Best Stocks Under $1 To Watch or Invest In Right Now
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Stocks trading under $1 often attract attention because of their low share prices and perceived upside potential. These securities, often called microcap or penny stocks, can offer exposure to early-stage companies, turnaround situations or niche industries. At the same time, they come with elevated risk, including sharp volatility, limited liquidity and higher odds of business failure.
According to the U.S. Securities and Exchange Commission, microcap stocks are more susceptible to price manipulation and sudden losses than larger, established companies, which makes careful evaluation essential before investing. Rather than viewing these stocks as bargains, it helps to understand why they trade at such low prices and what role, if any, they may play in a diversified portfolio.
At a Glance: Notable Stocks Under $1
| Company | Ticker | Exposure Type | Risk Profile | Why It Stands Out |
|---|---|---|---|---|
| Senseonics Holdings | SENS | Medical technology | High | Focused on long-term glucose monitoring innovation |
| Castor Maritime | CTRM | Global shipping | High | Linked to freight rate cycles and trade demand |
| Mullen Automotive | MULN | Electric vehicles | Very high | Early-stage EV development with speculative upside |
| Sundial Growers | SNDL | Cannabis | High | Exposure to evolving U.S. cannabis regulations |
| Ideanomics | IDEX | EV and fintech services | High | Diversified approach to electric mobility |
Prices fluctuate frequently. Stocks may move above or below $1 at any time.
What Does It Mean When a Stock Trades Under $1?
Stocks priced below $1 often reflect financial stress, early-stage operations or declining investor confidence. Many trade on major exchanges under special listing requirements or on over-the-counter markets. The low price alone does not indicate value — it often signals elevated uncertainty around revenue, profitability or long-term viability.
Investors should also note that companies trading under $1 may face delisting risk if they fail to meet exchange minimums, which can further limit liquidity and transparency.
Stocks Under $1 To Watch
Senseonics Holdings (SENS)
Senseonics develops implantable continuous glucose monitoring systems designed for long-term use. The company’s appeal lies in its differentiated technology and partnerships in the diabetes care space.
However, it remains dependent on regulatory approvals and commercialization progress, making it a high-risk healthcare play.
Castor Maritime (CTRM)
Castor Maritime operates dry bulk and tanker vessels, tying its performance to global trade volumes and freight rates. Shipping stocks can benefit during strong economic cycles but often suffer when demand slows. Investors should be aware of dilution risk and earnings volatility tied to commodity transport markets.
Mullen Automotive (MULN)
Mullen Automotive focuses on developing electric vehicles in a competitive and capital-intensive industry. The stock reflects investor speculation around EV adoption rather than current profitability. Funding needs and execution challenges make this a very high-risk option.
Sundial Growers (SNDL)
Sundial Growers provides exposure to the cannabis sector, which remains heavily influenced by regulatory developments.
While legalization trends support long-term industry growth, near-term performance can be uneven. This stock suits investors comfortable with policy-driven volatility.
Ideanomics (IDEX)
Ideanomics operates across electric vehicle services and related financing platforms. Its diversified model aims to reduce reliance on a single revenue stream.
Still, inconsistent earnings and evolving strategy contribute to higher uncertainty.
Key Risks To Consider
Stocks under $1 tend to experience wider price swings, lower trading volume and limited analyst coverage. The SEC notes that many microcap companies have minimal operating history, increasing the difficulty of forecasting long-term outcomes.
These stocks are generally unsuitable for large allocations and may be better viewed as speculative positions rather than core investments.
Final Take to GO
Low-priced stocks can look appealing, but price alone does not equal value. Stocks under $1 often reflect significant business challenges, making thorough research and risk management critical. If you consider these investments at all, limit exposure, diversify broadly and be prepared for the possibility of total loss.
Best Stocks Under $1 FAQ
- Are stocks under $1 considered penny stocks?
- Yes, stocks trading under $5 are commonly referred to as penny stocks, with those under $1 representing the highest-risk segment.
- Why do some stocks trade below $1?
- They often reflect financial distress, early-stage operations or declining investor confidence rather than hidden value.
- Can stocks under $1 be delisted?
- Yes, companies that fail to meet exchange minimum price requirements may be delisted or moved to over-the-counter markets.
- Are stocks under $1 suitable for long-term investing?
- Most are better suited for short-term speculation due to uncertain business fundamentals and high volatility.
- How much of a portfolio should be in ultra-low-priced stocks?
- If used at all, they should represent only a small portion of a diversified portfolio to limit potential losses.
Information is accurate as of Jan. 8, 2026.
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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- Saxo "Penny stocks explained: what they are and why you should care"
- SEC.gov "Financial Navigating in the Current Economy: Ten Things to Consider Before You Make Investing Decisions"
- Missouri Secretary of State "Penny Stocks"
- Investor.gov "Gauge Your Risk Tolerance"
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