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 April 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 uses in cable sheathing, small arms, and low friction metals.
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 digging up precious metals like gold and silver soon.
Quarterly revenue reached $3.59, a significant improvement from last year. This is even more impressive considering antimony prices are down to nearly half the price. US Antimony also has gold, silver, and zeolite operations to help offset the drop.
Genius Brands International Inc. (NASDAQ: GNUS)
Genius Brands International owns the Kartoon Channel, a network for children’s media. The network has several shows, games, singalongs, and more that kids can enjoy. From its online platform, Genius Brands can distribute its content around the world.
In an attempt to become a major player in the industry, Genius Brands has appointed former executives from other children’s networks. For a stock currently worth less than $1, the company has a very high market cap of $233 million.
Financials show a considerable gain in revenue during the second quarter, reaching new heights for the company. Even so, share prices are down some from last year.
Genius Brands recently inked 20-year contract with Disney’s Marvel Studios should help set the stock back on track. The deal licensed the name and likeness of comic book superstar Stan Lee for use in films and television, as well as in Disney theme parks across the world. Disney claims similar deals could happen in the future.
With exciting content and strong leadership, Genius Brands looks to move to the next level.
Inuvo, Inc. (NYSE: INUV)
Inuvo is an artificial intelligence and technology venture based out of Arkansas that focuses on services for the internet. The company utilizes artificial intelligence to splice brand messages with consumer interests.
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 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.
The company’s revenue increased 79.3% YoY to $22.7 million. Sales of IntentKey and ValidClick, in particular, surged by 232% and 35%, respectively.
Looking ahead, top-line growth has been its major emphasis. The company is on target to produce positive adjusted EBITDA for the whole year.
The firm is well-positioned to fund its expansion organically, with over $6.0 million in cash and marketable securities and no debt. Inuvo plans to carry this momentum forward, taking its stock price up with it.
Best Penny Stocks to Buy Now On Robinhood for the Long Term
Advantage Solutions (NYSE: ADV)
Advantage Solutions (ADV) provides in-store marketing services, primarily managing free sample stands in grocery stores.
Utilizing data and technology, it provides various services like in-store and online sampling, digital commerce, and omnichannel marketing.
It operates across North America and has strategic presences in other global markets.
This firm went public via a SPAC merger in Oct’20 at a price of $10 per share. Its shares plummeted to as low as $1.13 but have since rebounded.
The company has a solid recurring source of revenue through long term partnerships with big ticket CPG brands. This includes 90% of the top 25 CPG brands.
It also has on board 75% of the Top 25 retailers. This provides it with strong data analytics on consumer behavior.
The firm is a long term pick for its strong earnings growth over the last three years.
Since 2020, revenue has grown steadily, and the firm also has a strong free cash flow position to fund its operations..
Pitney Bowes (NYSE: PBI)
Pitney Bowes is a 103-year old global company. It provides solutions in the areas of ecommerce, shipping, mailing, and financial services.
Their offerings include mailing systems, global ecommerce solutions, location intelligence, customer engagement, and shipping and returns.
Activist investor (Hestia Capital) got on the board of Pitney Bowes last year. Since then, the private investment firm has been pushing for a complete overhaul of the business.
This redo could possibly make an impact within this year, pushing up the stock price.
The firm has already announced that it is likely to cut its annual operating expenses significantly by end of 2024.
If earnings increase, this could be a major boost to profitability and possibly bring up stock price significantly.
Moreover, the best thing about PBI is that it offers a quarterly dividend, which means you get paid while the investment plays out in the long run.
Top Cannabis Penny Stocks (2024) on Robinhood
Sundial Growers Inc. (NASDAQ: SNDL)
Sundial is a Canadian company that makes cannabis products for recreational consumption. Many 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 it will use to appeal to different sectors of the cannabis market. The company completed its acquisition of Alcanna, Canada’s premier wine, spirits, and beer retailer, in March.
With this purchase, the hope is to incorporate cannabis products into beverages for sale in North America. It will be imperative for the company to find a solid entry point into the US market over the next few years.
There has been plenty of attention since cannabis was legalized in Canada. Sundial shares saw a considerable spike in March after the purchase but has slumped ever since.
Sundial has more than 420 million Canadian dollars in cash on its books as of the end of March. A gateway into the United States might inspire Sundial to explore acquisitions south of the border, boosting the Canadian-based company’s development potential even further.
Overall, Sundial remains one of the most popular stocks on Robinhood, as investors are particularly enamored with the cannabis sector right now.
