In this article, we will be looking at some of the best stocks currently trading at about $1. If you want to skip our detailed analysis of penny stocks, you can go directly to the 5 Best One Dollar Stocks to Buy Now.
Penny stock investing can be a lucrative source of income if you can spot companies with tremendous growth potential early on and are willing to take a high risk. Trading of penny stocks has been gaining traction since the rise of social media and discussion websites like Reddit, where millions discuss stock ideas and ways to invest money investing in the stock market.
Penny stock investing is on the rise, especially after the economic recovery started. Investors remain confident about the market’s recovery, with S&P 500 Index gaining over 34% in the last twelve months and 3.39% in the previous three months. On the other hand, The Russell 2000 Index and Russell 3000 are up 47% and 36%, respectively, over the past twelve months. The market indicates a healthy recovery, which is why many investors, mainly young and inexperienced retail traders, are motivated to expand their portfolios with low-cost stocks that offer long-term growth.
Among the most attractive penny stocks, according to analysts, are in high-growth industries like biotech, healthcare, ESG, energy, and artificial intelligence.
For instance, Novavax, Inc. (NASDAQ: NVAX) was trading below $3 before COVID-19. After failing to deliver one of its primary vaccine candidates that protects infants from deadly infections, the Maryland-based biotechnology business was on the verge of being delisted from the Nasdaq. Shares of Novavax, Inc. (NASDAQ: NVAX) jumped 67% year to date after being awarded $1.6 billion by the U.S. government to develop a COVID-19 vaccine. Novavax, Inc. (NASDAQ: NVAX) shares have increased 7% in the last month as the company’s COVID-19 vaccine has proved successful in clinical trials. By the end of the third quarter, the company plans to generate 100 million doses per month and 150 million doses per month by the end of the year. On June 15, Cantor Fitzgerald analyst William Tanner maintained an Overweight rating on Novavax, Inc. (NASDAQ: NVAX) and upgraded its price target to $272 per share from $217 previously. This is mainly due to the effectiveness of Novavax, Inc.’s COVID-19 vaccine in the second phase 3 study, and the company anticipates that the PREVENT-19 vaccine will be available in low- and middle-income nations with low vaccination rates once approved.
Tech giants Amazon.com, Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) are two of the most successful companies in the history. Both were once penny stocks.
In June 1997, Amazon.com, Inc. (NASDAQ: AMZN) stock traded for just $1.51 per share. Jeff Bezos’ e-commerce business has expanded to sectors of digital streaming, artificial intelligence, and cloud computing. Today, Amazon.com, Inc. (NASDAQ: AMZN) shares trade for over $3,573. Amazon.com, Inc. (NASDAQ: AMZN) has also gained 5.12% in the past three months and 21% in the last year. On June 16, JP Morgan analysts maintained an Overweight rating on Amazon.com, Inc. (NASDAQ: AMZN), with a price target of $4,600 per share.
Meanwhile, Wall Street analysts are bullish on Apple Inc. (NASDAQ: AAPL) ahead of the company’s third-quarter results on July 27 and also because of the rising expectations for new iPhones to be released in the fall. Apple Inc. (NASDAQ: AAPL) was a penny stock back in 1985. On July 14, JP Morgan analyst Samik Chatterjee maintained an Overweight rating on Apple Inc. (NASDAQ: AAPL) and increased the price target from $170 to $175 per share. Chatterjee anticipates upward changes to iPhone 12 production estimates as well as sustained Mac sales performance. Apple Inc. (NASDAQ: AAPL) has also gained 12% in the last month and 52% in the previous year.
Canadian cannabis company Sundial Growers Inc. (NASDAQ: SNDL) is a notable one dollar stock that is gaining attention. The stock trades at around $0.81 as of July 19. Sundial Growers Inc. (NASDAQ: SNDL) has gained more than 71% over the past twelve months. The Calgary-based pot grower sells cannabis products for adult use in the Canadian market and grants loans to other cannabis firms. In February, Sundial Growers Inc. (NASDAQ: SNDL) invested $22 million in Canadian edibles producer Indiva Limited (OTC: NDVAF), wherein Sundial Growers Inc. purchased 25 million Indiva Limited common shares at 44 cents per share through a brokered private placement supervised by ATB Capital Markets Inc. The company’s first-quarter gross revenue came in at $11.7 million.
Photo by Jonathan Borba on Unsplash
Investing is becoming difficult by the day, even for smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Without further ado, let’s take a look at the 10 best one dollar stocks to buy now. We chose some of the best stocks trading for a share price of about $1 and ranked them from highest to lowest in terms of share price. We also considered these penny stocks’ hedge fund popularity, analysts’ ratings, fundamentals, and growth potential.
Best One Dollar Stocks to Buy Now
10. Predictive Oncology Inc. (NASDAQ: POAI)
Stock Price as of July 16: $1.15
Number of Hedge Fund Holders: 2
Predictive Oncology Inc. (NASDAQ: POAI) ranks 10th on the list of 10 best one dollar stocks to buy now. The Minnesota-based biotech company integrates artificial intelligence in cancer therapy and drug development. Predictive Oncology Inc. (NASDAQ: POAI) develops automated medical devices for the waste management of infectious fluids generated during medical procedures.
In June, H.C. Wainwright analyst Vernon Bernardino initiated coverage of Predictive Oncology Inc. (NASDAQ: POAI) with a Buy rating and $5 price target. Analyst Vernon Bernardino commented that the company’s AI-driven and patient-centric discovery platform – PeDAL – has the potential to generate data for medicine and drug discovery on ovarian cancer.
The company has a market cap of $75 million. In the first quarter of 2021, Predictive Oncology Inc. (NASDAQ: POAI) had an EPS of -$0.11, missing estimates by $0.02. The company’s revenue in the first quarter came in at $280,317, down from $294,943 in the same period in 2020. Predictive Oncology Inc. (NASDAQ: POAI) has gained 57% year to date, and shares also increased 13% in the past month.
By the end of the first quarter of 2021, 2 hedge funds out of the 866 tracked by Insider Monkey held stakes in Predictive Oncology Inc. (NASDAQ: POAI) worth roughly $3.2 million.
Like Novavax, Inc. (NASDAQ: NVAX), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Sundial Growers Inc. (NASDAQ: SNDL), Predictive Oncology Inc. (NASDAQ: POAI) is a good stock pick for long-term gains, according to market analysts.
9. SeaChange International, Inc. (NASDAQ: SEAC)
Stock Price as of July 16: $1.06
Number of Hedge Fund Holders: 3
SeaChange International, Inc. (NASDAQ: SEAC) ranks 9th on the list of 10 best one dollar stocks to buy now. The Massachusetts-based software company provides video delivery programs to telecom companies and cable providers. Among the clients of SeaChange International, Inc. (NASDAQ: SEAC) is America’s biggest telecom companies, namely Verizon Communications Inc. (NYSE: VZ), DISH Network Corporation (NASDAQ: DISH), and Altice USA, Inc. (NYSE: ATUS). The company provides video delivery software solutions to over 200 video provider clients and 50 million subscribers worldwide.
In May, Aegis Capital initiated coverage on SeaChange International, Inc. (NASDAQ: SEAC) with a Buy rating and announced a price target of $3 per share. SeaChange International, Inc. (NASDAQ: SEAC) gained 3% in the last three months.
The company has a market cap of $51 million. In the second quarter of 2021, SeaChange International, Inc. (NASDAQ: SEAC) had an EPS of $-0.07, beating estimates by $0.02. First-quarter revenue came in at $5.1 million, down from $6.9 million in the same period in 2020. The company presented a strong balance sheet at the end of the quarter with $21.3 million in cash and cash equivalents.
By the end of the first quarter of 2021, 3 hedge funds out of the 866 tracked by Insider Monkey held stakes in SeaChange International, Inc. (NASDAQ: SEAC) worth roughly $255,000. This is compared to 6 hedge funds in the previous quarter with stakes worth about $1.34 million.
Like Novavax, Inc. (NASDAQ: NVAX), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Sundial Growers Inc. (NASDAQ: SNDL), SeaChange International, Inc. (NASDAQ: SEAC) is a good stock pick for long-term gains, according to market analysts.
8. Avinger, Inc. (NASDAQ: AVGR)
Stock Price as of July 16: $0.98
Number of Hedge Fund Holders: 3
Avinger, Inc. (NASDAQ: AVGR) ranks 8th on the list of 10 best one dollar stocks to buy now. The California-based medical device company develops and commercializes catheter-based technologies used in vascular disease treatment.
In June, analyst Marc Wiesenberger of B. Riley initiated Avinger, Inc. (NASDAQ: AVGR) with a Buy rating and a $2.50 price target. With three new medicines introduced in the previous three years, Marc Wiesenberger believes the company is well poised to deliver on a growth strategy to revolutionize the treatment of peripheral artery disease.
