With an effective strategy, investing in penny stocks under 50 cents can yield solid returns. But what are the best stocks under 50 cents with substantial volume and momentum? We’ve rounded up the best penny stocks under 50 cents to add to your investment portfolio.
Best Stocks Under 50 Cents
Tullow Oil (OTC: TUWOY)
Tullow Oil is a London-based gas and oil exploration enterprise with a particular interest in South America and Africa. The company currently has interests in 8 countries within those regions and over 30 licenses for exploration.
Furthermore, it sees the value of investing in these areas of the world through things like job creation and tax payments. In addition to exploring energy sources, Tullow Oil also develops and produces its own assets.
Tullow Oil is trending upwards in net income, earnings per share, and cash on hand, only narrowly missing revenue numbers from last year. These changes positively affect share prices, which sit nearly 15% higher than last year.
Tullow Oil made the headlines recently as the company agreed to take over its competitor, Capricorn Energy. The deal was worth around $826 million.
A new energy company with a focus on Africa and a market value of more than £1.4 billion will be created as a result of this agreement.
The merged company will own 1 billion barrels’ worth of resources in Africa and create a daily output of about 100,000 barrels of oil equivalent. It is predicted that the output would increase to 120,000 barrels per day by 2025.
As Tullow Oil continues to diversify its operations and expand its processes, it looks like it could be in a strong position moving forward.
Harvest One Cannabis Inc. (OTCMKTS: HRVOF)
Harvest One Cannabis is a creator and provider of self-care and wellness products that specifically target sleep and pain. The company manufactures products that are both infused and not infused with cannabis.
It accomplishes this through two subsidiaries, Dream Water and LivRelief. Dream Water is a portable drink that provides a natural blend of ingredients that helps the body get a good night’s sleep.
LivRelief is a series of creams designed to reduce pain and treat inflammation of joints, nerves, and muscles. These products are already on the market and seeing increased sales numbers in the United States and Canada.
Harvest One has recently released a line of edibles from both of these lines. The company did have a misstep with revenue this past quarter, generating less than it did during the same quarter last year.
Even so, investing now may be a great opportunity to get in on the ground floor of a unique market niche. This is because of the company’s continuous international expansions.
Most recently, it has signed a distribution agreement with Pharmtick Limited, a leading distributor in Africa, for an agreed term of three years. Globalization is one of Harvest One’s top priorities.
The reach of its brands has increased along with its e-commerce sales in North America. For Harvest One, opening up new foreign markets like those in Africa is a significant accomplishment.
Pharmtick has access to internet distribution in a number of significant African nations.
Akebia Therapeutics, Inc. (NASDAQ: AKBA)
The discovery and marketing of medications for people with kidney illnesses are the primary goals of the biopharmaceutical business, Akebia Therapeutics, Inc.
The company’s primary exploratory product candidate is Vadustat. This oral medication is in Phase III development for the treatment of anemia caused by chronic kidney disease (CKD) in adult patients, including those reliant on dialysis.
It also provides Auryxia, a ferric citrate used to treat iron deficiency anemia in adult CKD patients who are not receiving dialysis. It can also reduce blood phosphorus levels in dialysis-dependent CKD patients.
When it comes to its financials, the company saw an increase in revenue of its Auryxia product by 36% to $41.4 million compared to $30.3 million for the same quarter in 2021.
Akebia expects the net product sales of Auryxia to be in the range of $160 million to $170 million by the end of the year.
The company is profitable and can be a high-potential penny stock because it is a product-driven company with an FDA-approved product.
The market potential for the anemia indication is significant, and AKBA has already succeeded in Europe, so there is much room for growth in the United States.
Best Penny Stocks Under 50 Cents
Cineworld Group PLC (OTC: CNNWF)
Cineworld Group has emerged over the last 25 years as one of the top movie theater chains in Europe. The company also has a large presence in the United States which makes up nearly 70% of its revenue.
It also generates income through retail products and other means in addition to box office purchases. 2018 saw the purchase of Regal Entertainment Group to grow Cineworld’s size immensely.
Regal is just one of several subsidiaries that fall under Cineworld’s umbrella. With over 9,300 screens, Cineworld is the second-largest cinema business in the world. Cineworld is still working off its debt from the Regal purchase but is steadily chipping away each month.
Looking to the future, Cineworld looks to continue expansion to new areas to maximize exposure. In addition, the company continues to boost profit as spring and summer blockbuster movies come to theaters.
Due to a great lineup of movies coming out towards the end of 2022 and pent-up demand for out-of-home entertainment, Cineworld’s revenues increased by $1 billion in the previous year.
Total sales increased by 112 percent to $1.8 billion from $852 million in 2020, but they were still far behind the $4.37 billion pre-pandemic in 2019 figure.
In addition to increasing customer admissions by 75.3% to 95.3 million in 2021, it also reduced its yearly losses to $565.8 million at the same time.
Spanish Mountain Gold Ltd. (OTC: SPAZF)
Spanish Mountain Gold isn’t located in Spain but is on the hunt for gold. The company has 100% ownership of a gold project in south-central British Columbia. It recently finished a feasibility study for the mine, revealing approximately 14 years of life.
Concurrently, Spanish Mountain Gold is actively pursuing other resources for future expansion. Gold holds a lot of value, and companies mining it often reap the benefits. Getting onboard with Spanish Mountain Gold now could spell big dividends when mining begins.
