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. One of the most popular platforms for buying penny stocks is Robinhood. The app is very intuitive and accessible for new investors, which has made it very popular among young people and investors on a budget.
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. In this article, 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
Genesis Healthcare Inc (NYSE:GEN)
Genesis is a provider of many different types of inpatient healthcare services. These include short-term, post-acute, rehabilitation, skilled nursing, and long-term care service facilities. The company has a portfolio of operations across more than 500 nursing facilities and assisted/senior living facilities across 34 states. Genesis also supplies rehabilitation therapy to over 1,700 healthcare providers in 46 states and districts. As American Baby Boomers are reaching retirement, there is increased demand for inpatient healthcare services.
Genesis has a market cap of $123.65 million, and their shares are currently trading at $0.74 each. This is a great opportunity for investors on a budget who would like to invest in the potentially lucrative senior care industry.
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
Advaxis is an American immunotherapy company. The company devotes its resources to the discovery, development, and commercialization of immunotherapy technology. Their technology uses engineered Listeria monocytogenes. This means that they’re developing immune responses to target and eliminate cancer cells. Advaxis is working on a range of products to treat various different types of cancers. They’re also venturing into veterinary medicine.
Advaxis currently trades at $1.01 per share. They have a market capitalization of $113.01 million. Advaxis has over 70 pending and issued patents. This significant amount of intellectual property makes them one of the most unique Robinhood penny stocks on our list. Cancer research and development will not be slowing down anytime soon, and there’s potential for this company to grow if their technologies prove successful.
Best Penny Stock To Buy On Robinhood
Reed’s Inc. (NASDAQ:REED)
Reed’s is a company that makes a line of ginger-based tonics. In 2012, the company also began a culture-lab label of symbiotic microorganism-based drinks. Reed’s also notably opposes the use of GMOs and does not use them in their products. This has made their products very popular with eco-friendly consumers. Reed’s has been recognized by environmental and health-conscious brands like WholeFoods.
Reed’s has a current market capitalization comes in at $76.65 million. Share prices have started trending slightly upward, as they are currently trading at $1.18 per share. Experts are predicting steady growth for the next 12 months for investors who are willing to take the risk on a penny stock. This company is a great way to diversify your portfolio.
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. This is definitely a company to watch as the world becomes more environmentally friendly.
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.
This company has seen plenty of attention since cannabis was legalized in Canada. Since the US election in November 2020, Sundial shares have grown by 273 percent. They have the largest market capitalization of any stock on this list, coming in at $650.08 million. Their shares now trade for $1.45 each. This stock is a great deal for any investors who want to get involved in the burgeoning marijuana industry without spending too much money.
Biotech Robinhood Penny Stocks
Onconova Therapeutics Inc (NASDAQ:ONTX)
Onconova is a clinical-stage biopharmaceutical company that develops and discovers products for patients with cancer. Their proprietary technology disrupts cancer cell proliferation. Onconova currently has 3 separate phase-I trials underway across the US and China. Onconova’s focus on cancer treatment makes this another one of the Robinhood penny stocks that could be critical in the years to come.
This company has a market capitalization of $147.17 million. This makes them slightly larger than Advaxis. Right now, their shares are trading for $1.54 each. Their shares have gone up significantly over the past month as they used a stock offering to raise money for cancer-related research and development.
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.