Best Penny Stocks Under $1 To Buy Now
Written by
Karen Doyle
Edited by
Elizabeth Constantineau
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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 with high potential that just might be worth the investment:
- GEE Group Inc. (JOB)
- Vaxart Inc. (VXRT)
- Karyopharm Therapeutics (KPTI)
- Pedevco Corp. (PED)
- IceCure Medical Ltd. (ICCM)
- TRX Gold Corp. (TRX)
- S&W Seed Co. (SANW)
- SKYX Platforms Corp. (SKYX)
- Terran Orbital Corp. (LLAP)
1. GEE Group Inc.
- Price as of Oct. 8: $0.26
- Market cap: $28.1 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 $0.26 on Oct. 8. In the past year, the stock price has ranged from $0.23 to $0.60. The two analysts following the stock in October rated it a “buy.” It’s a relatively stable stock with a beta of 0.48 (1.00 being neutral), and it could be undervalued right now.
2. Vaxart Inc.
- Price as of Oct. 8: $0.78
- Market cap: $181.97 million
- Consensus rating: Buy
Vaxart Inc. (Nasdaq: VXRT) develops oral vaccine pills designed to attack pathogens before they pass through the nose, mouth and/or gut. It currently has a Covid and norovirus vaccine in Phase II trials — the first company worldwide to bring a Covid vaccine pill this far.
Vaxart closed at $0.78 on Oct. 8. That’s near the lower end of its 52-week range of $0.52 to $1.54, but analysts expect shares to soar 519% in the coming year. The four analysts watching the stock are equally divided between “buy” and “strong buy” ratings, and their average price target is $4.83 in a range of $2.50 to $8.
3. Karyopharm Therapeutics Inc.
- Price as of Oct. 8: $0.84
- Market cap: $106.56 million
- Consensus rating: Buy
Karyopharm Therapeutics (Nasdaq: KPTI) is a commercial stage pharmaceutical company focused on getting novel cancer therapies to market. Its current products include treatments for multiple myeloma, and it has several other products in mid- and late-stage trials.
Of the 11 analysts watching the stock, 10 rate it a “buy” or “strong buy” and one predicts it’ll underperform the market. Their average price target is $4.36, which is over 400% above the Oct. 8 closing price of $0.84.
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4. Pedevco Corp.
- Price as of Oct. 8: $0.98
- Market cap: $87.8 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 $0.98 on Oct. 8. Although it has experienced some volatility over the last few months, analysts rate it a “buy.” In fact, EF Hutton has reiterated its buy recommendation twice in the past year, and Alliance Global Partners recently initiated a “buy” recommendation. Analysts predict earnings to grow 100% this quarter and end the year with 40% growth.
5. IceCure Medical Ltd.
- Price as of Oct. 8: $0.59
- Market cap: $28.72 million
- Consensus rating: Buy
IceCure Medical’s ProSense procedure is a minimally invasive cryoablation treatment that targets breast tumors. While still under FDA review in the U.S., ProSense is available in select European markets.
All four analysts watching ICCM rate it a “buy,” and the 12-month price target is $3.20 — over 440% above the Oct. 8 closing price. Analysts expect strong earnings growth this quarter. While much of that gain could be lost to fourth quarter declines, growth estimates for next year surpass 10%.
6. TRX Gold Corp.
- Price as of Oct. 8: $0.39
- Market cap: $106.94 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 September 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 Oct. 8: $0.22
- Market cap: $9.15 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 0.95 indicates slightly below-average stability.
8. SKYX Platforms Corp.
- Price as of Oct. 8: $1.10
- Market cap: $126.99 million
- Consensus rating: Buy
SKYX Platforms (Nasdaq: SKYX) integrates electrical installations in residential and commercial buildings to make them safer and smarter. Its products include 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 two of the last three earnings forecasts in a row. It’s also a hair above $1. But all five analysts watching the stock last month rated it a buy and expected shares to about triple, to $3.20, in the next 12 months.
9. Terran Orbital Corp.
- Price as of Oct. 8: $0.25
- Market cap: $50.42 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 1.95, and its earnings missed analyst estimates in two of the last three quarters. But if analyst predictions are correct, investors with a high tolerance for risk could see their shares gain 34% in the next year, according to the analyst price target of $0.33.
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.
FAQ
- What is a good stock to buy under $5?
- For a good stock under $5, consider Sachem Capital Corp. (SACH). Analysts expect share prices to increase from $2.44 to $3.50 in the next 12 months, and three of the five watching the stock rate it a "strong buy" or "buy."
- What are the best stocks under $2?
- While stocks trading at less than $2 are still considered penny stocks and therefore risky, Pixelworks Inc. (PXLW) and Lucid Diagnostics (LUCD) are both valued under $2 and have consensus ratings from analysts of "buy."
- What are some good stocks to buy right now?
- The stocks listed above are good choices to start with, but it's important to assess your risk tolerance and goals before investing. Consider blue chip stocks, like Apple or Pfizer, for more security — but keep in mind that success is never guaranteed with any investment.
Daria Uhlig contributed to the reporting for this article.
Data was compiled on Oct. 9, 2024, and is subject to change. Information on analyst ratings was sourced from Yahoo Finance.
