Everyone wants a deal in the stock market today, and that means finding things on the cheap. No other asset class has met this simple framework other than penny stocks. We’re talking about stocks under $5 by definition, and their rampant volatility has resulted in some of the most significant open market gains. They don’t come without their share of risks, but they can be well worth the time and stress for those who know how to trade penny stocks. Today we’re taking a closer look at an emerging trend among retail traders this week: penny stocks under $1.
Penny Stocks To Buy Under $1
- Ardelyx Inc. (NASDAQ: ARDX)
- Veon Ltd. (NASDAQ: VEON)
- Farmmi Inc. (NASDAQ: FAMI)
- ToughBuilt Industries Inc. (NASDAQ: TBLT)
Best Penny Stocks To Buy
When it all boils down, the best penny stocks to buy are the ones that make you the most money. So if you’re trading low-priced stocks, it’s essential to understand how to handle volatility and bit swings in the market. It also means having a broker that offers access to stocks under $1. I say that because many mobile-first brokerage apps restrict access to OTC penny stocks.
In this case, you’ll want to confirm that the stocks under $1 that you’re looking at are trading on major exchanges like the NYSE and NASDAQ. Today, we’ve got a list of penny stocks that are trading on major exchanges and have garnered some additional interest in the stock market today.
1. Ardelyx Inc. (NASDAQ: ARDX)
First on this list is Ardelyx, and thanks to recent analyst sentiment, the sub-$1 stock has caught a nice boost. The company develops and commercializes drugs that target diseases, including hyperkalemia and chronic kidney disease (CKD). Its ZPHOZAH (tenapanor), for instance, is under development for treating hyperphosphatemia in patients with CKD on dialysis. Ardelyx has also gained approval for some of its pipeline treatments, including IBSRELA indicated in patients with irritable bowel syndrome. IBSRELA is also expected to launch next quarter.
Following recent mixed earnings, analysts at Jefferies seem to have grown incredibly bullish on the stock. The firm boosted its $1 target to $5 and upped its Hold rating to a Buy. In comparison, Wedbush adjusted Ardelyx’s target to $1 from $2.
While speculation has ensued, a recent comment from Mike Raab, president, and chief executive officer of Ardelyx, may shed some light on this upbeat sentiment from Jefferies.
“This year we become a revenue-generating company commercializing a novel mechanism treatment we developed, with a clear line of sight to breakeven and, ultimately, profitability for the product, which we believe will create significant shareholder value.“
With a price target nearly five times higher than current levels, ARDX stock could be one to watch in March.
2. Veon Ltd. (NASDAQ: VEON)
Tech company Veon Ltd. has finally caught some momentum following a flood of selling pressure over the last week. VEON stock dropped from over $1.30 to lows of $0.3766 thanks to a mix of Russia’s Ukraine invasion paired with a recent loan. Veon announced a “RUB 30 billion” seven-year term loan with VTB Bank (a Russian Bank) earlier this quarter. That was valued at roughly $400 million at the time of the announcement (Feb. 17).
Unless you’ve been living under a rock the last few weeks, you know that the Russian monetary system has taken a big hit. Removal from SWIFT increases in rates and more have resulted in the value of the RUB deteriorating. In fact, right now, 1 RUB is about $0.009 USD. Therefore, RUB 30 Billion is less than a quarter of a billion USD. That was likely a big reason for the recent sell-off. So, where does Veon stand right now?
This week the company released a liquidity update to clear the air:
“As at 27 February 2022, VEON had approximately USD 2.1 billion of cash and deposits, including USD 1.5 billion of USD and EUR denominated cash and deposits held at the level of its headquarters (“HQ”) in Amsterdam. The HQ cash and deposits are held in bank accounts, money market funds, and on-demand deposits at a diversified group of international banks from the European Union, the United States, and Japan.”
Management also explained that the current access to capital will allow the company “to maintain a prudent liquidity position in these times of macroeconomic uncertainty.” Following the news, VEON stock is one to watch as momentum turns in favor of the bulls on Wednesday.
3. Farmmi Inc. (NASDAQ: FAMI)
Farmmi has become one of the more popular penny stocks under $1. Not only has it maintained a volume profile appealing to retail traders (20-30 million shares per day), it has also traded in a consistent range since the start of February. The agriculture supply company has made headlines recently in a good way. These haven’t involved any geopolitical disturbances or foreign currency issues.
Earlier this week, Farmmi announced a new U.S. product order. This was for dried sliced Shiitake mushrooms scheduled for export to New York. CEO Yefang Zhang reiterated her optimism of Farmmi’s growth strategy in a March 1st release saying, “The U.S. represents an important market, where consumers have been willing to incorporate fungi into their diets and lifestyles. We see more room to run in the U.S. and our other key markets, as we work to strategically increase the volume and size of the orders we are fulfilling.”
This latest deal continues the series of wins from the company. Last month, Farmmi received orders from the Middle East.
4. ToughBuilt Industries Inc. (NASDAQ: TBLT)
Finally, you can’t go too far without mentioning at least a few “reopening trade” companies. ToughBuilt might be low in price, but it has focused on a big niche. The company offers tools and accessories for the do-it-yourself market and construction industries. A recent $5 million discounted financing round was the primary catalyst for the sell-off last month. But since then, TBLT stock has managed to recover.
New product launches and news of significant sales growth through Amazon’s online marketplace have helped boost ToughBuilt’s outlook. Michael Panosian, Chief Executive Officer of ToughBuilt, discussed this in ToughBuilt’s January sales update:
“We closed 2021 with significant e-commerce demand driven by our sawhorses, knee pads, and bags. Amazon continues to positively contribute to ToughBuilt’s overall revenue growth and strengthen our brand among global end users. Currently, only our legacy products are available on Amazon, which have generated outstanding reviews to-date. We believe that as more new products become available on Amazon, we will see increased online demand.”
With reopening at the top of mind, TBLT stock could be one of the names to know right now.
Best Penny Stocks To Buy Right Now
Whether we’re talking about stocks under $1 or Apple, the goal is the same: make money and repeat the process. When it comes to penny stocks, specifically, you have to be ready for quick moves—having a strategy in mind, and a plan laid out before jumping into a trade. So if you’re new to trading, in general, the best first step is getting educated on how to buy and sell stocks properly. Here are a few articles to check out: