Penny stocks are an excellent way for investors to build a portfolio without spending much money. If you’re strategic, these stocks could lead to solid returns.
Robinhood, one of the most popular platforms for buying penny stocks, is very intuitive and accessible for new investors, which has made it very popular among young people and investors on a budget.
In this article, we will explore some of the best Robinhood penny stocks!
The platform does not support OTC stocks but does support NASDAQ and NYSE securities. This means that there is still a huge variety of penny stocks to choose from.
When people refer to penny stocks, they’re typically talking about small companies with a stock price of less than $5.
Stocks with prices this low do come with specific risks that investors should be aware of. These stocks tend to be more volatile because they trade at low volumes.
This means that one person buying or selling the stock has a much more significant effect on the overall share price.
However, Robinhood only supports stocks on the major American exchanges. This means there are more regulations and requirements that the companies must comply with, slightly minimizing the risk.
In this article, we’ll talk about the best penny stocks that you can buy on Robinhood.
Wondering where to buy the stocks listed in this article? Check out Webull! Webull is an excellent trading app for beginnings and experienced investors alike. They have zero fee trading, and you'll even get a free stock (valued up to $1600) just for signing up!
Best Robinhood Penny Stocks To Buy
Zomedica Corp. (NYSE: ZOM)
Zomedica Corporation is a veterinary health company based out of Michigan.
Founded in 2015, they specialize in diagnostic products to aid veterinarians in clinics.
The company launched its first product, Truforma, earlier this year.
The device helps vets discover and diagnose thyroid and adrenal conditions in household pets.
Zomedica’s current goal is to build off the momentum of their product with new testing and a focus on direct sales.
In just the last year alone, Zomedica has increased its share price by over 380%.
Technology Robinhood Penny Stocks
Inuvo, Inc. (NYSE: INUV)
Inuvo is an artificial intelligence and technology company that focuses on services for the internet.
They are based out of Arkansas in the United States.
Their product offerings include ValidClick, an online marketing service, and IntentKey, a customer recognition system.
These media solutions have caught the interest of some big names in the tech world.
The company came to an agreement with Google to use Google’s Websearch and Adsense on certain websites.
Moves like these have brought their stock price up over 70% in the last year.
Inuvo plans to carry this momentum forward, taking their stock price up with it.
Best Penny Stocks To Buy On Robinhood
Castor Maritime Inc. (NASDAQ: CTRM)
Castor Maritime Inc. transports products all over the world, with Cyprus as their base of operations.
The company is known for shipping a wide range of commodities.
This allows Castor Maritime to weather the highs and lows of one particular commodity.
Although the transport business saw losses in 2020, first and second quarter earnings from 2021 show income in the positive.
In February of this year, a share price spike took Castor Maritime to an all-time high, but values have since come back down.
With Castor Maritime reporting positive income, one can expect this to positively impact other areas of the company as well.
Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics is a Chinese-American company that has attracted the attention of retail investors over the past several years.
The company has offices in New York City as well as in Beijing, Guangzhou, and Qingdao in China.
Right now, they are focused on the electric vehicle sector.
They offer financing services for companies that want to purchase commercial electric vehicles and chargers. They also provide many other types of financial services.
As climate change is becoming a larger and larger threat, many people realize the importance of switching to electric vehicles.
The stock market has reacted with excitement about electric vehicle stocks and their future potential.
Ideanomics has been heavily scrutinized for their business model in the past.
Even gold misses the mark.
Cryptocurrencies (like Bitcoin) are the ONLY assets that have all four of these features.
Features that can truly protect investors from today’s unprecedented money printing and interference from governments.
But Bitcoin is NOT the primary cryptocurrency at the forefront of this new money revolution.
These three supercryptos are the ones taking the lead and helping investors make the most money.
They have changed their name and their marketing strategy multiple times since their inception.
Investors must be aware of this as they add this company to their portfolio.
However, Ideanomics appears to be committed to their electric vehicle business moving forward.
They have acquired a number of smaller companies in the industry, and their most recent earnings report has been solid.
While they are currently operating at a loss, revenue from the businesses that they have acquired recently has been strong.
Such businesses include Soletrac and Treeletrik, to name a few.
Acquiring several small companies has helped Ideanomics diversify its revenue stream quickly.
Having a diverse portfolio of operations is crucial to long-term success for any company.
These companies also have exposure to various global markets, which sets Ideanomics up nicely for future growth.
If you’ve been looking for penny stocks in the electric vehicle sector, Ideanomics could be a good choice.
Marijuana Robinhood Penny Stocks
Sundial Growers Inc. (NASDAQ: SNDL)
Sundial is a Canadian company that makes cannabis products for recreational consumption.
A large number of US states have legalized marijuana, as have many countries around the world.
