Penny stocks are a great 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!
Robinhood has a limited range of investment options when compared to more complex platforms. 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. Below, we’re keeping it even lower with stocks under $1. 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 larger effect on the overall share price.
However, Robinhood only supports stocks on the major American exchanges. This means that there are more regulations and requirements that the companies must comply with, which slightly minimizes the risk. In this article, we’ll talk about the best penny stocks that you can buy on Robinhood.
Best Robinhood Penny Stocks To Buy
Tiziana Life Sciences (NASDAQ: TLSA)
Tiziana Life Sciences is a biotechnology company based in the United Kingdom. They have a variety of projects in the pipeline, with potential treatments for Crohn’s disease and cancer coming in the future.
However, one of the things that makes Tiziana Life Sciences particularly interesting is their COVID-19 projects. They are currently developing a treatment for lung inflammation in patients with the novel coronavirus.
While there are several vaccines available for the coronavirus now, new variants are still spreading. This means there will still be demand for treatments in the years to come.
Tiziana’s COVID-19 treatment is currently in Phase I testing. Should this drug move forward, it could have a very positive effect on the company’s stock price.
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 this past year, as countries and states around the world either loosened restrictions or legalized it completely.
The company has four different marijuana brands, but they only have one growing facility in the town of 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.
The stock’s share price popped at the beginning of February, but has since dipped back down slightly. This could be the result of their earnings report, which indicated a drop in total revenue over the past year.
However, 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 as this company grows.
Technology Robinhood Penny Stocks
Senseonics Holdings Inc. (NYSE: SENS)
Senseonics Holdings is a medical technology company that makes glucose monitoring systems for patients with diabetes. What makes Senseonics stand out is that they currently offer the only long-term glucose monitoring system on the market right now that’s approved by the FDA.
Diabetes is an unfortunately common condition in our society. There is a huge market for high quality diabetes care products right now, which Senseonics can benefit from as they grow.
This stock broke out early in 2021 with explosive growth. Like many penny stocks, it has been up and down since then. However, Senseonics has a promising product that could be in demand for years to come, which makes it a very exciting stock to watch right now.
Best Penny Stock To Buy On Robinhood
Castor Maritime (NASDAQ: CTRM)
Castor Maritime is a dry bulk shipping company based in Cyprus. They own a total of 15 ships that make international deliveries.
This stock popped in February as a result of gains on the Baltic Exchange Dry Index. Although it has since dropped in price, it remains one of the most popular penny stocks on Robinhood.
This stock has been trading for less than $1 per share for quite some time. It is very volatile, and although it may not be the safest pick to add to your portfolio right now, it is one to keep your eye on.
Castor Maritime stock might actually drop before it goes back up again. This is because they plan on fundraising to expand their fleet in the near future. While this could be a smart long-term business decision, the fundraising effort might actually push share prices even lower in the meantime.
Investors may want to keep their eye on this stock so they can buy at extremely cheap prices when it bottoms out. This company has had solid earnings reports over the past several years, and they have a high trading volume given their current stock price. Both of these things help them stand out from other penny stocks on the market.
Ferroglobe PLC (NASDAQ: GSM)
Ferroglobe PLC is a British manufacturing company that makes metal alloys. While they have many different types of metal alloys in their product portfolio, one of the most exciting is their solar grade silicon.
Ferroglobe has a unique production method for this alloy that has a very low carbon footprint. Solar panel manufacturers use this alloy in their products, which have been in high demand in recent years. Climate change has become a very serious global issue, and many people are switching to solar panels to power their homes and businesses.
In addition to their solar grade silicon, Ferroglobe also makes a large range of silicon metals, manganese alloys, electrodes, foundry products, and more. These products have applications in a wide range of industries.
This stock popped towards the end of February, with a gain of over 7 percent in one day. They have been on a consistent upward trajectory ever since then. This is definitely a company to watch as the world becomes more environmentally friendly.
Kaixin Auto Holdings (NASDAQ: KXIN)
There has been a lot of interest in the growing Chinese market over the last few years, and there are plenty of exciting penny stocks coming out of this country right now.
One of these is Kaixin Auto Holdings. They are a subsidiary of Renren, which is a large social media company based in China. Kaixin runs a network of used car dealerships throughout China, which currently has 14 locations.
The auto market in China has been growing steadily over the past several years. Kaixin’s dealerships have a focus on premium automakers, which sets them apart from competitors.
Investors have also been excited about Kaixin’s recent acquisition of Haitaoche, which is an online car retailer. With the e-commerce boom of the past year, more consumers have been buying cars online.
Marijuana Robinhood Penny Stock
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.
Right now, Sundial has several subsidiary brands, which they use to appeal to different sectors of the cannabis market. It’s going to be very important 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. However, investors may want to wait for this stock to experience another significant dip in order to buy at very cheap prices.
Biotech Robinhood Penny Stocks
Tonix Pharmaceuticals (NASDAQ: TNXP)
Tonix Pharmaceuticals is an exciting biotechnology company based in New York City. They have a number of interesting products in their pipeline right now that have caught the eye of Robinhood investors.
Their most advanced product candidate is a painkiller for fibromyalgia. This drug is currently in phase three trials. Their most recent report in December 2020 was a promising one, indicating that the drug had a significant effect on pain in trial patients.
The company is also developing treatments for conditions like Alzheimer’s disease, Post-Traumatic Stress Disorder, and Major Depressive Disorder. All of these conditions are fairly common. Safe and effective treatments for these conditions could be very lucrative, should they eventually be approved by the FDA.
Tonix Pharmaceuticals is also working to develop a vaccine for COVID-19. Although there are already several vaccines for COVID-19 on the market, we’re likely to see continued demand for new ones in the years to come. Additionally, they’re working with OyaGen on a drug that could treat serious COVID-19 symptoms.
With so many promising projects in the pipeline, Tonix Pharmaceuticals is a penny stock to keep your eye on. It’s become one of the most popular stocks on Robinhood in recent months.
Can You Buy Penny Stocks on Robinhood?
The Robinhood platform doesn’t support over-the-counter penny stocks. Robinhood only trades stock 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.
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Robinhood Penny Stocks: Final Thoughts
Penny stocks aren’t for everyone, but they could be an effective investment strategy for those who are 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.