Robinhood is one of the most popular online brokers for trading stocks, crypto, ETFs, options, and more. But did you know that it supports trading penny stocks? Read along for our top picks of the best penny stocks on Robinhood to buy in July 2024.
Best Robinhood Penny Stocks in 2024
United States Antimony Corporation (NYSEAMERICAN: UAMY)
The United States Antimony Corporation (USAC) explores and mines for antimony, alongside a few other rare earth metals. Antimony is commonly used in batteries and has applications in cable sheathing, small arms, and low friction metals. This element’s versatility makes it crucial for various industrial processes and technological advancements.
USAC owns two of the only three antimony smelters in North and Central America. All mining takes place in Mexico, with smelters located in Montana. The company is also actively mining for zeolite and looks to begin extracting precious metals like gold and silver soon.
Diversifying into these additional resources could provide a more stable revenue stream and mitigate the risks associated with fluctuating antimony prices. This makes UAMY an interesting penny stock to monitor.
Genius Group Limited (NYSEAMERICAN: GNS)
Genius Group Limited is an education technology company focusing on personalized and AI-driven learning experiences. The company provides a global curriculum through its platform, offering courses from primary to tertiary education levels and beyond.
By leveraging AI, Genius Group aims to create tailored learning experiences that adapt to each student’s needs, promoting better engagement and outcomes.
The company’s educational services span multiple countries, making it a significant penny stock in the EdTech industry. Genius Group’s platform integrates various learning tools, including assessments, interactive lessons, and real-time feedback mechanisms.
This comprehensive approach to education positions the company well in a market that increasingly values digital learning solutions.
Inuvo, Inc. (NYSEAMERICAN: INUV)
Inuvo, Inc., is an artificial intelligence and technology venture based out of Arkansas that focuses on services for the internet. The company utilizes AI to splice brand messages with consumer interests. Inuvo’s technologies are designed to enhance online advertising by making it more relevant to individual users, thereby increasing engagement and conversion rates.
Many of these technologies are proprietary, and Inuvo has 11 different patents to prove it. Inuvo’s product offerings include ValidClick, an online marketing service, and IntentKey, a customer recognition system. These advanced AI-driven solutions enable advertisers to reach their target audience more effectively, optimizing marketing budgets and improving ROI.
Inuvo’s media solutions have caught the interest of some big names in the tech world. This has allowed Inuvo to partner with Google to use its Web Search and AdSense on certain websites. Such partnerships highlight the company’s credibility and the effectiveness of its technology in the competitive digital advertising space.
Best Penny Stocks to Buy Now on Robinhood for the Long Term
Advantage Solutions Inc. (NASDAQ: ADV)
Advantage Solutions Inc. provides in-store marketing services, primarily managing free sample stands in grocery stores. Utilizing data and technology, it offers various services such as in-store and online sampling, digital commerce, and omnichannel marketing. The company operates across North America and has strategic presences in other global markets.
Advantage Solutions went public via a SPAC merger and has seen significant fluctuations in its stock price since then. The company has a solid recurring source of revenue through long-term partnerships with big-ticket consumer packaged goods (CPG) brands. This includes a high percentage of the top CPG brands and major retailers, providing it with strong data analytics on consumer behavior.
The firm is a long-term pick due to its earnings growth over recent years. Revenue has grown steadily, and the firm also has a strong free cash flow position to fund its operations. Advantage Solutions’ ability to adapt to market changes and leverage its extensive network could position it well for future growth.
Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE)
Faraday Future Intelligent Electric Inc. is an electric vehicle (EV) company aiming to revolutionize the automotive industry with its intelligent, connected electric cars. Founded with a vision to create cutting-edge vehicles, Faraday Future focuses on developing innovative designs equipped with advanced AI and connectivity features.
FFIE’s stock might be appealing for long-term investors due to its potential in the rapidly expanding EV market. The company has ambitious plans to disrupt the automotive industry with its state-of-the-art technology and innovative designs. Faraday Future’s vehicles are designed to provide a superior driving experience, combining performance, luxury, and advanced technology.
The company’s strategic partnerships and ongoing technological advancements could position it for significant growth in the coming years. As the demand for electric vehicles continues to rise, FFIE may benefit from this trend, making it a potential long-term investment.
Explore some other stocks leading the charge in the electric vehicle market.
Top Cannabis Penny Stocks (2024) on Robinhood
SNDL Inc. (NASDAQ: SNDL)
SNDL Inc., formerly known as Sundial Growers, is a Canadian cannabis company involved in the production, distribution, and sale of cannabis products. The company operates in the medical and recreational cannabis markets, focusing on premium products and strategic partnerships to drive growth.
