If you’re looking to start investing but don’t want to spend a lot of money, penny stocks are a great way to start. In this article, we’ll be discussing the best stocks under $2.
Generally, penny stocks are considered to be any stock under $5.
As a general rule, 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 on the stock market and look for stocks that have frequent spikes.
That being said, there are great companies in many different industries that currently have stocks trading at under $2.
Here are a few you should consider adding to your portfolio.
Best Stocks Under $2 To Buy
Pedevco (NYSE: PED)
Pedevco, short for Pacific Energy Development Company, is an energy firm headquartered in Houston, Texas.
The company looks to acquire and develop oil and natural gas properties in areas where modern techniques have not yet been applied.
Its most significant assets are currently in New Mexico and Colorado, and the venture has made some exciting expansions over the past year.
At the end of 2021, Pedevco brought two new horizontal oil wells online.
It has also taken steps to enhance its current assets for more efficient production through the use of more sustainable materials and processes.
Pedevco’s most recent earnings reports have been very promising, with huge jumps in revenue, net income, and earnings per share.
Oil prices are on the rise again, possibly explaining the recent share price spike in March.
Prices have cooled off some since, but Pedevco could be primed to take off as 2022 rolls on.
Bombardier, Inc. Class B (OTCMKTS: BDRBF)
Bombardier has a history of working in transportation, first developing snow vehicles before moving onto trains.
Since 1986, the company has invested in the airline space, acquiring Learjet in 1990.
Today Bombardier has several lines of jet aircraft, creating innovative and game-changing planes.
With over 5,000 aircraft already in service, Bombardier continues to engineer new models for the future.
The jet manufacturer repeatedly shares impressive financials, surpassing revenue expectations while bringing in over $1.5 billion each quarter.
Listing a market cap of $3.56 billion, Bombardier has more stability than most penny stocks as well.
Denison Mines (NYSEAMERICAN: DNN)
Denison Mines is a Canadian mining and exploration venture with a specific focus on uranium.
The company strives to be the first of its kind to provide uranium oxides at a low cost.
It has an effective 95% interest in the Wheeler River Uranium Project, the largest undeveloped area rich in uranium in northern Saskatchewan.
Denison also has joint ventures with other businesses throughout Canada.
This diversity will help protect the mining enterprise should one mine shut down for any reason.
Share prices have seen gains of 50% over the last year, kissing a share price of $2 at one point.
Even though revenue was down in the Q4 report, shares have already started trending upward again.
With a solid year of mining ahead, Denison could uncover higher than ever stock numbers.
Goodness Growth Holdings (OTC: GDNSF)
Goodness Growth Holdings is a cannabis holding company based in Minneapolis.
The company currently has two subsidiaries — Vireo Health and Resurgent Biosciences.
Vireo Health has four cannabis brands sold at dispensaries in Minnesota, New York, New Mexico, Maryland, and Arizona.
Goodness Growth purchased cannabis licenses in Nevada at the beginning of the year, allowing it to expand sales in the future.
Resurgent Biosciences focuses on developing natural medicines and technology.
Resurgent’s research has focused mainly on cannabis, but it has also indicated that it would like to expand into psychedelic medicine.
There is a movement in the U.S. to decriminalize or even legalize psychedelic drugs, although it is still in the early stages.
If Resurgent does move in this direction, the company could capitalize on this growing trend.
Vireo Health is looking to acquire Verano in the near future to tap into lucrative locations.
Goodness Growth saw an increase in revenue this last quarter but fell short of its goals.
Share prices have crossed the $2 threshold a few times already this year and look to do so again shortly.
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Best Tech Stocks Under $2
Globalstar, Inc. (NYSEAMERICAN: GSAT)
Globalstar is an American satellite company that provides communication, navigation, and Internet of Things solutions.
It is already heavily invested in several industries, including transportation, energy, commercial maritime, agriculture, safety, and forestry.
With 48 satellites in constant use around the globe, Globalstar can meet the needs of many sectors and consumers all at the same time.
It is rare to find a budding company with so many satellites already off the ground in this industry.
In addition to helping businesses stay connected, the company offers satellite radios and message devices to allow people to talk from anywhere on the planet.
Globalstar stock has seen some ups and downs over the last year but still sits 30% higher than last year.
The company is quickly positioning itself to be profitable in the near future and hopes to continue this trend.
Meta Materials Inc. (NASDAQ: MMAT)
Meta Materials develops highly functional materials and intelligent surfaces that are efficient, scalable, and sustainable.
