Since the Great Recession of 2008 and 2009, the stock market has been on an extraordinary bull run. Stocks continue to increase to new high points, and the price-to-earnings ratios of the majority of S&P 500 businesses appear to be extremely high. Numerous investors are having difficulty locating inexpensive stocks that have not already appreciated significantly over the prior decade. It is challenging to find a decent deal on Wall Street, with even modest S&P 500 companies trading above $1 billion in market capitalization.
Stocks have become increasingly costly, both in share price and relative value to earnings. Historically, a typical S&P 500 company has sold at roughly fifteen times earnings in more ordinary circumstances, and the majority of stocks are currently trading at around 25 times annual earnings. While the stock market has become more costly, there are still a few cheap stocks trading below $1.00 per share.
Opportunities for value investing do exist if you look in the proper locations. To compile a list of the top stocks under $1, investors must consider smaller, riskier companies and industries that are either unknown or hated by the market. While some of these cheap stocks may not appear particularly attractive now, long-term investors willing to exercise patience and hang onto these companies' shares through numerous economic cycles will profit.
Some of these businesses represent excellent investment opportunities since they are too small and deemed too hazardous to draw the attention of the majority of managed mutual funds and Wall Street money managers. Others operate in sections of the market that are unloved and unproven. This list may also include crypto stocks, marijuana stocks, and bitcoin stocks. Others have been battered by Mr. Market during a prolonged period of declining profits but are now actively attempting to turn their businesses around and recover. These bargain-priced stocks operate in a variety of industries, but they all have a share price of $1.00 or less.
1. Northern Dynasty Minerals Ltd. (NYSE: NAK)
Precious and rare earth metals have re-entered the spotlight as tensions in Eastern Europe have risen. As March approaches, safe-haven assets, such as gold and silver, have garnered considerable attention. Northern Dynasty appears to have followed suit, as the NAK stock has increased by more than 20% since February 24th.
The mineral exploration business has gained considerable attention for its motivations for staking a claim in Alaska's Pebble Project. Northern Dynasty has waited patiently for over a year in an appeal process with the US Army Corps of Engineers to make real progress at this location.
In the last days of February, the company released research authorized by IHS Markit as an impartial expert assessment detailing the Project's economic benefits. Northern Dynasty President and CEO Ron Thiessen explained: "Renewable energy systems consume approximately five to nine times the copper required by conventional power generation systems. At the same time, electric vehicles consume three to four times the copper required by internal combustion engine vehicles. The Pebble Project may assist the United States in reducing its reliance on copper metal imports when demand increases during the transition from an oil-based economy to one based on electricity."
NAK stock has been one of the best penny stocks to watch due to the company's continuing efforts. Because a significant portion of its potential is contingent on the success of this Project, speculation may be the primary motivator for the time being.
2. CooTek Cayman Inc. (NYSE: CTK)
CooTek Cayman, a mobile internet firm, gained significant momentum in early March. The company develops mobile applications primarily focused on online literature and scenario-based content. One of the company's recent accomplishments occurred earlier in the quarter. Its mobile app Love Fantasy was one of the most downloaded Chinese Overseas iOS games.
NFTs and metaverse technology have also become entangled in the trend due to the current rally in cryptocurrency-related stocks. CTK stock may be one to watch as the "stocks under $1" trend takes hold at the start of the new month.
3. Kiora Pharmaceuticals (NASDAQ: KPRX)
On March 1st, shares of biotech penny stock Kiora Pharmaceuticals soared during mid-morning trade. The company's pipeline of ocular illness treatments has garnered market and analyst interest. According to Kiora, KIO-301 may be able to restore light perception in individuals with retinal generation. Among the other candidates are KIO-101 for the treatment of Dihydroorotate Dehydrogenase side effects and KIO-201 for corneal wounds.
Though there were no new headlines, the only recent file was an 8-K. According to that filing, Kiora got a deficiency letter from Nasdaq warning that it did not meet the exchange's minimum bid criteria (set at $1). The corporation has 180 calendar days to revert to the required minimum bid amount.
One factor to consider is that the analyst forecast for the existing pipeline remains optimistic. Maxim Group initiated coverage of KPRX stock with a Buy recommendation this quarter. Additionally, it set a $2.50 price objective, and whether or if that objective is attained remains to be seen. However, Tuesday's action constituted some of the penny stock's most significant trading volumes since early January.
Additionally, it is worth noting Tuesday's move. This is a textbook illustration of volatile stocks priced under $1. KPRX stock gained more than 20 cents within a single session, tested its 50-day moving average, and then returned to its opening price.
4. Guardion Health Sciences Inc. (NASDAQ: GHSI)
Guardion Health Sciences is another biotech penny company under $1 that is getting traction in the stock market today. The sub $0.30 stock has gained roughly 30% since Monday's lows. Moreover, it has done so without much fanfare in terms of news.
Guardian's most recent update highlighted the company's recent $11 million fundraising round. With plans to use the money for working capital this appears to be consistent with the company's previous product launches under the Viactiv brand.
