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The 5 Best Penny Stocks On Cash App (December 2022)

  • By Jenna Gleespen
  • Oct 04, 2022
penny stocks on CashApp featured

Cash App is the stock trading platform of choice for many investors looking to make passive income. But did you know that it lets you trade penny stocks? Read along for our picks of some of the best penny stocks on Cash App.

 

penny stocks on cash app

 

Best Penny Stocks on Cash App

Transocean Ltd. (NYSE: RIG)

Transocean Ltd. is an oil and gas company that extracts oil and gas from worldwide. It provides contract drilling services for different international oil and gas wells.

The company contracts its different assets — drilling rigs, work crews, and other oil and gas drilling equipment. Although alternative energy sources are now rising, oil and gas will remain in use as energy sources for the foreseeable future.

Despite a reported loss from their Q1 report, investors are still bullish on the Transocean Ltd. stock. This is because, looking at the whole energy industry, several oil-related firms have lately risen significantly.

Also, the company stated that investment in deepwater drilling would increase in the near future. The market has responded to this news by pushing the stock prices up for other deepwater drillers as well.

Transocean, with its long-held expertise in the industry, could still grow from this sustained demand for oil and gas.

penny stocks on cash app

Globalstar, Inc. (NYSE: GSAT)

Globalstar is a telecommunications company providing mobile satellite communications coverage across the world and is tradable on the NYSE.

The company’s telecommunications services include two-way voice and data products, and satellite communications equipment for remote coverage, emergencies, and quick response teams.

Additionally, apart from the company’s telecommunications services, Globalstar also works with the commercial application of IoT or the Internet of Things.

This application of the Internet of Things allows Globalstar’s clients to remotely control and monitor objects on Globalstar’s satellite network.

Its expansion into different aspects of telecommunications means that it can find gaps to be filled within the market.

In line with these expansions, the company recently signed a satellite procurement deal with Macdonald, Dettwiler and Associates Corporation in February, as previously disclosed.

These additional satellites will assure service continuity for all current and prospective customers, as well as other network users.

It’s also worth mentioning that, despite challenges from its reported component part shortages, commercial IoT sales climbed by 8% in the first quarter of the previous year.

Several thousand units of its most successful and profitable Commercial IoT products are on back-order. The company expects to begin production in the second quarter to fulfill these orders and return to a healthy inventory level.

This will definitely help it guard against potential supply chain interruptions.

Globalstar shows even more potential to grow because its satellite-related services are used across the world.

best penny stocks on cash app

Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX)

Lexicon Pharmaceuticals is a biotechnology company based in Texas that specializes in developing pharmaceuticals. This is accomplished through its proprietary Genome5000 program, which is used to find ways of creating treatments for a range of diseases.

Currently, Lexicon has different kinds of medicines under various stages of development. Some of these medicines are currently being tested under Phase II or Phase III clinical trials. These medicines try to treat diseases like heart failure, type 1 diabetes, and neuropathic pain.

According to sources, the business expects to finish and announce top-line findings for its proof-of-concept Phase 2 study of LX9211 in diabetic peripheral neuropathic pain by the end of this quarter.

Cutting-edge pharmaceutical technology will always have its niches to fill, as there are always people with diseases needing new treatments for their sicknesses.

Through the development of its new medical technologies, Lexicon Pharmaceuticals can directly benefit from the demand for new ways of treating diseases.

penny stocks on cash app

Popular Penny Stocks on Cash App

Yamana Gold Inc. (NYSE: AUY)

Yamana Gold is a company that works with gold and silver. It has production facilities for gold and silver, development properties, exploration properties, and other real estate assets in different countries in the Americas like Canada, Chile, and Brazil.

Yamana Gold benefits as the price of gold rises, much like investors who buy bullion. However, the corporation makes even more money when it can keep its gold production costs low. For example, the company reported producing 1 million gold equivalent ounces in 2021.

Yamana will continue to profit as the price of the precious metal increases, which is usual amid times of inflation.

Even if this commodity’s price does not rise, Yamana can still offer profits to investors. The company compensates shareholders not just with a rising stock price but also with a 2.2% yield.

Gold, silver, and other precious metals are always in demand despite price fluctuations. Producing these valuable metals awards Yamana Gold the opportunity for continual growth, and this could extend to its penny stock.

 

penny stocks on cash app

HEXO Corp. (NASDAQ: HEXO)

HEXO Corp. is a Canadian business involved in the cannabis sector that is available via NASDAQ. The company, alongside its subsidiaries, is the one that markets, sells, and produces its cannabis products in Canada.

It offers different kinds of products geared toward recreational and medical use. HEXO Corp. was formerly known as The Hydropothecary Corporation, which was founded back in 2013.

The products HEXO Corp. creates include different named and award-winning cannabis products. Some of them are cannabis oil sublingual mist, activated fine-milled cannabis, and cannabis beverages.

These are traded under different name brands of HEXO Corp., like HEXO, UP Cannabis, Original Stash, Bake Sale, REUP, and Namaste.

With the expansion in mind, Tilray Brands and HEXO recently struck a deal to save up to $80 million in total costs over the next 24 months. This will be accomplished through pooled support services, marketing partnerships, and manufacturing efficiency.

The agreement comes with a C$180M backstop for HEXO, providing the company with the funding needed to grow and correct its balance sheet.

