Before we get into the best stocks under $1, many traders will know that cheap stocks are a whole different breed.
People trade these stocks primarily because of their volatility. Penny stocks can dramatically increase or decrease in value over the course of a normal trading day.
For example, if a $0.10 stock increase to $1, you can make quite a bit of cash. So, what are the characteristics you are looking for in a decent stock under one dollar? Well, here are a few things to watch out for:
- Try to look for a quality exchange…if possible –When looking for a quality penny stock, try to find a quality exchange. We recommend tried and true options like the NYSE or Nasdaq. If you do see a stock on the OTC Markets, we think you should stick to the OTCQX, the highest tier of the OTC, and the clearest standards.
- Earnings per share – Now this may be hard to come by in the world of penny stocks, but it’s worth your time to check the EPS and see if the company is profitable. It should not be a dealbreaker, but it is good to know and might give you some level of comfort.
- Trading volume – Daily trading volume is a good indicator of if other traders are willing to buy. You want to make sure there is some solid volume. If you want to sell, you are going to need to make sure there is someone who will take the shares off your hands. Check the volume to make sure you have some liquidity.
Now that we have established a bit of a guidepost, let’s look at the best stocks to buy now under $1.
Best Stocks Under $1
Best Stocks Under $1 with Potential
These stocks are the most promising and best stocks under one dollar.
Oxbridge Re Holdings Limited (OXBR)
OXBR is a company that insures hurricane policies and reinsurance contracts in the Southeast. The company’s stock price has been depressed from an active storm season.
However, Oxbridge trades well below its net cash levels, and the firm grows at about an annualized rate of about $0.03 per share.
“We remain optimistic about the long-term prospects of our core reinsurance business as well as the prospects of the sidecar. In addition, we continue to evaluate additional opportunities for growth as well as diversification of risk,” said Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.
OXBR is a company to put in your portfolio. It makes sense especially if you want to play the other side of the green wave.
Plus, the stock is safe as its volatility is rather low and presents niche market value for the company’s intrinsic value.
Ideanomics Inc. [IDEX]
Ideanomics disclosed the acquisition of a stake in California-based Solectrac, Inc. this morning, and the announcement is driving some Wall Street buzz for the micro-cap electric vehicle firm.
Solectrac is an e-tractor company that developed, assembles, and distributes 100%-battery-powered electric tractors as an alternative to diesel. Ideanomics paid $1.3 million in considerations for a 15% stake in the company.
The transaction adds more value to the Ideanomics investment portfolio and opens the door for more collaboration down the road. Given the market’s voracious appetite for electric vehicle stocks, this company could have a bright future ahead of it.
NCS Multistage Holdings, Inc. (NCSM)
NCSM is a fracking equipment manufacturer and represents a growth play well into 2021.
Before I discuss the company’s sales and revenue, the real reason they make the list is that this year the company won a patent infringement case against Diamondback Industries, Inc.
NCSM is expecting a settlement of more than $34 million. To accompany this windfall, the company has been working hard to strengthen its balance sheet during tough times for the industry.
However, NCS Multistage is now a zero debt company (plus, over the last four quarters, the company has surpassed consensus EPS estimates two times), and while maybe there is a low demand for fracking equipment when the market rebounds, the company is primed for a nice jump in price.
Although, CEO Robert Nipper was bullish on a faster oil price recovery in the recent earnings call:
“While starting from a low base, I’m encouraged by the rebound and completion activity from the trough experience in the middle of the second quarter. And so far in the third quarter, we’ve seen an increase in demand in the U.S. for our frac plug product line as well as our tracer diagnostic services.”
We see its price target in the $0.87 range, which would bring some nice paydays…So, we are putting it down as an important penny stock under $1.
Best Stocks Under $1 That Pay Dividends
TransAtlantic Petroleum Ltd. (TAT)
We are adding several concussed energy stocks to our portfolio, and TransAtlantic Petroleum fits the mold of what we are looking for perfectly.
The Company holds interests in developed and undeveloped properties in Turkey and Bulgaria, and its shares are dirt cheap right now, and, to be honest, the company’s balance sheet is much improved.
TAT has no reason but to go up as the seasons’ change and the economy rebounds.
