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. Sometimes it helps to make sense of it all by checking out this beginners guide to penny stocks.
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
TherapeuticsMD (NASDAQ: TXMD)
TherapeuticsMD is a pharmaceutical company that develops a range of hormonal treatments for women.
Their products help women through some of the most important periods in their lives, including pregnancy and menopause.
Women’s health issues affect a large portion of our population, but there are not as many products on the market to treat them as you might imagine.
This presents an opportunity for TherapeuticsMD to stand out and become a leader in this field.
Right now, their products include hormonal birth control, treatment for hot flashes and vaginal atrophy, and multiple types of prenatal vitamins.
TherapeuticsMD stock has been up and down over the past year. Their share price spiked in February during a period of market volatility, but has since leveled out.
Since the beginning of May, they have appeared to be on the upswing.
The company’s Q4 results for 2020 reported strong year-over-year revenue growth, but their Q1 results for 2021 didn’t live up to expectations.
Despite these revenue misses, many analysts have been excited about this company. Some even expect the stock to break out of the $5 range.
If you’re looking for an interesting penny stock in the pharmaceutical industry, this could be the pick for you.
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 dipped slightly afterwards.
This could be the result of their earnings report, which indicated a drop in total revenue over the past year. However, their share price has started to increase in May, giving them some strong momentum.
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 Stocks 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.
After a period of stagnation, it popped again towards the end of May, and remains one of the most popular penny stocks on Robinhood.
It’s important for investors to understand that this stock is very volatile. It could 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 means their stock may fluctuate before it levels 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. It’s not fully clear yet why their stock price popped recently, but this upward movement definitely makes them one to watch.
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.
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Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics is a Chinese-American company that has attracted the attention of retail investors over the past several years. Right now, they are focused on the electric vehicle sector.
As climate change is becoming a larger and larger threat, many people are realizing the importance of switching to electric vehicles.
The stock market has reacted with excitement about electric vehicle stocks and their future potential.
Right now, Ideanomics has offices in New York City as well as in Beijing, Guangzhou, and Qingdao in China.
They offer financing services for companies that want to purchase commercial electric vehicles and chargers. They also offer a range of other financial services.
Ideanomics has been heavily scrutinized for their business model in the past. They have changed their name and their marketing strategy multiple times since their inception. It’s important for investors to 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. These businesses include Soletrac, Treeletrik, and more.
Acquiring several small companies has helped Ideanomics diversify their revenue stream quickly. Having a diverse portfolio of operations is crucial to long-term success for any company.
These companies also have exposure to a variety of different 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. It’s been a popular option on Robinhood and has been highly discussed on Reddit.
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.
Are you already on the Robinhood trading platform? Check out WeBull! When you join the WeBull platform today, you’ll get a few free stocks just for joining!
This a fantastic platform for experienced and new investors alike.
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 which have 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 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.
Want to check out some additional stock ideas?
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