When it comes to the best stocks under $1, many traders are aware that cheap stocks are a whole different breed. These stocks flourish primarily because of their volatility. Penny stocks can dramatically increase or decrease in value over the course of a typical trading day.
These low-cost stocks are low for a reason and should be investigated accordingly.
While some penny stocks represent companies on the verge of bankruptcy, others represent new beginnings and companies looking to grow.
Read on to see our top picks for the best stocks under $1 to buy now.
Best Stocks Under $1 with Potential
RiceBran Technologies (NASDAQ: RIBT)
RiceBran Technologies grows and cultivates high-quality ingredients from ancient grains.
Its namesake product, rice bran, is produced from the conversion of brown rice to white rice.
This product is full of essential fatty acids, B-Vitamins, Vitamin-E, natural sugars, carbohydrates, and dietary fiber.
The company works to incorporate these healthy grains into innovative products that both kids and adults will love.
Minimal processing goes into preparing these grains for sale, and the entire process is cost-effective.
RiceBran Technologies also benefits from being sustainable and environmentally friendly.
The stock has seen some ups and downs this year but did break through the $1 mark for most of the summer.
RIBT recently recorded another quarterly report of positive revenue, net income, and earnings per share.
Should this trend continue, RiceBran Technologies shows a lot of growth potential moving forward.
Parks! America (OTC: PRKA)
Parks! America is the parent company of Wild Animal Safari Park, with locations in Georgia, Missouri, and Texas.
As the name implies, Wild Animal Safari brings the thrill of an African safari experience to North America.
Parks contain hundreds of acres of land and contain many animals seem on the African plain.
Each of these parks is a drive-through experience undertaken either with your own vehicle or via a guided tour bus.
The company’s Texas park opened in just 2020 and looks to continue expansion in other areas.
Each park has been profitable and looks to continue on this trend.
Share prices have been a bit stagnant of late as second and third quarter financials didn’t deliver.
However, Parks! America expects revenue gains of $1.5 million in 2021 and forward momentum from there.
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Best Stocks Under 1 Dollar That Pay Dividends
Chesapeake Granite Wash (OTC: CHKR)
The Chesapeake Energy Corporation runs a trust with a current market cap of $31.8 million.
The trust owns royalty interests from Chesapeake’s oil and natural gas operations in Oklahoma.
Despite this stock’s low share price, it pays a consistent dividend of approximately $0.02 per share annually.
Its share price has seen steady gains throughout 2021, with a nearly 200% increase.
Right now, the company has a massive dividend yield of 20.82 percent.
Chesapeake Energy also has a very low price-to-earnings ratio, which sits under 10 right now.
This low ratio means that the stock is very cheap when compared to its most recent earnings report.
The oil and natural gas industries have been very volatile this past year, which investors will want to watch out for with this stock.
However, the dividends may make it an attractive pick for some investors.
Best Biotech Stocks Under $1
Aeterna Zentaris Inc. (NASDAQ: AEZS)
Aeterna Zentaris works in the biopharmaceutical sector with locations in South Carolina, Canada, and Germany.
The company strives to create a variety of products that focus on areas of unmet medical need.
Its signature drug, Macimorelin, is the only approved oral diagnostic for adult growth hormone deficiency.
This medication has already been FDA-approved in the United States and was approved by the European Commission.
Aeterna Zentaris also has several drugs in the preclinical phase to treat diseases.
Although many products are still in the concept stage, the company is seeing growth in revenue and net income.
Its share price is currently $0.42, up 10% from last year at this time.
Although its other medications are still years out from release, Macimorelin already has Aeterna Zentaris moving in the right direction.
Aikido Pharma Inc. (NASDAQ: AIKI)
Alkido Pharma is an American company with over 50 years of experience in the pharmaceutical industry.
Today, it features a portfolio of drugs that treat pancreatic cancer, prostate cancer, and two types of leukemia.
All these drugs are still in the clinical trial stage but are demonstrating favorable results.
The biotech firm also licenses an antiviral platform created to battle the efficacy of multiple viruses, including influenza and the coronavirus.
Branching out from anti-cancer and antiviral treatments, Alkido recently secured an interest in Kerna Health, an up-and-coming telehealth company.
The company also invested in Tevva Motors Ltd, a venture that is slated to make electric trucks.
Although it has no revenue to speak of at present, Alkido is actively seeking out ways to bring in the green.
Should any of its assets hit the market, share prices will likely see a significant increase.
Best Marijuana Stocks Under $1
Nextleaf Solutions Ltd. (OTC: OILFF)
Nextleaf Solutions is a Canadian company that focuses on extracting oils from dried cannabis.
These oils are used in vaping products, edibles, and other infused products.
Such products are viable alternatives to smoking and have become very popular over the last several years.
