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

Sarah Foley - March 29, 2021

Best Stocks Under $2
The Stock Dork is reader supported. We may earn a commission, at no additional cost to you if you buy products or signup for services through links on our site.

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.

Wondering where to buy the stocks listed in this article? Check out WeBull! You’ll find all the stocks listed here, and you’ll even get a free stock just for signing up. They’re a user-friendly trading platform with no commissions.

>> Breaking: The Top Growth Stocks For 2021 Revealed <<

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. 

GTT logo

GTT Communications (NYSE: GTT)

GTT is an internet and telecommunications company based in Virginia. They operate an IT network, which provides internet hosting and infrastructure services. 

This past year has proven that the internet is only going to become a bigger part of our lives over time. GTT’s infrastructure network is a backbone for web assets around the world. 

They have a massive network that provides services to people in over 140 different countries. Additionally, they provide managed network services as well as voice services. 

GTT Communications stock has struggled over the past year, and has not been able to break out of the $2 range. However, many analysts believe that shares are undervalued given their current cash flow. 

Because of this, we’ve seen a small bump in their share price toward the end of March. Should this company continue to perform well financially and maintain a large global market share, they could break out of the penny stock range. 

>> The 5 Growth Stocks To Buy For 2021 <<

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 the 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 even just 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. 

Steel Connect Inc. (NASDAQ: STCN)

Steel Connect is a company with a long history in the internet sector. Today, they work with software clients to provide supply chain services. However, they’ve been in business since 1968, albeit with several name changes since then. 

Steel Connect was known as CGMI in the 1990s and was one of the best performing stocks on the market during that time. They invested in a number of web businesses, most notably the GeoCities web hosting platform. 

The company eventually had to restructure after the burst of the dot-com bubble in the early 2000s. This is how they eventually ended up at their current structure, which has remained sustainable. 

Steel Connect’s stock price has remained low for the better part of the last decade. However, after the struggles of the last year, share prices are finally starting to improve. 

A company called Steel Partners already has a significant stake in Steel Connect. In November 2020, they indicated that they plan to purchase Steel Connect in its entirety. Since then, their share price has gone up significantly. 

Depending on how the merger moves forward, we could see Steel Connect’s share price push up even further in the future.

Best Biotech Stocks Under $2

China Pharma Holdings (NYSE: CPHI)

China Pharma Holdings caught the market’s attention recently with a strong fourth-quarter earnings report. While their total revenue remained steady year over year, they managed to drastically cut down on their operational losses. 

This is a giant step forward towards eventual profitability that analysts hadn’t predicted. Their losses in 2020 were $2.6 million, compared with losses of $20.4 million the year before. 

To keep their income steady during the challenges of COVID-19, China Pharma Holdings pivoted to developing disposable masks, respirator masks, and hand sanitizer. 

They also own Hainan Helpson Medicine & Biotechnique Co., which develops treatments for cardiovascular problems. 

This penny stock initially spiked in price in February. This was due to general market volatility as well as interest from investors in Chinese stocks. Their stock price jumped up again at the end of March when they released their 2020 earnings report.

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. However, the stock could increase in price shortly, especially given the fact that this direct offering could increase their financial stability. 

>> These 5 Stocks Could Be Poised For Major Growth In 2021 <<

9 Meters Biopharma logo

9 Meters Biopharma (NASDAQ: NMTR)

This biopharmaceutical company focuses on treatments for rare gastroenterology conditions. They are currently focusing on celiac disease and short bowel syndrome. Right now, there are very few treatments available for either of these conditions. 

Right now, their celiac treatment is in phase three of trials, while their SBS treatment is in phase two. They also have three other products in their pipeline that are currently in earlier phases of their clinical trials. 

9 Meters stock jumped up substantially in mid February as a result of strong performance in their trials. However, their share price has since gone down from its peak. Now could be the time to buy this stock, before their celiac disease treatment is fully approved. 

At the end of March, the company announced that they would be launching a common stock offering. This should improve their cash flow, as they could generate a large amount of cash quickly. 

>> Want In On The Top 5 Growth Stocks For 2021? Our Top Picks Here <<

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.

Are you looking for even more stocks under $2? Check out Trade Ideas. This exciting software can help you find great stock picks with minimal effort. It uses cutting-edge AI technology to help you find great new trades.


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