Best Penny Stocks To Buy: Find the Best Ones To Watch

shot of penny on chart.
Kameleon007 / iStock.com

Penny stocks are those that trade at low prices, typically under $1 per share, but they can trade as high as $5 per share. They may also have smaller market capitalizations – typically under $300 million or so.  They may be traded over the counter, listed on smaller exchanges, or traded on the NYSE or NASDAQ. (X}

Penny stocks tend to be less liquid and more volatile than the stocks of larger, more established companies. This means that you could lose a lot of money investing in penny stocks – but you could make a lot too. As with any investment, do your due diligence and don’t put all your eggs in one basket.

4 Penny Stocks to Watch

Not surprisingly, many penny stocks are in up-and-coming industries, such as biotech, pharmaceuticals, energy and technology. These companies tend to have high start-up costs but the potential for a significant return is there. Getting in on the ground floor can be a huge win, but it’s important to understand what you’re buying so you can make the most informed choice.

Building Wealth

Here are some penny stocks to watch now.

1. Biotech and Pharmaceutical Stocks Targeting Mental Health

The treatment of mental health is big business, and it’s only getting bigger. These two penny stock companies are making inroads into this complex but potentially lucrative sector.

MindMed, Inc. (Nasdaq: MNMD)

MindMed, Inc.is developing psychedelic inspired medicines and experiential therapies for anxiety disorders, addiction, ADHD and more. A look at the trajectory of cannabis stocks should give some insight into where MindMed and other similar companies could go if their products are effective.

Protagenic Therapeutics, Inc. (Nasdaq: PTIX)

Protagenic Therapeutics, Inc. is a biotechnology company that focuses on developing neuropeptides for treating stress-related disorders, such as PTSD and drug and alcohol addiction. None of its therapies are currently approved for use, but if they are successful, the upside is clear.

2. Biotech and Pharmaceutical Stocks Targeting Physical Health

Biotechnology and pharmaceutical companies continue to spring up, and there seems to be no end in sight to their potential. It’s challenging to determine which companies will be able to get their products and technologies across the finish line, however. Here are some biotech and pharma penny stocks to watch.

ConforMIS, Inc. (Nasdaq: CFMS)

ConforMIS, Inc. develops, manufactures and sells joint replacement implants that are customized to each patient’s anatomy. Unlike many penny stock companies in the medical sector, ConforMIS products are currently in use.

Daré Bioscience, Inc. (Nasdaq: DARE)

Daré Bioscience, Inc. is developing a portfolio of therapies for women, focusing on the areas of contraception, fertility and sexual health. The company currently has three products in clinical trials and several more in the pre-clinical phase.

Diffusion Pharmaceuticals, Inc. (Nasdaq: DFFN)

Diffusion Pharmaceuticals, Inc. is developing treatments for hypoxia, or low oxygen levels in tissue, which is often caused by chronic obstructive pulmonary disease, or COPD. The company recently completed a clinical trial of its lead candidate in hospitalized COVID-19 patients.

Hepion Pharmaceuticals (Nasdaq: HEPA)

Hepion Pharmaceuticals is focused on developing therapies for liver disease. Its lead drug candidate is currently in clinical phase development and is expected, if successful, to impact live disease treatment from triggering events through end-stage disease.

Building Wealth

Kintara Therapeutics, Inc. (Nasdaq: KTRA)

Kintara Therapeutics, Inc. develops novel cancer therapies for patients who are not responding to traditional treatments. The company is currently running several clinical trials for its therapy for glioblastoma.

Palisade Bio, Inc. (Nasdaq: PALI)

Palisade Bio, Inc. is researching therapies for acute and chronic gastrointestinal complications from post-operative digestive enzyme damage. Its lead drug candidate is in phase 2 trials.

Senseonics Holdings, Inc. (NYSEAmerican: SENS)

Senseonics Holdings, Inc. makes the Eversense continuous glucose monitoring system so those with diabetes can automatically measure their blood sugar levels every five minutes for up to 90 days.

3. Energy Stocks

The shift toward green and alternative energy sources is an opportunity for investors. Take a look at these energy stocks that are now trading for short money, but have a lot of upside potential.

NexGen Energy Ltd. (NYSEAmerican: NXE)

NexGen Energy Ltd. is a Canadian company that is engaged in the development of projects to discover and mine uranium deposits. The company holds almost 200,000 hectares of land in the southwestern Athabasca Basin.

Tantech Holdings Ltd. (Nasdaq2: TANH)

Tantech Holdings Ltd is a Chinese company that develops, manufactures and sells bamboo charcoal products, and recently acquired a controlling interest in Suzhou E-motors’ electric vehicle manufacturing and sales business.

Uranium Energy Corp (NYSEAmerican: UEC)

Uranium Energy Corp is also a uranium mining company, which conducts exploration, pre-extraction, extraction, and processing on locations in the United States and Paraguay.

4. Technology Stocks

Technology stocks have long been darlings of the market, but if you missed out on the IPOs of Apple, Google and Microsoft, all is not lost. Watch these tech penny stocks and see if you can spot the next behemoth tech stock.

Amesite, Inc. (Nasdaq: AMST)

Amesite, Inc. uses artificial intelligence to build learning solutions for businesses and educational institutions. The company’s products enable businesses to train more efficiently and help higher education institutions increase tuition revenues.

DMG Blockchain Solutions Inc. (TSXV: DMGI.V)

DMG Blockchain Solutions Inc. is a Canadian company that provides a cryptocurrency and blockchain platform. The company’s customers include agriculture, pharmaceutical, energy, transportation, manufacturing and financial services companies.

Elys Game Technology Corp. (Nasdaq:ELYS)

Elys Game Technology Corp. makes virtual and sports betting solutions. Customers can use the technology to create online casino and slot games, poker, bingo and interactive games.

Investview, Inc. (OTC: INVU)

Investview, Inc. provides financial technologies, services, and tools that focus on artificial intelligence, blockchain, decentralized finance and global finance.

What Are the Best Penny Stocks To Buy Under $1?

Penny stocks carry a lot of risk, but they have the potential for large returns. If you’re investing in penny stocks, make sure you understand what you’re buying, and make sure your portfolio can take the hit if the stock goes to zero.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

About the Author

Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC, Equifax.com, and more.

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.