Tune in for our picks of the best Webull stocks under 5 dollars to buy now.
Buying Webull stocks under $5 can be tricky if you don’t know what to look for.
This is because penny stocks are risky investments saturated with company shares that plummet after a pump or trade sideways for years.
However, WeBull can be a solid platform for trading penny stocks because it only offers stocks listed on major exchanges.
Still, while this curated list could help weed out companies looking to pump, profit, and pack their bags, you’re not entirely safe.
In fact, far from it.
So what stocks trading under 5 bucks are worth a closer look?
Check out our list of penny stocks to keep on your radar.
Best Webull Stocks Under 5 Dollars
DatChat Inc. (NASDAQ: DATS)
DatChat Incorporated is a tech company specializing in blockchain, cybersecurity, and social media that works out of New Brunswick, New Jersey.
The company primarily provides users with an alternative messenger and social network, focusing on privacy support and secrecy.
What makes DatChat a viable penny stock to trade is its news catalysts along with its consistently strong movement volume.
For starters, the company initiated a web 3.0 platform development plan, working on protecting NFTs and encrypted messaging.
Its movement in the technology space makes it more viable, especially for those looking for more privacy protection.
Its technology, for example, is sought-after in the United States.
The company is ticking all the boxes for a hot commodity that could surge in 2022.
It could be a solid pick for both its volume and its stock catalysts.
Brickell Biotech Inc. (NASDAQ: BBI)
We have our first biotech company on the list, and it’s Brickell Biotech, a clinical-stage pharma company that focuses on dermatologic, autoimmune, and other diseases.
It has offices in Boulder, Colorado, and Carmel, Indiana, opening the company for a public offering around the Fall of 2021.
Since its original public offering, Brickell’s stock had a significant downturn, depreciating as much as 80% since around the same time last year.
Apart from an earnings report in November, which pushed Brickell’s stocks lower, there haven’t been enough catalysts for the stock to surge in 2022.
Brickell’s current value in the stock market is not much, but this opens enough opportunities for investors to build on.
Much of the stock relies on the positive results that could come from the company’s New Drug Application (NDA) for its sofpironium bromide gel scheduled for 2022.
If the drug gets approval, investor confidence could skyrocket due to its OTC value potential.
Analyst ratings mean nothing to the average person trading penny stocks, but the glimmer of confidence and its upcoming NDA should give it a good boost over this year.
It also has a low enough penny stock value that any positive movement can give a substantial boost, whether for a long-term stock investment or a short squeeze.
Nuverra Environmental Solutions (NYSE: NES)
Waste disposal and environmental solution companies are building up a following due to their growing value in the sustainability ecosystem.
Nuverra Environmental Solutions, Inc. is another low-price stock for those looking to invest in the sustainability circle.
The Scottsdale, AZ, company specializes in the oil and gas industry, initiating oil clean-ups and ensuring that all waste materials are treated and disposed of properly.
So far, several stock catalysts work well in Nuverra’s favor, mostly coming from the announcement of its acquisition by Select Energy Services back in December.
The acquisition should happen in the first quarter of 2022, which could energize investor interest in the company as it comes under one of the more viable water treatment companies in the US.
Its addition to Select’s fast-growing mergers and acquisitions targets could help keep investor interest going.
Business expansions, including new landfill operations in North Dakota, will continue its humble operations and inspire more confidence in the company.
ShiftPixy, Inc. (NASDAQ: PIXY)
ShiftPixy Inc had a red-hot January 2022 so far, and it could reach a value close to its six-month all-time high.
The movement volume it had in the past few months is exciting, especially with the intelligent moves it initiated during that period.
For starters, ShiftPixy is finding ways to enter the “metaverse,” which is shorthand for a focus on augmented reality experiences.
It’s also working with ghost kitchens, which are spaces that rent out kitchen space and equipment for SMBs to sell on delivery apps.
This variation in its business portfolio is powered by a strong fiscal year in August 2021, with reported revenue of $14.8 million and a fantastic 171% year-over-year (YOY).
ShiftPixy looks like it could be a fantastic investment as long as stock investors understand the potential issue with its very low market cap.
Standing at a measly $37 million, the company is powered by its share float and may be susceptible to shorting, and investors might look to pop the bubble.
Kosmos Energy Ltd. (NYSE: KOS)
Penny stock investors interested in oil and gas can see that Kosmos Energy is consistently surging, with the strongest showing it ever had since it dipped to record-lows in March 2020.
The Dallas-based upstream oil company is creating solid buzz due to positive results from its oil explorations.
For example, its Winterfell-2 well dripped 40m of net oil pay in its first and second horizons, providing even better saturation than pre-drilling expectations.
All this oil jargon means the company had a positive investment in its explorations, creating more room for more resource potential and, at the same time, more sales down the line.
Its appraisal success could bring more interest in the company, especially after its disastrous $29 million net income loss during its Q3 2021 announcement.
The growth for Kosmos Energy is getting steadier, hence why it could be a good long-term investment.
Platinum Group Metals Ltd. (NYSE AMERICAN: PLG)
Basic materials companies are starting to move stocks in 2022, and among the companies that are getting bullish in their space is Platinum Group Metals.
The Vancouver-based mining company is in charge of a bulk underground palladium and platinum mine in Africa.
At the same time, the company is also working on a next-gen battery technology utilizing the specific minerals it mines.
Platinum Group Metals is starting 2022 with a bullish push, with a good recovery from its slump in December 2021.
Even after a quarterly net loss of $3.3 million for Q1 2022, the company is making headway this year.
Platinum Group Metals is purchasing and canceling $20 million of convertible notes from 2017, which means it’s pushing to cancel investor debts and push it down to $3.0 million.
This means that the company is trying to gain more liquidity for the coming years, which could translate to better earnings for years to come.
This penny stock’s value is highly volatile, but it should be something that potential stock investors should know how to deal with.
While the cancellation of the convertible notes is not the strongest news to inspire investor confidence, its current project could be more than enough.
Webull Stocks Under $5 to Watch
Destination XL Group (NASDAQ: DXLG)
The Destination XL Group is the first retail apparel brand on this list, and it is potentially positioned for a strong 2022 that could be its busiest year since 2008.
The men’s big and tall apparel industry is receiving a resurgence, primarily due to public acceptance of the specific niche.
Investors looking for cheap stocks might want to consider DXLG.
It has a strong market presence that translated to a total sales of $106.6 million for the holidays of 2021.
The company also reported a net income of $0.8 to $0.85 per diluted share, around 10% higher than its predicted minimum of $0.72 per diluted share.
The $505 million projected total sales for 2021 are narrower than its original $510 million predictions, but this still translates to a strong recovery.
The holiday sales results, including its acquisition by AWM Investment Company, can help its stock grow even further.
Destination XL is a must-watch stock with profitability to match its revenue generation capabilities within its industry.
Vertex Energy (NASDAQ: VTNR)
Oil and gas refiners have been building up their stocks over the past year, and Vertex Energy is no different.
The Houston-based specialty refiner works on both alternative feedstocks and high-purity petroleum products, being one of the leading processors of motor oil in the US.
Vertex Energy is one of the strongest performers of the 2021 stock trade, providing a chunky 534% return in December 2021 — at one point even having a 1672% return in July 2021 compared to the same time in 2020.
The only reason Vertex did not skyrocket even further in 2021 is due to a hefty $155 million in debts it raised, which spooked many investors and started a stock sell-off.
Then again, Vertex’s debts come from its push away from its core product operation of motor oil refiner, moving towards becoming a renewable diesel producer.
Its acquisition of Shell’s Mobile, AL refinery worth $75 million could help push its stocks even further.
This move pops all the green lights for a positive Q3 and Q4 for 2022, but it might have a tepid first half.
For those looking to invest in energy stocks, this could be a fantastic time to give Vertex a solid “wait and see,” while traders may want to sell now and come back at a later date during the year.
Farmmi Inc. (NASDAQ: FAMI)
When we talk about penny stocks trading under 5 dollars, the usual take is having something with a share value somewhere between a dollar and $4.99.
Farmmi Inc is the lowest valued stock on the list so far, which goes anywhere between $0.21 and $0.25 on any given day.
This China-based industrial farming company specializes in different mushrooms and has the potential for a strong market surge in 2022.
Due to the pandemic and the numerous logistics issues many agricultural industries face worldwide, Farmmi’s stocks have gone sub-dollar since Q1 2021.
Then again, the agricultural company is finding some reprieve, including a follow-on product order for its dried Shiitake mushrooms in mid-January 2022.
These orders come from abroad, namely from Vancouver, Canada, and Southampton, England, adding to the investor confidence reflecting on the company’s stock.
Farmmi is at its lowest stock value since last year, but positive changes in its future sales could give it a level of stock profitability that is worth a second look for would-be investors.
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu, Incorporated is a strange penny stock, primarily due to its industry and the effects of geopolitics and Chinese domestic policy on it.
Gaotu is a for-profit education and tutoring company specializing in K-12 tutoring in Beijing, China.
The company is among the most prominent private education providers in China, which gives it an interesting edge with the country’s massive population.
Over the entirety of 2021, Gaotu lost more than 90% of its value, primarily due to national policies that attack several big industries in China, including for-profit education and tech.
The company also grew a heavier net loss of $143 million against its revenue of $345.1 million, which slimmed down its net profits compared to the year before.
Regardless, the 35% rise in its YOY by September 2021 means its stocks could be heavily undervalued, even if investors think there’s a potential for the business to become a value trap for those who trade penny stocks.
Gaotu is moving away from its education business, for now, pushing towards e-commerce and the sale of agricultural products online.
This shift is gaining back lost confidence from stock investors, but it’s understandable to be afraid of the stock due to its high volatility.
The stock is a must-watch for 2022, and it could pique up interest over the next few months.
Should I Buy Penny Stocks on Webull?
Webull is a powerful stock trading platform, with the brokerage providing a robust set of trading tools designed for people who actively trade penny stocks.
Like its counterparts Robinhood and eToro, what makes it unique is its sleek mobile and desktop interface, serving as a way to attract a new generation of mobile-first casual investors.
The mobile-first trading offered by Webull allows would-be traders to decide on the go, giving them a chance for quick dumps if they have to.
Penny stock traders need to have a way to see company-related news and information that serve as trading catalysts, and this is where the app may lack.
Webull is also not built well for the beginner penny stock trader, primarily due to its lack of educational materials that can give you a good idea of reading trends, understanding numbers, and even knowing how spreads work.
It also does not provide a free investor data feed that can help inform you when to buy and sell.
The app has no automated investing options either, so everything you do will likely be a DIY process.
More About Webull
Webull is a mobile-first trading app where you can trade low-priced stocks and options for free, plus gain access to advanced tools and features designed for active investors that deal with volume stocks.
Stocks, ETFs, and cryptocurrencies can easily be traded on the company’s mobile app, making it viable for different types of financial investments.
Much like its cohorts in the industry, Webull doesn’t require an account minimum to get started.
Robinhood and Webull offer about the same features, but Webull also offers individual retirement accounts (IRAs), paper trading, and more.
However, bonds and mutual funds are not available.
Webull charges zero account management fees, and it requires no account minimums, which means they are very palatable for traders who don’t have big finances to start with.
The low barrier of entry for the app and its lack of running subscription fees make it more appealing for active traders who want to move a lot of stocks every day.
The app only charges a minimal regulatory charge, mostly to pay agencies like the US Securities and Exchange Commission and the Financial Industry Regulatory Authority.
Webull Stocks Under 5 Dollars: Final Words
When buying Webull penny stocks, it’s important to remember not to be greedy, especially with the amount of stock movement you’ll likely see.
You want the agility to react quickly to changes in the stocks you’re trading, and Webull is helpful if you’re on the go.
The stocks listed in this article could be poised for a good surge in 2022, especially those trying to recover from the recent pandemic.
Consider these penny stock picks below 5 dollars and see if they fit your portfolio.
Remember not to invest more than you can afford to lose, do your research, and make strategic investments.
Webull FAQ
Check out our Webull FAQ to find out everything you need to know about trading $5 stocks on this platform.
Are Penny Stocks Available on Webull?
Yes, penny stocks are available on Webull.
That being said, Webull does not list OTC stocks, only shares listed on major exchanges.
What Is a Good Stock to Buy Under $5?
Kosmos Energy Ltd. (NYSE: KOS) shares have seen an impressive 100%+ growth in value over the past six months.
Now could still be time to jump in and ride the wave if the company and stock can keep up their momentum.
Can You Buy Stocks Under $1 on Webull?
You can buy stocks under $1 on Webull.
In fact, Farmmi Inc. (NASDAQ: FAMI) is trading for less than $0.25.
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