top 10 penny stocks on robinhood

When you hear “penny stocks Robinhood” most will immediately know what I’m talking about: trading stocks. When it comes to penny stock trading apps, Robinhood is right up there with the top apps to invest with.  Little to no fees to trade has made the app popular among those who are looking for penny stocks to buy

Typically, people just getting started in trading or those with limited capital will turn to things like penny stocks due to their volatility and opportunity to make a lot of money with small investments. Keeping this in mind, it’s good to “follow the money” when it comes to investing in penny stocks. 

Now, let me preface this with the fact that this is a list of penny stocks in order of popularity on Robinhood but aren’t necessarily the top performing penny stocks. I’ll be putting together another list of top 10 penny stocks to watch for June. This being said, here are the top 10 penny stocks on Robinhood this month (by popularity):

Robinhood Penny Stock #10:
Catalyst Pharmaceuticals (CPRX)

This penny stock came onto the scene earlier this quarter. Unfortunately for the people who rode this all the way to $6.16 and held, they got a quick dose of penny stock volatility.  Why did Catalyst Pharmaceuticals (CPRX Report) drop so far, so fast?

CPRX stock

The FDA approved a competitive drug, compared to Catalyst’s Firdapse, from privately held Jacobus Pharmaceutical Co. Jacobus’ drug is meant to be marketed for pediatric use, while Firdapse is recommended only for use in adults. This isn’t the end of the road for Catlayst, though. Since the big drop, shares of this now-penny stock have rebounded by as much as 78%. This was from a low of $2.23 to a high of $3.98 on May 20.

Robinhood Penny Stock #9:
Neptune Wellness (NEPT)

First glance at the NEPT stock chart and you’ll see why this has become a penny stock to watch. Year to date, Neptune Wellness (NEPT Report) shares are up 76% and have managed to hit highs of $5.14. The long and short of it is that this is a marijuana penny stock, and one that could have some “real business” to back it up.  This month they announced that it plans to acquire all assets of SugarLeaf Labs, LLC and Forest Remedies LLC.

NEPT stock

Both of these enterprises operate as a single registered North Carolina-based commercial hemp company. The value of the deal is estimated at a maximum of up to $150 million. Robinhood has a number of new marijuana stocks that are among the most viewed stocks on the platform. These, of course, trade a higher prices than NEPT stock, which is why they aren’t on this list.

Robinhood Penny Stock #8:
AK Steel (AKS)

Similar to many other stocks in the crosshairs of global trade, AK Steel (AKS Report) shares have had a tough time this year.  That hasn’t stopped traders from flipping this stock as it has offered intraday spikes for 2-5%. The recent slide in overall price has been due, in part, to prices for things like steel declining further.  The removal of tariffs on Candian steel adds this pressure as more supply could flood the market.

AKS stock

HRC prices continue to go down and our channel checks indicate large size orders at $560/ton and industry average prices near $590/ton…We now forecast HRC prices of $550/ton in 2022 but expect prices would have to test ~$470/ton to force a permanent rebalancing of the US supply curve away from higher cost integrated mills.” Credit Suisse in a note.

Robinhood Penny Stock #7:
JC Penny (JCP)

The name says it all: JC Penny (JCP Report).  This stock has been considered a penny stock since the second half of 2017 and the international climate for trade hasn’t helped breed more confidence in retail stocks. JCP stock just hit a new all-time low this month at $0.88, which echoed the sentiment of the industry in general. 

JCP stock

Here’s what analysts have to say about the company:

Tigress Financial’s Ivan Feinseth said in his daily newsletter he recommends “avoiding the shares at any price.”

Bank of America’s Lorraine Hutchinson reiterated an Underperform rating on the stock with a 90 cent price objective.

B Riley’s Jeff Van Sinderen lowered his price target from $1.40 to $1.30 while keeping a Neutral rating on the stock.

Robinhood Penny Stock #6:
Yamana Gold (AUY)

As with many times of global unrest, “safe haven stocks” begin to see action.  Gold and gold mining are a few of these sectors to watch as “safe havens.” The confusing part is that there is all this political turmoil and AUY stock just hit a new low. So why did Yamana Gold (AUY Report) tank?

AUY stock

Missing earnings and getting price target & rating downgrades don’t help. The trigger to this latest slide also happened after the company announced it agreed to sell the wholly-owned Chapada mine to Lundin Mining Corporation. Though it was for a cool $1 billion, the market didn’t seem to like the move. What could be next for this gold penny stock?

Robinhood Penny Stock #5:
Groupon (GRPN)

For the most part, Groupon (GRPN Report) has been trading in a sideways trend for most of this year. The company did some management restructuring this year and tweaked a few things in their business strategy.

GRPN stock

Because of this, earnings came in above street estimates. In addition to this, analysts from Wedbush also lifted their price target on GRPN stock from $3 to $4. They did, however, leave the rating at neutral for now.

Robinhood Penny Stock #4:
Chesapeake Energy (CHK)

This energy penny stock is always part of any conversation about the energy industry.  For a company that once traded as high as $8.20 during the last 3 years, some are looking at Chesapeake Energy (CHK Report) as “undervalued”. No matter your stance on the company, the trading volume is almost always high; a scalper’s dream?

CHK stock

The market for oil and gas stocks hasn’t been favorable, to say the least, BUT with that comes something to think about: we’re approaching summer and there is global political unrest. More driving = more gas used, unrest in the mid-east could raise oil prices, and CHK stock is under $2.50 a share. Let’s see what happens.

Robinhood Penny Stock #3:
Nio Inc. (NIO)

This company has also been compared to another EV sector leader, Tesla (TSLA). Nio Inc. (NIO Report) has been nothing short of disappointing this quarter. Furthermore, was all over the warning signs for this stock and we still remain cautious on the outlook for the company (see: Nio Inc (NIO) Is Now A Penny Stock).

NIO stock

Nevertheless, NIO stock is still very popular with people “looking for a bottom”. The volatility that has come with this penny stock has been nothing short of attention-grabbing. So what’s up with NIO now? Besides hitting a new all-time low, investors are hoping for a turnaround in this penny stock next week as Nio is slated to report earnings on May 28th.

Robinhood Penny Stock #2:
Plug Power (PLUG)

This stock has been one that we’ve covered plenty of times in the past (see: Is Plug Power The Best Energy Penny Stock To Buy In April?). Plug Power (PLUG Report) has been on fire for most of the year.  Besides a brief pullback earlier this month, shares of this penny stock are up by roughly 100% year-to-date.

PLUG stock

First quarter earnings were lackluster but despite this being the case, PLUG stock continues to perform. Helping this, Oppenheimer recently upped its price target on the stock from $2.50 to $2.75 and kept the stock at “Outperform.”

Robinhood Penny Stock #1:
Fitbit (FIT)

Compared to the previously mentioned stocks, FIT stock isn’t the best performing penny stock to buy. But it has been a good performer during earnings season. The volatile stock tends to move +/- $1 depending on results. But why is Fitbit (FIT Report) so popular? Aside from the health tech aspect of the company, Fitbit has steadily expanded into big data.

FIT stock

The company’s products are supplied in nearly 40,000 stores and the data gathered is tailored specifically to many demographics with sound accuracy. The company’s health solutions also develop health and wellness solutions that leverage health plans and health systems.

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