The standard definition of penny stocks refers to those trading below $5 per share. But it’s hard to ignore some of the cheapest stocks in the market. I’m talking about the small-, micro-, and nano-cap stocks you can buy for pennies, stocks under $1.
You’ve got plenty of risks involved, but the potential reward can be a game-changer for your portfolio. Even a few cents can be the difference between a 5% and 50% move. Today we’ll look at 5 of the top penny stocks that can be bought for under $5, what’s going on recently, and you can decide if the risk is worth it or not.
Penny Stocks Under $1
- Exicure Inc. (NASDAQ: XCUR)
- Powerbridge Technologies Co. (NASDAQ: PBTS)
- Guardion Health Sciences Inc. (NASDAQ: GHSI)
- Kiromic BioPharma (NASDAQ: KRBP)
Top Penny Stocks To Buy
Finding top penny stocks to buy is easier said than done. There’s no replacement for good research. Putting together a good list of penny stocks involves monitoring the different sectors and industry trends. In addition, sifting through company filings, news headlines, and even official government-issued awards can help you identify opportunities in the market. Today we look at a handful of penny stocks under $1 that have all seen a spark of trading momentum for different reasons this week.
Exicure Inc. (NASDAQ: XCUR)
Gene regulatory drug company, Exicure has been steadily rising since the end of February. Exicure has gone through a shift in leadership in recent weeks. It saw its president and CEO, Brian Bock, step aside for a new CEO, Dr. Matthias Schroff, to sit at the company’s helm. This leadership change was seen as a way to streamline and lower costs. But the real focus has been on the company’s pipeline.
In particular, Exicure’s spherical nucleic acid (SNA) technology is used to develop a pipeline of candidates. In particular, its SCN9A platform in neuropathic pain is under development as a non-opioid program. There are collaborations with companies including Ipsen Biopharma and AbbVie to develop SNA-based treatments in neuroscience (Huntington’s Disease, Angelman Syndrome) and hair loss disorders.
Given some of the recent excitement stemming from cheap penny stocks, XCUR has been in focus recently.
Powerbridge Technologies Co. (NASDAQ: PBTS)
New initiatives in the cryptocurrency industry have given a boost to related stocks this week. Following weeks of bearish sentiment, prices of Bitcoin, Ethereum, and others have finally seen a much-deserved rebound. Powerbridge is one the lower-priced end of the spectrum, and shares made a slight rebound during pre-market trading on Wednesday.
The company is a more diversified tech name to know, but it has some involvement in cryptocurrency mining and digital asset operations. Earlier this quarter, Powerbridge took a step into the metaverse, further establishing itself in the digital arena. The company announced a deal with Beyondvision Cultural Development to jointly create Metafusion Digital Co. Initially, the focus will be on travel and leisure virtual worlds.
This week, Powerbridge reported some non-meta news, which has sparked renewed attention on the stock. It signed contracts with clients in a range of industries (rail, courier services, smartphones) for providing “digital transformation solutions.” With a price tag of roughly $5 million, this headline has garnered some interest in the stock market today.
Guardion Health Sciences Inc. (NASDAQ: GHSI)
March has become an active month for Guardion Health. The clinical nutrition company has advanced its Viactiv line of health products. For instance, its Viactiv Omega BOOST Passion Fruit Flavored gell bites were recently launched in February. Guardion has aimed at the growing eCommerce marketplace with the new online store.
Thanks to the latest round of funding, the company has access to some $11 million, earmarked for working capital. These latest developments have earned it some bullish attention from analysts as well. Maxim Group recently initiated coverage on the company giving it a Buy rating and $0.60. Even though this target is well-below $1, it’s still over 170% higher than Tuesday’s closing levels. Thanks to that, it looks like the market has responded favorably, heading into the second half of the week.
Kiromic BioPharma (NASDAQ: KRBP)
You can’t forget about small-cap biotech stocks, either. Despite the pullback in broader sectors, some of the most volatile and attention-grabbing names among penny stocks are in the biotech space. Kiromic was a clear example of why that might be. Shares of KRBP stock surged during early morning trading on Wednesday. Before the opening bell, the penny stock jumped to highs of over $1.20 before settling back around $0.70.
There weren’t any headlines to pair with the move. However, some news from last year could shed some light on the recent uptick in volatility. Last October, Kiromic discussed plans for a Type A meeting with the FDA regarding a clinical development path forward of a previously submitted IND for its oncology treatment. According to the update, the company highlighted the “first half of 2022” to discuss this with the FDA. Given the timing of the meeting and no further news related to the event ever since, it could be a source of speculation right now.
Are Penny Stocks Worth The Risk?
This is an excellent question to ask yourself when trying to find the best penny stocks to buy. Is the risk worth the potential reward? If you’re talking about stocks under $1, there are more things to weigh than just headline risk. For example, a $0.50 stock could drop 5 cents, equating to a 10% change in value. Meanwhile, the $5 penny stock that drops 5 cents has barely changed from a percentage standpoint. If you’re trading penny stocks right now, keep this in mind, especially when it comes to weighing risk and reward.