5 Best Penny Stocks on Robinhood To Invest In for 2023

shot of penny on chart.
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Trading penny stocks is a high-risk, high-reward proposition that involves buying an equity stake in small companies whose shares trade for less than $5. Not all brokerages offer access to the so-called pink sheets, but investors can trade penny stocks on Robinhood, although the selection is limited. 

See: 3 Things You Must Do When Your Savings Reach $50,000

If you’re considering diving into a corner of the investing world defined by low liquidity, murky financial reporting and erratic pricing, do your research first and risk only money that you can truly afford to lose. 

When you’re ready, you don’t need more than a few bucks and a free account on one of the world’s most popular trading platforms. Keep reading to learn about the best penny stocks on Robinhood. 

What Are the Best Penny Stocks To Buy on Robinhood?

Here’s a list of the five best penny stocks to buy on Robinhood right now:

  1. Nokia Oyj (NOK)
  2. SNDL Inc. (SNDL)
  3. Vaalco Energy Inc. (EGY)
  4. Canaan Inc. (CAN)
  5. Ardelyx Inc. (ARDX)

1. Nokia Oyj (NOK)

Nokia hasn’t had the best time in the market so far this year. The stock is down about 13% year to date. Nonetheless, there’s a strong argument that the stock may make a significant comeback in 2023 and beyond. That’s because earnings, the most correlated factor with stock price movement, are on the rise at the moment.

Analysts have been consistently increasing their expectations of Nokia’s earnings, which has resulted in an upgrade in the company’s Zacks Rank to a 2, or “buy.”

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2. SNDL Inc. (SNDL)

SNDL is the largest private-sector liquor and cannabis distributor in Canada. Although that may be a turnoff for some investors, the simple fact is that these industries are highly profitable, setting the stage for a return of value to investors. 

The big story at SNDL is the company’s revenue growth. Investors learned that the company’s revenue grew more than 1,000% year over year during the last earnings report, jumping from just under $14 million to $146.7 million and making SNDL stock one that’s hard to ignore.

3. Vaalco Energy Inc. (EGY)

Vaalco Energy is a Texas-based independent energy company that focuses on producing oil and other energy commodities. As the price of oil continues to rise, Vaalco Energy is in a prime position to take advantage of the growth. 

The company is seeing strong growth in production. In 2022, Vaalco increased production by over 20% on a year-to-date basis.

This is also a strong play for income investors since the stock currently pays a 6.41% dividend yield.

4. Canaan Inc. (CAN)

Canaan is a Chinese technology company that focuses on the development of processing chips known as ASICs. These ASICs are most popular among cryptocurrency traders, as they’re often used in cryptocurrency mining. In fact, Canaan produced the world’s very first ASIC bitcoin miner in 2013. This creates a compelling opportunity. 

Many believe that bitcoin has significant potential for growth ahead. If that proves to be the case, the increasing price of the cryptocurrency will likely lead to increasing demand for mining machines. That means an investment in Canaan can give you exposure to the cryptocurrency industry without having to actually own crypto. 

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So, if you think bitcoin and other cryptocurrencies will experience a meaningful increase in value ahead, Canaan may be just the penny stock for you. 

5. Ardelyx Inc. (ARDX)

Ardelyx is a biotechnology company that’s working to develop therapies for conditions with high unmet medical needs. The company currently has one FDA-approved product, Ibsrela, a therapy that’s available in the United States and Canada for patients with IBS-C. 

However, the company has an impressive pipeline that includes three ongoing clinical programs, each with the potential to produce highly profitable products. All told, if you’re interested in investing in a penny stock in the healthcare space, ARDX is a strong pick to consider. 

Are There Any Penny Stocks on Robinhood?

Investors can buy penny stocks on Robinhood, but the selection is limited only to those that are listed on U.S. exchanges alongside giants like Coca-Cola and Amazon, and some off-exchange stocks that trade over the counter as American depositary receipts.

It’s important to understand that Robinhood investors can buy just some — but only a small fraction — of the thousands of tiny companies that trade as penny stocks.

Final Take

Penny stocks are a compelling way to make a profit in the stock market, but they can also lead to significant losses. If you’re interested in trading penny stocks on Robinhood, consider the options above, but be sure to do so with caution. 


  • Is Robinhood good for penny stocks?
    • Robinhood is a great place to trade penny stocks because traders don't pay any commissions on trades, allowing you to keep more of your profits. 
  • What are the best penny stocks under $1?
    • Penny stocks under $1 are particularly risky. However, some of the best options include:
      • Cybin Inc. (CYBN)
      • Sonnet BioTherapeutics Holdings Inc. (SONN)
      • Faraday Future Intelligent Electric Inc. (FFIE)
      • Canoo Inc. (GOEV)
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Andrew Lisa contributed to the reporting for this article.

Information is accurate as of July 5, 2023.

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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