Investing in penny stocks under $5 on Webull can offer unique opportunities for significant returns, but it also comes with its own set of challenges.
These low-priced Webull stocks under 5 dollars are often characterized by high volatility and market fluctuations, which can make them risky investments.
However, Webull provides a solid platform for trading these stocks as it only lists companies on major exchanges, offering a more curated selection compared to over-the-counter (OTC) stocks.
Despite the potential risks, there are some promising stocks trading under $5 that might be worth exploring.
By conducting thorough research and utilizing Webull’s tools, traders can identify stocks with growth potential and develop a clear investment strategy.
In this article, we will highlight some of the best penny stocks on Webull, providing insight into their business models and market prospects.
Best Webull Stocks Under 5 Dollars (Up to Date List)
DatChat, Inc. (NASDAQ: DATS)
DatChat, Inc., is a tech company based in New Brunswick, New Jersey, that specializes in blockchain, cybersecurity, and social media.
The company offers a unique messaging platform focused on privacy and data protection, providing users with an alternative to traditional social networks.
One of the key factors that makes DatChat an attractive penny stock is its involvement in emerging technologies such as Web 3.0 and NFTs.
The company is actively developing platforms that aim to enhance privacy in digital communication and protect digital assets, making it a relevant player in the evolving tech landscape.
Additionally, DatChat’s consistent trading volume and news catalysts have attracted attention from traders looking for opportunities in hot sectors like blockchain and cybersecurity.
The company’s innovative approach and market potential might make it a compelling choice for those interested in penny stock trading.
Sundial Growers Inc. (NASDAQ: SNDL)
Sundial Growers Inc. is a vertically integrated cannabis company operating across cultivation, processing, and distribution in Canada.
As of May 16, 2025, SNDL closed at $1.3101, remaining well below the $5 threshold for Webull penny stocks.
Sundial’s core business is the production and sale of cannabis flower, pre-rolls, and vape cartridges under its SUN and Pure Sunfarms brands, leveraging its large-scale greenhouse facilities to drive cost efficiencies.
The company reported Q1 2025 earnings on May 1, 2025, where revenues grew by 12% year-over-year to $86.4 million, driven by higher wholesale shipments despite continued pricing pressures.
Institutional and retail interest may rise ahead of its next earnings release, as Wall Street analysts maintain a “Buy” consensus with an average 12-month price target of $4.86 (median), implying ~271% upside from current levels.
MarketBeat’s single covering analyst forecasts a consensus price target of $3.63, up 168.5%, reinforcing bullish sentiment if cannabis demand continues its recovery.
Despite past legal and compliance challenges, Sundial regained NASDAQ compliance in early 2025, which broadens its investor base and improves liquidity metrics; average daily volume stood at 1.35 million shares as of May 16, 2025.
On the balance sheet, SNDL ended Q1 with $45 million of cash and $210 million of debt, yielding a net leverage ratio of 3.8x—down from 4.5x in Q4 2024—after cost-cutting measures and asset monetizations.
The company’s long-term strategy includes expanding its retail footprint through partnerships and investing in high-margin derivative products to offset commodity pricing declines.
Regulatory catalysts include potential U.S. federal reform, which, if enacted, could unlock significant uplifts by opening the largest cannabis market.
Key risks are the continued overproduction in Canada, downward pricing pressure, and evolving provincial regulations that can affect wholesale volumes and margins.
Overall, at $1.31, Sundial offers a sub-$5 entry into a recovering cannabis sector, underpinned by cost leadership and improving compliance credentials.
BioAtla, Inc. (NASDAQ: BCAB)
BioAtla, Inc., is a clinical-stage biopharmaceutical company dedicated to developing novel antibody-based therapeutics for the treatment of cancer.
With a focus on innovative products, BioAtla aims to improve patient outcomes and offer investors a stake in the burgeoning biotech sector.
The company’s proprietary platform, Conditionally Active Biologics (CAB), enables the creation of antibodies that are activated in the tumor microenvironment, potentially improving the efficacy and safety of cancer treatments.
This cutting-edge approach has garnered attention from investors and industry experts alike.
BioAtla’s strategic partnerships and collaborations with leading pharmaceutical companies further enhance its growth potential.
As the company advances its pipeline of therapeutic candidates, it may offer investors opportunities for substantial returns in the competitive biotech market.
NovaBay Pharmaceuticals, Inc. (NYSE American: NBY)
NovaBay Pharmaceuticals is a clinical-stage biopharmaceutical company specializing in synthetic anti-infective compounds for ocular and wound-care applications.
