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 and gas prices worldwide increased at the end of September, causing Pedevco’s stock to spike through October.
Prices have cooled off some since, but Pedevco is primed to take off as 2022 settles in.
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 significant gains of 120% over the last year, kissing a share price of $2 at one point.
These favorable results likely stem from strong financial numbers in the third quarter of 2021.
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.
Goodness Growth saw an increase in revenue this last quarter but fell short of its goals.
With so much forward momentum, this may be the calm before the increase that pushes Goodness Growth to new heights.
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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.
These successes have caught the eye of investors, and Globalstar stock is up 250% from its place last year.
The company is quickly positioning itself to be profitable in the near future.
Creative Realities (NASDAQ: CREX)
Creative Realities is a large-scale provider of digital marketing content to various organizations.
The company works with customers to develop signs with digital content based on their needs.
These signs can appear anywhere from social media to physical kiosks and even Times Square.
Currently, Creative Realities manages a network of over 8,000 of these nodes around the country and in some international markets.
With a desire for growth, Creative Realities looks to merge with Reflect Systems to boost business potential.
The digital marketing venture’s stock has been surfing some major waves of late, settling in about even for the last year.
Financial reports are looking strong, with gains in net income, earnings per share, and cash on hand throughout 2021.
Revenue values, however, have slightly missed their mark of late.
Creative Realities may appeal to day traders for its volatility, but long-term traders may want to jump on board before the merger takes the company to a new level.
Best Biotech Stocks Under $2
ReWalk Robotics (NASDAQ: RWLK)
ReWalk Robotics is an Israeli enterprise that manufactures exo-suits individuals use to rehabilitate from lower limb disability.
The futuristic-sounding technology is the only post-stroke gait training solution of its kind.
ReWalk Robotics has two products that cater to this specific need – The ReStore™ Soft Exo-Suit and the ReWalk™ Personal 6.0 Exoskeleton.
The ReStore™ Soft Exo-Suit sits below the knee and records metrics that help with long-term repair.
More of a full-body suit, the ReWalk™ Personal 6.0 Exoskeleton fits the entire body to return strength to the legs.
Recent financials reflect positive growth in revenue, income, and cash on hand, beating goals for the quarter.
This positive mobility should transfer over to share prices in short order.
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.