Penny stocks are at the top of the minds of thousands of investors in the stock market today. Even with broader markets trading lower ahead of tomorrow’s Fed minutes, traders are looking to capitalize on the wild volatility that has come into play. One of the areas of the penny stock arena that has received an increase in attention concerns stocks under $1. These are some of the most volatile of the group and, in many cases, can offer some of the most significant potential for big rewards (and big losses) depending on how you trade them. Today, we look at a handful of penny stocks that can be bought for under $1. Will they be worth the risk?
Penny Stocks To Buy For Under $1
- TD Holdings Inc. (NASDAQ: GLG)
- Aditxt Inc. (NASDAQ: ADTX)
- CNS Pharmaceuticals (NASDAQ: CNSP)
- NextPlay Technologies (NASDAQ: NXTP)
Best Penny Stocks To Buy
As discussed above, the percentage change can come quickly when it comes to penny stocks under $1. We’re talking about stocks trading for pennies, so even a five or 10-cent move is meaningful compared to other stocks. Making sure you understand how to handle volatility will be critical to your ability to navigate these types of penny stocks. Here are a few names trending in the stock market today.
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1. TD Holdings Inc. (NASDAQ: GLG)
Chinese stocks have been a hot topic this week. This is coming after news of delisting rules getting revised. This brought a bullish tone to the market this week and has since remained a driver even amid a stock market drop on Tuesday.
TD Holdings has been on the move ever since reporting its latest round of earnings. The company provides commodity trading services in China and experienced substantial growth in 2021. TD reported revenue from commodities trading at $201.13 million compared to $28.27 million in 2020. Yes, that’s a jump of more than 600%. In addition, the company also managed to narrow its net loss from $2.4 million in 2020 to $940,000 in 2021.
CEO Renmei Ouyang explained, “We will keep exploring our business opportunities in the markets of global gold spot trading, digital cloud warehouse, as well as lightweight new materials. We believe that our unique market position and visionary growth strategy allow us to increase return of capital to our shareholders.”
Thanks to the continued bullishness behind Chinese stocks, GLG remains in focus. At $0.34, it’s also one of the penny stocks under $1 traders are watching.
2. Aditxt Inc. (NASDAQ: ADTX)
Another one of the hot penny stocks under $1 this week is Aditxt Inc. It experienced several days of above-average trading activity during the last few weeks. Toward the end of March, the company participated in the Maxim Group Virtual Growth Conference, which helped spark some attention to the biotech company.
Aditxt has focused on developing technologies for mapping and even reprogramming the immune system, specifically related to personalized therapy. ADTX stock is back on the radar this week after big news turned heads. Aditxt announced a revenue-sharing agreement with Cellvera for up to $30 million.
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Cervera has certain exclusive rights to a range of oral antiviral drugs targeting COVID-19 and other infectious diseases. In response to the milestone, Aditxt CEO Amro Albanna discussed it as an “intermediate step in the acquisition process while we are proceeding with our due diligence for the overall transaction, and will be a key part of our revenue and growth strategy starting in 2022.”
With a pending buyout and strong momentum heading into the second quarter, ADTX stock could be one to watch.
3. CNS Pharmaceuticals (NASDAQ: CNSP)
CNS Pharmaceuticals continues the trend of biotech penny stocks to watch this week. The company develops treatments for different brain and central nervous system cancers. Like ADTX, this week started strong for the company thanks to news.
On Tuesday, CNS announced receipt of approval from Swissmedic, the Swiss Agency for Therapeutic Products, for the company’s study of Berubicin in treating recurrent glioblastoma multiforme. Thanks to approvals from swissethics and Swissmedic, CNS said it could move forward with initiation and patient enrollment in Switzerland.
Roughly 243 patients with GBMafter failing first-line treatment will be put in a randomized study. Overall survival will be the primary endpoint of the study. The FDA recently granted Fast Track Designation for the treatment to expedite the development and review process. There’s also an Orphan Drug Designation that was given, which could offer seven years of marketing if a New Drug Application is approved.
4. NextPlay Technologies (NASDAQ: NXTP)
Thanks to more attention on DeFi, NFTs, and cryptocurrency, many companies exposed to at least one niche have gained attention from the stock market this week. NextPlay specializes in building digital business ecosystems. In particular, this relates to digital advertising initiatives.
This week the company announced that it was selected by the Decentralised Investment Group to offer fiat payment and banking services for its NFT game, Realms of Ethernity. DIG is a global blockchain tech company and will use NextPlay’s NextBank International to offer its customers access to a fintech platform. In-game assets from Realms of Ethernity, for example, could be purchased and monetized by customers.
Haydn Snape, DIG’s global managing partner and CEO said, “As part of this new world, we believe products that provide equitable, accessible, and trusted open systems will promote individual liberty and economic freedom across the globe. We have selected NextPlay as a partner to join us in this mission and help us provide an in-game experience that enables players to truly own real-world assets, with this made possible through NextBank’s unique banking technology and fiat payment platform.”
As the deal continues toward completion, NXTP stock could be one of the names to watch in light of recent DeFi trends in the market.
Are Penny Stocks Under $1 Worth The Risk?
Low-priced stocks can be great for traders looking to capitalize on fast moves. But that isn’t the only reason people look at stocks under $1. In some cases, investing in penny stocks is growing in appeal and comes with plenty of risks. You might’ve even seen high-profile names like AMC Entertainment (NYSE: AMC) investing in penny stocks. Last quarter, the movie theatre company announced an investment in a mining company, Hycroft Mining (NASDAQ: HYMC), for tens of millions of dollars. Penny stocks are certainly a hot topic right now, and if you’re brand new to trading, you can check out some content below to help with the learning process:
