Cheap share prices allow smaller-budget investors to load up on shares and, therefore, get a bigger payoff if the shares gain value. Owning more shares creates greater risks and greater rewards, and stocks under 1 dollar are affordable enough for small-budget traders to get in on the action. Based on our research and reviews, these are the greatest stocks under $1:
Best Stocks Under $1.00 for 2020
For more low-cost opportunities, be sure to check out the best penny stocks, best stocks under 5 dollars, the best stocks under 10 dollars and this one about lithium: https://www.thestockdork.com/lithium-stocks/.
In this brief article, we will explore some of the best stocks under $1, and teach you the skills you need to find them on your own.
The Best Stocks Under $1 That Could Take Off In January 2020
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FuelCell Energy, Inc. (FCEL)
Up 48.62% Yesterday
Market sentiment towards FuelCell is shifting to bullish and share prices are rallying. After trading for around 30 cents for months, FCEL is finally beginning to show signs of life. Yesterday’s pop was noticeable, but this stock has been on a tear for a couple of weeks. It’s up over 189% in November, and there could be more to come. This stock was trading for as high as $10 per share last February, so there is still plenty of potential upside.
What’s got the market so bullish? New executive leadership is implementing a new transformation strategy that is getting the street excited. FuelCell just completed a lengthy restructuring round that downsized some of its businesses and implemented better cost control measures.
It recently secured financing of an 8-year, $200 million corporate loan to facilitate its capital structure and fund further growth. Additionally, FuelCell entered into a two-year joint development project with ExxonMobil to enhance its carbon capture technology.
Keep an eye on this stock because there could be more gains to come.
Verus International Inc. (VRUS)
This stock went on an incredible rally in the past 12 months. It’s up over 600% over the past 52 weeks, but there could still be upside potential for this micro-cap food supplier. Verus supplies food products to customers across the Middle East and Africa.
Verus’s financials show strong growth. Last quarter, the firm grew quarterly revenues by 137% YoY. Overall revenues for the year also grew significantly, they’re up 116% in the trailing 12 months. Revenue growth averaged about 38% over the last 5 years. That’s a pretty solid track record for performance. If you’re interested in this dirt cheap penny stock, be aware that the company plans to announce its quarterly earnings on September 10th.
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Imaging3, Inc. (IGNG)
Imaging3 primarily operates through a wholly-owned subsidiary, Grapefruit Boulevard Investments, Inc. Grapefruit is a licensed distributor of cannabis products in the State of California.
Grapefruit operates on the supply end of the cannabis spectrum. The company produces and refines cannabis ‘honey oil’ and ‘trim’. Both products sell as base cannabis commodities that are used in a variety of products, including vaporizer fluid, topical creams, edibles, and more.
The City of Desert Hot Springs just issued permits to Grapefruit to open its extraction lab earlier this year, clearing the regulatory hurdle for the company. In addition to Grapefruit’s current offerings, management predicts the company will launch proprietary THC and CBD-infused mints by the end of the year.
If the company launches its new products without a hitch, it could be a positive catalyst for the stock. Also, the cannabis sector is rebounding across the board, so macro momentum could push share prices even higher. Cannabis stocks tend to move as a group so, if the rally continues, it could be a short-term tailwind for IGNG.
Carl Data Solutions Inc. (CDTAF)
Carl Data is a high-tech data-as-a-service firm that operates in both Canada and the U.S. The firm provides data systems and software for infrastructure facilities, like water reservoirs, dams, and oil & gas pipelines. Its systems utilize industrial IoT assets, AI management systems, and other advanced automation technologies.
This stock rode a wave of positive sentiment to new all-time highs earlier this month. Carl Data landed several headline deals over the past few months that pushed shares higher. The firm made its biggest headline yet last week when it landed a huge government contract with the British Columbia as part of its ‘supercluster’ project. Shares gained over 40% since news of the contract first broke on September 3rd.
Customers love this company’s technology, CEO Greg Johnston says Carl Data has a 97.5% renewal rate. Carl Data is consistently landing big contracts and customers love the product. That’s a great fundamental foundation for any business.
Body and Mind Inc. (BMMJ)
The last of the cannabis stocks on our list this week, Body and Mind (BaM) develops and produces marijuana for medical and recreational use. The firm operates in several states, including Nevada, California, Ohio, and Arkansas. BaM produces dried flower, edibles, oils, extracts, and vape cartridges.
This stock went for a wild ride this year. It’s down over 60% from its April highs, but shares look like they are finally starting to pick up after a long consolidation around $0.65. BaM’s expansion plans offer plenty of potential headline catalysts down the road. If cannabis stocks continue to pick up steam, it won’t take much to get investors interested in BMMJ again.