With the cannabis market still currently maturing, there is ample room for growth in the cannabis industry.

This creates the opportunity for HEXO Corp. to increase its value by providing the industry with its award-winning products — opening up a bright future for this marijuana penny stock.

top penny stocks on cash app

Cheapest Stocks on Cash App

Ideanomics, Inc. (NASDAQ: IDEX)

Ideanomics is the cheapest stock on our list and a company to watch out for. Alternative forms of transportation, those that do not use conventional combustion engines, are becoming more and more common.

Ideanomics, Inc. is a company that pushes the adoption of these kinds of vehicles. The company was originally founded in 2004 and is based in New York City.

Through the Ideanomics Mobility division, the company is accelerating the adoption of electric vehicles by operators of commercialized fleets. For example, the company recently inked an agreement with Coast Counties Peterbilt, a truck dealership in California.

Ideanomics Energy will aid Coast Counties Peterbilt’s shift to electric fleet cars. The move will provide renewable energy generation, energy storage systems, and DC rapid charging infrastructure to dealerships around California.

Ideanomics also provides fintech services designed to streamline the financial services of the electric vehicle sector. And with the rise of electric vehicles — as seen with Tesla — there is a definite market for electric vehicles.

 

penny stocks on cash app

 

What Are Penny Stocks?

Shares of companies that are traded for less than $5 a pop are typically called penny stocks.  Because of their relatively low price per share, many see these as a good opportunity to get into the stock market at a discount.

This isn’t necessarily the way you want to go about these cheap stocks, though.

For one, price is relative. If you buy 1,000 shares for a buck and one share for a thousand and they both go up 10%, you’re getting the same return. So this isn’t the angle most folks follow when investing in penny stocks.

Instead, savvy investors try to leverage their volatility. Penny stocks and stocks with a small market capitalization are characteristically volatile, as they have low liquidity and are highly speculative.

Learning to leverage this volatility and execute good market timing is the name of the game. Sure, some of these companies could see long-term growth, but that isn’t the typical experience.

Plenty of people fall prey to pump and dump schemes and lose their whole investment. On the other hand, investors who can wield this volatility could stand to make a decent chunk of change.

best penny stocks on cash app

What You Should Know About Trading Penny Stocks on Cash App

If you want to buy or sell stocks under $5 on Cash App, there are some things you might want to know. Here’s a quick overview of using the platform to trade on the stock market.

How Do I Find a List of Penny Stocks Sold on Cash App?

If you want to find penny stocks sold on Cash App, you’ll need to research company lists outside the app.

Unfortunately, you cannot sort stocks by penny stocks on the app, which means you’ll have to know the companies ahead of time before looking them up. Once you find a company worth investing in, you can locate it in the investing tab.

Can You Buy or Sell Penny Stock Shares Below 10 Cents on Cash App?

Unfortunately, Cash App does not typically broker penny stocks that trade for less than 10 cents per share. Some Cash App stocks may be traded for a short while if you bought them above the ten-cent mark, but probably not for long.

However, these kinds of penny stocks are available on other platforms or brokers.

Does Cash App Have All Stocks?

Cash App does not have every publicly traded stock on its platform. It has around 1,600 stocks, which is on the low end. For comparison, Robinhood has about 5,000 stocks.

Can you Make Money with Stocks on Cash App?

You can make money with stocks on Cash App. That being said, you might want to look into other platforms if you need a broker better suited to dedicated trading.

Penny Stocks on Cash App: Final Thoughts

Cash App investing is a simple, and straightforward way to trade penny stocks. While there are platforms that provide a much richer selection of publicly traded companies, at least Cash App is making a run in the market.

But anyone who trades a penny stock will want to do their due diligence and be extra cautious. Cash App companies will not be winners by virtue of being on the platform. Still, it could have some of the best cheap stocks on offer, so you might want to check it out.

 

Penny Stocks on Cash App FAQ and Recap

Read along for our answers to the most commonly asked questions about Cash App penny stocks.

Can You Buy Penny Stocks on Cash App?

You can buy and sell penny stocks on Cash App. And while some brokerages don’t allow trading of penny stocks, Cash App does. So if you’re interested, you can dabble in penny stocks without going through another brokerage, though it takes a little more work to find them.

Does Cash App Have Nasdaq Stocks?

Yes, Cash App does allow you to trade stocks listed on the NASDAQ as well as the New York Stock Exchange (NYSE). These major exchanges require more transparent reporting than typical OTC stocks, which can reduce risks to a degree.

Is It Worth Doing Stocks on Cash App?

It’s worth trading penny stocks on Cash App if you don’t mind the extra effort and have a good handle on the market. If you want a larger selection of stocks to trade, however, you might want to check out Robinhood or Webull.

How Does Buying $1 Stocks on Cash App Work?

Buying $1 stocks on Cash App works like any other trade. If you have enough money in your Cash App account to buy the stock, it charges that first. If you have insufficient funds in your main account, Cash App will charge your linked card or bank account instead. 

What Is the Best Stock to Buy on Cash App?

We recommend taking a look at our pick, Ideanomics, Inc. (NASDAQ: IDEX), as it’s carving out a very niche place for itself in the transportation as a service (TaaS) sector. In addition, it provides investors with decent exposure to the electric vehicle (EV) space.

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Jenna Gleespen is a published author and copywriter specializing in personal and investment finance. Her expertise is in financial product reviews and stock market education.