The traditional approach to investing is finding well-established companies, investing in them and waiting years for a return of 50%. But in today’s fast-paced stock market, retail traders are finding better ways to use the stock market to capture gains. Penny stocks are stocks priced below $5 and they have established themselves as the go-to for day traders. One of the reasons is the speed at which they can see market-beating gains daily.
They’re also a breeding ground for emerging companies or to find the phoenix that may rise from the ashes. Just look at a company like Carvana (NASDAQ: CVNA). It wasn’t that long ago when CVNA stock was on a list of 40 other household names trading for pennies on the dollar.
In the article “41 Household Stocks To Buy For Pennies Right Now,” we discussed how reports from multiple sources, including Bloomberg, cited that Carvana could be seeking debt restructuring. Shares would sink to lows of $3.55 before the now former penny stock went on an epic rally to highs of $57.19 this year.
Not all penny stocks behave like this, and many completely fail. However, there’s no substitute when it comes to high-volatility, speculation-fueled breakouts to the tune of hundreds or even thousands of percentage points. Even in the stock market today, there are multiple examples of this. Look at GD Culture Group Ltd. (NASDAQ: GDC).
The holding company announced the expansion of its “grid of the future” portfolio and the launch of a live-streaming eCommerce business on TikTok. This news sparked attention on GDC stock and a move that followed, taking the penny stock from a previous close of $2.54 to highs of over $5.30 during early trading on Monday.
Penny Stocks Under $1
If you thought these moves were eye-opening, some of the cheapest penny stocks tend to amplify this trend. This article continues the list of penny stocks from our article “7 Best Penny Stocks To Buy Under $1 in 2023: Big Risk, Big Return?” We look at some of the hottest stocks under $1, see what’s acting as a catalyst, and search for any upcoming events that may be relevant to account for. Then you can decide if they’re the best penny stocks to buy or if they should be avoided entirely.
- Selina Hospitality Plc (NASDAQ: SLNA)
- AEye Inc. (NASDAQ: LIDR)
- Rubicon Technologies (NYSE: RBT)
Selina Hospitality Plc (SLNA)
As you will notice, many of the penny stocks under $1 are ones that have previously come under extreme selling pressure. This has pushed prices to record lows, making it a hot topic for those looking to capitalize on volatility. Even a few pennies can make the difference in a gain of 5% or 50%.
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Selina Hospitality is a company that is trying to recover from a recent, news-driven sell-off. Earlier this month, the company unveiled a new hotel in Greece and announced a strategic global allice with Blobant (NYSE: GLOB). The two aim to launch solutions for offering benefits to “enhance” travel experiences at Selina’s locations. There was also a shelf registration statement to raise capital, that seems to have shaken some of the market in SLNA stock.
This week has begun much differently from where SLNA stock was trading at last week. Shares surged to highs of over $0.70 during early morning trading. There weren’t any immediate headlines to accompany the move. However, with momentum building in the stock market today, SLNA stock is among the list of names gaining ground.
AEye Inc. (LIDR)
Shares of AEye Inc. continued climbing in the stock market on Monday. The company develops adaptive, high-performance lidar solutions for its clients. Not many things have been released by the company in terms of recent news headlines other than its second-quarter financials. AEye beat EPS estimates but missed sales expectations for the quarter.
“AEye has taken a significant step forward this quarter in our path to commercialization in the automotive market,” said Matt Fisch, AEye CEO.
“We’ve achieved major in-vehicle test milestones with three prestigious industry players, including NVIDIA and two global automotive OEMs; AEye has solidified a production-ready supply chain with Continental to deliver an ADAS product at a price well below $1,000; and we have been named a finalist for two automotive series production awards, with a strong pipeline of OEM RFQs representing a sizable revenue opportunity.”
While LIDR stock has pulled back from early August highs, the excitement stemming from the tech sector and autonomous driving has promoted interest in companies like AEye once again. The penny stock sits much higher than where it was in May.
Rubicon Technologies (RBT)
The software-based products company services businesses and governments with its digital marketplace tailored for waste and recycling. Rubicon Technologies has been quiet in August in terms of stock market news.
However, that doesn’t mean there aren’t things to watch with this company. At the end of July, Rubicon announced the timing of its next earnings update, which will be next week on the 8th. The market will likely look to see if the company can maintain the trend from its first-quarter results.
Rubicon reported an earnings and sales beat for the first quarter. Sales came in at $181 million with a loss per share at 5 cents. These were better than the $165.19 million and loss of 30 cents per share expected by Wall Street. CEO Phil Rodoni also mentioned, “Rubicon remains the definitive digital platform for eliminating waste which enables us to provide a differentiated service offering to our customers. Our core business is strong, and we are focused on accelerating the Company’s progress to profitability while driving Rubicon’s next phase of growth.”
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As for Q2, Rubicon reported $174.6 million in sales, which missed estimates by a little over $1 million. The company also said it remains on track to achieve positive adjusted EBITDA for Q4. Phil Rodoni said, “With a solid foundation in place, we are now focused on growth and driving even greater results for the Company and our valued customers.”
What do insiders think about RBT stock? Jose Miguel Enrich reported the June purchases involving various entities that Mr. Enrich manages. These purchases totaled more than $12.8 million.
10 Top Penny Stocks Under $1 To Watch
- Selina Hospitality Plc (SLNA)
- AEye Inc. (LIDR)
- Rubicon Technologies (RBT)
- Athersys Inc. (NASDAQ: ATHX)
- Cano Health Inc. (NYSE: CANO)
- Canoo Inc. (NASDAQ: GOEV)
- T2 Biosystems (NASDAQ: TTOO)
- Pieris Pharmaceuticals (NASDAQ: PIRS)
- Genius Group Ltd. (NYSEAMERICAN: GNS)
- eFFECTOR Therapeutics (NASDAQ: EFTR)
