Best Penny stocks under $1
Value investing is one of the key concepts, a term made by the famous great Warren Buffet it refers to identifying companies with a strong future prospect at a low price.
Investing in them, and waiting to reap rewards once they grow up to their potential.
In this article, we aim to help our readers with a list of the best penny stocks under $1 so that they can benefit from investing in them.
We have also provided all the necessary details about the stocks, and we recommend our readers to read it thoroughly to get a deeper insight into picking the best penny stocks under $1 and achieving high returns on their investments.
So let us not waste any more time but the first one needs to understand the investment rationale of investing in the best penny stocks under $1.
Why one should buy penny stocks under $1
Over the last 2 decades, we have witnessed significant bull runs and equally devastating market crashes.
These events have led to the downfall of many investors who may have brought stocks at a much high price and lost money in a market crash.
This leads to the case of using one of the most fundamental ways of investing in the stock market known as value investing.
To be a value investor one needs to separate himself/herself from the herd and look away from the stocks of already grown companies
They must look to invest in stocks of companies that are currently just established and have low share prices but have a strong prospect of achieving high growth in the future.
We are not recommending one to invest their entire money into stocks of such companies, but one can carve out some amount of their savings into buying value stocks.
One more advantage of buying stocks under $1 is the low risk in case of a downfall in the stock market as their value is too low to fall drastically.
One query which often strikes the mind of investors while buying these stocks is why don’t mutual fund houses and leading stock analysts stay away from penny stocks?
Well, the answer to the question is that mutual fund houses are not willing to invest in companies involved in new and niche businesses as they are investing the money of common people and hence don’t often take the risk of investing in penny stocks.
List of Best Penny Stocks under $1
We have researched and created a list of the top 8 best penny stocks under $1 for our readers. Hopefully, you would be enjoying reading through the list and making the best use of your money while investing in them.
1. Cidara Therapeutics Inc (CDTX)
Business Overview: Cidara Therapeutics is a pharmaceutical-based company that is in the business of developing new ways to enhance the treatment and prevention of serious diseases.
It has developed an antifungal medicine called rezafungin and drug-Fc conjugates (DFCs) for the treatment of viral and oncology diseases.
| Market Cap | 35.90M |
| 1 Year Target Estimate | $5.91 |
| Total Cash (mrq) | 36.49M |
| CEO | Dr. Jeffrey L. Stein Ph.D. |
| Headquarters | San Diego, California, United States of America |
| Founded | 2012 |
Why we recommend buying stocks of Cidara Therapeutics
- Given the recent outbreak of the covid virus and its work on the treatment of SARS-CoV-2 strains along with other serious diseases like HIV, RSV, etc. we predict it to be a stock for the future considering the strong growth opportunity in the pharma industry.
2. Greenlane (GNLN)
Business Overview: Greenlane Holdings INC is a manufacturing company and is involved in the business of producing premium quality cannabis accessories and lifestyle products. It has 2 business divisions: Consumer Goods and Industrial Goods
| Market Cap | 27M |
| 1 Year Target Estimate | $2.25 |
| Total Cash (mrq) | 5.9436.49M |
| CEO | Nicholas Kovacevich |
| Headquarters | Boca Raton, Florida USA |
| Founded | 2005 |
Why we recommend buying stocks of Greenlane
- It has a strong customer base and a strong network of selling points comprising 11000 retail locations which indicates a possibility of great upside in its stock prices as it grows big in its operations.
3. Clarus Therapeutics Holdings INC (CRXT)
Business Overview: Clarus Therapeutical is a pharmaceutical company and is involved in the business of providing medical treatment through developing androgen replacement and metabolic therapies. Its drugs are named under the UBX series and help in the treatment of
| Market Cap | 20M |
| 1 Year Target Estimate | $3.25 |
| Total Cash (mrq) | 9.14M |
| CEO | Dr. Robert E. Dudley Ph.D. |
| Headquarters | Northbrook, IL USA |
| Founded | 2003 |
Why we recommend buying stocks of Clarus Therapeutics
- The company has made significant advancements in creating new ways to provide treatment and hence there is a high possibility of getting good returns with growth in the pharmaceutical industry.
