10 Best Penny Stocks To Buy Under $1.00

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Penny stocks — those that trade for under $5.00 — are inherently risky but can also result in great rewards. Because the stocks are so cheap, it doesn’t take much for them to drop to zero. By the same token, a price rise to just a few dollars a share can mean a big payday for investors.

See: 5 Things You Must Do When Your Savings Reach $50,000

Penny stocks are often found in emerging industries or in those industries that require a long period of research and development prior to the production of a viable product. These stocks are often found in early-stage technology, pharmaceutical, biotech or therapeutics companies.

Best Stocks That Cost Less Than $1

Here are some penny stocks that will cost you less than a dollar and might just be worth the investment.

1. Ayala Pharmaceuticals

  • Price: $0.6349
  • Market Cap: $9.418 million
  • Consensus Rating: Buy

Ayala Pharmaceuticals (Nasdaq:AYLA) develops targeted therapies for rare and aggressive types of cancer. With most cancer research dedicated to the most common types of cancer, Ayala Pharmaceuticals is working to determine the common factors in rare tumors and develop treatments for them.

Ayala Pharmaceuticals stock closed at $0.63 a share on Oct. 25, 2022, close to its 52-week low of $0.5740 and well off its 52-week high of $14.50. Nevertheless, all seven analysts who follow the company rated it a buy or a strong buy in September, and the average 12-month earnings estimate is $10.31.

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2. Aquestive Therapeutics

  • Price: $0.9130
  • Market Cap: $48.709 million
  • Consensus Rating: Strong Buy

Aquestive Therapeutics (Nasdaq:AQST) develops medicines and delivery technologies that treat complex conditions. The company develops and delivers medications through its PharmaFilm technology, which allows medications to be administered via a dissolvable strip placed under the tongue.

Aquestive Therapeutics stock closed at $0.91 on Oct. 25, 2022. Its 52-week low is $0.62 and the high is $6.40. All seven analysts who followed the stock in September rated it a buy or a strong buy, and the average 12-month price target is $6.36.

3. Compugen

  • Price: $0.7900
  • Market Cap: $71.478 million
  • Consensus Rating: Buy

Compugen Ltd. (Nasdaq:CGEN) discovers novel drug targets and develops therapeutics to extend the reach of cancer immunotherapies. The company uses computational discovery to identify immunotherapy drug candidates that show promise in improving patient outcomes.

The stock closed at $0.79 on Oct. 25, 2022. In the past year, the stock price has ranged from $0.51 to $7.48. Of the seven analysts who followed the stock in September, six rated it a buy or a strong buy, and the other one recommended holding it.

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4. Cybin

  • Price: $0.4778
  • Market Cap: $80.465 million
  • Consensus Rating: Strong Buy

Cybin (OTCMKTS:CYBN) develops proprietary psychedelic-based therapeutics for disorders like major depressive disorder, alcohol use disorder, anxiety disorders and more. The company is based in Canada.

Cybin closed at $0.48 on Oct. 25, 2022. Its 52-week range is $0.39 – $2.36. Analysts’ recommendations are mixed, with six of seven rating it a buy or strong buy and one recommending that investors sell the stock. The average 12-month price target is $7.49.

5. Freeline Therapeutics

  • Price: $0.72
  • Market Cap: $46.78 million
  • Consensus Rating: Strong Buy

Freeline Therapeutics (Nasdaq:FRLN) develops gene therapies for people with chronic and debilitating illnesses such as hemophilia and lysosomal storage disorders. Its gene therapy targets the liver to then be secreted throughout the circulatory system.

Freeline Therapeutics’ stock closed at $0.72 per share on Oct. 25, 2022, not far off its 52-week low of $0.60. The highest it has traded at in the past year is $3.39. Seven analysts followed Freeline in September. Of those, four rated it a strong buy, two rated it a buy and one recommended holding the stock. The average 12-month price target is $6.17.

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6. AVROBIO

  • Price: $0.6780
  • Market Cap: $29.679 million
  • Consensus Rating: Buy

AVROBIO (NASDAQ:AVRO) is another gene therapy company that hopes to halt or reverse genetic diseases and give patients the ability to live longer without painful and debilitating symptoms and without chronic treatment regimens. The diseases currently being targeted by AVROBIO include Gaucher Disease, Hunter Syndrome, Cystinosis and Pompe Disease.

AVROBIO stock closed at $0.68 on Oct. 25, 2022, close to its 52-week low of $0.56 and far off its 52-week high of $6.62. Nine analysts follow the company and predict an average 12-month price target of $3.88. Three of those analysts recommend holding the stock, while five call it a buy and one rates it a strong buy.

7. OnoCyte

  • Price: $0.7785
  • Market Cap: $92.337 million
  • Consensus Rating: Buy

OnoCyte (Nasdaq:OCX) develops diagnostic tests to enable physicians to provide better treatment options for cancer. One product, which is currently available, is a test to identify patients with non-squamous non-small cell lung cancer who may be at risk of recurrence.

OnoCyte has a 52-week range of $0.68 – $3.73 and closed on Oct. 25, 2022, at $0.78. Seven analysts follow the stock, and in September, one rated it a strong buy, four rated it a buy and two recommended holding the stock. The average 12-month price target is $2.38.

8. Sientra

  • Price: $0.2498
  • Market Cap: $16.474 million
  • Consensus Rating: Strong Buy

Sientra (Nasdaq:SIEN) provides technologies and treatments to plastic surgeons for breast reconstruction and augmentation. Its products include breast implants, a breast tissue expander and scar gel.

On Oct. 25, 2022, Sientra stock closed at $0.25. Its 52-week range is $0.24 – $6.14. Seven analysts covered the stock in September, four of whom rated it a strong buy and two of whom rated it a buy. The 12-month average price target is $3.00.

9. Mogo

  • Price: $0.8020
  • Market Cap: $60.914 million
  • Consensus Rating: Strong Buy

Mogo (Nasdaq:MOGO) is a Canadian company that develops technologies and products to help Canadians build wealth and achieve financial freedom. The Mogo app helps consumers track and manage their finances.

Mogo stock closed at $0.80 on Oct. 25, 2022, close to its 52-week low of $0.73. The highest it’s been in the last 52 weeks is $6.52. Of the five analysts who follow the company, three rate it a strong buy and two rate it a buy. The average 12-month price target is $4.02.

10. Organigram

  • Price: $0.9299
  • Market Cap: $291.717 million
  • Consensus Rating: Buy

Organigram (Nasdaq:OGI) is a Canadian producer of medical and recreational cannabis. The company has three cultivation and production facilities, including an indoor growing facility, a manufacturing site for edibles and a greenhouse facility. The company uses a proprietary system to track grow cycles by strain, environmental conditions, harvest period and other factors, allowing it to optimize cultivation and harvesting.

Organigram stock closed at $0.93 on Oct. 25, 2022. Over the past 52 weeks, its share price has ranged from a low of $0.84 to a high of $2.55. Just two analysts followed the stock in September. One rated it a buy and the other recommended holding it. The average 12-month price target is $2.53.

Final Take

Most of these companies are in the medical sector, including biotechnology, pharmaceuticals, therapies and more. Companies in this sector have the potential to be very successful and provide significant returns to their investors, but the failure rate is high.

When deciding which penny stocks to buy, be sure to carefully research the company to make sure you understand the product or service they offer, their potential for success and the competitive landscape in which they operate. And penny stocks should be a “recreational” investment — this is not the place to put your retirement savings or the kids’ college fund. That said, large returns are possible, especially if you do your homework.

FAQ

  • What is a good stock to buy under $5?
    • For a good stock under $5, consider Pitney Bowes Inc. (PBI). Currently trading at just $2.99, this shipping and mailing company has been around since 1920 and has an average one year price target of $5.25.
  • What is the best $3 stock to buy?
    • While $3 stocks are still considered penny stocks and therefore risky, 9 Meters Biopharma, Inc. (NMTR) is currently valued at $2.47 with a strong buy rating from analysts.
  • What are the best stocks under $10?
    • One stock to consider in the under-$10 range is Arhaus, Inc. (ARHS). It currently trades at $8.69 with a one-year price target of $11.63 and a strong buy rating from analysts.
  • What are some good stocks to buy right now?
    • The stocks listed above are good choices to start with, but it's important to assess your risk tolerance and goals before investing. Consider blue chip stocks, like Apple or Pfizer, for more security – but keep in mind that success is never guaranteed with any investment.

Information is accurate as of Oct. 26, 2022, and is subject to change.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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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.
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