As of May 16, 2025, NBY trades at $0.59 on NYSE American, comfortably under Webull’s $5 cutoff.
Founded in 2000 and headquartered in Emeryville, California, NovaBay’s flagship product, Avenova, is FDA-cleared for eyelid and lash cleansing in blepharitis treatment, while NeutroPhase targets necrotizing fasciitis wounds, illustrating a diversified eye- and wound-care pipeline.
Trading at a market capitalization of $3.43 million and a 24-hour volume of ~13 000 shares, NovaBay remains micro-cap territory with limited liquidity, which can amplify volatility in both directions.
However, insider buying by a 10% owner—31,703 shares purchased on April 15, 2025—signals confidence in near-term prospects amid steady R&D progress on novel anti-infective candidates.
The company’s projected quarterly revenue of $13 million by December 31, 2025, suggests a potential 446% increase over current levels, driven by anticipated Avenova adoption in new markets and expanded NeutroPhase licensing deals.
On the financial front, NovaBay reported a prevailing P/E ratio of –0.2 due to ongoing R&D expenses outpacing revenues, but the 52-week share range of $0.36–$9.10 underscores both past volatility and potential for sharp rebounds if clinical milestones are met.
Zacks highlighted the insider purchase and maintained a “Hold” rating ahead of the May 2025 earnings preview, where analysts will focus on progress in FDA communications for late-stage trials.
Catalysts include upcoming trial readouts for next-generation anti-infectives, potential FDA approvals, and partnership announcements that could validate NovaBay’s synthetic compound platform and drive licensing revenue.
Key risks involve clinical trial failures, regulatory setbacks, and the company’s limited cash runway, which may necessitate dilutive financing if milestones slip.
Overall, trading at $0.59 with micro-cap dynamics, NovaBay offers a speculative sub-$5 play on novel infection-control therapies, underpinned by insider support and a diversified, FDA-validated product suite.
Plug Power Inc. (NASDAQ: PLUG)
Plug Power Inc. is a leading provider of hydrogen fuel cell solutions that are transforming the energy landscape.
As a key player in the renewable energy sector, Plug Power is committed to driving innovation and sustainability through the development of hydrogen-based energy solutions for a variety of applications, including transportation, material handling, and stationary power.
The company’s focus on hydrogen fuel cells aligns with the global shift towards cleaner energy sources and efforts to reduce carbon emissions.
By offering alternative energy solutions, Plug Power is well-positioned to capitalize on the growing demand for sustainable technologies, making it a potentially compelling choice for investors interested in the future of energy.
Plug Power’s strategic investments in research and development, along with its partnerships with major companies in the automotive and logistics industries, provide it with a competitive advantage.
The company’s commitment to expanding its market presence and scaling its operations underscores its potential for long-term growth and profitability.
Investors looking to diversify their portfolios with companies that have a strong focus on renewable energy may find Plug Power an attractive option.
Platinum Group Metals Ltd. (NYSEAMERICAN: PLG)
Platinum Group Metals Ltd. is a mining company with a focus on platinum and palladium, essential materials used in various industrial applications, including catalytic converters and next-generation battery technologies.
Based in Vancouver, the company operates a significant mining project in South Africa, leveraging the region’s rich mineral resources.
Platinum Group Metals’ commitment to innovation is evident in its efforts to develop advanced battery technologies utilizing the minerals it extracts.
This forward-looking approach could position the company as a key player in the evolving energy storage sector, potentially driving new revenue streams and enhancing its market position.
Despite recent financial challenges, Platinum Group Metals is taking proactive steps to improve its liquidity and financial stability.
By repurchasing convertible notes and reducing debt, the company aims to strengthen its balance sheet and create a more robust financial foundation for future growth.
Investors who are interested in companies with strategic investments in critical materials and innovative technologies may find Platinum Group Metals an intriguing opportunity, provided they are comfortable with the associated risks and market volatility.
Webull Penny Stocks to Watch
Destination XL Group, Inc. (NASDAQ: DXLG)
Destination XL Group, Inc., stands as a leader in the niche retail apparel market, focusing on big and tall men’s clothing.
This specialized sector has seen renewed interest as consumers increasingly seek brands that cater to specific body types and fashion needs.
Destination XL Group has capitalized on this trend, establishing a robust market presence across the United States with stores and an online platform that offers a diverse range of clothing options for larger men.
The company’s strategic focus on serving a specific demographic has enabled it to capture a loyal customer base, positioning it as a market leader in this niche.
Destination XL’s ability to adapt to consumer demands and offer a wide array of stylish and comfortable apparel has contributed to its steady growth.
The brand’s resilience in a competitive retail environment underscores its potential for continued expansion and profitability.
For investors looking at low-priced stocks with strong growth potential, DXLG presents an intriguing opportunity.
Its dedicated focus on a growing market segment, combined with strategic initiatives to enhance its product offerings and customer experience, could drive further gains in share price.
Vertex Energy, Inc. (NASDAQ: VTNR)
Vertex Energy, Inc., a prominent name in the specialty refining industry, has garnered attention for its innovative approach to processing alternative feedstocks and high-purity petroleum products.
Based in Houston, Vertex Energy is a significant player in the motor oil processing market, with a focus on sustainability and renewable energy initiatives.
The company’s recent strategic moves, including the acquisition of a major refinery, highlight its commitment to transitioning toward renewable diesel production.
This shift aligns with global energy trends favoring cleaner and more sustainable fuel options, potentially positioning Vertex Energy for significant growth in the renewable sector.
Investors interested in the energy market may find Vertex Energy’s forward-thinking approach appealing.
While the company has faced financial challenges in the past, its focus on innovation and sustainability could offer a path to recovery and profitability.
As the demand for renewable energy solutions grows, Vertex Energy’s strategic investments and market positioning could provide substantial returns for those willing to embrace the associated risks.
Farmmi, Inc. (NASDAQ: FAMI)
Farmmi, Inc., a China-based agricultural company, specializes in the production and distribution of various mushroom species, including shiitake and woodear.
The company’s focus on leveraging China’s agricultural strengths to supply high-quality products has allowed it to establish a solid foothold in both domestic and international markets.
The agricultural sector’s challenges, including supply chain disruptions and market volatility, have impacted Farmmi’s stock performance.
However, the company’s strategic efforts to expand its market presence through international partnerships and product diversification are noteworthy.
Farmmi’s recent follow-on product orders from regions like Canada and the U.K. signal a positive shift in market sentiment and investor confidence.
For investors exploring penny stocks, Farmmi could offer a unique opportunity to tap into the agricultural industry’s growth potential.
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu Inc., a leading education technology company in China, has navigated a turbulent market environment characterized by regulatory changes and shifting government policies.
The company’s focus on providing K-12 tutoring and educational services has faced significant challenges due to China’s regulatory crackdown on the for-profit education sector.
Despite these hurdles, Gaotu Techedu has shown resilience by diversifying its business model and exploring new growth avenues, such as e-commerce and online retail.
This strategic pivot reflects the company’s adaptability and commitment to finding new revenue streams amidst changing markets.
For investors seeking opportunities in the education sector, Gaotu Techedu presents a complex yet potentially rewarding prospect.
While the stock has experienced significant volatility, its strategic initiatives to diversify and innovate may provide a foundation for future growth.
As the company navigates regulatory challenges, its ability to adapt and seize new opportunities will be crucial in determining its long-term success.
By exploring these Webull stocks under $5, investors can diversify their portfolios and tap into the potential for growth in various sectors.
While penny stocks come with inherent risks, a well-informed trading strategy and careful selection of promising companies could lead to profitable outcomes.
Should I Buy Penny Stocks on Webull?
Understanding Penny Stocks
Penny stocks, typically trading for less than $5 per share, are often viewed as high-risk investments due to their volatility and lower market capitalization.
Despite the risks, they attract traders with the potential for substantial returns.
Investing in penny stocks requires a strategic approach, thorough research, and an understanding of market trends to navigate the associated risks effectively.
Why Consider Webull for Penny Stock Investing?
Webull is a powerful trading platform equipped with advanced tools and features tailored for those interested in actively trading penny stocks.
Unlike other platforms such as Robinhood, Webull offers a sleek mobile and desktop interface, catering to a new generation of mobile-first investors.
This ease of access allows traders to make quick decisions on the go, which is crucial in the fast-paced world of penny stock trading.
Webull’s real-time market data and customizable charts enable traders to analyze market trends and execute trades efficiently.
While Webull is not specifically designed for beginners, its robust features can benefit intermediate traders who have a basic understanding of trading strategies and are looking to enhance their skills.
Limitations for Beginners
While Webull provides a robust trading environment, it may not be ideal for beginners due to its lack of comprehensive educational materials.
New traders might find it challenging to navigate the platform and understand critical trading concepts such as market trends and trading strategies.
Additionally, Webull does not offer a free investor data feed, which can be crucial for making informed trading decisions.
Beginners might benefit from exploring Webull’s paper trading feature, which allows them to practice trading with virtual money before risking real capital.
