Cheap Stocks On Robinhood Moving On Tuesday
Whether you call them cheap stocks, penny stocks, or lotto tickets, most day traders hunting for new opportunities typically include stocks under $5 on their list. Why? One of the biggest reasons is regarding how volatile low-priced stocks can be
Just look at some of the penny stocks exploding today, like Jasper Therapeutics (NASDAQ: JSPR) or Lucira Health Inc. (NASDAQ: LHDX). They are trading at different price levels, but both have experienced moves of several hundred percentage points within a single day. Both had minimal trading history leading up to today, and each posted different news headlines that acted as significant catalysts for breakouts to start the new year.
The uniqueness of Robinhood further condenses that so-called “list of penny stocks” further by limiting access to companies only listed on major exchanges. This differs from other brokerage platforms like TDAmeritrade or Interactive Brokers, which offer broad access to all stocks under $5, including those trading on the Over-The-Counter or “OTC” exchange.
In this article, we look at a few stocks that can be bought for under $5 and listed on major exchanges. Thanks to the surge of new traders in 2020, 2021, and 2022, many chose the mobile-first platform to access the markets. We look at any recent catalysts worth noting and try to find additional information, including any upcoming events that may be worth keeping track of. Just remember that just because something can be bought for under $5 doesn’t make it worth the risk. That’s something I’ll let you decide after see what’s gone on in the stock market today for some of these low-priced stocks.
Robinhood Stocks Under $5
- Grab Holdings Ltd. (NASDAQ: GRAB)
- Virax Biolabs Group (NASDAQ: VRAX)
- Pitney Bowes Inc. (NYSE: PBI)
Grab Holdings Ltd. (GRAB)
Since mid-October, Grab Holdings has been in rally mode. What may be more important for technical traders is that GRAB stock broke back above two major moving averages, including the 50-day and 200-day moving averages. As the stock consolidated in this wedge formation during the last two months of 2022, shares increased slightly at the start of 2023.
The “super app” company offers everything from ride-hailing to food delivery in Southeast Asia. Grab also boosted its 2022 guidance from $1.25 billion-$1.3 billion to $1.32 billion-$1.35 billion. In its third-quarter business update, Grab also said that it anticipates Q4 deliveries to come between $2.4 and $2.5 billion.
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Thanks to multiple tailwinds at the start of the week, including strength in Asia-based stocks, GRAB shares have gained sympathy momentum.
What to Watch With GRAB Stock
There weren’t any headlines from the company or timely filings. But what some traders have noticed is the options activity in GRAB stock. Specifically, the February 17th expiration $3.50 Call options experienced the highest level of irregular activity. More than 10,000 contracts were traded at the time of this article compared to less than 70 contracts of open interest. This discrepancy echoed a slightly more bullish tone in the market.
Virax Biolabs Group (VRAX)
Shares of Virax Biolabs also continued a recent bullish trend at the beginning of 2023. The sub-$1 stock has risen three days in a row. The company caught some attention last quarter after announcing that one of its suppliers received an Emergency Use Authorization from the FDA for an over-the-counter COVID-19 rapid antigen test.
With the virus continuing to command attention globally, related stocks have gained some extra momentum in recent weeks. This allows the company to enter the US market, with Virax having manufacturing capacity via its partner to produce up to 2 million tests per day.
What To Watch With VRAX Stock
Yet another new strain of the virus is shaking things up in the medical community. As flu season goes into full swing, COVID concerns have come back to light. Recently, the CDC projected that roughly 40% of confirmed U.S. cases were caused by this new XBB.1.5 strain. That was reportedly up from 20% during the previous week.
Furthermore, in the Northeast, about 75% of confirmed cases are reported to be XBB.1.5. Presuming that more cases might equate to more testing, VRAX stock has gained some speculative attention at the beginning of the year.
Pitney Bowes Inc. (PBI)
At the beginning of 2022, Pitney Bowes was trading above $5 per share but the bearish year helped contribute to a downward slide that took shares to lows of $2.30 in September. Ever since then, however, PBI stock has been in rally mode. In addition, like GRAB stock, Pitney Bowes has also managed to push through two major moving averages in the 50- and 200-day.
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The company has benefited from attention to shipping stocks. Pitney Bowes provides technology, logistics, and financial services centered around global shipping and mailing. Its round of clients includes Small businesses, retail, government, and enterprise clients, including those in the Fortune 500.
The acquisition of Skymail International’s resort assets in Salt Lake City is expected to add more than 100 million First Class mail pieces annually to its Pitney Bowes Presort Services Network to make drop-offs and pick-ups easier.
What To Watch With PBI Stock
In addition to the above, PBI stock could be on the radar after two recent updates. First, it was awarded a $375,000 enterprise postal systems and services contract by the U.S. Department of the Army. It also named a new Executive VP and Group Executive this week. It’s also one of the few cheap stocks under $5 offering dividends to its shareholders.