On July 6th, Avinger, Inc. (NASDAQ: AVGR) has submitted a 510(k) application to the FDA for a new Pantheris clinical indication for in-stent restenosis (ISR) therapy in lower extremity arteries. If approved, the Pantheris atherectomy device will allow physicians to see from the inside of the artery during an atherectomy procedure using optical coherence tomography imaging. Shares of Avinger, Inc. (NASDAQ: AVGR) jumped 3.6% at $1.15 intra-day and increased 9% after the announcement.
The company has a market cap of $94 million. In the first quarter of 2021, Avinger, Inc. (NASDAQ: AVGR) had an EPS of -$0.07, missing estimates by $0.03. The company’s revenue in the first quarter came in at $2.6 million, increasing 13% year over year. Avinger, Inc. (NASDAQ: AVGR) has gained 123% in the past year.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $845,000 in Avinger, Inc. (NASDAQ: AVGR), up from 2 in the previous quarter worth $107,000.
Like Novavax, Inc. (NASDAQ: NVAX), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Sundial Growers Inc. (NASDAQ: SNDL), Avinger, Inc. (NASDAQ: AVGR) is a good stock pick for long-term gains, according to market analysts.
7. Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
Stock Price as of July 16: $0.97
Number of Hedge Fund Holders: 7
Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) ranks 7th on the list of 10 best one dollar stocks to buy now. The New Jersey-based pharmaceutical company creates immunology and pain products to treat and prevent human diseases such as cancer, fibromyalgia, and COVID-19. The company has also developed a COVID-19 skin test called TNX-2100.
In February, Alliance Global Partners analyst James Molloy maintained a Buy rating on Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) and raised the price target to $4 per share from $3 previously. The company’s portfolio in the COVID market continues to grow, according to the analyst. In June, TTonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) has announced the opening of a commercial-scale facility in Montana to manufacture its COVID-19 vaccine candidates. Also, last month, the biopharmaceutical company was added to the Russell 3000 index for large companies and the Russell 2000 index for small companies.
The company has a market cap of $324 million. In the first quarter of 2021, Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) had an EPS of -$0.07, missing estimates by $0.02. Shares of Tonix Pharmaceuticals Holding Corp. increased 45% year to date.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $14.2 million in Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP), up from 1 in the previous quarter worth $183,000.
Like Novavax, Inc. (NASDAQ: NVAX), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Sundial Growers Inc. (NASDAQ: SNDL), Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) is a good stock pick for long-term gains, according to market analysts.
6. Sundial Growers Inc. (NASDAQ: SNDL)
Stock Price as of July 16: $0.81
Number of Hedge Fund Holders: 7
Sundial Growers Inc. (NASDAQ: SNDL) ranks 6th on the list of 10 best one dollar stocks to buy now. The Calgary-based cannabis company sells cannabis products for adult use in the Canadian market and grants loans to other cannabis firms. Sundial Growers Inc. (NASDAQ: SNDL) has grown through strategic alliances with other cannabis companies, including a CA$22 million strategic investment in Canadian edible maker Indiva and a CA$538 million joint venture SAF Group to target new cannabis investment opportunities. Sundial Growers Inc. announced its most recent acquisition on May 5, when it agreed to pay CA$131 million for all of the shares of cannabis retailer Inner Spirit Holdings Ltd.
In May, Canaccord Genuity analyst Shaan Mir upgraded Sundial Growers Inc. (NASDAQ: SNDL) to Hold from Sell with a price target of $0.70, up from $0.65, post the Q1 results. According to the analyst, the cannabis company’s cash balance offers the opportunity to deploy capital into accretive business opportunities and generate returns.
The company has a market cap of $1.51 billion. In the first quarter of 2021, Sundial Growers Inc. (NASDAQ: SNDL) had an EPS of -$0.07, missing estimates by $0.07. In the first quarter, the company’s revenue was $11.75 million, down 29% year over year and beating estimates by $0.3 million. Sundial Growers Inc. (NASDAQ: SNDL) has gained 71% over the past twelve months.
By the end of the first quarter of 2021, 7 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sundial Growers Inc. (NASDAQ: SNDL) worth roughly $18.8 million. This is compared to 2 hedge funds in the previous quarter with stakes worth about $2.72 million.
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Disclosure: None. 10 Best One Dollar Stocks to Buy Now is originally published on Insider Monkey.
