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 increases 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. It’s the highest tier of the OTC and has 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 other traders‘ willingness 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.
Looking for some higher priced picks? Check out the best stocks under $10.
Now that we have established a bit of a guidepost, let’s look at the best stocks under $1 to buy now!
Best Stocks Under $1 with Potential
China XD Plastics Company Ltd. (NASDAQ: CXDC)
The Chinese market is full of investment potential, especially when it comes to penny stocks. China XD Plastics is a company that develops composite polymer materials.
These products are used mostly in automotive manufacturing. The company supplies noteworthy car brands around the world, such as Toyota, Audi, BMW, and more.
Global demand for cars has been up in 2021. The coronavirus pandemic is slowing down, and many people are starting to resume their normal commutes again.
However, not everyone is willing to risk taking public transit, hence the need for more cars.
This increase in demand has been great for China XD Plastics. This stock shot up in early August, although it has cooled off since then.
This could also be due to recent changes in the car manufacturing industry.
Auto manufacturers are anticipating a shortage of microprocessors, and are trying to push out as many vehicles as possible before this hits to avoid supply issues.
If you’re interested in trading Chinese penny stocks, this is definitely one to look out for.
Although it has dipped recently, there’s plenty about this company that makes it worth watching. The car industry is massive, and China XD Plastics is a supplier of some of the world’s largest brands.Wondering where to buy the stocks listed in this article? Check out Webull! Webull is an excellent trading app for beginnings and experienced investors alike. They have zero fee trading, and you'll even get a free stock (valued up to $1600) just for signing up!
Superior Drilling Products Inc. (NYSE: SDPI)
Superior Drilling Products is a small company in the oil and gas sector based out of Utah.
SDP does not drill for oil and gas themselves. Instead, they make products that other companies use to drill for gas. Additionally, they make other types of machinery, which are used mainly for manufacturing.
While oil and gas companies struggled last year during the COVID-19 pandemic, consumers are finally back out on the road.
This increased demand for oil and gas products also means that there will be more demand for Superior Drilling Products.
Superior Drilling Products’ second-quarter financial report was a very promising one. Their revenue has gone up 40 percent and is up $1.4 million from the year prior.
Additionally, they’ve been able to improve their market share and have a presence on more rigs throughout the world.
This company’s stock price has been relatively stable over the past several months, without much activity up or down.
However, these recent financial results show that this company has promise.
This is an oil and gas stock under $1 to keep your eye on – you never know when this stock could break out.
Best Stocks Under 1 Dollar That Pay Dividends
Chesapeake Granite Wash (OTC: CHKR)
The Chesapeake Energy Corporation runs this trust, which currently has a market cap of $24.6 million.
The trust owns royalty interests from Chesapeake’s oil and natural gas operations in Oklahoma.
Despite this stock’s low share price, they pay a consistent dividend of approximately $0.02 per share annually.
Their share price was slowly declining for a six-month period in 2020, but started to pick up again in December. This stock grew dramatically in price throughout the early summer, although it has fluctuated since then.
Right now, the company has a massive dividend yield of 17.26 percent.
They also currently have a very low price to earnings ratio, which sits under 10 right now. This means that the stock is very cheap when compared to their most recent earnings report.
The oil and natural gas industries have been very volatile this past year, and that is something that investors will want to watch out for with this stock.
However, the dividends may make it an attractive pick for some investors, which is why this is one of the best stocks under $1!
Biotech Stocks Under $1
Even gold misses the mark.
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Oragenics Inc. (NYSE: OGEN)
Although a large percentage of the US population has been vaccinated against COVID-19, the virus is still at the forefront of many people’s minds. The rise of the Delta variant has shown just how far we have to go when it comes to getting out of the pandemic.
This is where companies like Oragenics come in. They are currently developing their own version of a COVID-19 vaccine.
Right now, over 40 percent of people in the US have still not received a COVID-19 vaccine of any kind. There are also many other countries where vaccines are less accessible.
This means there’s still plenty of room in the market for Oragenics’ vaccine if it makes it to the market in time.
The company has recently partnered with the National Research Council of Canada to work on further vaccine development.
This vaccine is the only product that Oragenics is working on right now, which means that investing in this stock does come with some risks.
However, for investors with a high risk tolerance, this could be an interesting pick moving forward.
Also Read: Trade Ideas Review
Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
Tonix Pharmaceuticals is a New York City pharmaceutical company that focuses on treatments for immunological and central nervous system conditions.
