Penny stocks are generally shares of companies trading for less than $5 per share. While newer traders might consider most to be OTC (over-the-counter) stocks only, there are hundreds of issuers traded on significant exchanges. NYSE and NASDAQ penny stocks have grown in popularity thanks to the pandemic and increased interest in retail trading.
Platforms like Robinhood and Webull, two more popular mobile platforms, restrict access to OTC penny stocks. However, since the platforms allow trading of NASDAQ and NYSE-listed companies, any of these stocks under $5 are fair game.
Finding Penny Stocks To Buy
Assuming you’ve got a general understanding of trading, finding penny stocks to buy starts with a list. Some traders will focus on industry themes like energy or technology. Meanwhile, others will look for other traits, including high short interest, lower floats, and even specific price ranges. Today we look at a handful of penny stocks that can be bought for under $1.
Other than the general investment risks involved, lower prices tend to lead to higher volatility. Even the slightest shift can equate to significant percentage changes. This is most likely why some retail traders love penny stocks under $1. They can amass large share positions and leverage small moves in price to reap hefty rewards.
4 Penny Stocks To Watch
- IT Tech Packaging Inc. (NYSE: ITP)
- Sesen Bio Inc. (NASDAQ: SESN)
- Clarus Therapeutics Holdings Inc. (NASDAQ: CRXT)
- Statera Biopharma Inc. (NASDAQ: STAB)
Penny Stocks To Buy Under $1: IT Tech Packaging Inc. (NYSE: ITP)
The early days of the pandemic saw shares of IT Tech Packaging surge. You might remember the mad dash for things like paper products, including toilet paper. Store shelves were left bare as consumers stocked up for lockdowns.
IT Tech Packaging specializes in paper products in the Chinese marketplace. Considering what’s going on with new COVID restrictions, traders have looked at ITP stock over the last few weeks. As of today, Beijing has shut down gyms and banned dining, with mass testing set to begin. There are also quarantining facilities coming back online to help with the rise of new cases.
IT Tech, in particular, has emphasized the growth of its facemask business. In a Chairman letter earlier this year, Chairman and CEO Zhenyong Liu explained, “The annual production capacity of the surgical masks is expected to reach 38 million pieces with gross profit margin of approximately 35%. The Company’s surgical masks have been sold to the local companies in catering or sanitation industries, and the Company has also obtained bidding qualifications from various pharmaceutical companies and hospitals.”
Another recent catalyst has come in the form of social-media-driven momentum. As COVID stocks return to focus, some are looking for low-priced penny stocks to watch right now. ITP stock seems to have hit home for many FinTwit traders this week.
2. Sesen Bio Inc. (NASDAQ: SESN)
One of last year’s biggest gainers among penny stocks was Sesen Bio. That was right up until bad news regarding an FDA decision left traders wondering about the company’s future. This year, Sesen Bio remains a focus, but this time it’s for reasons more specific to its current share price.
The biotech company has worked to develop cancer therapeutics and this week’s update struck a favorable chord among investors. Sesen announced that it had begun the process of a strategic review for business alternatives. With more than $160 million in cash and equivalents, Sesen appears to be on the hunt for a potential acquisition “or other business combination.”
Dr. Thomas Cannell, president, and chief executive officer of Sesen Bio, explained, “As we assess potential external strategic alternatives, we continue to seek to create value through the development of Vicineum for the treatment of non-muscle-invasive bladder cancer. We plan to request a meeting with the FDA in the coming weeks to align on the remaining outstanding items related to an additional Phase 3 clinical trial.”
SESN stock caught a substantial jump in action on Tuesday with this news in tow.
3. Clarus Therapeutics Holdings Inc. (NASDAQ: CRXT)
Another one of the penny stocks under $1 gaining ground this week is Clarus Therapeutics. The last two days have seen shares climb back from 52-week lows of $0.53 to highs on Tuesday of $0.6565. While it’s only about a 12-cent move, that’s enough for a 23% spike so far this week. This move comes just about a week after Clarus closed an upsized offering for $30 million.
The company is developing a pipeline of metabolic therapies, and its first commercial product, JATENZO, is said to be the first and only FDA-approved oral soft gel capsule for testosterone replacement therapy (TRT). Shares of CRXT stock popped last month ahead of new Jatenzo data at the Androgen Society meeting. Thanks to the discounted offering, however, momentum stalled until recently. With fresh cash in hand and recent data presented, it will be interesting to see how things progress for Clarus this quarter.
4. Statera Biopharma Inc. (NASDAQ: STAB)
Thanks to a big therapeutic deal, shares of Statera Biopharma have gained some attention over the last week. Along with Immune Therapeutics Inc. (IMUN), the company entered into a strategic agreement to sell Statera’s rights to its naltrexone and met-enkephalin. What does this mean?
“The agreement with Immune will enable us to strengthen our financial position with a transaction that has the potential to produce significant non-dilutive cash flow to fund our other programs. For instance, Statera is beginning to chart a new course in the immunotherapy field by pursuing molecules that act on Toll-like Receptor pathways similar to Naltrexone,” said Michael K. Handley, President and Chief Executive Officer of Statera.
The company received an initial $2 million upfront and 5% of the issued and outstanding stock of Immune Therapeutics. There are also plans for additional payments based on revenue-based milestones and other benchmarks.
Best Penny Stocks To Buy Now?
If you’re looking for the best penny stocks to buy now, understand what has happened in the past and what could be on the horizon. Even if you’re looking for penny stocks under $1 to add to your list, ensure that you know what’s moving certain stocks & why.