The biggest reason is that the company is already in production. It is cash flow positive and has a strong balance sheet.
Spanish Mountain Gold has made arrangements with all three First Nations whose traditional territories encompass the project region.
It has signed Engagement Agreements or started negotiations on Life-of-mine Relationship Agreements during the previous six months.
This means that the company has already completed a significant portion of the work required to obtain project approvals.
The share price is dirt cheap right now, meaning there’s plenty of room for upside potential. The company has a market cap of just over $46 million, which is peanuts compared to some of the bigger gold miners.
Stocks Under 50 Cents On Robinhood
Northern Dynasty Minerals Ltd (NYSE American: NAK)
Northern Dynasty Minerals Ltd is a Canadian mining company with enough volume to earn itself a spot on the NYSE American Stock Exchange. The company heads the Pebble Project, tasked with discovering and mining rhenium, gold, silver, copper, and molybdenum.
Anchored in Alaska, Northern Dynasty Minerals states this is the world’s largest untapped concentration of these metals. The project is further designed to provide jobs and economic boosts to Alaskans.
With a market cap of $139.35 million, the company has a stronger foothold and some increased stability. Heavily invested in the U.S. economy, Northern Dynasty Minerals hopes to create new jobs while reducing the United States’ reliance on foreign copper.
With its Pebble Project nearing its approval from the US Environmental Protection Agency, Northern Dynasty Minerals Ltd looks primed for a rebound.
The US may be able to lessen its reliance on copper imports. This is thanks to the Pebble Project’s abundant copper deposits as demand rises in support of the EV boom and the country’s shift from an oil-based to a green economy.
Investors feel Northern Dynasty Minerals Ltd. (NYSE:NAK) has promise because it is a near $150 million market cap company with an interesting project in Alaska.
The Pebble Project is one of the largest undeveloped copper resources in the world. The company has been working on this project for over a decade, and it looks like it might finally get approval to begin mining.
This could be a big boost to the company and its share price. If you are looking for a penny stock that might have some potential, Northern Dynasty Minerals Ltd (NYSE:NAK) is worth taking a closer look.
Once the company starts mining, it has the potential to reach great heights.
Should You Buy Stocks Under 50 Cents?
Many people avoid investing because they think they can’t afford to get started. However, penny stocks come with a more accessible price point. It’s important to note that investing in penny stocks isn’t going to make you rich right away.
You’ll need a good understanding of the market and the risks involved to make successful trades with penny stocks. When looking at penny stocks at this price point, you’ll want to look at stocks that have consistent daily volume.
A higher trading volume makes a stock far less subject to volatility. When trading volume is too low, just one trade can affect the stock’s share price. Another factor to look at when investing in stocks under 50 cents is the company’s financial history.
Recent earnings reports, acquisitions, and other deals can send shares moving up and down. Since the stock market is very cyclical, you can watch trading patterns to determine when to buy low and sell high. An excellent way to find new penny stocks is by using a stock screener.
With a stock screener, you can scan for solid stocks that meet your trading criteria. Tools like this can help you find the best possible investment for your goals and strategies to ensure you never miss a profitable trade.
They can also help you find OTCBB stocks and pink sheet gainers you might not have heard of before. Many of these stock screeners will allow you to sign up free, but some do charge a monthly fee.
If you’re looking for affordably priced stocks and have a strong risk tolerance, these under 50 cents penny stocks could be a good choice for you.
Where to Buy Stocks Under 50 Cents
You will find yourself a bit hard-pressed to find stocks under 50 cents on the major exchanges, as these require a certain number of shareholders and share volume. If you plan to see what’s available on markets like AMEX, we recommend using Robinhood.
This platform offers a very intuitive approach to scanning for stocks, making it easy to locate those under 50 cents. That being said, most of these low-cost stocks spend their time on the over the counter (OTC) markets.
To access these, you’ll need to sign up for a comprehensive program like Fidelity. Once you’ve registered, you’ll have access to many more markets at your fingertips than those like Robinhood or Webull that only look to the most popular ones.
Stocks Under 50 Cents: Final Thoughts
These stocks under 50 cents are hidden gems with exciting potential. You can never predict exactly what’s going to happen with the stock market. However, all of these companies have exciting things in the works that could help them break out of the 50 cent range.
Stocks Under 50 Cents FAQ
Here are answers to some of the top questions for stocks under 50 cents.
What Stock Should I Buy for 1 Dollar?
We have our favorite picks around the dollar mark right in our best stocks under $1 article. The GEE Group and Sundial Growers are showing a lot of promise for future growth. These companies are both undervalued and have potential to grow significantly in the next few years.
We’re watching Harvest One Cannabis as it expands its product line.
Similarly, Tullow Oil has been seeing gains and looks to continue moving in that direction. Tullow has been exploring new drilling sites, and with oil prices on the rise, that could mean big things for this penny stock.
Does Robinhood Allow Penny Stocks?
Robinhood only lists stocks that trade on the major exchanges. It can be tricky to find penny stocks that meet their stringent listing requirements, but they are out there.
There are still penny stocks that are listed on NASDAQ, like AKBA Therapeutics, which is currently trading at under 50 cents a share.
What Stocks Are Up and Coming?
Stocks under 50 cents can see huge swings in short order. That said, we like what we see with Harvest One Cannabis and Tullow Oil. Harvest One Cannabis has seen its stock price jump significantly in the past few months, while Tullow Oil has several promising projects in Africa.