Nextleaf gives cannabis companies easy access to these oils without having to invest in distilling technology.
Right now, it has both U.S. and international patents for its extracting process.
As demand for infused products increases, Nextleaf could provide an essential service to up-and-coming cannabis companies.
Nextleaf is still a very new company, so it will take time for them to become profitable.
However, it fills an attractive space in the cannabis market that makes the company very intriguing and one of the best penny stocks in its industry.
At just $0.15 per share at present, it is a very appealing pick.
Sundial Growers (NASDAQ: SNDL)
Sundial Growers is a Canadian enterprise based in Calgary that handles the sale of cannabis products to adults in the country.
While there are strict laws in place for the production, distribution, and sale of cannabis in Canada, the substance is legal.
Nearly half the states in the U.S. have also legalized the product, and many more states are making paths to do the same.
Talks about federal legalization in the United States will only help Sundial Growers moving forward.
The company is not waiting for this to happen and is actively pursuing growth on its own.
It acquired Spiritleaf Retail Cannabis Network over the summer to expand its reach and capabilities in the industry.
Sundial looks to move its brand into other parts of the world as well.
In October, the grower also acquired the beer, spirit, and wine retailer Alcanna to add a cannabis-based line of drinks.
Share prices are hanging out around $0.56 at present and have seen minimal growth since last year.
While marijuana stocks are subject to a lot of legislation at present, it’s clear that Sundial will be at the forefront of whatever happens moving forward.
Best Energy Stocks Under $1
Gran Tierra Energy (NYSE AMERICAN: GTE)
Gran Tierra Energy is a Canadian company with oil and gas operations worldwide.
Some of the company’s most extensive operations are in Ecuador and Colombia.
Although the energy market struggled through 2020, it has picked up again as the world returns to normal.
This swing has ultimately increased the demand for oil and gas.
Gran Tierra did have to stop production at times during 2020 due to COVID restrictions, but it has managed to keep its oil reserves stable to keep up with demand.
Some investors think this energy stock might be undervalued, given its production and earnings.
International oil and gas prices have gone up significantly this fall, which has caused Gran Tierra Energy stock to rally.
Analysts are excited about the prospect of higher revenues for these oil and gas companies.
If this stock continues to rally, it could push out of the $1 range.
Investors will want to act quickly to take advantage of this upswing.
Cheap Stocks to Buy Now Under 1 Dollar
United States Antimony Corporation (NASDAQ: UAMY)
United States Antimony is a natural resource company with a primary focus on antimony.
The company mines, transports, mills, smelts, and finally sells antimony to the consumer.
It is a true end-to-end process that United States Antimony has been performing since 1968.
Further, it is the only company that smelts antimony in the entire country, making its services quite desirable.
Antimony is commonly used in modern medicine and cosmetics.
To diversify, the company also mines precious metals and zeolite.
United States Antimony has three different mills and a smelter in Mexico with a refinery and smelter at its headquarters in Montana.
It has danced around the $1 share price line a few times, even crossing over it for a stretch earlier in 2021.
Share prices are still staying up at around $0.54, a 25% increase from a year ago.
Its unique position as the only antimony smelter in the U.S., increases in revenue and net income, and lots of cash on hand make this stock very appealing.
Should I Buy Stocks Under $1?
Stocks under one dollar are appealing to new traders and experienced traders alike.
Investing in the right penny stock can generate significant gains when going from $0.10 to $1.
Day traders can also play off a penny stock’s volatility to make money off quick buys and sells.
When searching for penny stocks, do consider a few things before making an investment:
If possible, check a company’s earnings per share to see if it is profitable.
While not a dealbreaker, profitable companies will offer a little more security.
A high trading volume indicates investors are buying the stock, a good indication of a safer investment, and the opportunity to sell if the need arises.
Where to Buy Stocks Under $1
When it comes to stocks under the one dollar mark, it’s usually best to stick to the major exchanges.
NASDAQ and the NYSE have specific requirements that companies must meet pertaining to equity, assets, and volume.
These requirements mean less risk when investing in penny stocks.
Robinhood and Webull both have the means to scour these major exchanges for the best stocks under $1 out there.
Both platforms have commission-free trading and give free stocks just for signing up.
Robinhood is positioned for traders of all types with a simple user interface and educational tools.
Webull, on the other hand, has more sophisticated tools under the hood that will benefit more experienced traders.
If you want to check listings on the OTC markets, brokers like Fidelity offer the ability to do so.
Best Stocks Under $1: Final Thoughts
Stocks under $1 offer a low-cost way to get into the stock market and provide opportunities for gains
A shift from $0.50 to $1 essentially doubles your investment.
The best stocks under $1 on this list are putting things in place to break out of the penny stock range.
We have tried to cover a wide range of catalysts and market events, but do your research to see which ones best fit your own portfolio’s profile.