Best Penny Stocks Under $1 To Buy Now
Written by
Karen Doyle
Edited by
Melanie Grafil
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Penny stocks — those that trade for under $5 — are inherently risky, and under-$1 stocks are riskier still, but they can also result in great rewards. Because the stocks are so cheap, it doesn’t take much for them to drop to zero. By the same token, a price rise to just a few dollars a share can mean a big payday for investors.
Penny stocks are often found in emerging industries or in those industries that require a long period of research and development prior to the production of a viable product. The companies are typically early-stage technology, pharmaceutical, biotech or therapeutics companies.
9 Best Penny Stocks Under $1
Here are some penny stocks that will cost you less than a dollar and just might be worth the investment:
- GEE Group Inc. (JOB)
- Cybin Inc. (CYBN)
- Purple Biotech Ltd. (PPBT)
- Pedevco Corp. (PED)
- Avino Silver & Gold Mines Ltd. (ASM)
- TRX Gold Corp. (TRX)
- S&W Seed Co. (SANW)
- SKYX Platforms Corp. (SKYX)
- Terran Orbital Corp. (LLAP)
1. GEE Group Inc.
- Price as of Aug. 5: $0.29
- Market cap: $31.59 million
- Consensus rating: Buy
GEE Group (Nasdaq: JOB) is a national staffing and recruiting company for information technology, legal, engineering, finance, accounting and healthcare firms. Its brands include Ashley Ellis, General Employment and Omni One.
The stock closed at $0.29 on Aug. 5. In the past year, the stock price has ranged from $0.24 to $0.63. The two analysts following the stock in August rate it a “buy.” It’s a relatively stable stock with a beta of 0.53 (1.00 being neutral), and it could be undervalued right now.
2. Cybin Inc.
- Price as of Aug. 5: $0.27
- Market cap: $199.62 million
- Consensus Rating: Buy
Cybin (NYSE: CYBN) develops proprietary psychedelic-based therapeutics for disorders like major depressive disorder, alcohol use disorder and anxiety disorders. The company is based in Canada.
Cybin closed at $0.27 on Aug. 5. Its 52-week range is $0.25 to $0.74. Of the six analysts polled by Yahoo Finance in July, five rated it a “buy” and one rated it a “strong buy,” for a consensus rating of “buy.” The price target, released in May by H.C. Wainwright, is $5.
3. Purple Biotech Ltd.
- Price as of Aug. 5: $0.35
- Market cap: $12.84 million
- Consensus rating: Buy
Purple Biotech (Nasdaq: PPBT) aims to develop first-in-class anticancer therapies that overcome tumors’ drug resistance and improve outcomes. It has several therapies in the pipeline, including for pancreatic cancer and head and neck and colorectal cancers, both in Phase 2 trials.
Shares closed at $0.35 on Aug. 5. Three analysts watching the stock rate it a “buy.” The price target is a head-turning $8. Additionally, Chardan Capital and H.C. Wainwright & Co. maintained and reiterated, respectively, “buy” recommendations in March, April and May.
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4. Pedevco Corp.
- Price as of Aug. 5: $0.87
- Market cap: $78.57 million
- Consensus rating: Buy
Pedevco (NYSE: PED) is an oil and natural gas exploration and production company that focuses on developing conventional energy assets using unconventional technologies. It currently has properties in Texas, New Mexico, Colorado and Wyoming. The company admits to having nearly lost its listing on the New York Stock Exchange because of debt acquired in 2014 through 2017. Following a major investment in 2018, the company restructured, paid down debt and brought in a new management team.
Pedevco closed at $0.87 on Aug. 5. Although it trended downward over the last few months of 2023, it’s on the rise now, and analysts rate it a “buy.” In fact, EF Hutton has reiterated its buy recommendation three times in the past year, and Alliance Global Partners recently initiated a “buy” recommendation. Analysts predict earnings to grow from $0.02 in the second quarter of 2024 to $0.05 by the end of the year and $0.09 next year.
