8 Best Penny Stocks To Buy Under $1.00

Karen Doyle
arekmalang / iStock.com
arekmalang / iStock.com

Penny stocks — those that trade for under $5.00 — 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.

Learn: 3 Things You Must Do When Your Savings Reach $50,000

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. These stocks are often found in early-stage technology, pharmaceutical, biotech or therapeutics companies.

Best Stocks That Cost Less Than $1

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

1. Aquestive Therapeutics

  • Price: $0.8799

  • Market Cap: $47.66 million

  • Consensus Rating: Buy

Aquestive Therapeutics (Nasdaq:AQST) develops medicines and delivery technologies that treat complex conditions. The company develops and delivers medications through its PharmaFilm technology, which allows medications to be administered via a dissolvable strip placed under the tongue.

Aquestive Therapeutics stock closed at $0.8799 on Feb. 1. Its 52-week low is $0.6180, and the high is $3.19. All four analysts who followed the stock in February rated it a buy or a strong buy, and the average 12-month price target is $5.36.

2. Compugen

  • Price: $0.87

  • Market Cap: $79.74 million

  • Consensus Rating: Strong buy

Compugen Ltd. (Nasdaq:CGEN) discovers novel drug targets and develops therapeutics to extend the reach of cancer immunotherapies. The company uses computational discovery to identify immunotherapy drug candidates that show promise in improving patient outcomes.

The stock closed at $0.87 on Feb. 1. In the past year, the stock price has ranged from $0.51 to $3.57. Of the six analysts who followed the stock in January, three rated it a strong buy, two rated it a buy and the other one recommended holding it. Two analysts, one rating the stock a buy and one rating it a strong buy, followed it in February. The 12-month price target is $6.14.

3. Cybin

  • Price: $0.4359

  • Market Cap: $78.66 million

  • Consensus Rating: Strong Buy

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

Cybin closed at $0.4359 on Feb. 1. Its 52-week range is $0.2650 to $1.16. Analysts’ consensus recommendation is strong buy, and the average 12-month price target is $5.78.

4. Freeline Therapeutics

  • Price: $0.5926

  • Market Cap: $38.26 million

  • Consensus Rating: Strong Buy

Freeline Therapeutics (Nasdaq:FRLN) develops gene therapies for people with chronic and debilitating illnesses such as hemophilia and lysosomal storage disorders. Its gene therapy targets the liver to then be secreted throughout the circulatory system.

Freeline Therapeutics’ stock closed at $0.5926 per share on Feb. 1, not far off its 52-week low of $0.46. The highest it has traded at in the past year is $1.29. Six analysts followed Freeline in February. Of those, four rated it a strong buy and two rated it a buy. The average 12-month price target is $5.

5. AVROBIO

  • Price: $0.93

  • Market Cap: $43.34 million

  • Consensus Rating: Buy

AVROBIO (NASDAQ:AVRO) is another gene therapy company that hopes to halt or reverse genetic diseases and give patients the ability to live longer without painful and debilitating symptoms and without chronic treatment regimens. The diseases currently being targeted by AVROBIO include Gaucher disease, Hunter syndrome, cystinosis and Pompe disease.

AVROBIO stock closed at $0.93 on Feb 1, closer to its 52-week low of $0.56 than its 52-week high of $1.90. Four analysts follow the company and predict an average 12-month price target of $3.75. Two of those analysts call it a buy and two rate it a strong buy.

6. OncoCyte

  • Price: $0.39

  • Market Cap: $45.73 million

  • Consensus Rating: Buy

OncoCyte (Nasdaq:OCX) develops diagnostic tests to enable physicians to provide better treatment options for cancer. One product, which is currently available, is a test to identify patients with non-squamous non-small cell lung cancer who may be at risk of recurrence.

OncoCyte has a 52-week range of $0.242 to $1.81 and closed on Feb. 1, at $0.39. Four analysts follow the stock, and in February, one rated it a strong buy and three rated it a buy, The average 12-month price target is $0.83.

7. Mogo

  • Price: $0.8604

  • Market Cap: $69.64 million

  • Consensus Rating: Strong Buy

Mogo (Nasdaq:MOGO) is a Canadian company that develops technologies and products to help Canadians build wealth and achieve financial freedom. The Mogo app helps consumers track and manage their finances.

Mogo stock closed at $0.8604 on Feb. 1, closer to its 52-week low of $0.4040 than it’s 52-week high of $3.14. Of the four analysts who followed the company in January, two rated it a strong buy and two rated it a buy. The average 12-month price target is $4.03.

8. Organigram

  • Price: $0.9481

  • Market Cap: $295.06 million

  • Consensus Rating: Buy

Organigram (Nasdaq:OGI) is a Canadian producer of medical and recreational cannabis. The company has three cultivation and production facilities, including an indoor growing facility, a manufacturing site for edibles and a greenhouse facility. The company uses a proprietary system to track grow cycles by strain, environmental conditions, harvest period and other factors, allowing it to optimize cultivation and harvesting.

Organigram stock closed at $0.9481 on Feb. 1. Over the past 52 weeks, its share price has ranged from a low of $0.70 to a high of $1.87. Just one analyst has followed the stock over the last few months, and they rate it a buy. The average 12-month price target is $2.13.

Final Take

Most of these companies are in the medical sector, including biotechnology, pharmaceuticals, therapies and more. Companies in this sector have the potential to be very successful and provide significant returns to their investors, but the failure rate is high.

When deciding which penny stocks to buy, be sure to carefully research the company to make sure you understand the product or service they offer, their potential for success and the competitive landscape in which they operate. 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.

FAQ

  • What is a good stock to buy under $5?

    • For a good stock under $5, consider Pitney Bowes Inc. (PBI). Currently trading at just $4.61, this shipping and mailing company has been around since 1920 and has an average one year price target of $4.75.

  • What is the best $3 stock to buy?

    • While $3 stocks are still considered penny stocks and therefore risky, 9 Meters Biopharma, Inc. (NMTR) is currently valued at $2.33 with a buy rating from analysts.

  • What are the best stocks under $10?

    • One stock to consider in the under-$10 range is Rocket Lab USA, Inc. (RKLB). It currently trades at $5.36 with a one-year price target of $9.86 and a buy rating from analysts.

  • What are some good stocks to buy right now?

    • The stocks listed above are good choices to start with, but it's important to assess your risk tolerance and goals before investing. Consider blue chip stocks, like Apple or Pfizer, for more security – but keep in mind that success is never guaranteed with any investment.

Daria Uhlig contributed to the reporting for this article.

Information is accurate as of Feb. 2, 2023, and is subject to change.

This article originally appeared on GOBankingRates.com: 8 Best Penny Stocks To Buy Under $1.00

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