Our price target for TAT is around the $1.80 mark and at its current price that could not quite a haul— if oil prices cooperate and recent production cuts at OPEC+ don’t harpoon the price of a barrel.
Furthermore, TAT just announced $0.10 dividends per share.
Besides the dividends, we see long-term growth potential here for TAT and the stock price is just too tempting to pass up.
Biotech Stocks Under $1
Acorda Therapeutics [ACOR]
Acorda Therapeutics says its entitled to receive a $15 million milestone payment under its deal with Biogen International GMBH. That’s a hefty sum for a tiny company like Acorda. With a market cap of only $32.9 million, the payment represents almost half of the company’s valuation.
The payment stems from an earlier deal with Biogen that gave the larger, international drug firm license to distribute Acorda’s multiple sclerosis drug outside of the U.S. Under the terms of the deal, Biogen agreed to make additional milestone payments to Acorda if the drug sold well.
The milestone payment is a big deal for a tiny biotech firm like Acorda. ACOR went on a sharp rally when the company announced the milestone payment, and it could be headed for more big drug developments in the future.
Novan Inc. [NOVN]
This tiny health care firm’s experimental COVID-19 treatment, berdazimer sodium, looks good in the early phases of testing. Upbeat preliminary data from a lab experiment examining the nitric-oxide-based drug’s effects on human bronchial epithelial cells noted a 90% reduction in viral cells during a lab.
Novan said it’s finalizing an agreement with an unnamed drug-development firm to assist with the project. The firm hopes to file an investigational new drug application by next year.
NOVN rallied sharply on this news report, but we think it’s only the party is just getting started at Novan.
NASDAQ Stocks Under One Dollar
Miragen Therapeutics, Inc. (MGEN)
MGEN is a microRNA therapy company that is working across a wide swathe of diseases including leukemia/T-cell lymphoma.
The current financial situation has made gathering patients for trials somewhat challenging, so some of the company’s potential has been pushed even further back, and many shareholders jumped ship.
We do think the company’s pulmonary fibrosis candidate will announce preclinical results this year and that could lead to a solid pop for MGEN.
The treatment is called MRG-229 and the program is supported by the NIH and Yale University.
The company recently said this about the treatment: “We announced additional preclinical broadened safety and in vitro human efficacy data for MRG-229, which suggests that miR-29 replacement might represent a novel paradigm in the treatment of IPF (Idiopathic pulmonary fibrosis).
No doubt about it, the stock has been taking it on the chin this year, falling from highs above the $2 mark to where it currently sits, but we think there is potential on the horizon.
Our conservative estimate for MGEN is above the $3 mark.
Cheap Stocks To Buy Now Under $1 Dollar
Acasti Pharma Inc. (ACST)
ACST’s lead product candidate is CaPre, an omega-3 phospholipid therapeutic that is in Phase III clinical trial to treat patients with hypertriglyceridemia, and recent results were not what the company was hoping for, but there was triglyceride reduction, just not enough to warrant the trials being called a success.
While it may be counterintuitive to some to buy the stock while the company evaluates strategy, ACST is extremely cheap and there is more than one way to use the therapy with the clinical data that has been gathered.
Personally, I see value in buying the company now because shares are so depressed and CaPre can still have value.
There is an obvious risk in buying depressed assets like ACST, but as many a biotech traders has seen…therapies can be resurrected and repurposed quite easily…and share prices can awaken.
This tiny health care firm’s experimental COVID-19 treatment, berdazimer sodium, looks good in the early phases of testing, according to a company announcement in early October. Upbeat preliminary data from a lab experiment examining the nitric-oxide-based drug’s effects on human bronchial epithelial cells noted a 90% reduction in viral cells during a lab.
Novan said its finalizing an agreement with an unnamed drug-development firm to assist with the project. The firm hopes to file an investigational new drug application by next year.
NOVN made a sharp move on this news, and it could rally more once it names a drug-development partner. Stay tuned.
Best Stocks Under $1: Conclusion
Those are the best stock under a dollar that we recommend. We have tried to cover a wide range of catalysts and market events, so do your research and see which ones best fit your own portfolio’s profile.
Are there any stocks under a dollar that we missed? Are there any stocks with serious growth potential that we need to know about in the nano-cap or small-cap space? Let us know in the comments below.