Penny stocks are shares of companies trading below $5. But for some traders, their focus is on the cheapest stocks in the market. These are the ones trading for actual pennies per share. Yes, stocks under $1 are a target for day traders and investors alike. In the short term, volatility is generally the main attraction.
A pop of 10 or 20 cents for a stock trading at a price of $1 is a meaningful percentage gain. For those looking to invest in penny stocks, it can give them a true “ground floor” opportunity. Though the latter is few and far between, it isn’t improbable. Nevertheless, the ultimate goal is making money with penny stocks, no matter the time frame. Today we look at a few popular penny stocks under $1 that are gaining the interest of retail traders in the stock market today.
Penny Stocks To Buy Under $1
- Molecular Data Inc. (NASDAQ: MKD)
- NiSun International (NASDAQ NISN)
- Evoke Pharma Inc. (NASDAQ: EVOK)
Finding The Best Penny Stocks To Buy
In order to find the best penny stocks to buy, you have to know what you’re looking for in the first place. Are you hunting for volume or some type of hype from the Reddit community? Maybe you want to make a list of penny stocks with news. Whatever the catalyst, the first step is outlining what criteria you’re looking for. In this case, today’s list of penny stocks is focused on stocks under $1 that have gained popularity and momentum in the last 24 hours.
What to Know About Buying Penny Stocks on May 17th
1. Molecular Data Inc. (NASDAQ: MKD)
Molecular Data has experienced a surge in trading momentum today. Along with a slew of other China-based stocks, the company headed higher on Tuesday. There weren’t any headlines to pair with the move, nor were there any additional filings to point to. However, the company’s position in China’s chemical industry and supply chain technology services remains a high point for some traders.
Molecular Data has also gotten wrapped into the blockchain technology arena. Despite the drop in interest in cryptocurrency due to a recent decline in Bitcoin prices, MKD stock has remained resilient. Even as crypto prices have dipped, it has enjoyed a multi-day move over the last week.
Molecular Data signed a deal to create a joint venture for building supercomputing clusters in North America. This includes constructing two plants in the US, and Molecular anticipates adding 13MW in the beginning phase. According to the company, this new business line is expected to bring in roughly $5 million in revenue with $4 million in gross profit.
With stocks under $1 gaining steam, MKD stock could be one of the names to note this week.
2. NiSun International (NASDAQ NISN)
Most penny stocks are thinly traded. But that doesn’t mean they are doomed to be that way forever. News headlines, industry events, and corporate filings can fuel a bullish fire. This is what happened with NiSun on Tuesday. The technology company reported its full-year 2021 earnings results.
NiSun specializes in supply chain solutions for the corporate finance industry. Supply chain financing solutions, small and medium enterprise financing options, and supply chain trading are among its offerings. Last year, revenue from financial services, SMEs, and supply chain financing increased by triple-digit percentages. The supply chain solutions, in particular, saw 260% growth compared to the prior year.
This growth update seems to have turned heads in the stock market today. NiSun CEO Xiaoyun Huan also expanded on the company’s outlook for 2022. “For 2022, we will maintain comprehensive coverage and dynamic circulation in the agricultural supply chain to support China’s greater strategy for rural revitalization, while expanding our business internationally. We remain dedicated to providing our clients with effective, high-quality supply chain solutions and driving long-term value for our shareholders.”
This is the first time NISN stock has experienced this type of trading volume since last December. Meanwhile, shares have tested highs of $0.89 during Tuesday’s morning session.
3. Evoke Pharma Inc. (NASDAQ: EVOK)
Like MKD, Evoke Pharma has also enjoyed a multi-day move even as broader markets dip. Evoke specializes in gastrointestinal treatment development and was a big mover earlier this quarter. Evoke announced new FDA market exclusivity for its Gimoti nasal spray. The treatment was designed to relieve symptoms of diabetic gastroparesis in adults. EVOK stock ultimately surged to highs of $1.40 before coming back down during the weeks to follow.
While volume is not as heavy as some of the other names on this list of penny stocks, premarket momentum has been a sticking point for some retail traders. EVOK stock jumped to highs of $0.45 before the opening bell. This coincided with news that it would present at the upcoming H.C. Wainwright investment conference next week. Included in the presentation will be details on the commercial progress of Gimoti. With this backdrop, EVOK stock seems to have garnered the market’s interest as speculation builds ahead of this presentation.
Penny Stocks To Watch
Whether you’re looking for penny stocks under $1 to buy or trying to find the next AMC or GME, your trading plan is essential. Setting proper stop losses in the event of trades not working out, in addition to identifying profit targets as your trader works out, is critical to making money with penny stocks.
Since we’re talking about stocks under $1 in this article, volatility is something you should know how to handle. A slight move of just a few pennies can be the difference between a big windfall and a crushing loss. If you’re brand new to trading penny stocks, here are a few articles to help get you started:
- What Is A Penny Stock – Definition & More
- How to Trade Penny Stocks When the Stock Market Crashes
- Penny Stocks To Buy: 5 Tips For Trading Stocks Under $5
- Are Penny Stocks Good For Beginners? [Answered]
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