Penny stocks are an interesting asset class to follow. They may not have such lasting multi-year moves as some of the larger companies in the market. However, they have become frequent “go-to” stocks during times where broader trends are a bit uncertain or bearish.
This year is a prime example of that as the stock market crash continues in 2022. Exactly how much has the stock market crashed this year? Let’s put things into perspective. If you felt like you missed out on 2021’s entire bull run, you’re in luck! The S&P 500 ETF (NYSEARCA: SPY) for example, is now trading at levels where it opened last January.
Are you sad you missed the tech run with companies like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) reaching record highs? Don’t worry there either because the tech-heavy NASDAQ is now at the levels it was back in August of 2020.
Maybe small-caps are your thing and you’re sad about not participating in the epic 2-year show that the Russell 2000 Small-Cap ETF (NYSEARCA: IWM) put on. Once again, you’re in luck as the IWM sits at the same levels it was when it reached “new highs” in January 2020.
What’s the point? Even with these longer-term trends, there’s always money to make money in the stock market daily. Penny stocks, specifically, have offered up some of the biggest potential as long as traders know how to hand risk. Today we look at a handful of penny stocks to buy for under $3. Whether or not they’re worth the risk is something I’ll leave for you to decide.
4 Penny Stocks To Buy For Under $3
- RiceBran Technologies (NASDAQ: RIBT)
- AgriForce Growing Systems Ltd. (NASDAQ: AGRI)
- Arcadia Biosciences Inc. (NASDAQ: RKDA)
- Applied UV Inc. (NASDAQ: AUVI)
1. RiceBran Technologies (NASDAQ: RIBT)
One of the more popular penny stocks across social media recently has been RiceBran Technologies. The company is getting wrapped into the AgTech trend that has built within the market. Thanks to global sanctions, supply chain constraints and an overall food shortage, stocks within this niche have gained appeal.[Read More] 3 Good Penny Stocks to Watch During the Market Crash
RiceBran specializes in nutritional and functional ingredients made from rice and small grains. Earlier this quarter, the company took steps to expand its production capabilities via its MGI Grain Incorporated facility. It’s expected to double the capacity of its pearling mill and allow RiceBran to tackle the growing demand for grain-based ingredients.
What To Watch With RIBT Stock
Other than growing interest from the retail trading community, RiceBran remains focused on expansion. Earlier this month the company announced another effort to boost its capacity at its Core-SRB facility in Louisiana. In this case, the expansion specifically targeted meeting demand for ingredients in demand from the companion animal market.
RiceBran Chairman Peter Bradley explained, “This growth has been further accelerated by the popularity of companion animals in higher-demographic households, and these new owners’ desire to feed their pets healthy and natural products. Combined, these factors are driving a structural shift in the industry toward stabilized rice bran ingredients, and we are able to respond.”
With a global supply chain still disrupting food/ingredient stocks, speculators have put a focus on companies and stocks like RIBT.
2. AgriForce Growing Systems Ltd. (NASDAQ: AGRI)
Like RiceBran, AgriForce is part of the food/ingredient stock trend. In particular, the company specializes in sustainable cultivation and crop processing. The company’s recently become a focus following a May acquisition of Manna Nutritional Group’s intellectual property. Included in the IP are patent-pending technologies for naturally converting grain, root vegetables, and pulses to low-starch, low-sugar, fiber & protein-rich baking flours.
The market is now focused on AgriForce’s pilot testing of its first branded product under the brand un(Think) Foods later this year.
What To Watch With AGRI Stock
This is another speculation-fueled agricultural tech/food ingredient stock traders are watching. Last week the company presented at a food and AgTech conference. since then, AGRI stock has gained a bit more momentum with another spike in price to start the week this week.
3. Arcadia Biosciences Inc. (NASDAQ: RKDA)
We’ll go ahead and continue with this AgTech and food supply stock trend with Arcadia Biosciences. The company hasn’t received as much fanfare as the other companies on this list. However, it is worth mentioning as share prices have climbed over the last several weeks.
Arcadia focuses on plant-based health and wellness products with a recent target on wheat. The first retail orders of its GoodWheat pasta were shipped to retail customers with an eCommerce launch through Amazon this month. What’s more, Arcadia’s recent joint venture with Bioceres (NASDAQ: BIOX) has brought some added attention between May and June. The two are working together on soybean production using Bioceres’ HB4 technology to achieve this.[Read More] Penny Stocks to Buy Right Now? 3 to Watch in Mid-June 2022
What To Watch With RKDA Stock
This month traders seem to have focused on the latest update from the company. Arcadia discussed the launch of GoodWheat pricing and availability online. This milestone also marked the first time the company’s proprietary wheat grain was included in a product. If food & ingredient stocks stay hot, will RKDA be on your watch list?
4. Applied UV Inc. (NASDAQ: AUVI)
Applied UV isn’t on the list of food or ingredient stocks right now. But it is a stock some traders are watching in light of other global events. Global health concerns are still prominent in the weekly newsfeed and companies taking aim at curbing the spread and preventing mass transmission of diseases remain a focus. Applied UV uses ultraviolet light for air and surface purification.
What To Watch With AUVI Stock
Earlier this month, the company announced that it secured an exclusive contract in Pakistan. Its distributor, M/S Novatek Pakistan became the main source provider of the company’s Airocide air purification systems for government hospitals. Given the constant focus on preventing new airborne viruses thanks to the 2020 pandemic, companies like Applied UV remain a focus for some investors.