The 8 Best Stocks Under $2 To Buy For July 2021 !

Sarah Foley - June 10, 2021

Best Stocks Under $2
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If you’re looking to start investing, but don’t want to spend very much money, penny stocks are a great way to start.

Generally, penny stocks are considered to be any stock under $5, but in this article, we’ll be discussing the best stocks under $2.

By this, we mean that these stocks are over $1 but under $2 in price.

All of the stock prices discussed in this article are as of December 2020.

Check out this Stocks Under $1 article for even cheaper picks.

Should You Invest In Stocks Under $2?

Investing in affordable stocks can have a big payoff if you’re strategic.

In fact, many of the world’s most exciting companies were once trading under $2 per share.

Investors on a budget can purchase full shares of these stocks without any sticker shock.

However, there are some things to be aware of when purchasing these affordable stocks.

The first is that penny stocks tend to be very volatile.

This isn’t necessarily a bad thing, but they are much more subject to the ups and downs of the market.

To profit off of these penny stocks, you’ll need to ride these waves. Look for stocks that have frequent spikes.

This way, you can use a short term investment strategy, buying shares when they’re low and then selling them when they spike for a profit.

Another downside of these stocks is that they don’t always trade in high volumes, which further contributes to that volatility.

Low volumes also mean that the stock isn’t very liquid.

In general, when choosing penny stocks you’ll want to look for companies with a volume of at least 500,000.

There are great companies in many different industries that currently have stocks trading at under $2.

Here’s which ones you should consider adding to your portfolio.

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Best Stocks Under $2 To Buy

Caixabank offices

Caixabank (OTC: CAIXY)

Caixabank is a Spanish financial services company with over 5,000 branch locations throughout Spain.

In addition to banking, they also offer insurance products.

Caixabank has a diverse portfolio of investments, including stakes in energy and telecommunications companies. 

Many expert analysts are excited about Caixabank stock, which has gone up steadily since November.

This is because they have been able to keep their income stable despite the current economic crisis, and they have managed to remain profitable as well. 

Caixabank has also committed to keeping a healthy balance sheet, as they have plenty of free cash flow on hand.

The company prioritizes financial stability, which is often a good indicator of a worthwhile investment. 

Because Caixabank is a penny stock, it can be somewhat volatile when compared to other stocks in the financial industry.

However, the stock does see good volume on a day-to-day basis.

Volume is key when trading penny stocks – if a stock has low volume, each individual trade will affect the stock’s price more dramatically. 

CES Energy Solutions (OTC: CESDF)

CES Energy Solutions is a Canadian energy company.

They create drilling fluids and other chemicals that assist in oil and gas production.

They have a full range of products to assist with the entire production process from drill to pipeline.

Additionally, they provide support services like fluid disposal as needed. 

The energy market struggled during 2020 as a result of mandated shutdowns.

Many people were using their cars less often, so global demand for oil and gas products was down.

However, the energy market is starting to return, which bodes well for companies like CES Energy Solutions. 

Their stock has slowly made a comeback since the beginning of November.

Since CES Energy provides chemical products and support services, their share price isn’t directly tied to the price of raw oil and gas.

This is a huge benefit for investors because it reduces the chances of ongoing volatility. 

Some analysts believe CES Energy is a very strong buy right now given their recent earnings report.

Oil prices are also starting to become more stable after a year of volatility, which could bode well for this company. 

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Pedevco (NYSE: PED)

Pedevco is an energy company based in Houston, Texas.

The company’s biggest assets are currently in New Mexico and Colorado, and they have made some exciting expansions over the past year. 

In the first quarter of 2021, Pedevco brought two new horizontal oil wells online, and they’ve also taken steps to enhance their current assets for more efficient production. 

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This has been very exciting to investors and has resulted in steady growth in their stock price.

Pedevco’s most recent earnings reports have also been very promising.

They’ve managed to increase their revenue significantly year-over-year and also have increased the amount of cash they have on hand. 

On top of that, the energy industry in general is making a recovery after struggling due to the COVID-19 pandemic.

Oil prices are increasing, which should help Pedevco’s earnings numbers even more. 

Pedevco is an oil stock with plenty to offer moving forward.

If you’re looking for an affordable stock in this sector, Pedevco may be a good fit for you.

Best Tech Stocks Under $2

Tantech Holdings logo

Tantech Holdings (NASDAQ: TANH)

Tantech is a Chinese technology and manufacturing company.

They produce charcoal products made from bamboo, which have a number of applications in energy, technology, and consumer goods. 

One of the reasons this stock is so exciting right now is because they have an electric vehicles department.

Their products can be used in electric vehicle batteries and work as alternative energy sources.

They also have subsidiaries that produce electric cars and other autonomous vehicles. 

Tantech stock spiked in November as a result of huge buzz around the electric vehicle industry.

Although the stock quickly dropped back down, it’s still trading for a higher price than it was at this time last year. 

In addition to their electric vehicle segment, Tantech also has a consumer products division.

This division sells barbecue charcoal as well as charcoal-based deodorants.

This diversifies their operations and provides a consistent stream of revenue. 

This is a stock to keep an eye on as the electric vehicle market continues to grow.

It may be a long-term play, as it will take time for electric vehicles to become fully mainstream. 

Globalstar (NYSE: GSAT)

Globalstar is a satellite communications company based in the United States.

Their low-orbit satellites power satellite phones and other data systems. 

This stock has been quite volatile since the beginning of 2021.

Their share price spiked due to a very volatile broader market, but has been up and down since then.

However, this stock spiked by more than 40 percent in one day on April 26th, causing investors to take notice. 

This is likely because the CEO of Globalstar recently gave a presentation at a conference about the company’s recent progress.

There were several exciting points in the presentation.

In particular, their Internet of Things division has been growing very quickly.

The company also sees potential for their LTE market to grow as well. 

The market for satellite communications service is continuing to grow at a fast pace.

Globalstar is a company that can really benefit from this if they make good use of their existing satellite network.

Best Biotech Stocks Under $2

Zomedica logo

Zomedica (NYSE: ZOM)

Zomedica is a pharmaceutical company that focuses on animal health and wellness.

Their leading product, Truforma, helps veterinarians complete diagnostic tests more easily. 

The animal care industry is one that has plenty of opportunity for growth.

People care deeply about their pets and want them to have the same quality of care that humans have. 

One of the reasons this stock is so exciting is because of the attention they’ve received on Reddit recently.

Redditors have been particularly excited about penny stocks, and this trend caused a huge amount of market volatility back in February. 

Recently, Zomedica announced that they would be transitioning to a direct sales business model, instead of selling through distributors.

This caused a temporary drop in price, but towards the end of April, their share price started increasing again. 

This is likely because Reddit stocks as a whole have been pushing higher.

The trend of Reddit trading doesn’t seem to be going away anytime soon, and investors who are willing to take a risk could potentially benefit from it as the market starts moving upward again.

Senestech Inc. (NASDAQ: SNES)

Senestech is a biotech company that creates pest control products.

Specifically, their products reduce fertility in pest populations to keep them from reproducing.

Their ContraPest product works on black and brown rats, and is designed to reduce infestations in urban areas. 

This company takes a very unique approach to pest control, which has helped them stand out among other agricultural biotech companies.

ContraPest is not hazardous to handlers or to other wildlife species, which makes it an environmentally friendly option for pest control. 

Senestech stock has gone up slightly since the beginning of 2021, although it still has plenty of room to grow.

However, some institutional investors have started buying this stock, which could bode well for their future. 

In January, Senestech raised $10 million through a direct stock offering of over 4 million shares.

They plan to use the money for their general corporate expenditures. 

The stock dropped in price slightly after the direct offering.

Shares have been quite volatile since then, so investors will need to be cautious with this company.

However, the company’s unique product offerings could speak for themselves in the long run. 

9 Meters Biopharma logo

Evofem Biosciences (NASDAQ: EVFM)

Evofem Biosciences is a biotechnology company that focuses on women’s sexual and reproductive healthcare.

This is an area of the market that has been historically underserved, and Evofem aims to develop products that innovate and improve women’s lives. 

Evofem currently has one FDA-approved product on the market.

The product, Phexxi, is a non-hormonal contraceptive gel.

There aren’t many non-hormonal options for birth control available right now, so Phexxi addresses a unique need.

This is particularly important because many women experience uncomfortable side effects as a result of the hormones in birth control. 

The company also has two product candidates currently in development.

Both of these candidates would prevent common infections women experience. 

Evofem stock has been performing very well in May and early June and appears to be on a strong upward trajectory.

An SEC filing has indicated that Morgan Stanley recently opened a position in Evofem, which is likely to push the stock price up even higher. 

An investment from a big firm like Morgan Stanley is very encouraging for this small but growing company.

They also recently raised $50 million in capital, which should help them stay financially stable as they grow.

Best Stocks Under Two Dollars: Final Thoughts

Buying stocks under $2 can be a good way for new investors to get into trading without the initial financial risk.

While these stocks don’t cost much, there’s a very real potential for them to double or triple in price in a relatively short period of time.

A savvy investor can leverage this to make a nice return, although it’s unlikely that your $2 stock will eventually be worth thousands.

When buying stocks at these low prices, it is very important to research the company ahead of time.

You should have a good understanding of their business model and their recent performance before adding them to your portfolio.

In particular, you should look at their volume, as well as their volatility over the past year or two.

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Sarah Foley is a freelance content writer based in Chicago. She covers finance as well as real estate, technology, pop culture, and more.