SNDL’s stock is a popular choice for penny stock investors due to its low price and potential for growth in the burgeoning cannabis industry. The company’s efforts to expand its market presence and product offerings could contribute to its long-term success. SNDL has also made strategic acquisitions to diversify its portfolio and strengthen its market position.
The cannabis industry is known for its rapid developments and regulatory changes, which could lead to significant price movements. Investors may find SNDL appealing due to its potential for growth and the increasing acceptance of cannabis products globally.
IM Cannabis Corp. (NASDAQ: IMCC)
IM Cannabis Corp. is an international medical cannabis company with operations in Israel, Germany, and Canada. The company focuses on the cultivation, production, and distribution of medical cannabis products, leveraging its extensive experience and expertise in the industry.
IMCC’s stock may be attractive to investors due to its global presence and potential for growth in the medical cannabis market. The company’s operations in multiple countries provide it with a diversified revenue stream and reduce reliance on a single market. IM Cannabis has also established strategic partnerships and collaborations to enhance its product offerings and expand its market reach.
The medical cannabis industry is expected to grow significantly in the coming years, driven by increasing acceptance and legalization of cannabis for medical use. IMCC’s strong market position and strategic initiatives might position it well for long-term growth, making it a potential investment for those interested in the cannabis sector.
Take a look at our full list of cannabis penny stocks for more options.
Best Robinhood Penny Stocks in Biotech
Savara Inc. (NASDAQ: SVRA)
Savara Inc. is a biopharmaceutical company dedicated to developing therapies for rare respiratory diseases. The company’s primary focus is on its lead product candidate, molgramostim, designed to treat autoimmune pulmonary alveolar proteinosis (aPAP). This disease is characterized by the accumulation of surfactant in the lungs, leading to severe breathing difficulties.
Molgramostim has received Orphan Drug, Breakthrough Therapy, and Fast Track designations from the FDA, highlighting its potential significance in treating aPAP. The drug is currently in Phase 3 trials, a critical stage in clinical development. Savara’s commitment to addressing rare respiratory conditions could position it well for future growth, especially if molgramostim proves successful in its trials.
Savara’s strong cash flow position is projected to last until at least 2025, providing financial stability as it continues its development efforts. The company’s strategic focus on rare diseases, coupled with significant regulatory support for its lead candidate, makes it a noteworthy stock for investors interested in the biotech sector.
Acasti Pharma Inc. (NASDAQ: ACST)
Acasti Pharma Inc. is another biopharma company. They specialize in the development and commercialization of prescription drugs derived from omega-3 fatty acids. The company’s primary product candidate, CaPre, is aimed at treating severe hypertriglyceridemia, a condition characterized by very high levels of triglycerides in the blood, which can lead to cardiovascular diseases.
CaPre leverages Acasti’s proprietary technology to deliver a highly purified form of omega-3, which has shown promise in clinical trials. The company has completed several phases of clinical testing, and results have indicated that CaPre could significantly reduce triglyceride levels without the adverse effects commonly associated with other treatments.
Acasti’s strategic focus on addressing cardiovascular health issues with innovative therapies positions it well in the biotech sector. The company’s research and development efforts, combined with its proprietary technology, offer potential growth opportunities for investors. The market for treatments targeting cardiovascular diseases is substantial, and Acasti’s advancements in this area make it a compelling stock to watch.
Robinhood Penny Stocks Under 10 Cents for 2024
Unfortunately, stocks on Robinhood that trade for 10 cents or less do not last long. This broker has very strict rules for any penny stock it lists, and it delists them fairly quickly when they no longer meet the criteria.
So, if you’re looking for stocks under 10 cents on Robinhood, you may have to act fast. The good news, however, is that there are brokers that let you consistently trade 10-cent stocks on over-the-counter (OTC) markets.
Where to Buy Stocks for Less Than 10 Cents Besides Robinhood
If you’re looking to buy stocks for less than 10 cents, there are a few options available to you: Fidelity, TD Ameritrade, Charles Schwab, TradeStation, and Interactive Brokers all let you trade over-the-counter stocks.
OTC stocks are not subject to the same regulations as stocks on major exchanges, so they can be riskier investments. Be sure to do your research before buying any. Also, you’ll want to check if there is a minimum investment when buying low-priced stocks on these platforms.