Guardion announced the new Viactiv Omega BOOST gel bites in mid-February to enhance Omega-3 consumption. The market was awaiting the next stages following the official close last week.
5. Aeterna Zentaris Inc. (NASDAQ: AEZS)
This biopharmaceutical firm, founded in 1990 in Charleston, South Carolina, is dedicated to developing and commercializing a broad range of diagnostic and pharmaceutical solutions. Its primary focus is on areas of medical need that are currently unmet by established corporations. The company is primarily focused on developing therapeutic assets for diseases and multiple sclerosis but is also exploring the development of oral vaccination against COVID-19.
Aeterna Zentaris' primary product, macimorelin, is the only oral test approved by the European Commission and the US Food and Drug Administration. This oral examination confirms the presence of an adult growth hormone deficit (AGHD). Due to the product's effectiveness, the company is attempting to develop it for use in pediatric diagnosis.
Aeterna Zentaris is a vital research and development organization led by an accomplished leadership team. Additionally, they are the only company to have ever received approval for an oral diagnosis for AGHD. Additionally, they have additional medicinal goods at the preclinical stage that have the potential to elevate their enterprise's profile in the medical market once examined and approved.
Its stock is now trading at roughly $0.63. On September 28th, it traded at $0.6355, a gain of 0.51 percent over the previous day. When you examine its one-year return, it is a very promising stock to invest in. Its previous 52-week Change was +75.00 percent, indicating a high valuation for investors seeking a quick return.
The company's performance can act as a tipping point for the stock's valuation or depreciation. It is critical to monitor them till they bring other products to market and can boost the price of their shares. Perhaps avoid putting all of your eggs in this proverbial basket.
Since March 2021, the company's stock price has fallen by more than 40%. On September 28th, the company's market capitalization or market cap (market value of the company's outstanding shares, computed as shares outstanding multiplied by the share price—wow, that was a mouthful) was 79.02 enterprise value was 6.95 million.
6. Alkido Pharma Inc. (NASDAQ: AIKI)
Alkido Pharma Inc. was founded in 1967 in Virginia as a biotechnology development business dedicated to discovering anti-cancer therapies. They have patented numerous technologies developed by researchers and universities and formed agreements with institutions around the world to produce breakthrough drugs.
Pancreatic cancer, prostate cancer, and leukemia are among the company's therapeutic areas (AML and ALL). Specific treatments, such as pancreatic and prostate cancer, have shown promising preclinical outcomes.
Alkido Pharma Inc. is a reputable biotechnology development firm with over 50 years of experience in the market, which gives value to the stock while negotiating it. Because the corporation works on issues that are incredibly important to our society, the stocks have the potential to appreciate over time.
7. Avinger, Inc. (NASDAQ: AVGR)
Avinger, Inc. was founded in 2007 in Redwood City, California. The company is indicated to treat Peripheral Artery Condition (PAD), a vascular disease. It envisions and builds a catheter-based system for the treatment of PAD, a condition affecting over 200 million individuals worldwide, including over 12 million in the United States. The company's portfolio includes a variety of gadgets and accessories.
Avinger, Inc. is a forward-thinking corporation. They develop radiation-free goods (for example, image-guided catheters), which is a significant advantage for doctors who may be exposed to radiation for extended periods, resulting in various complications such as brain tumors and skin malignancies.
Additionally, they have multiple successful case studies and patient testimonials on their website, which helps establish the company's legitimacy and thus the stock's worth.
On September 28th, the stock was trading at $0.7920 per share. Avinger, Inc. experienced a significant increase in value over the previous year, with a 52-week change of +150.00 percent. Its exceptionally favorable market valuation may be attractive for investors seeking a promising penny stock.
8. BIOLASE, Inc. (NASDAQ: BIOL)
BIOLASE is a dental technology firm based in Foothill Ranch, California. BIOLASE manufactures dental lasers used in operations worldwide, resulting in benefits for patients and dental professionals such as gentler procedures, fewer aerosols, and faster healing.
The company designs and manufactures lasers for various applications, including surgery, tooth whitening, smile design, and pain therapy. It serves the entire dentistry market that wishes to incorporate lasers into their routines and offers a variety of technological items.
According to Dental Economics, the number of dental hygienists who use lasers in their daily practice has doubled since 2008, encouraging news for this company and anyone interested in investing in its stock.
The stock opened at $0.6438 and ended at $0.6257 on September 29th (-4.39 percent ). Its retail price is often between $0.58 and $0.70. When purchasing this penny stock, a critical factor in its annual valuation. Its 52-Week Change was +132.14 percent, which is a compelling cause to invest in.
The company's goods have doubled in popularity among dental practitioners over the last decade. Because lasers are an innovative technology that provides numerous benefits, the number of purchasers is likely to continue growing, increasing the likelihood of growth.
When studying the company's financial statements, the picture is clear. BIOLASE has a market capitalization of 94.6 million dollars and an enterprise value of 79.74 million dollars. Additionally, its current quarter growth projection is +85.70 percent, and its next quarter growth forecast is +71.40 percent.