It seems a question of when, not if, the US will legalize marijuana on a national level.
Sundial has several subsidiary brands, which they use to appeal to different sectors of the cannabis market.
It will be imperative for them to find a solid entry point into the US market over the next few years.
This company has seen plenty of attention since cannabis was legalized in Canada. Since the US election in November 2020, Sundial shares have consistently fluctuated.
They remain one of the most popular stocks on Robinhood, as Robinhood investors are particularly enamored with the cannabis sector right now.
Aurora Cannabis (NYSE: ACB)
Aurora Cannabis is one of the largest marijuana companies in the world.
They are spread across 25 countries and have focused on expansion and acquisition, including purchasing smaller companies like CanniMed and MedReleaf.
Their agreement with MedReleaf is currently locked in for five years.
The goal is to help the cannabis industry grow in Australia and increase the accessibility of cannabis medicines.
Aurora Cannabis had rough waters in 2020 and 2021, but the stock has been on the road to recovery.
They were able to curb their operating costs from $77.8 million a year ago to $42.3 million by the end of the first quarter of this year.
Another win for them was the acquisition of Reliva LLC in May 2020.
These investments and reduction of operating costs should turn to stock shares soon.
OrganiGram Holdings (NASDAQ: OGI)
OrganiGram Holdings is a Canadian marijuana company. They make cannabis products for both recreational and medical use.
Marijuana stocks have been in the spotlight as countries and states have either loosened restrictions or legalized it completely.
The company has four different marijuana brands, but they only have one growing facility in Moncton, New Brunswick.
This helps them keep expenses down and manage their supply chain efficiently.
OrganiGram has invested in a three-tiered growing system to maximize the space they have.
They are also interested in developing chocolate edibles and cannabis-infused beverages in the future, which would help them diversify their portfolio significantly.
For the last few months, this stock has been trading sideways, but their most recent earnings report indicates some positive upward momentum.
While they still have yet to turn a profit, OrganiGram’s revenue and net income have both seen significant year-over-year growth.
OrganiGram is a relatively small cannabis company with plenty of room to grow.
Their recreational segment is growing steadily, and now could be a great time to invest before the company really takes off.
Biotech Robinhood Penny Stocks
Oragenics Inc. (NYSE: OGEN)
Oragenics Inc. is a biotech company based out of Florida that has a laser focus on creating a Covid vaccine of their own.
The company hopes that their vaccine, Terra CoV-2, will be more effective than current vaccines with a smaller dosage.
Their project has not yet entered the clinical trial stage.
This stock could be a worthwhile investment if there are still a number of Americans unvaccinated at the time of its release.
It’s also possible to be used as a booster for less effective vaccines.
With Oragenics not researching any other products at this time, they are hedging all their bets into Terra CoV-2.
By investing in the company, you’ll be making a similar risk that could see a huge payoff.
Can You Buy Penny Stocks on Robinhood?
The Robinhood platform doesn’t support over-the-counter penny stocks. Robinhood only trades stocks that are listed on the NYSE or NASDAQ.
Both of these exchanges are highly regulated, which minimizes the risk of investing in penny stocks somewhat.
Investors who are willing to take a risk and strategize effectively could benefit from these affordable stocks. Small breakthroughs like new products can make a huge difference for these stocks.
Looking for more stock picks? Get a new trade every week for free with Trade Ideas. Trade Ideas sends you a new pick every single week along with the reasoning on why it could be ready to break out. Sign up for free right here.
Stocks Under 10 Cents On Robinhood
Unfortunately, there are no stocks under 10 cents that trade on Robinhood.
This is because Robinhood only supports the major exchanges with listing requirements that do not allow for stocks under 10 cents.
Robinhood Penny Stocks: Final Thoughts
Penny stocks aren’t for everyone, but they could be an effective investment strategy for those willing to take a little risk.
One of the most popular places to buy penny stocks is Robinhood.
It’s a popular place for new investors to get started building their portfolio.
Want to check out some additional stock ideas?
- Check out the best drone stocks to buy
- Need some help picking the best stocks to buy? Check out our Motley Fool Stock Advisor Review.
- Want to read about a few more expensive stocks? Read our Stocks Under $50 article!
- 25-Year-Old Prodigy Is America’s #1 Stock Picker: Brand-New Pick, Ticker Symbol and All -- FOR FREE
- The Smartest Way to Invest $500 Right Now: It doesn’t matter if you have $500 in savings or $5 million. See what one of America's richest men says you need to do right now.
- Motley Fool Issues: Rare "All In" Buy Alert! All In Stock Buy Signal Has Beaten The Market By 6X
- URGENT BUY: 4 Hypergrowth Cryptos for 2021: Urgent video just released detailing a rare setup in the crypto markets that could send four cryptos soaring