7 Best Stocks To Buy Under $1

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Penny stocks — those that trade for under $5 — 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: 3 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. The companies are typically 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 just might be worth the investment:

  • GEE Group Inc. (JOB)
  • Cybin Inc. (CYBN)
  • OPKO Health Inc. (OPK)
  • Pedevco Corp. (PED)
  • Netcapital Inc. (NCPL)
  • Societal CDMO Inc. (SCTL)
  • S&W Seed Co. (SANW)

1. GEE Group Inc.

  • Price: $0.4756
  • Market Cap: $51.88 million
  • Consensus Rating: Buy

GEE Group Inc. (Nasdaq: JOB) is a national staffing and recruiting company for information technology, legal, engineering, finance, accounting and healthcare firms. Its brands include Ashley Ellis, General Employment and Omni One.

The stock closed at $0.4756 on Jan. 19. In the past year, the stock price has ranged from $0.36 to $0.63. Both analysts following the stock in January rate it a “buy.” It’s a relatively stable stock with a beta of 1.24 (1.00 being neutral), but it could be undervalued right now.

2. Cybin Inc.

  • Price: $0.3660
  • Market Cap: $148.56 million
  • Consensus Rating: Buy

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

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Cybin closed at $0.3660 on Jan. 19. Its 52-week range is $0.21 to $0.7380. Analysts haven’t weighed in yet in January, but of the five watching the stock in December, four rated it a “buy” and one rated it a “strong buy,” for a consensus rating of “buy.” One analyst weighed in with a 12-month price target of $7.

3. OPKO Health Inc.

  • Price: $0.9970
  • Market Cap: $770.74 million
  • Consensus Rating: Strong buy

OPKO (Nasdaq: OPK) develops therapies for serious diseases and operates full-service diagnostic labs across the U.S. Led by an experienced team that includes former National Institutes of Health and Sanofi executives, OPKO’s clients include the likes of Pfizer, Merck and the NIH. The company operates globally, with businesses in the U.S., Mexico, Chile, Spain, Ireland and Israel.

OPKO is currently trading just under $1, which is well below its 52-week high of $2.24. Four of the six analysts who watch the stock rate it a “buy” or “strong buy” and two recommend holding. The consensus price target among all six is $4.33.

4. Pedevco Corp.

  • Price: $0.6670
  • Market Cap: $58.2 million
  • Consensus Rating: Buy

Pedevco (NYSE: PED) is an oil and natural gas exploration and production company that focuses on developing conventional energy assets using unconventional technologies. It currently has properties in Texas, New Mexico, Colorado and Wyoming. The company admits to having nearly lost its listing on the New York Stock Exchange because of debt acquired in 2014 through 2017. Following a major investment in 2018, the company restructured, paid down debt and brought in a new management team.

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Pedevco closed at $0.6670 on Jan. 19. Although it has trended downward over the last few months, analysts rate it a “buy.” In fact, EF Hutton has reiterated its buy recommendation six times in the last two years, most recently in September. Yahoo Finance says shares are undervalued. Analysts’ estimated 12-month price target is $2.20.

5. Netcapital Inc.

  • Price: $0.1980
  • Market Cap: $2.82 million
  • Consensus Rating: Buy

Netcapital (Nasdaq: NCPL) is this roundup’s smallest company by far, but it has made a name for itself among equity crowdfunding companies. It’s a fintech that helps private companies raise capital online and assists in onboarding, regulatory-document filing and compliance review. The Boston-based company also serves as an advisor to tech startups and facilitates investing.

Trading near its 52-week low of $0.19, Netcapital shares appear to be significantly undervalued. Yahoo Finance estimates a 250% annual return over five years, and the stock has an average one-year price target of $2.80.

6. Societal CDMO Inc.

  • Price: $0.3540
  • Market Cap: $37.1 million
  • Consensus Rating: Strong buy

Formerly known as Recro Pharma, the drug manufacturer rebranded after an expansion resulting from the acquisition and integration of a contract development and manufacturing company called IriSys. Societal CDMO (Nasdaq: SCTL) now operates on both U.S. coasts, and its operations run the gamut from pre-investigational new drug development to manufacturing and packaging.

Societal CDMO share prices have ranged from $0.26 to $1.62 over the last 52 weeks. Although not currently profitable, the consensus rating among the four analysts who watch the stock is “strong buy,” and their price target is $2.08. RBC Capital recently reiterated its “outperform” opinion.

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7. S&W Seed Co.

  • Price: $0.5650
  • Market Cap: $24.32 million
  • Consensus Rating: Buy

S&W Seed Co. (Nasdaq: SANW) produces seeds for a variety of crop products, including alfalfa, sorghum and stevia. The company distributes seeds via direct sales and dealer-distributors. S&W’s research and development projects include hybrid crops and gene-edited alfalfa plants as well as a yield-boosting sorghum solution.

Two of the three analysts who watch S&W rate the stock a “buy” and one recommends holding. The price target is $3 based on two analysts’ predictions. A low P/E ratio of 1.82 and beta of 1.07, indicating low volatility, support the analysts’ target.

Final Take

These companies represent a range of sectors, including technology and medical. Companies in these sectors have the potential to be very successful and provide significant returns to their investors, but the failure rate is high.

What’s more, stocks that trade for less than $1 for 30 days or longer run the risk of eventually being delisted from their exchange. Unless the price increases on its own or the company takes action, such as reverse-splitting the stock to boost the price by reducing the number of shares, the stock could be relegated to the over-the-counter market, which has less liquidity.

When deciding which penny stocks to buy, be sure to carefully research the company to make sure you understand the product or service it offers, its potential for success and the competitive landscape in which it operates. 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.

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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 $4.18, this shipping and mailing company has been around since 1920. It has an average one-year price target of $6.
  • What are the best stocks under $2?
    • While stocks trading at less than $2 are still considered penny stocks and therefore risky, Pixelworks Inc. (PXLW) and Bolt Biotherapeutics Inc. (BOLT) are both valued under $2 and have consensus ratings from analysts of "buy" and "strong buy," respectively.
  • What are the best stocks under $10?
    • One stock to consider in the under-$10 range is Crescent Point Energy Corp. (CPG). It currently trades at $6.44 with a one-year price target of $11.06 and a consensus "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.

Daria Uhlig contributed to the reporting for this article.

Data was compiled on Jan. 20, 2024, and is subject to change. Information on analyst ratings was sourced from Yahoo Finance.

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