to its senses.

0.30 0 (0%)
Volume 0.00K Market Cap 22.36M
-
0.17 - 1.9
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Biggest Penny Movers of the Day

Penny stocks are significantly more volatile than the stocks of larger or more established corporations. Take a look at the top movers in the penny stock sector below.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket Penny Stocks Under $1
Symbol Last Price Change % Change Trade
SNMP 0.8301 0.248 42.62% Trade
WEI 2.34 0.61 35.26% Trade
ISIG 1.24 0.294 31.09% Trade
NAKD 0.0885 0.018 24.64% Trade
TGC 1.0899 0.205 23.13% Trade
CASI 2.1105 0.311 17.25% Trade
AGE 1.8783 0.253 15.58% Trade
JP 1.905 0.255 15.45% Trade
DGLY 2.3059 0.306 15.29% Trade
EVOL 1.28 0.16 14.28% Trade
Symbol Last Price Change % Change Trade
SNBP 2.835 -6.665 -70.16% Trade
RIVr 0.008 -0.012 -59.4% Trade
YVR 1.47 -0.38 -20.55% Trade
GHSI 0.18 -0.038 -17.32% Trade
AKBA 2.3701 -0.47 -16.55% Trade
KBSF 2.4 -0.42 -14.9% Trade
MCF 1.345 -0.235 -14.88% Trade
TTNP 0.1279 -0.022 -14.57% Trade
TH 0.922 -0.148 -13.84% Trade
GRIL 1.76 -0.28 -13.73% Trade
Market Penny Stocks Under $1
Symbol Last Price Change % Change Trade
SNMP 1.24 0.406 48.68% Trade
USWS 0.41 0.088 27.4% Trade
XSPA 2.27 0.31 15.81% Trade
TGC 1.2 0.11 10.09% Trade
SGBX 2.69 0.19 7.59% Trade
ADMP 0.8099 0.052 6.9% Trade
NVIV 0.6 0.035 6.21% Trade
HTZ 1.69 0.08 4.96% Trade
TTNP 0.132 0.004 2.96% Trade
DGLY 2.36 0.06 2.6% Trade
Symbol Last Price Change % Change Trade
NVCN 1.34 -0.49 -26.78% Trade
PT 0.9021 -0.158 -14.9% Trade
SND 1.25 -0.155 -11.04% Trade
WEI 2.2 -0.18 -7.57% Trade
UXIN 0.9717 -0.068 -6.57% Trade
ISIG 1.2 -0.08 -6.26% Trade
STAF 1.16 -0.07 -5.7% Trade
EVK 2.85 -0.16 -5.32% Trade
OPTT 1.8 -0.09 -4.77% Trade
JFIN 2.85 -0.11 -3.72% Trade
After Hours Penny Stocks Under $1
Symbol Last Price Change % Change Trade
SNMP 1.34 0.506 60.67% Trade
USWS 0.429 0.107 33.31% Trade
TGC 1.38 0.29 26.6% Trade
REI 0.67 0.09 15.47% Trade
HOFV 2.26 0.23 11.33% Trade
DS 1.77 0.17 10.62% Trade
RCON 1.18 0.08 7.27% Trade
TMBR 1.05 0.07 7.14% Trade
XSPA 2.1 0.14 7.14% Trade
AHT 1.56 0.1 6.84% Trade
Symbol Last Price Change % Change Trade
NVCN 1.12 -0.71 -38.8% Trade
TANH 2.8 -0.18 -6.05% Trade
PT 1 -0.06 -5.67% Trade
ISIG 1.21 -0.07 -5.47% Trade
DOGZ 2.32 -0.13 -5.31% Trade
JAGX 0.222 -0.012 -5.01% Trade
GSM 0.6802 -0.035 -4.95% Trade
ENZ 1.84 -0.095 -4.91% Trade
ASLN 1.64 -0.08 -4.66% Trade
DNK 2.05 -0.1 -4.66% Trade

When most people think about trading stocks, they imagine million-dollar brokers trading shares of major corporations like Amazon (NYSE: AMZN), AT&T (NYSE: T) and Tesla (NASDAQ: TSLA). But trading like a pro doesn’t necessarily require millions of dollars of free capital in your brokerage account. 

Penny stocks, occasionally referred to as “micro cap” or “nano cap” stocks, are low-value stocks representing smaller companies. As the name suggests, these stocks are often priced under $1 per share — making them much more accessible to beginner investors or those with less capital. 

Overview: Penny Stocks

Penny stocks are shares of small companies that typically trade for significantly less money than shares of larger companies. Despite the name, the term “penny share” can be applied to any stocks under $5. A penny stock might be sold on an over-the-counter (OTC) exchange but many are also sold on SEC-regulated exchanges like the New York Stock Exchange (NYSE).