Universal mCloud Corp. (MCLDF)
Infrastructure stocks that combine IoT and AI solutions are attracting a lot of attention on Wall Street. Universal mCloud is a good example of a company that’s making the right moves. The firm provides asset management solutions for energy infrastructure, buildings, and other hard assets. mCloud boasts a respectable portfolio of over 100 blue-chip customers.
mCloud invested a lot of growth capital this year. The firm completed its acquisition of Fulcrum Automation Technologies and Autopro Automation in July. During mCloud’s 2nd-quarter earnings call, the firm reported quarterly revenue growth of 36% and YoY growth of 443%. The market loved the report, the stock is up over 13% since the first open following its release.
More Cheap Stocks
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The Pros Of Trading Stocks Under $1
Typically stocks under 1 dollar receive little to no coverage by Wall Street analysts. That means they are volatile in nature. However, it’s this volatility that creates tremendous opportunity to see extraordinary returns.
On February 3, 2017, UBI Blockchain Internet LTD (OTC: UBIA) was trading at around $0.55 per share.
In less than 8 months, the stock traded as high as $115 per share. If you bought $1k worth of stock back on February 3 and sold the highs on December 15, you would have made over $200K in profits.
The potential returns are extremely attractive when you can get in for cheap. Stocks that trade for under one dollar give every trader the power to generate big gains.
Robinhood stocks under $1
Robinhood, a commission-free broker, does not support OTC stock trading. For this reason, using Robinhood to trade stocks under one dollar can be a little prohibitive.
With that said, there are still many cheap stocks, trading for under $1, that can be traded using Robinhood. The problem is that you can only trade exchange-listed stocks, like those trading on the NASDAQ and NYSE, so there aren’t many stocks under $1 to choose from.
Don’t worry, if you’re a Robinhood trader you can still trade many of the picks on our list. Just look for the stocks listed that trade on NASDAQ or NYSE and you should be able to find them on your Robinhood app.
Don’t have Robinhood? Signup with my invite code and get a free stock. It’s 100% free and there are zero account fees or trade commissions.
Why Do Stocks Under $1 Sometimes Fly?
These companies don’t have a lot of institutional ownership, so these stocks get practically no media attention and go virtually unnoticed by the general public. This atmosphere of indifference creates opportunities for savvy traders that are willing to do their own research.
You can find stocks trading for less than $1 on all of the major stock exchanges, including the NYSE, Nasdaq, and AMEX. In order for a company to list on the NYSE and NASDAQ, they must first meet certain accounting and compliance metrics. However, listing on an OTC market gives smaller companies more flexibility, so many of the best stocks trading under $1 are not listed on the major exchanges.
The Negative Side To Trading Stocks Under $1
Most analysts don’t bother with cheap stocks, so it’s up to you to do your own research. Many “analyst” opinions of these stocks come from newsletters and bloggers. Most of them are not professionally qualified to give you financial advice, so you shouldn’t place too much importance on many of the analyst ratings floating around the internet for these stocks.
You have to become savvy at reading press releases, earning statements, and financial documents to play in this space effectively. That’s where most of the information on these types of companies can be found. Unreputable companies will often issue press releases to pump up their share prices. However, genuine press releases often give shareholders important information that can have a big impact on share prices.
If you’re new to trading it will take some time before you’re able to differentiate hype from genuine, useful information.
How To Find The Best Stocks Under $1
Read and follow trends. The fastest-moving penny stocks are ones that are “trending.” If you spot a hot sector or a stock that has had an explosive upside move, look for companies in the same sector that have yet to follow the trend. For example, UBI Blockchain Internet LTD. skyrocketed after the parabolic rise of bitcoin. For most traders, it was easier to buy shares in UBI than to buy actual bitcoin. As a result, traders scrambled into UBI to try and get in on the craze.
The OTC Market website is a good place to state. You can easily see the largest gainers and losers in the OTC markets. Look for stocks that are in the same sector making big gains. Then, look for other stocks in the same sector that have not yet followed along with the uptrend. You can also join Stock Dork Alerts to get trending stocks and market news delivered directly to your inbox.
Be wary of social media. There are jewels of knowledge that are hidden amongst the deluge of armchair opinion on social media platforms, like Twitter and StockTwits. However, always consider the source and always do your own due diligence. Make sure to visit the company website and verify cited facts with legitimate sources. If you’re searching for companies trading on the major exchanges, you can use a scanner like one found on finviz.com.
ALWAYS HAVE AN EXIT STRATEGY. If you’re buying a stock for a quick trade, don’t fall in love with your position. Ride the wave and move on. If the share price doesn’t behave as you expected, don’t hesitate to exit your positions.
I hope these quick tips can help you find your own cheap stocks under $1! But, we want to know what you think! What stocks under $1 are you keeping an eye on? Leave a comment below and let us know whether you’re trading or fading dollar stocks.