These new technologies have already been put to use in electronics, 5G communications, aerospace, automotive, and more.
Meta’s products also serve anti-counterfeiting measures and authentification by using unique optic tech.
The company’s achievements have earned it accolades for innovator of the year in 2021.
Meta hopes to continue using its new technology in unique ways, as metamaterials interact with other forms of energy in never before seen ways.
Financials show steady increases in revenue as Meta invests back into itself to innovate and increase production.
Share prices seem quiet at present but could see an explosion if this tech takes off.
Best Biotech Stocks Under $2
Biotricity Inc. (NASDAQ: BTCY)
Biotricity was recently rated one of the world’s 50 most innovative companies.
The company is known for delivering remote biometric monitoring solutions to the world at large.
These products work to provide diagnostic and post-diagnostic solutions that deal with chronic conditions and create a better quality of life.
Devices like Bioflux monitor a patient’s heart rate in real-time, providing accurate feedback to the wearer and health specialists.
Some wearables promote healthy lifestyles, helping individuals stay heart-healthy through smart choices.
Biotricity’s innovations are bringing in solid revenue numbers, but these values are still a bit lower than expected.
The result is a downturn in share performance that can take off at any time.
Acasti Pharma (NASDAQ: ACST)
Acasti Pharma is a biotech firm with products in the pipeline to target diseases with unmet medical needs.
Of the three products currently being trialed, two look to move into phase 3 testing within a year’s time.
These yet unnamed drugs look to treat brain hemorrhaging and ataxia-telangiectasia, respectively.
A third medication for post-herpetic neuralgia should enter phase 2 testing this year.
The company has already generated over 40 patents to keep exclusivity well beyond the year 2036.
Without any products currently on the market, Acasti isn’t making money at this time.
However, with a share price under $2, any significant investment into the company can cause share prices to soar.
In addition, once a project is deemed safe and effective, the sky is the limit for how high gains can go.
Should You Buy Stocks Under $2?
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 genuine potential for them to double or triple in price in a relatively short period of time.
Investing in affordable penny stocks can have a big payoff if you’re strategic, as many of the world’s most exciting companies were once trading under $2 per share.
However, there are some things to be aware of when purchasing these affordable stocks.
These penny stocks are known for seeing a lot of volatility on the market.
A savvy investor can leverage this to make a nice return, although it’s unlikely that your penny stocks under $2 will eventually be worth thousands.
When buying stocks at these low prices, it is imperative 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.
Where to Buy Stocks Under $2
There are a limited number of sub $2 stocks on the major exchanges, as NASDAQ and the NYSE have specific requirements regarding the number of shares and trading volume to be listed.
If you want to peruse these markets, we suggest using Robinhood or Webull.
Robinhood is best suited for newer traders with its low-key user interface.
Webull speaks most to more experienced investors who want to dig a little deeper.
For OTC stocks, look to a trading app like Fidelity.
Fidelity offers commission-free trading for even the lowest-valued tickers.
Best Stocks Under $2: Final Thoughts
Stocks under $2 can be a great entry point for new traders.
These tickers exist in every sector and on every exchange.
It’s important to study potential picks before making an investment.
No matter how sure a pick may seem, always keep an eye out for volatility.
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Stocks Under $2 FAQ
Below we’ve answered the top questions surrounding stocks under $2.
What Are the Best Stocks Under $2?
We’ve shared with you our favorite picks for this price range.
Globalstar’s satellite reach is just starting to take shape as a major player in communication.
Denison Mines is just starting to scrape the surface of uranium deposits it’s invested in.
What Is the Best $1 Stock To Buy?
With so many stocks to choose from, we’ve listed GEE Group as one of our top picks right now.
The ticker is on the cutting edge of the job market and looks to grow in big ways. For more ideas, check out our best stocks under $1 guide.
What Is the Best $5 Stock?
Buzzfeed is an online media site that’s making waves at present.
We have several other picks in our best stocks under $5 article if social media isn’t your thing.
How Do I Find Penny Stocks?
Some penny stocks have enough volume to trade on NASDAQ or the NYSE.
Still, others are found on over-the-counter markets that are more subject to volatility.
No matter which way you go, a good trading platform will let you search for stocks that speak to you.
What Stocks Are Good for Beginners?
Penny stocks do tend to have volatility that can result in quick gains or large drops.
Stocks on the major exchanges outside of the penny stock range can offer a firmer foundation to invest in.