You can make money with penny stocks if you know how to trade. Sure, some might get lucky here and there, catching a big breakout. However, in general, even when you’re looking at stocks under $1, you can consistently profit. You just need to know how to handle volatility and risk. In the stock market today, there are plenty of headlines driving price movement in one direction or another. But that’s the beauty about these cheap shares. They tend to move on their own accord, separate from broader trends. Even when the stock market crashed lower earlier in the year, countless penny stocks were racing to record highs. Today we look at a handful of stocks under $1 to watch as broader markets are down.
Penny Stocks To Buy For Under $1
- PolarityTE Inc. (NASDAQ: PTE)
- Akebia Therapeutics (NASDAQ: AKBA)
- Brickell Biotech Inc. (NASDAQ: BBI)
- Sesen Bio Inc. (NASDAQ: SESN)
- Borqs Technologies (NASDAQ: BRQS)
How To Buy Penny Stocks Under $1
Are you just starting to learn how to trade penny stocks? The first step is learning how to buy them. When looking at price alone, you should factor in the exchange that stocks are traded on. When it comes to the cheapest penny stocks to buy, you’re typically looking at the Over-The-Counter Bulletin Board or OTC. Stocks listed on the OTC are harder to come by, especially if you use some popular trading apps like Robinhood and Webull. All OTC penny stocks are inaccessible on these mobile brokers, with few exceptions. That means you need to look for NASDAQ and NYSE stocks under $1. Don’t worry, though, because there are still plenty to choose from, and today we look at a handful of these penny stocks under $1, so you can decide if they earn a place on your watch list or not.
Penny Stocks To Buy For Under $1: PolarityTE Inc. (NASDAQ: PTE)
PolarityTE is a biotech company developing regenerative tissue products and biomaterials, including its SkinTE platform. The company currently has an Investigational New Drug Application with the FDA. It’s also working toward pivotal studies to support a Biologics License Application in indications of chronic cutaneous ulcers.
What’s Going On With PTE Stock?
You’ve likely heard about Reddit penny stocks if you read our latest articles. These are names gaining attention from retail traders for one reason or another. PTE stock is one of the more recent Reddit penny stocks to watch. Shares jumped earlier this month after the company gained the interest of the FinTwit (Financial Twitter) community. When it comes to catalysts related to speculation instead of fundamentals, volatility can play a bigger role. In this case, PTE stock has been incredibly volatile and remains that way on Thursday.
Akebia Therapeutics (NASDAQ: AKBA)
Shares of the biotech company, Akebia, haven’t been in the best light recently. AKBA stock plummeted late last month after receiving a complete response letter from the FDA for Akebia’s vadadustat in treating anemia due to chronic kidney disease. One of the risks of investing in penny stocks is the potential of bad news triggering a collapse. In this case, AKBA stock dropped from over $2.40 to under $1 in days. So what does that mean for AKBA?
What’s Going On With AKBA Stock?
The FDA’s letter said that Akebia could look for ways to demonstrate favorable “benefit-risk assessments” in new trials. In response, Akebia is requesting a meeting with the FDA. John P. Butler, Chief Executive Officer of Akebia, reiterated his optimism in a March press release and said, “Despite this setback, we continue to work toward our purpose to better the lives of people impacted by kidney disease.”
Whether or not this recent uptick in price is more relief rally than anything is yet to be seen. However, analyst sentiment is cautious at this point. BTIG downgraded the stock to Neutral from Buy along with HC Wainwright, Pipe Sandler, Mizuho, and Needham. Average price targets for the penny stock sit mostly around the $2 mark.
Brickell Biotech Inc. (NASDAQ: BBI)
The trend on this list of penny stocks under $1 is centered around biotechnology. Despite major biotech indexes trading lower, as was discussed earlier, many biotech penny stocks are up right now. Brickell Biotech is one of them, and it continues a multi-day move on Thursday. The company has set its sights on expanding its immunology and inflammation pipeline. This quarter it’s also on track to begin a phase 1 study for its BBI-02 platform in treating autoimmune and inflammatory diseases.
What’s Going On With BBI Stock?
Recently, the company published its Q4 and Full-Year 2021 results and issued a corporate update. The Q2 study initiation is something to consider along with other potential catalysts this year. Brickell also expects to submit a New Drug Application to the FDA for its sofpironium bromide gel in mid-2022. Sofpironium bromide candidate is being developed as a potential treatment of primary axillary hyperhidrosis.
Sesen Bio Inc. (NASDAQ: SESN)
Will shares of Sesen Bio rebound in 2022? That’s a question that I’m sure plenty of traders are asking right now. That’s because SESN stock was a massive social-media-fueled runner last year. SESN stock surged to highs of over $6 at the height of the move as the market speculated on an FDA decision. Like Akebia, Sesen received a complete response letter from the FDA for its bladder cancer candidate, Vicineum, which sent shares plummeting. This is exactly what could be in focus right now as SESN sits at $0.50.
What’s Going On With SESN Stock?
Late last month, the company filed an 8K showing that it participated in a Type C Meeting with the FDA. Furthermore, the FDA agreed to many of Sesen’s proposed protocol and analysis plan design elements for another Phase 3 trial for Vicineum. The company also expects to resubmit a Biologics License Application and further engage the FDA “in the coming months” to agree on the rest of the outstanding items relating to this additional Phase 3 trial.
Borqs Technologies (NASDAQ: BRQS)
I suppose you can’t have a list of penny stocks without mentioning at least one technology name. Borqs Technologies is in the spotlight this week after some 5G-related news. The company focuses on the Internet of Things offering communications and cloud service solutions.
What’s Going On With BRQS Stock?
This week the company announced a revised licensing agreement was signed with Qualcomm, including purchasing a 5G patent licensing agreement. The deal is expected to open up new opportunities for the company and roll out 5G services, including smart control systems for solar power. This directly relates to Borqs solar energy and storage subsidiary. In light of this development, it will be interesting to see how the market reacts since renewable energy stocks have been on the radar recently.
Final Thoughts About Penny Stocks
Whether you’re talking about Apple (NASDAQ: AAPL) or emerging growth stocks under $5, the goal is the same. Make money and repeat the process. While this sounds easy, a lot goes into trading penny stocks and managing risk. Here are a few articles to check out if you’re brand new to the stocks market: