Are you looking for cheap stocks to buy? Penny stocks are one place to start. According to the standard definition, we’re talking about stocks trading below $5 per share. Outside of any other facet, much of the risk of penny stocks involves their price, in general. It also lends itself to inherent volatility.
Simply put, if a stock under $1 moves 10 cents, that equals a 10% change in value. A similar move for a stock like AAPL is unnoticeable. For this reason, so many traders look for the best penny stocks to buy daily. Today we look at a few penny stocks that can be purchased for less than a dollar menu smoothie and are gaining much more attention as March begins.
Penny Stocks To Buy For Under $1
- Northern Dynasty Minerals Ltd. (NYSE: NAK)
- CooTek Cayman Inc. (NYSE: CTK)
- Kiora Pharmaceuticals (NASDAQ: KPRX)
- Guardion Health Sciences Inc. (NASDAQ: GHSI)
Penny Stocks To Buy Under $1
You get into some unusual discussions when looking for penny stocks to buy under $1. With millions of traders using mobile platforms like Webull, certain stocks are restricted from trading. Most prominently, OTC penny stocks are inaccessible to traders for the most part. Since the vast majority of stocks under $1 trade Over-The-Counter, that means it’s tough to find cheap stocks to buy if you’re using one of these mobile platforms. The good part? OTC stocks aren’t the only ones trading below $1.
There are plenty of NASDAQ and NYSE-listed names trading for pennies. Today, it appears that this niche of the penny market has woken up thanks to an early breakout move from Avenue Therapeutics (NASDAQ: ATXI). Shares began moving aggressively higher during the post-market session on Monday. The trend continued Tuesday morning, which effectively brought some sympathy sentiment to both low-priced biotech stocks and penny stocks under $1. Here are a few that may have garnered sympathy sentiment in the stock market today:
Northern Dynasty Minerals Ltd. (NYSE: NAK)
Precious and rare earth metals have come back into the spotlight amid rising tensions in Eastern Europe. Safe havens, including gold and silver, have gained plenty of attention heading into March. Northern Dynasty seems to have followed this trend as NAK stock climbed more than 20% since February 24th.
The mineral exploration company has garnered plenty of attention for its motivation to stake its Alaskan claim in the Pebble Project. In a more than 1-year-long appeal process with the US Army Corps of Engineers, Northern Dynasty has patiently waited to make meaningful progress at this location.
At the end of February, the company went as far as releasing a study authorized by IHS Markit as an independent expert overview giving a detailed report on the Project’s economic benefits. Ron Thiessen, Northern Dynasty President and CEO, explained that “renewable energy systems utilize roughly five to nine times more copper than conventional power generation systems, and electric vehicles require three to four times as much as internal combustion engine vehicles. The Pebble Project could help the U.S. reduce its dependence on imports of copper metal as demand surges during the transition from an oil-based economy to electricity.”
Thanks to continued efforts by the company, NAK stock has been one of the penny stocks to watch under $1. Since a lot of its potential relies heavily on the outcome of this Project, speculation could be the main driver for the time being.
CooTek Cayman Inc. (NYSE: CTK)
Mobile internet company CooTek Cayman also caught some strong momentum at the start of March. The company provides mobile applications focused on online literature and scenario-based content apps. One of the recent achievements of the company came earlier in the quarter. Its Love Fantasy mobile game was one of the Most Downloaded iOS Chinese Overseas Games.
As an investor in mobile and experience-focused games, CooTek has also been looked at for its potential as a Metaverse play. In fact, in its last quarterly update, CooTek’s Chairman, Karl Zhang, discussed this plan, specifically:
“…We have been further strengthening our exposure in the overseas mobile games and online literature markets based on our recently launched Metaverse and NFT plan. We developed and published 14 new mobile games in the third quarter of 2021 and currently have a pipeline of 15-20 games in the fourth quarter of 2021 with 2 key mobile casual games.”
NFTs and metaverse tech have also gotten wrapped up in the trend due to a recent uptick in cryptocurrency-related stocks. CTK stock could be one of the names to know as the “stocks under $1” trend takes hold to begin the new month.
Kiora Pharmaceuticals (NASDAQ: KPRX)
Shares of biotech penny stock Kiora Pharmaceuticals jumped during mid-morning trading on March 1st. The company’s ophthalmic disease treatment pipeline has earned some attention from the market and analysts alike. Kiora’s KIO-301 is said to potentially restore light perception in patients with retinal generation. Other candidates include KIO-101for Dihydroorotate Dehydrogenase side effects and KIO-201 for corneal wound healing.
Though there weren’t any new headlines prompting Tuesday’s action, the only recent filing was an 8-K. That filing showed Kiora received a deficiency letter from Nasdaq notifying it that it hasn’t met minimum bid requirements for the exchange (which are set at $1). The company has 180 calendar days to regain compliance with this minimum bid requirement.
One thing to consider is that the analyst outlook remains optimistic with the current pipeline. Maxim Group initiated coverage on KPRX stock this quarter with a Buy rating. It also set a price target of $2.50. Whether or not that target is met is to be seen. However, Tuesday’s action represented some of the highest trading volumes the penny stock had seen since early January. Something also worth noting: Tuesday’s move. This is a clear example of how volatile stocks under $1 are. Within a single session, KPRX stock jumped over 20 cents, tested its 50-day moving average, then dropped back down to where it started the day.
Guardion Health Sciences Inc. (NASDAQ: GHSI)
Another biotech penny stock under $1 gaining steam in the stock market today is Guardion Health Sciences. The sub $0.30 stock has managed to jump nearly 30% since Monday’s lows and came without much fanfare as far as news is concerned.
The last update from the nutritional food and supplement company highlighted Guardion’s latest financing round of $11 million. With plans to use proceeds for working capital, this seems to have fallen in line with recent product launches of the company’s Viactiv line of products.
Viactiv’s online store was opened earlier this quarter, and in mid-February, Guardion launched the new Viactiv Omega BOOST gel bites to promote Omega-3 consumption. With the offering officially closing late last week, the market is looking for the next steps.
Best Penny Stocks To Buy
Finding the best penny stocks to buy seems simple, but it takes work and dedication to research. Identifying new trends like “stocks under $1” or “short squeeze stocks” can help when looking for strength or weakness in the market. With the latest uptick in volatility due to the Russia-Ukraine conflict, there are even more catalysts to factor in. If you want to make money in today’s market, having a plan and a clear strategy are two things that have become even more important. So make sure you’re well-prepared in advance of any trade.