This feature can help new traders develop their trading style, understand market fluctuations, and test various trading strategies without financial risk.
Advantages of Investing in Webull Penny Stocks
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No Commission Fees: Webull offers commission-free trading, allowing traders to buy and sell penny stocks without incurring additional costs, making it attractive for those with smaller accounts.
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Advanced Trading Tools: The platform provides sophisticated charting tools, technical indicators, and market info to help traders study trends and make informed decisions.
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Mobile-First Design: Webull’s mobile app is designed for traders on the go, enabling them to stay updated with the latest market news and execute trades quickly.
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Paper Trading: This feature allows traders to practice and refine their strategies without risking your real money, offering a safe environment to learn and adapt.
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Diverse Asset Options: Beyond penny stocks, Webull allows trading in stocks, ETFs, and cryptocurrencies, providing traders with opportunities to diversify their portfolios.
More About Webull
Overview of Webull’s Trading Platform
Webull is a mobile-first trading app that offers commission-free trading for stocks, ETFs, and cryptocurrencies.
Designed for active investors, the platform provides advanced tools and features that cater to different trading styles.
Webull’s lack of account minimums and management fees makes it accessible to traders who want to trade large volumes without significant financial barriers.
Comparing Webull to Other Platforms
Webull stands out from competitors like Robinhood by offering additional features such as individual retirement accounts (IRAs) and paper trading.
While both platforms provide commission-free trading, Webull’s advanced tools and broader asset options make it a preferred choice for more experienced traders seeking to trade penny stocks actively.
Regulatory and Fee Structure
Webull charges minimal regulatory fees to cover costs from agencies like the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.
These low fees make Webull appealing for traders who want to minimize costs while maximizing potential returns on their investments.
Final Thoughts on Trading Penny Stocks on Webull
Webull provides a comprehensive platform for trading penny stocks, offering features that cater to both intermediate and experienced traders.
While beginners may face challenges due to the platform’s complexity, the paper trading feature offers a valuable opportunity to learn and develop trading strategies without financial risk.
With the right approach and research strategy, Webull can be a valuable tool for traders looking to explore the world of penny stocks.
Webull Penny Stocks FAQs
Are Penny Stocks Available on Webull?
Yes, penny stocks are available on Webull, but it’s important to note that Webull only lists stocks traded on major exchanges such as NASDAQ and NYSE.
Unlike some other platforms, Webull does not offer OTC stocks, which are often less regulated and riskier.
What Are Some Good Penny Stocks to Consider?
When considering penny stocks on Webull, it’s essential to conduct thorough research and due diligence.
Stocks like Farmmi Inc. (NASDAQ: FAMI) and Gaotu Techedu Inc. (NYSE: GOTU) are examples of low-priced securities with potential growth opportunities.
However, remember that penny stocks are inherently risky and require careful evaluation of the company’s fundamentals and market conditions.
Can You Buy Stocks Under $1 on Webull?
Yes, you can buy stocks under $1 on Webull. Farmmi Inc. (NASDAQ: FAMI) is one such example, trading for less than $1.
Keep in mind that while these stocks may seem attractive due to their low prices, they can also be highly volatile and require a strong risk tolerance.
What Should I Consider Before Buying Penny Stocks?
Before buying penny stocks, it’s crucial to assess your risk tolerance and perform due diligence. Consider factors such as the company’s financial health, market trends, and recent news.
Using technical indicators and analyzing trends can help identify potential opportunities. Additionally, spreading risk by diversifying your portfolio can mitigate the impact of any single stock’s poor performance.
How Do I Execute Penny Stock Trades on Webull?
To trade penny stocks on Webull, start by opening a Webull account if you don’t already have one.
Webull is an online broker that offers commission-free trading, making it accessible for those looking to trade low-priced securities.
Use Webull’s tools to monitor market data, analyze trends, and set alerts for specific stock prices. Once you’ve identified a stock of interest, you can place buy or sell orders directly through the platform.
What Are the Advantages of Using Webull for Penny Stock Investing?
Webull offers several advantages for penny stock investing, including commission-free trades, advanced charting tools, and real-time market data.
The platform’s straightforward process and user-friendly interface make it accessible for both novice and experienced traders.
Additionally, Webull provides paper trading options, allowing you to practice and refine your trading strategies without risking real money.
Monitoring stock prices closely is vital in penny stock trading due to the volatility of these securities. Small price changes can result in significant gains or losses, so keeping a watchful eye on your positions is crucial.
Utilize Webull’s alerts and notifications to stay updated on market fluctuations and adjust your trading strategy accordingly.
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