India Globalization (NYSEAMERICAN: IGC)
India Globalization looks to pioneer cannabinoid research by developing wellness solutions through hemp-based pharmaceuticals. With headquarters in Maryland, the company has cultivation, testing, and research facilities in the United States, Colombia, and India.
After entering into cannabinoid research in 2014, India Globalization has developed a line of affordable products to meet various needs. These products are designed with a specific purpose in mind, such as treating pain or anxiety.
India Globalization also has a beauty and skincare brand and a line of CBD-based beverages. The company sits in a good place, as most states have now legalized medical cannabis use.
It’s likely a matter of time before the others follow suit, and cannabis has also been legalized in certain states for recreational use. However, just recently, IGC is granted a patent in the United States for a method and composition for treating seizure disorders.
Although it is still subject to further research and study, this gives a positive outlook for investors. India Globalization wants to be at the forefront with new products as more states pass laws to allow the use of cannabinoid oils and cannabis.
Best Robinhood Penny Stocks in Biotech
Ardelyx Inc (NASDAQ: ARDX)
Ardelyx is a biotech penny stock which already has a successful product on the market
Ibsrela (tenapanor) is a drug that was introduced by the company in March 2022. It is used to treat irritable bowel syndrome with constipation.
The FDA has recently accepted Ardelyx’s application resubmission for Xphozah (tenapanor) in May this year.
This drug is meant to control serum phosphorus (a mineral in our blood) in patients with chronic kidney disease on dialysis. With approval, this drug would be released later in the year.
Analysts are projecting a huge potential upside in sales if this happens.
The firm’s drug application for Tenapanor was also accepted by China’s Center for Drug Evaluation in July. It is possible that it could receive treatment drug approval in 2024, further strengthening its outlook.
Savara Inc. (NASDAQ: SVRA)
Savara Inc. is a biopharmaceutical firm focused on creating drugs for rare respiratory diseases.
Savara’s lead product candidate, molgramostim, is in Phase 3 trials right now. The drug is designed to treat aPAP.
This drug has already got an orphan drug designation and “breakthrough therapy and fast track designation” from the FDA for treating aPAP.
Savara expects data from its phase 3 trial of molgramostim by mid-2024.
In its recent quarterly report, it indicated that it has a strong cash flow position to last until 2025.
Robinhood Penny Stocks Under 10 Cents for 2024?
Unfortunately, stocks on Robinhood that trade for 10 cents do not last long. This broker has very strict rules for the penny stocks 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 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).
Competitors – Analyze the company’s competitors. This will give you a good idea of the various market trends and how the company’s penny stocks are likely to perform.
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.
Stock Activity – Review 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 Robinhood Penny Stocks?
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.
How To Choose Penny Stocks On Robinhood?
Let’s look at this step by step:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 Trade 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 to day trade 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 for a way to find penny stocks and trade them, Robinhood could be a solid option. That being said, your options are rather limited, so you might want to look elsewhere if you are a serious penny stock trader.
We listed some alternatives above that let you tap into a variety of penny stocks that you likely won’t be able to find on most platforms. It wouldn’t be a bad idea to start with Robinhood, test out the waters, and then shop around.
Let’s look at the specific advantages and drawbacks of buying Robinhood penny stocks:
Pros
- Access to US and OTC penny stocks
- No commission on penny stock trades
- Instant deposits facilitating quick penny stock trading
- Fractional shares of penny stocks available
- User-friendly interface for penny stock trading
- Day trading option for penny stocks
Cons
- Limited selection of penny stocks
- 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’re considering buying 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’ll need to trade over-the-counter (OTC) stocks with a different broker, as they are not offered by Robinhood. Penny stocks on Robinhood include Genius Brands International Inc. (NASDAQ: GNUS) and Inuvo, Inc. (NYSE: INUV).
Is Robinhood Good for Penny Stocks?
Robinhood is a good online broker for buying and selling penny stocks — or most stocks for that matter. However, the only drawback to trading penny stocks on Robinhood is that the platform only supports stocks traded on major exchanges like the NYSE or NASDAQ.
Can You Get Rich Trading Penny Stocks?
Yes, you can technically get rich trading penny stocks. That said, you can also lose your investment in the blink of an eye. This is because penny stocks are incredibly volatile and can swing wildly in price from one day to the next.
How Do Beginners Invest in Penny Stocks?
Trading penny stocks requires a lot of trial and error. A good way to test the waters is by throwing a few dollars at a stock or finding a broker that allows paper trading. Paper trading lets you test out your strategy on the stock market without risking your cash.
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