Just because a stock costs $.10 doesn’t mean that they’ll let you just buy one—certain penny stocks may force you to buy a minimum of 100 shares in one go.
What Is a Penny Stock?
A penny stock is a low-priced publicly traded share of a company. These companies typically have a small or micro capitalization, but that’s not always the case. While penny stocks originally represented shares that were traded for a cent or less, now they are considered any stock trading below $5.
These shares are often traded on over-the-counter (OTC) markets rather than on major exchanges like the New York Stock Exchange (NYSE). Due to their low price and lack of liquidity, penny stock trading is considered a high-risk investment.
However, they can also offer investors the potential for high returns if the underlying company is successful. If you’re thinking of buying penny stocks, it’s important to do your research and understand the risks involved.
A good rule is to not put up what you can’t afford to lose.
What to Look for When Buying Penny Stocks
If you’re looking to trade penny stocks, there are some key factors that you want to investigate.
• Financials – Take a close look at the company’s financials before investing in their penny stocks. You’ll want to make sure that the company is in good financial standing and that they are not likely to go bankrupt.
• Management – Another important factor to consider is the company’s management team. Check to see if the team is experienced and has a good track record.
• Products – Research the company’s products or services. You want to make sure that the products are in demand and that the company has a good reputation (no solutions looking for problems).
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Competitors – Analyze the company’s competitors. This will give you a good idea of the various market trends and how the company’s penny stock is likely to perform.
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History – Research the company’s history. This will give you a good idea of how the company has performed in the past and what its future prospects are.
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Stock Activity – Review current market sentiment and past performance of a stock before buying in. For instance, if you find low-volume stocks that no one wants to trade, you might want to hold off.
These aren’t the only aspects that you’ll want to consider, but they are a good place to start.
How to Find Penny Stocks on Robinhood?
If you want to find penny stocks on Robinhood, all you need to do is set the cheap stocks filter for shares that trade for under $5. After that, you can buy the stocks through the broker like any other stock offered. With that said, many penny stocks are not offered on the Robinhood platform.
Check out this list of best Robinhood stocks under $2.
How to Choose Penny Stocks on Robinhood?
Let’s look at this step by step:
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Research Is Paramount – Before selecting the best Robinhood penny stocks, thorough research is essential. Use the Robinhood app to access company information, news articles, and consumer reviews.
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Identify the Catalyst – Look for the reason behind a stock’s movement. It could be a new product launch or a significant event impacting the company. This insight can help predict the potential direction of the stock.
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Volume Matters – High-volume penny stocks are more liquid, making them easier to trade. Use Robinhood’s tools to identify penny stocks with high average daily volumes.
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Assess Earnings Per Share (EPS) – If possible, opt for a stock with a positive EPS, indicating the company is currently profitable. If the EPS is negative, ensure the company’s debt level is manageable.
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Risk Evaluation – Penny stocks are inherently risky. They should form only a small part of your portfolio. Consider your risk tolerance and the duration you plan to hold the stock.
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Adopt a Robust Trading System – A solid trading system is crucial. This should include not only technical aspects but also the business side of trading. Ensure your trades align with your overall trading plan on Robinhood.
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Diversification Is Key – Don’t concentrate on a single stock. Spread your purchases across several of the top penny stocks on Robinhood in various industries. This strategy can help mitigate risk and potentially increase returns.
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Constant Monitoring – Keep a close watch on your chosen Robinhood penny stocks. Be wary of penny stock volatility. The market can change rapidly, and you need to be ready to react swiftly to maximize profits or minimize losses.
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Trust in Your Brokerage – Finally, using a trusted brokerage like Robinhood to carry out your trades will immediately put you on a strong footing. This will provide you with the necessary tools and resources to make educated decisions when choosing penny stocks.
How to Buy Penny Stocks on Robinhood?
Trading penny stocks on Robinhood is an exciting journey that involves a few key steps.
Step 1:
Start by accessing your Robinhood account and using the search feature to explore the “Trending Lists.” While Robinhood doesn’t offer a specific list for penny stocks, its versatile filters allow you to customize your search.
Step 2:
Opt for “New OTC securities” and arrange the list in ascending order to unveil the penny ADRs at your disposal. Robinhood’s user-friendly interface also allows you to set a maximum price filter of $5, showcasing all the best Robinhood penny stocks within this range.
Step 3:
Once you’ve discovered the most promising Robinhood penny stocks, you’re ready to invest. Robinhood makes this process seamless by allowing you to easily link your bank account or debit card to fund your account.
