Penny stocks are shares of companies traded for less than $5, but that’s just the standard definition. You’ve got your pick with hundreds of cheap stocks to buy today. Those hunting for some of the most volatile are those looking at some of the lowest-priced stocks. One of the hottest topics in the stock market today includes penny stocks under $1.
Hot Peny Stocks Under $1
Why trade cheap stocks? For starters, low prices offer the potential to see significant gains quickly. Consider two different penny stocks in the following example. One of these stocks trades at $4 while the other trades at 40 cents.
The cheaper of the two only need to experience a move of 4 cents to gain 10%. Meanwhile, the $4 penny stock needs ten times that to see the same return. Cheap stocks can present even higher risks based on lower prices. That same 4-cent move could present a situation where a trader sees a substantial loss if trading the $0.40 vs. the $4 stock.
Are penny stocks under $1 worth it? If you can handle volatility & higher risk and understand how to trade, penny stocks under $1 or, really, any penny stock can be well worth it. The same goal holds true no matter the price of the stocks you’re trading: to make money trading and repeat the process.
Penny Stocks To Buy For Under $1
Now that we have some basics let’s dive into this list of penny stocks. Today’s article looks at a handful of companies bouncing strongly on Thursday while the overall markets remain choppy. We look at what’s happened recently, and then you can use that to decide if any deserve a place on your watch list before next week.
- BioSig Technologies Inc. (NASDAQ: BSGM)
- Eargo Inc. (NASDAQ: EAR)
- Faraday Future Intelligent Electric (NASDAQ: FFIE)
- COMSovereign Holding Corp. (NASDAQ: COMS)
BioSig Technologies Inc. (NASDAQ: BSGM)
Like many of the names on this list of penny stocks, BioSig shares managed to bounce for the first time in nearly two months. Last month, the company launched an updated version of its PURE EP software that includes ACCUVIZ. The platform helps identify cardiac data, which traditional models can find hard to identify.
The biotech company saw this milestone as one in the evolution of its technology. Since it was introduced at the Cleveland Clinical Global EP Summit, BSGM stock has seen a slight uptick in market activity.
What’s promoting the latest move in BSGM stock today? You won’t find much news, but you will find an 8-K filing. In the filing, BioSig reported that it executed a purchase agreement with San Antonio Methodist Hospital. It provides for acquiring the company’s PURE EP™ System by San Antonio Methodist Hospital.
Eargo Inc. (EAR)
As this article is being written, shares of Eargo Inc. are approaching the $1 threshold. The hearing health-focused company’s shares have been steadily declining since a big move in August. That was when the FDA announced that it would “improve access to hearing aids which may, in turn, lower costs for millions of Americans,” and all customers “with perceived mild to moderate hearing impairment to purchase hearing aids directly from stores or online retailers without the need for a medical exam, prescription or a fitting adjustment by an audiologist.”
The FDA headlines sparked interest in several hearing health stocks, including EAR. So why is this penny stock in focus today without any related news? The grocery supercenter Walmart (WMT) announced that starting this month, it will begin offering over-the-counter hearing aids. Since Eargo’s products cater to a hearing aid customer base, the market has taken this as a bullish opportunity to start speculating on.
Eargo’s directive is to offer a more affordable device. In an update earlier this year, Christian Gormsen, President and Chief Executive Officer, commented on the OTC hearing aid opportunity, “we believe Eargos can continue to be sold under existing regulations as well as classified as OTC hearing aids, subject to compliance with labelling and other requirements of the final rule…We also believe the FDA’s removal of certain selling restrictions for OTC hearing aids will allow Eargo to expand the way we serve customers.”
Faraday Future Intelligent Electric (FFIE)
Shares of Faraday Future climbed during Thursday’s afternoon session as traders circulated details regarding potential short-squeeze stocks. In Faraday’s case, data from outlets including Fintel.IO and TDAmeritrade show the FFIE stock short float percentage sitting between 16.12% and 24.94%.
The luxury EV company has slowly moved toward launching its first flagship product, FF 91. Along the way, however, the company has continued pushing back milestone dates, which has led to the bearish resolve in the stock market. Recent events seem to have helped boost sentiment, including the company reaching a deal with one of its significant shareholders, FF Top, which appeared to have been one of the hurdles to moving things forward.
In a late-September update, Global CEO Dr. Carsten Breitfeld explained, “The resolution of governance and related issues with our largest shareholder is a major accomplishment and an important step forward for Faraday Future and all our stakeholders. We can now focus our effort on building the FF 91.”
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With this apparent hurdle behind them, traders now look ahead to see how FFIE stock performs and how the company begins executing the next phase of its strategy.
COMSovereign Holding Corp. (COMS)
One of the lowest-priced penny stocks under $1 on this list is COMSovereign Holding. The company provides communications systems, including 4G and 5G technology platforms. COMSovereign has inked several core deals this year, including one under the $8.4 million subcontract from a U.S. government prime contractor. The company also began selling its Fastback Radios to tier-one wireless network operators and communications service providers in Mexico.
“The launch of Fastback in Mexico is the latest milestone in its long and impressive history, one built on its ability to uniquely solve many of the critical connectivity challenges faced by customers due to unexpected outages or surges in bandwidth demand. Discussions with multiple tier-one and other network operators in Mexico are already underway, with the first deployment tests expected to commence later this month.”Dr. Dustin McIntire, Chief Technology Officer at COMSovereign Holding Corp.
This latest deal builds on the product’s success in serving other tier-one network operators. It supports North American events like the Super Bowl, U.S. Open & college sports, according to COMSovereign.