3 Under $1 Penny Stocks to Watch in May 2022
Finding the best penny stocks to buy under $1 is all about doing your due diligence and finding the most promising companies with good prospects for future growth. Because penny stocks are so speculative, understanding exactly what is going on in the broader market is critical to making money with penny stocks. Right now, the most prominent factors impacting the stock market are high inflation, conflict in Ukraine, earnings releases, and more.
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Now with the high volatility that penny stocks under $5 bring, those under $1 are even more likely to move. Because of this, it’s important to be more selective when picking which ones to buy. You can limit your losses by having a well-thought-out trading strategy and using that no matter what market conditions are. In addition to this, investing should never be done with emotions. Rather, traders should build a plan and always stick to it.
When looking for the best penny stocks to buy from a fundamental sense, consider a company’s financial stability, its management team, the overall market conditions, and any recent earnings results. Doing your research on fundamentals is essential to avoid losing money in penny stocks. So, while this is not a complete list on how to buy penny stocks, it should be plenty to get started. With this in mind, let’s take a look at three under $1 penny stocks to watch right now.
3 Penny Stocks For Your Under $1 Watchlist Next Month
- Farmmi Inc. (NASDAQ: FAMI)
- Veon Ltd. (NASDAQ: VEON)
- Calithera Biosciences Inc. (NASDAQ: CALA)
Farmmi Inc. (NASDAQ: FAMI)
With over 3.9% in gains at EOD on April 21st, Farmmi is a penny stock that many investors are watching right now. Because of today’s big gain and FAMI stock’s large recent moves, we’ve covered it plenty of times recently. Despite a YTD drop of around 40%, we have seen some major bumps in that time due to big announcements made by Farmmi.
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Most of these announcements concern the agricultural company signing new deals for export to a variety of countries or building upon existing deals. The most recent news from the company is no different. On April 19th, Farmmi announced that it received a repeat order for Black Mu Er mushrooms from a company in Jordan.
“We are pleased to continue our relationship with this valued long-term customer. It has proven to be a very efficient strategy for us to focus on supporting expanding needs of customers, while converting those into long-term, repeat orders. This maximizes our investments in sales from a customer acquisition standpoint and the positive word of mouth generated from satisfied customers is invaluable.”
The CEO and Chairwoman of Farmmi, Ms. Yefang Zhang
Big deals like this are crucial to the success of Farmmi. And in the past few weeks as mentioned earlier, Farmmi has continued to mention new orders from its customers. So, while this is exciting, investors should continue to understand that FAMI is highly volatile. But, if that is something you’re interested in, FAMI stock could be worth adding to your list of penny stocks to buy.
Veon Ltd. (NASDAQ: VEON)
At $0.59, VEON is another under $1 penny stock that is on many investors’ radars right now. With over 5% in gains today, VEON is seeing a small bullish turnaround from its 65% YTD drop. The most recent news from the company came on April 21st when it announced the alignment of its capital structure. It stated that it’s two group-level loan agreements with Sherbank and Alfa Bank totaling RUB 90 billion have been transferred to PJSC VimpelCom.
“The novation of the ruble loans more closely aligns ruble liabilities with ruble revenues and reduces HQ external debt.”
The CFO of Neon, Serkan Okandan
In addition to this news, VEON also recently received a notice that it is not in compliance with the minimum bid requirement for the NASDAQ. IT will now have 180 calendar days to regain compliance with the $1 requirement. As a global provider of connectivity services, VEON is a big player in the tech industry. But with its high volatility, it may be worth watching for now.
Calithera Biosciences Inc. (NASDAQ: CALA)
One of the bigger gainers during trading today is CALA stock. By EOD, shares of CALA stock had pushed up by more than 7%, which is no small feat. And similar to the other penny stocks on this list, this comes after a substantial six month drop of more than 80%. So, why are we seeing shares of CALA stock climb right now? The most recent news from the company came on April 8th. On the 8th, it announced new data highlighting the discovery of several synthetic lethal compounds. These compounds could have indications for use in treating solid tumor cancers.
“Synthetic lethality is a promising area of cancer therapy that we believe has the potential to address major unmet needs in oncology. Our discovery of a novel series of VPS4A inhibitors is an important validation of our platform. We are now advancing these inhibitors through lead optimization.”
The CEO of Calithera, Susan Molineaux
Right now, there is a major emphasis on biotech penny stocks. And, this has been the case for several weeks. So, whether CALA is worth adding to your penny stocks watchlist or not is up to you.
Can Penny Stocks Make Gains in May?
Are penny stocks worth buying in May? It really depends on the penny stocks on your watchlist and your investment goals. If you’re looking for a quick flip, then penny stocks can be a great option.
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In addition, if you’re willing to do your research and hold onto the stock for the long haul, then there are plenty of penny stocks for that strategy as well. Just remember to tread carefully and don’t invest more than you are willing to lose. With penny stocks, the high risk means that there is no guarantee for making money. So, with all of that in mind, do you think penny stocks can make gains in May?
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