9. Inuvo, Inc. (NASDAQ: INUV)
Inuvo, Inc. is an intelligent advertising technology business headquartered in Little Rock, Arkansas. This data-driven company provides its users and audience with patented technologies (11 in total, with $20 million invested over 12 years), real-time visibility, privacy protection, and unique insights.
The company's most well-known patented product is IntentKey. This artificial intelligence system uses machine learning to construct an accurate image of a consumer's sentiment and intent toward a particular object or topic. On its website, Inuvo, Inc. also features various successful case studies.
The company is primarily focused on Artificial Intelligence (AI), a rapidly growing field in this modern era. It is seen in their stock's year-over-year increase, which reached +81.08 percent in its 52-Week Change. This increase is a compelling argument to begin or continue investing in artificial intelligence, which will almost certainly continue to appreciate over the next few years.
The stock opened at $0.6980 and finished at $0.6936 on September 29th, a gain of 2.86 percent. From July till the present, the stock's price has fluctuated between $0.69 and $1.07.
This stock forecast has much promise. This year, growth is expected to be +25.00 percent, while the following year's growth is +83.30 percent. The company's revenue is expected to be 57.47 million this year and 74.52 million.
10. RiceBran Technologies (NASDAQ: RIBT)
Consume your bran, children! RiceBran Technologies, founded in 2000 in The Woodlands, Texas, is a specialty ingredient firm. It brings together innovation and wellness to create natural goods from various grains, including rice and oats.
The company is focused on developing novel ingredient solutions for a variety of food applications. They offer conventional, organic, and grain products for nutraceuticals and human and animal nutrition. Additionally, they hold several certifications and have locations in multiple states.
The company's goods have a wide variety of advantages and use. Additionally, it is economical, little processed, and gluten-free. Along with personal health benefits, they are environmentally friendly, a significant gain in an increasingly sustainable society.
RiceBran Technologies began trading on September 29th at $0.58 and ended the day at $0.58. The stock has fluctuated between $0.58 and $0.80 since the beginning of the month. The enterprise's 52-week Change was +38.10 percent, encouraging this industry and its prospective investors.
The stock market outlook indicates significant growth potential. To begin, its growth forecasts for this quarter are +57.10 percent and for the next quarter are +40 percent. Second, the current year's growth forecast is +69 percent, and the following year's forecast is +22.20 percent. Thirdly, the revenue estimate for this year is 31.53 million, and for the following year is 34.28 million. Additionally, its market capitalization is 26.82 million, while its enterprise value is 29.36 million.
Consider the Following Characteristics of Penny Stock
Penny stocks are not all made equal. Penny stock trading is always risky — but there are ways to limit your exposure. When looking for penny stocks to buy now, keep the following five factors in mind:
Most penny stocks are exchanged over-the-counter (OTC) or through the OTC Bulletin Board. While these shares are typically exceedingly cheap (sometimes trading at pennies on the dollar), they also enjoy less control. If this is the first time to invest in penny stocks, begin your search on larger markets such as the NYSE or NASDAQ. Stocks traded on these exchanges must conform to the Securities and Exchange Commission's minimum criteria, considerably reducing your risk of being a victim of fraud.
The company appears legitimate: Any business you invest in requires more than a Facebook page or social media account to establish an internet presence. Consult the press for corporate information and even search for consumer reviews. This type of information enables you to determine whether the business is worth your time and money. While OTC penny stocks are alluring, investors must ensure that the company is not only legitimate but also viable.
Determine the catalyst: You must first determine why the stock is increasing. Look for a new product launch or another critical event that may clarify why the price is increasing or decreasing. While researching the firm, you may encounter an example of the abovementioned "pump and dump" scam. You can earn money if you enter and exit quickly. You can earn money if you purchase in and exit fast. If you are unprepared for this trick, you risk losing your money.
Daily trading volume is relatively high. Numerous investors seek high-volume penny stocks with the expectation of profiting from swing or day trading. However, some people overlook the fact that in order to sell a stock, there must be someone eager to buy it. Utilize a stock screener to identify penny stocks that trade at a greater average daily volume. A more considerable volume will enable you to sell your stocks at your leisure — not at rock-bottom prices.
Earnings per share that are favorable. The earnings per share (EPS) value of a stock is equal to the company's current earnings divided by the number of shares outstanding. If feasible, seek out stock with positive earnings per share (EPS) value - this suggests that the company is profitable at the moment.
Because most penny stocks represent minor or recently founded companies, this may not always be possible. If you decide to invest in a stock with a negative earnings per share (EPS) value, ensure that the company has a reasonable level of debt.
Final Thoughts
Finding the best penny stocks to buy may appear straightforward, but it requires effort and devotion to research. Identifying new patterns such as "stocks under $1" or "short squeeze stocks" might assist in determining market strength or weakness. There are no additional drivers to consider with the recent spike in volatility triggered by the Russia-Ukraine war. If you want to succeed in today's economy, having a plan and a well-defined strategy has become even more critical. Therefore, ensure that you are well-prepared prior to engaging in any deal.
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