Looking for the best stocks under $1? You came to the right place. Stocks that are priced at under $1 per share are often considered to be penny stocks.
Stocks valued at under $1 usually belong to new and small companies, including startups. These companies and stocks are considered undiscovered and too risky by many investors, while the experienced players look at under $1 stocks as significant opportunities.
Generally, stocks under $1 will be considered “high risk, high reward.” If you find a great company, you can get in at the ground floor and watch as the stock price increases. On the flip side, many companies valued at under $1 have received their valuation for a reason. These are either poorly run companies or companies with highly risky, unproven business models.
As with any type of investing, it is important that you research these companies thoroughly.
What Are the Best Stocks Under $1?
Below is a list of some of the best stocks under $1 that you can start investing in today. Use this list as a starting point for further research.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| SNDL | Sundial Growers Inc. | $1.98 | 30.26% | 515.8M |
| TNXP | Tonix Pharmaceuticals Holding Corp. | $0.15 | -95.33% | 12.3M |
| NMTR | 9 Meters Biopharma, Inc. | #N/A | #N/A | #N/A |
| BIOL | BIOLASE, Inc. | $0.14 | -99.47% | 4.3M |
| ZSAN | Zosano Pharma Corporation | #N/A | #N/A | #N/A |
| CFMS | Conformis, Inc. | #N/A | #N/A | #N/A |
| REED | Reed's, Inc. | $2.01 | -33.66% | 8.4M |
| USWS | U.S. Well Services, Inc. | #N/A | #N/A | #N/A |
| CSCW | Color Star Technology Co., Ltd. | #N/A | #N/A | #N/A |
| AEZS | Aeterna Zentaris Inc. | $1.96 | -36.77% | 13.1M |
| RIBT | RiceBran Technologies | $0.20 | -80.58% | 1.9M |
| AIHS | Senmiao Technology Limited | $0.76 | -12.64% | 7.3M |
| NXTD | Nxt-ID, Inc. | #N/A | #N/A | #N/A |
| AIKI | AIkido Pharma Inc. | #N/A | #N/A | #N/A |
| PXS | Pyxis Tankers Inc. | $4.61 | -23.80% | 48.8M |
Factors to Consider Before Investing in Stocks Under $1/Share
The most significant factor to consider before investing in under $1 stocks is that they are highly volatile and risky. They follow a high-risk high-reward profile, with an almost equal probability of shooting up and dropping down. It should be noted that cheap stocks may present growth opportunities, but many stocks are cheap for a reason.
Investors must analyze the inherent potential of new companies before investing in them. Not all startups end up evolving into big companies; however, the ones that do generate massive returns.
Therefore, investors must exercise due diligence while investigating the sector the companies belong to, the expertise of the management team behind the companies, and the revenue-generating potential. Don’t fall for the hype! Start your research with skepticism and let these companies prove themselves to you.
Investors should be aware that stocks under $1 may be subject to “pump and dump” schemes, where the stocks experience an artificial increase in price (due to a promotion) before returning back to their original prices.
Lastly, investors should be aware that share price is not necessarily the best criteria to use when researching stocks. Stocks priced at under $1 may seem cheap but market value is not gauged by the share price. A stock priced at $1 per share may have the exact same “value” as a stock priced at $10 per-share (based on market cap). Furthermore, the stock price doesn’t necessarily correlate with upside potential.
Which Stocks Under $1 Should I Buy?
Despite the stock price appreciation trend in recent times, many under $1 stocks trading on the stock exchanges. We have aggregated a list of the best under $1 stocks for easy reference of investors.
Investors must only buy under $1 stocks of companies that have a market capitalization of more than $50 million, and the current volume should be more than 100,000. Investors must be aware that investing in under $1 stocks is a risky business and may lead to the loss of the entire investment.
If you’re looking to broaden your scope, check out these stocks under $5 and these stocks under $10.