Some of the therapeutic areas they are currently focusing on include post-traumatic stress disorder, fibromyalgia, major depressive disorder, and agitation in Alzheimer’s disease patients.
All of these are common conditions that currently have limited treatment options. If Tonix Pharmaceuticals could bring any of their drugs in the pipeline to the market, this could be life-changing for these patients.
Tonix is also working on a single-shot COVID-19 vaccine, as well as products to treat ‘long COVID’ symptoms.
There has been a lot of excitement among investors about this ‘long COVID’ treatment, as we are seeing the negative effects of the Delta variant in the US right now.
The FDA has been discussing approval for Tonix’s COVID treatments, which certainly bodes well for their future success.
Although there are already some vaccines and treatments for COVID-19 on the market right now, the pandemic is far from over. Bringing these treatments to the global market could potentially be very lucrative for Tonix Pharmaceuticals.
The company recently released their second-quarter earnings report.
Investor reactions were positive and Tonix stock price temporarily jumped up more than 10 percent.
The company currently has more than double the cash and cash equivalents that they had six months ago, indicating that they are in a more secure financial position.
They are also expanding their research and development facilities in New Bedford, MA and Frederick, MD.
Tonix is often considered a meme stock because of its popularity among retail investors on Reddit.
Investors will want to monitor the news around this stock closely. Timing your investment well can help you benefit from the ups and downs of this stock.
Best Marijuana Stocks Under $1
TILT Holdings (OTC: TLLTF)
TILT Holdings is a company that offers products and services for marijuana brands. They provide essential support for the rapidly growing cannabis industry and help their clients adjust to shifting regulations.
The largest company in TILT’s portfolio is Jupiter Research, which designs and manufactures vaporization technology.
Their other brands include Standard Farms, a medical marijuana grower in Pennsylvania, and Commonwealth Alternative Care, which makes and distributes cannabis products in Massachusetts.
In the Canadian market, they own Sante Veritas Therapeutics, which owns processing facilities in Vancouver as well as their own marijuana brands.
In addition to owning these brands, TILT works with cannabis companies around the world. They assist with both production and distribution – two operations that can be difficult for small cannabis companies to scale up.
This stock has been trading sideways for the last few months – can it break out in the second half of 2021?Looking for more stock picks? Get a new trade every week for free with Trade Ideas. Trade Ideas sends you a new pick every single week along with the reasoning on why it could be ready to break out. Sign up for free right here.
Plus Products Inc. (OTC: PLPRF)
Plus Products is a cannabis company based in California. They specialize in gummies and other edible products.
Demand for edibles has been increasing. Many people want to enjoy the benefits of cannabis without the dangers of smoking or vaping.
Right now, Plus Products has a line of CBD wellness gummies. Because they don’t contain any THC, customers anywhere in the US can buy them.
It’s likely that more states will legalize marijuana over the next few years. As the market for recreational marijuana products gets bigger, Plus Products could expand their line of edibles.
Investors should note that buying any marijuana penny stock is risky, as this sector has been quite volatile. However, this is an interesting option for those who are willing to take a risk.
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 their biggest operations are in Ecuador and Colombia.
The energy market struggled through 2020. However, many investors are bullish on the market as travel is starting to pick up again around the world, increasing demand for oil and gas.
Gran Tierra did have to stop production at times during 2020 due to COVID restrictions, but they’ve managed to keep their oil reserves stable to keep up with demand.
Some investors think this energy stock might be undervalued given their production and earnings. Their stock price has gone up significantly since the beginning of the year, but is still less than $1.
Looking for other investment ideas? Make sure to check out our Louis Navellier Growth Investor Review.
Cheap Stocks To Buy Now Under $1 Dollar
Investview Inc. (OTC: INVU)
Investview is a fintech company that aims to make investing and financial success more accessible to everyone. They currently do this through three different brands.
Their first brand, iGenius, is a full suite of financial education tools. They help their clients learn how to invest, with a focus on cryptocurrencies and other unique investment opportunities that aren’t always considered accessible.
Their other brands are SAFETek, which provides access to high-performance data technology, and SAFE Management, which is a registered investment adviser.
In recent years, many consumers have been looking for accessible investing tools and solutions. People of all ages and backgrounds are looking to get into investing, and Investview’s tools could be helpful.
Additionally, the economy is starting to recover, which means consumers will have more money to put towards their investments.
In recent months, Investview has shifted their focus to ndau, a form of adaptive cryptocurrency. They are a major investor and partner in ndau.
For investors willing to take a risk on the cryptocurrency market, Investview is a very interesting pick.
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.
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