10 Best Stocks To Buy Under $1

Karen Doyle
dima_sidelnikov / iStock.com
dima_sidelnikov / iStock.com

Penny stocks — those that trade for under $5 — are inherently risky but can also result in great rewards. Because the stocks are so cheap, it doesn’t take much for them to drop to zero. By the same token, a price rise to just a few dollars a share can mean a big payday for investors.

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Penny stocks are often found in emerging industries or in those industries that require a long period of research and development prior to the production of a viable product. The companies are typically early-stage technology, pharmaceutical, biotech or therapeutics companies.

10 Best Stocks Under $1

Here are some penny stocks that will cost you less than a dollar and just might be worth the investment:

  • GEE Group Inc. (JOB)

  • Cybin Inc. (CYBN)

  • Purple Biotech Ltd. (PPBT)

  • Pedevco Corp. (PED)

  • Netcapital Inc. (NCPL)

  • Cartesian Therapeutics Inc. (RNAC)

  • S&W Seed Co. (SANW)

  • Star Equity Holdings Inc. (STRR)

  • Origin Materials Inc. (ORGN)

  • Spar Group Inc. (SGRP)

1. GEE Group Inc.

  • Price: $0.3652

  • Market Cap: $39.10 million

  • Consensus Rating: Buy

GEE Group Inc. (Nasdaq: JOB) is a national staffing and recruiting company for information technology, legal, engineering, finance, accounting and healthcare firms. Its brands include Ashley Ellis, General Employment and Omni One.

The stock closed at $0.3652 on March 28. In the past year, the stock price has ranged from $0.34 to $0.63. Both analysts following the stock in March rated it a “buy.” It’s a relatively stable stock with a beta of 0.53 (1.00 being neutral), but it could be undervalued right now.

2. Cybin Inc.

  • Price: $0.4140

  • Market Cap: $314.136 million

  • Consensus Rating: Buy

Cybin (NYSE: CYBN) develops proprietary psychedelic-based therapeutics for disorders like major depressive disorder, alcohol use disorder and anxiety disorders. The company is based in Canada.

Cybin closed at $0.4140 on March 28. Its 52-week range is $0.21 to $0.7380. Of the five analysts watching the stock in February, four rated it a “buy” and one rated it a “strong buy,” for a consensus rating of “buy.” One analyst weighed in with a 12-month price target of $7.

3. Purple Biotech Ltd.

  • Price: $0.6700

  • Market Cap: $19.30 million

  • Consensus Rating: Buy

Purple Biotech (Nasdaq: PPBT) aims to develop first-in-class anti-cancer therapies that overcome tumors’ drug resistance and improve outcomes. It has several therapies in the pipeline, including for pancreatic cancer and head and neck and colorectal cancers, both in Phase 2 trials.

Shares closed at $0.67 on March 28. Three analysts watching the stock rate it a “buy.” The price target is a head-turning $9.67. However, Chardan Capital and H.C. Wainwright & Co. maintained and reiterated, respectively, “buy” recommendations in March.

4. Pedevco Corp.

  • Price: $0.8010

  • Market Cap: $71.67 million

  • Consensus Rating: Buy

Pedevco (NYSE: PED) is an oil and natural gas exploration and production company that focuses on developing conventional energy assets using unconventional technologies. It currently has properties in Texas, New Mexico, Colorado and Wyoming. The company admits to having nearly lost its listing on the New York Stock Exchange because of debt acquired in 2014 through 2017. Following a major investment in 2018, the company restructured, paid down debt and brought in a new management team.

Pedevco closed at $0.8010 on March 28. Although it trended downward over the last few months of 2023, it’s on the rise now, and analysts rate it a “buy.” In fact, EF Hutton has reiterated its buy recommendation six times in the last two years, most recently in September. Yahoo Finance says shares are undervalued. Analysts’ estimated 12-month price target is $2.20.

5. Netcapital Inc.

  • Price: $0.1246

  • Market Cap: $2.49 million

  • Consensus Rating: Buy

Netcapital (Nasdaq: NCPL) is this roundup’s smallest company by far, but it has made a name for itself among equity crowdfunding companies. It’s a fintech that helps private companies raise capital online and assists in onboarding, regulatory-document filing and compliance review. The Boston-based company also serves as an advisor to tech startups and facilitates investing.

Trading near its 52-week low of $0.1130, Netcapital shares appear to be significantly undervalued. Yahoo Finance estimates a 285% annualized return over five years, and the stock has an average one-year price target of $2.80.

6. Cartesian Therapeutics Inc.

  • Price: $0.6604

  • Market Cap: $105.27 million

  • Consensus Rating: Strong buy

Cartesian Therapeutics (Nasdaq: RNAC) develops mRNA cell therapy for autoimmune diseases. Its pipeline includes a candidate for generalized myasthenia gravis that proved safe and well tolerated in a Phase 2a study. It’s also developing therapies for systemic lupus erythematosus and myeloma.

Four analysts watching Cartesian gave it a “strong buy” consensus rating in January and February. Their price targets range from $1 to $4, for an average $2.50 12-month target. In addition, H.C. Wainwright & Co. reiterated its “buy” rating three times in March.

7. S&W Seed Co.

  • Price: $0.4731

  • Market Cap: $20.95 million

  • Consensus Rating: Buy

S&W Seed Co. (Nasdaq: SANW) produces seeds for a variety of crop products, including alfalfa, sorghum and stevia. The company distributes seeds via direct sales and dealer-distributors. S&W’s research and development projects include hybrid crops and gene-edited alfalfa plants as well as a yield-boosting sorghum solution.

Two of the three analysts who watch S&W rate the stock a “buy” and one recommends holding. The price target is $2.50 based on two analysts’ predictions. A low price-earnings ratio of 1.61 and beta of 0.94, indicating low volatility, support the analysts’ target.

8. Star Equity Holdings Inc.

  • Price: $0.8950

  • Market Cap: $14.07 million

  • Consensus Rating: Buy

Star Equity Holdings (Nasdaq: STRR) is a construction and real estate investment company based in Old Greenwich, Connecticut. It operates under two divisions: construction, which designs and manufactures modular homes and structural wall panels, and investments, which manages and finances Star Equity’s real estate assets and investments.

The company is not profitable as of March, but the two analysts who watch the stock expect significant growth to $5 in the next 12 months. Both rated Star Equity stock a “buy” in February.

9. Origin Materials Inc.

  • Price: $0.5171

  • Market Cap: $74.42 million

  • Consensus Rating: Buy

Origin Materials (Nasdaq: ORGN) is a carbon-negative materials company that develops and manufactures materials and chemicals that improve product recycling and performance. Partner companies include PepsiCo, Ford, Nestle, Revlon and LVMH. Its mission is “to enable the world’s transition to sustainable materials,” according to its website.

Origin is a stable stock with a beta of 1.19. It also appears well priced, with a P/E ratio of 3.00. Three analysts watching the stock gave it a consensus “buy” rating in January and February. Their price targets range from $0.60 to $5.00, for an average of $2.12.

10. Spar Group Inc.

  • Price: $0.9696

  • Market Cap: $22.53 million

  • Consensus Rating: Buy

Spar Group (Nasdaq: SGRP) is a retail merchandising and marketing company. Its services include supply chain/distribution and store remodeling and analytics for retailers in seven countries. In fact, 70% of Spar’s revenue comes from Global 500 companies.

Spar has inched above $1 recently and gone as high as $1.40 within the past year. One analyst watching the stock gives it a “buy” rating but has not weighed in with a price target. However, the company has been simplifying its operations and financial structure in order to focus on its core business, which has grown over 50% in the U.S. and 90% in Canada.

Final Take

These companies represent a range of sectors, including technology and medical. Companies in these sectors have the potential to be very successful and provide significant returns to their investors, but the failure rate is high.

What’s more, stocks that trade for less than $1 for 30 days or longer run the risk of eventually being delisted from their exchange. Unless the price increases on its own or the company takes action, such as reverse-splitting the stock to boost the price by reducing the number of shares, the stock could be relegated to the over-the-counter market, which has less liquidity.

When deciding which penny stocks to buy, be sure to carefully research the company to make sure you understand the product or service it offers, its potential for success and the competitive landscape in which it operates. And penny stocks should be a “recreational” investment — this is not the place to put your retirement savings or the kids’ college fund. That said, large returns are possible, especially if you do your homework.

Daria Uhlig contributed to the reporting for this article.

Data was compiled on March 29, 2024, and is subject to change. Information on analyst ratings was sourced from Yahoo Finance.

This article originally appeared on GOBankingRates.com: 10 Best Stocks To Buy Under $1

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