Step 4:
With your account funded, you can select the penny stock that aligns with your investment goals and choose your preferred order type. Robinhood offers a variety of options, including market, limit, stop loss, stop-limit, or trailing stop orders.
Specify the number of shares you’d like to purchase, review your order with Robinhood’s intuitive interface, and then confirm your investment.
Lastly, if you’re interested in day trading penny stocks on Robinhood, the platform has a clear policy to protect investors. Robinhood margin account holders can execute up to three day trades in a five-trading-day period. If this limit is exceeded, Robinhood’s protective measures kick in, preventing any day trades for 90 days unless your account value is above $25,000.
This is part of Robinhood’s commitment to promoting responsible trading.
Should You Buy Penny Stocks on Robinhood?
If you’re looking to explore and potentially buy penny stocks, Robinhood can be a solid starting point. The platform offers several features that are beneficial for trading penny stocks, but it also has limitations that may make you consider other options if you’re serious about penny stock trading.
Robinhood provides a user-friendly interface and offers commission-free trades, making it accessible for beginners. However, the selection of penny stocks on Robinhood is limited to those listed on major exchanges like the NYSE and NASDAQ, meaning you won’t find over-the-counter (OTC) stocks on the platform.
It’s worth starting with Robinhood to get a feel for trading penny stocks. As you gain more experience, you might want to explore other brokers that offer a wider variety of penny stocks, including OTC options.
Pros
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ission on penny stock trades
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Instant deposits facilitating quick penny stock trading
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Fractional shares of penny stocks available
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User-friendly interface for penny stock trading
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Day trading option for penny stocks
Cons
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Limited selection of penny stocks
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Day trading restrictions for penny stocks on accounts below $25,000
Robinhood Penny Stocks: Final Thoughts
Penny stocks are a high-risk investment, but they can also be very rewarding. If you want to buy penny stocks on Robinhood, make sure you do your research and understand the risks involved when trading penny stocks.
It’s also a good idea to diversify your portfolio by investing in other types of stocks and leveraging multiple trading strategies when trading penny stocks. Most experts recommend only exposing a small portion of your portfolio to riskier plays.
Robinhood Penny Stocks FAQ
What Penny Stocks Are on Robinhood?
Robinhood lists penny stocks that trade on major exchanges like the NASDAQ or NYSE. This means you won’t find over-the-counter (OTC) stocks on Robinhood. Some examples of penny stocks on Robinhood include Genius Group Limited (NYSEAMERICAN: GNS) and Inuvo, Inc. (NYSE: INUV).
Is Robinhood Good for Penny Stocks?
Robinhood is a convenient online broker for buying and selling penny stocks, as well as most other stocks. The platform offers commission-free trading and an easy-to-use interface, making it accessible for new and experienced investors alike. However, keep in mind that Robinhood only supports stocks traded on major exchanges like the NYSE or NASDAQ, so you won’t be able to trade OTC stocks on this platform.
Can You Get Rich Trading Penny Stocks?
Yes, it is technically possible to get rich trading penny stocks, but it comes with significant risks. Penny stocks are highly volatile and can experience large price swings in short periods. While there is potential for substantial gains, there is also a high risk of losing your investment quickly.
How Do Beginners Invest in Penny Stocks?
Beginners looking to invest in penny stocks should start with thorough research and a clear strategy. It’s advisable to begin with a small investment to test the waters. Additionally, finding a broker that allows paper trading can be beneficial. Paper trading lets you simulate stock trading without risking real money, helping you practice and refine your strategy before investing actual funds.
What Are the Risks of Investing in Penny Stocks?
Investing in penny stocks carries several risks, including high volatility, low liquidity, and the potential for significant losses. These stocks are often from smaller companies that may not have a long track record of profitability, making them more susceptible to market fluctuations. It’s crucial to do thorough research and understand the risks before investing in penny stocks.
What Should I Look for When Choosing a Penny Stock?
When choosing penny stocks, consider factors such as the company’s financial health, market position, and growth potential. Look for companies with strong fundamentals, solid business plans, and positive market sentiment. It’s also important to be aware of market trends and any news that could impact the stocks’ performance.
Can I Buy and Sell a Penny Stock the Same Day?
Yes, you can buy and sell penny stocks on the same day, a practice known as day trading. However, day trading penny stocks can be particularly risky due to their volatility. It requires careful analysis and quick decision-making to capitalize on short-term price movements. If you’re new to day trading, consider starting with small trades to minimize risk.
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