5. Avino Silver & Gold Mines Ltd.
- Price as of Aug. 5: $0.87
- Market cap: $129.08 million
- Consensus rating: Buy
As the name suggests, Avino Silver & Gold Mines Ltd. is a silver and gold exploration company. Based in Canada, Avino also explores for copper deposits. The company owns interest in 42 mineral claims and four leased claims, plus 100% interest in properties in British Columbia and Yukon.
Four analysts watch Avino stock, and all give it a “buy” recommendation despite earnings misses in the last three quarters. The 12-month price target is $1.68.
6. TRX Gold Corp.
- Price as of Aug. 5: $0.40
- Market cap: $110.72 million
- Consensus rating: Buy
TRX Gold is a gold mining company focused on increasing its production while adhering to strict environmental, social and corporate governance standards. The company calls its flagship Buckreef Gold Project a “blue-sky opportunity” to increase gold production, as it expects to do in fiscal year 2025.
All three analysts watching the stock in June and July rated it a “buy,” according to Yahoo Finance. Analysts expect the share price to reach $1.38 within the next year.
7. S&W Seed Co.
- Price as of Aug. 5: $0.34
- Market cap: $15.6 million
- Consensus rating: Buy
S&W Seed Co. (Nasdaq: SANW) produces seeds for a variety of crop products, including alfalfa, sorghum and stevia. The company distributes seeds via direct sales and dealer-distributors. S&W’s research and development projects include hybrid crops and gene-edited alfalfa plants as well as a yield-boosting sorghum solution.
Two of the three analysts who watch S&W rate the stock a “buy” and one recommends holding. The price target is $2. A beta of 1.00 indicates average stability.
8. SKYX Platforms Corp.
- Price as of Aug. 5: $0.91
- Market cap: $92.86 million
- Consensus rating: Buy
SKYX Platforms (Nasdaq: SKYX) integrates electrical installations in residential and commercial buildings to make them safer and smarter. Its products includes outlets, plugs and canopies for smart devices, and it has in the works an all-in-one platform that serves as a smoke and CO detector, emergency light and siren, WiFi extender, light outlet and smart speaker.
The company is not yet profitable, and it missed three earnings forecasts in a row. But all four analysts watching the stock last month rated it a buy, and the average price target is $3.75 in a range of $2 to $5.
9. Terran Orbital Corp.
- Price as of Aug. 5: $0.64
- Market cap: $139.3 million
- Consensus rating: Buy
Terran Orbital (NYSE: LLAP) manufactures satellite products for the aerospace and defense industries. It’s involved in all phases of satellite solutions, from design to on-orbit support.
Terran Orbital is a fairly volatile stock with a beta of 2.05, and its earnings missed analyst estimates in two of the last four quarters. But if analyst predictions are correct, investors with a high tolerance for risk could see their shares gain almost 438% in the next year, according to the analyst price target of $3.67.
Final Take
These companies represent a range of sectors, including technology and medical. Companies in these sectors have the potential to be very successful and provide significant returns to their investors, but the failure rate is high.
What’s more, stocks that trade for less than $1 for 30 days or longer run the risk of eventually being delisted from their exchange. Unless the price increases on its own or the company takes action, such as reverse-splitting the stock to boost the price by reducing the number of shares, the stock could be relegated to the over-the-counter market, which has less liquidity.
When deciding which penny stocks to buy, be sure to carefully research the company to make sure you understand the product or service it offers, its potential for success and the competitive landscape in which it operates. And penny stocks should be a recreational investment — this is not the place to put your retirement savings or the kids’ college fund. That said, large returns are possible, especially if you do your homework.
Daria Uhlig contributed to the reporting for this article.
Data was compiled on Aug. 6, 2024, and is subject to change. Information on analyst ratings was sourced from Yahoo Finance.