4. Unity Biotechnology (UBX)
Business Overview: Unity Biotechnology is an American-based biotech company. It’s mainly focused on developing drugs that target the senescent cells of a human being in order to treat age-related diseases.
| Market Cap | 41M |
| 1 Year Target Estimate | $6.86 |
| Total Cash (mrq) | 79.16M |
| CEO | Dr. Anirvan Ghosh Ph.D |
| Headquarters | South San Francisco, CA USA |
| Founded | 2011 |
Why we recommend buying stocks of Unity Biotechnology
- The stocks of Unity Biotechnology nosedived by 60% in 2020 due to a failed test clinical trial of UBX0101, however, since then it has been constantly working on developing solutions for multiple age-related ailments and could be a fortune earner in the future.
5. Infinity Pharmaceuticals (INFI)
Business Overview: Infinity Pharmaceutical is a pharma-based company and is mainly engaged in the development and production of medicines for the treatment of patients with cancer.
It has already developed an orally administered medicine called IPI-549 and is already reached stage 2 of clinical trials.
| Market Cap | 65M |
| 1 Year Target Estimate | $6.07 |
| Total Cash (mrq) | 67.14M |
| CEO | Adelene Q. Perkins |
| Headquarters | Cambridge, Massachusetts USA |
| Founded | 1995 |
Why we recommend buying stocks of Infinity Pharmaceuticals
- Considering the rising number of patients with cancers a company focused on developing novel ways to treat cancer and with its products already reaching advanced stages of clinical trials indicates a possibility of robust growth in the future once its products hit the market.
6. Applied genetics Technologies (AGTC)
Business Overview: It’s an American biotech company that focuses to develop an advanced treatment for complex and acute medical conditions like achromatopsia, X-linked retinoschisis, X-linked retinitis pigmentosa, and age-related macular degeneration.
| Market Cap | 40.91M |
| 1 Year Target Estimate | $10.57 |
| Total Cash (mrq) | 67.85M |
| CEO | Susan B. Washer |
| Headquarters | Alachua, Florida USA |
| Founded | 1999 |
Why we recommend buying stocks of Applied genetics technologies
- Its another pharma company with a high scope of growth due to advancements in finding treatment for acute and rare medical conditions which would allow it to generate high profitability.
7. Gold Standard Ventures Corp (GSV)
Business Overview: GSV is an exploration-based company that is involved in the development of gold-based mineral resources. It is currently engaged in developing its flagship project i.e. the South railroad project in Nevada.
| Market Cap | 151M |
| 1 Year Target Estimate | N/A |
| Total Cash (mrq) | 17.49M |
| CEO | Jason Mark Attew |
| Headquarters | Vancouver, British Columbia Canada |
| Founded | 2004 |
Why we recommend buying stocks of Applied genetics technologies
- Gold standard ventures could generate high returns from the exploration of gold-based resources which is rare and costly hence focusing only on a niche segment of mining and exploration could help the company to grow rapidly in the future.
8. CubicFarm Systems Corporation (CUBXF)
Business Overview: It’s a manufacturing company that is involved in the business of manufacturing and selling farm equipment.
| Market Cap | 66.85M |
| 1 Year Target Estimate | N/A |
| Total Cash (mrq) | 12.81M |
| CEO | Dave Rodjer Dinesen |
| Headquarters | Langley, British Columbia Canada |
| Founded | 2015 |
Why we recommend buying stocks of CubicFarm
- Considering the advancement in agriculture the requirement for better and advanced farming equipment should rise and hence the business of CubicFarm is expected to flourish.
FREQUENTLY ASKED QUESTIONS (FAQ)
What are the disadvantages of investing in penny stocks?
The major disadvantage is that penny stock companies are generally startups with a novice business model and hence may fail leading to liquidation
Can I sell penny stocks at any time?
One of the biggest problems with penny stocks is low liquidity and hence it may be difficult to buy or sell penny stocks in case there are no sellers or buyers of these stocks
Final Words …
Kudos!! We have completed reading the article on selecting the best penny stocks under $1.
We have prepared the list of the best penny stocks under $1 based on the rationale of stock with a strong scope of high growth in the future based on the fundamentals of the company, business opportunities, and the strength of the management.
However, we warn against investing in these stocks your entire amount of money and should rather invest a portion of money based on your risk appetite since some of them may take a decade to grow into big companies.
Hopefully, you enjoyed going through the content of this article and we hope you would feel elated to read it again whenever required to make a buy from the list of best penny stocks under $1.
That’s all for now as we bid farewell to our readers till we bring the next article to them.
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