Penny stocks have historically been subject to scams and artificial price inflation due to their ease of manipulation. One of the most popular forms of penny stock fraud is the “pump and dump” scheme. During a pump and dump, marketers who hold shares of a particular security intentionally spread false or misleading information about the company issuing the stock, which causes the price of the stock to rise sharply. After the price has risen, the holders “dump” the stocks at inflated prices onto those buying in after hearing the news. 

The expanding use of social media websites like Twitter and Facebook has increased instances of pump and dump schemes. It’s now more important than ever for investors to do their due diligence before they make a purchase.

Penny stocks are also attractive to investors because they show higher-than-average volatility. The volatility of a stock describes how often and by what magnitude a stock will increase or decrease in value over the course of a normal trading day. 

High volatility means that there is plenty of room for profit when buying and selling penny stocks. For example, if you purchase 1,000 shares of Stock X at $1 and sell them at $2, you’ve doubled your money and earned $1,000. However, this high volatility also means that it’s possible to lose money quickly. 

Features to Look for in Penny Stock

Not every penny stock is an equally good investment. All penny stocks are risky by nature — but you can limit your risk by searching for these 3 key features.  

  • Trades on a major exchange: Most penny stocks are sold on OTC markets or through the OTC Bulletin Board. Though these shares are usually very cheap (often trading for pennies on the dollar) they also enjoy much lower levels of oversight. If you’re buying your first penny stocks, begin by searching for stocks on major exchanges, like the NYSE or NASDAQ. Stocks listed on these exchanges must meet minimum requirements set by the Securities Exchange Commission, which greatly reduces the likelihood that you’ll get caught up in a scam.
  • A high daily trading volume. Many investors look to penny stocks in the hopes of earning money by swing trading or day trading. However, what some people forget is that if you want to sell a stock, there needs to be someone on the market willing to buy it. Use a stock screener to search for penny stocks with higher average daily volumes. A higher volume will help you sell off your stocks when you choose — not when prices are at rock-bottom.
  • A positive earnings per share. A stock’s earnings per share (EPS) value is equal to the current earnings of the company divided by the current number of shares outstanding. If possible, look for a stock with a positive EPS value — this indicates that the company is currently profitable.

Most penny stocks represent smaller or newly formed corporations, so this may not always be possible. If you do decide to invest in a stock with a negative EPS value, make sure that it has a manageable level of debt. 

The Power of Pennies

Investing in penny stocks can be exciting. With a wide range of industry options, higher volatility and hundreds of stocks under $20, it’s easy to see why so many investors are drawn to the opportunities that penny stocks represent. However, it’s also important to remember that penny stocks are very risky — and they should never make up the majority of your portfolio.

Don’t be afraid to invest in a few solid penny stocks and hope that they increase in value. But, remember to use total market funds and index funds as the basis of your portfolio. This will leave you room for growth while also protecting your future.  

Best Online Brokers for Penny Stocks

No matter if you’re day trading penny stocks or you’re looking for stocks under $10 to add to your long-term portfolio, you need to open a brokerage account before you can begin trading. Your broker will carry out buy and sell orders on your behalf, as traders can’t buy or sell stocks directly on the market.

Don’t already have a brokerage account? Consider our favorites below. 

Commissions
$0
Account Minimum
$0
Get started securely through Webull’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in options, mutual funds, bonds or OTC stocks
Commissions
$0
Account Minimum
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
Get started securely through TD Ameritrade’s website
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates

If you want to see other top performing cheap stocks see below:

Here are some movers in other categories

Start trading penny stocks today. If you are looking to compare online brokers, take a look at some of our other favorites.

You can also install the Benzinga Moving Stocks Chrome Extension.

Trading Penny Stocks

Timing the market, entering and exiting at the right time is always ideal when you trade penny stocks. And if penny stocks are part of your game, you may want to learn how to trade professionally through technical analysis for you to get in at a swing low, retracements, breakouts or along with price action setups as confirmation to increase your profitability. 

We’ve got established trader Ezekiel Chew founder of Asia Forex Mentor, who makes 6 figures a trade, and trains the bank traders behind the scenes, to share with us how to be successful in trading and investing.

Ezekiel believes there are three key aspects to successful trading:

1. You’ve first got to learn how to read the charts. And one of the best ways to learn this is through price action; the technique that the majority of professional traders use. Once you have learned how to read the charts, you will know why the market is going up, down or sideways and then will you recognize which strategy to put into play in that direction.

2. Trade with a proven trading strategy or a combination of strategies. A proven strategy is one that is comprehensively back-tested and has been shown to work consistently. It is only in this way that you will have the confidence to stick with it during the lull periods.

3. Have a solid trading system. One that is defined not only by the technical aspects but also the business behind trading; a properly structured trade that is in line with the overall trading plan that has been proven to work. In contrast to what most new traders think, trading is not just about strategies, but the system itself also contributes greatly to becoming a successful trader.

If you want to learn the precise trading system that Ezekiel uses to make 6 figures a trade and that he uses to train banks, check out the Asia Forex Mentor One Core Program, which has turned many new traders into professionals.

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