Penny stocks are stocks that trade for very low prices, typically less than $5 per share. Some people may be attracted to them because they can be purchased relatively cheaply. They may also believe that they have the potential to generate high returns. However, it is essential to be aware that penny stocks also come with significant risks and are often highly speculative.
Here are some potential benefits of buying penny stocks:
- Low cost: Penny stocks can be purchased for a relatively low cost, which may make them more accessible to investors with limited capital.
- Potential for high returns: Some people believe that penny stocks can generate high returns, as they may be undervalued and have the potential to increase in value significantly.
- Diversification: Buying penny stocks can be a way to diversify your portfolio, as these stocks may not be correlated with the broader market.
It’s important to remember that penny stocks also come with significant risks and should be approached cautiously. Many are highly speculative and may not be suitable for all investors. It is important to carefully research any penny stock before investing and to be aware of the potential risks involved.
Penny Stocks To Buy For Under $1
These risks can compound even more the cheaper the stocks you’re looking to buy. For example, today’s article discusses penny stocks that can be purchased for less than $1. Aside from other factors like headline risk or even market manipulation, stocks trading for pennies face another potential risk. That is price risk. In a simple example of two stocks, one trading at $15 and the other at $0.15, you can quickly see how volatility may play a role.
If the stock at $15 were to move 15 cents, it would be a minor percentage change in value. On the other hand, if the stock trading at $0.15 were to move the same amount, it could be a huge win if shares increase by that amount or a massive loss should the stock drop by that amount. It seems obvious, but often, traders forget to weigh risk and reward when it comes to stocks trading for pennies.
With this list, we expand on the update from last week, “Best Penny Stocks To Buy? 6 Under $1 To Watch Now.” We look into any recent catalysts or any upcoming events that could be a focus for anyone currently watching shares of these companies.
Grove Collaborative Holdings Inc. (NYSE: GROV)
Shares of Grove Collaborative Holdings continued their latest bull rally on Tuesday. At the start of a shorter week, the consumer product company tested highs nearing $0.30. While the move wasn’t accompanied by any headlines, trading momentum remained higher than average, with more than 1.6 million shares traded during the first 45 minutes of the trading session.
Despite its low price, some Wall Street analysts appear bullish on the stock. This quarter, Canaccord Genuity started the company with a Buy rating and gave a $2 price target. Meanwhile, other firms, including Telsey Advisory Group, maintain an Outperform rating and have a $5 target on GROV stock. Meanwhile, some insider buying from Director Kevin Cleary earlier in December has also turned some attention toward the company. Cleary purchased 100,000 shares at an average price of $0.5874 during the first week of the month.
Grove raised its 2022 revenue guidance in the last earnings update. The company reported more than $77 million in Q3 revenue and sees 2022 coming in between $313 million and $320 million compared to its previous range of $302.5 million and $312.5 million.
CEO Stuart Landesberg explained that progress was made during the quarter, which he feels could translate to “improving the user experience on our direct-to-consumer platform, all while navigating macroeconomic headwinds. The steps we took progress us towards our goal of driving profitable growth in 2024, and we are excited about the plans in front of us.”
Muscle Maker Inc. (NASDAQ: GRIL)
The “healthier for you” brand, Muscle Maker Inc., has experienced a strong move in the stock market this quarter. As we reported at the end of November, GRIL stock has turned heads thanks to several catalysts, including insider buying. That trend hasn’t subsided in December either. Directors and Executives have continued adding to their positions. The largest purchase came from Director Malcolm Frost. However, compared to some other articles about insider activity, these purchases weren’t as notable as others we’ve seen.
Nevertheless, GRIL stock has maintained trading levels above $0.80 heading into the year’s final week. The move also comes as its subsidiary, Pokemoto, accelerated its expansion plans. The poke restaurant concept brand will soon have a presence in numerous markets. These include Texas, South Carolina, New Jersey, Connecticut, Massachusetts, Florida, Rhode Island, New York, Kansas, and more than a hand full of other states.
Pokemoto CEO Michael Roper has high hopes for the new year thanks to moves like this. He explained in a December update, “we’ve got a lot going on heading into 2023. We expect to be busy next year as we not only expand Pokemoto but also fully integrating the recently announced new subsidiary, Sadot LLC, into the overall Company. Sadot delivered $54.19 million in revenue in November, its first 30 days of operation. That’s a great start for the company.”
With these catalysts, GRIL stock has continued to rebound from its previous 2022 lows.
AppHarvest Inc. (NASDAQ: APPH)
Another one of the penny stocks under $1 trading higher this week is AppHarvest. The company focuses on sustainable foods and operating high-tech indoor farms using robotics and AI. Its farms are made to grow produce with up to 90% less water than normal, open-field growing.
Despite some analyst downgrades this month, shares have remained resilient at the end of the year. APPH stock jumped back above $0.60 for the first time since December 20th. The move also comes on the heels of more significant news from the company. AppHarvest announced a deal with Mastronardi Berea for a sale-leaseback of the Berea farm. This finalized sale-leaseback was for a little over $127 million.
“The AppHarvest team has worked relentlessly this year to get the four-farm network operational, and those efforts have paid off with the quadrupling of farms in our network and diversifying our crop set,” said AppHarvest Founder & CEO Jonathan Webb. “The team is now focused on operations to ramp up production and revenue from the four high-tech farms.”
Other than the news, traders may be focused on the APPH short. This trend in short-squeeze stocks has become increasingly popular this year. According to data from Fintel, the current short float percentage sits around 24%.
IronNet Inc. (NYSE: IRNT)
Cyber security stocks have faced their share of hurdles during the year’s second half. Growth names, in general, found resistance as markets sold off. IronNet, for example, was trading above $7 earlier this year. At the end of 2022, IRNT stock sits below $0.30.
This month was notable for the company. It was prioritized by the US Federal Risk and Authorization Management Program (FedRAMP) to pursue a Provisional Authority to Operate from the Joint Authorization Board.
What does all of this translate to for IronNet? According to CEO General (Ret.) Keith Alexander, “Prioritization to pursue a P-ATO is an important step towards expanding the deployment of the IronNet Collective Defense platform into more federal agencies. As cyber-attacks become increasingly more sophisticated, any organization that is still attempting to defend its networks alone is accepting unnecessary risk.”
This news came shortly after IronNet announced a partnership with the AWS Marketplace. It will provide complimentary access to its IronRadar technology for updated and automated customer cybersecurity tools for detecting malicious indicators of adversary infrastructure.
List Of Penny Stocks To Watch This Week (sub-$1 edition)
- Grove Collaborative Holdings Inc. (NYSE: GROV)
- Muscle Maker Inc. (NASDAQ: GRIL)
- AppHarvest Inc. (NASDAQ: APPH)
- IronNet Inc. (NYSE: IRNT)
- Vislink Technologies, Inc. (NASDAQ: VISL)
- TeraWulf Inc. (NASDAQ: WULF)
- Neubase Therapeutics (NASDAQ: NBSE)
- Blue Apron Holdings Inc. (NYSE: APRN)
- Pagaya Technologies Ltd. (NASDAQ: PGY)
- Athenex Inc. (NASDAQ: ATNX)