8 Best Penny Stocks To Buy Under $1 (2024)

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.

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 might just be worth the investment.

1. iPower Inc.

• Price: $0.6874
• Market Cap: $24.81 million
• Consensus Rating: Buy

In its corporate profile, iPower (Nasdaq: IPW) calls itself one of the leading online hydroponic equipment retailers and suppliers in the U.S., but its services extend beyond its own products. IPower also provides market research and merchandising services to business partners and serves as a logistics provider in partnership with Amazon Logistics, UPS and the U.S. Postal Service.

IPower stock closed at $0.6874 on June 2. Its 52-week range is $0.35 to $1.40. According to Yahoo Finance, the analyst following the stock in May said it’s a “buy” with a $1.50 price target.

2. GEE Group Inc.

• Price: $0.5070
• Market Cap: $59.51 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 $0.5070 on June 2. In the past year, the stock price has ranged from $0.36 to $0.80. Both analysts following the stock in June rate it a “buy.” It’s a volatile stock with a beta of 1.72 (1.00 being neutral), but it could be undervalued right now.

3. Cybin Inc.

• Price: $0.2667
• Market Cap: $49.52 million
• Consensus Rating: Strong buy

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

Cybin closed at $0.2667 on June 2. Its 52-week range is $0.2510 to $1.14. Analysts haven’t weighed in yet in June, but of the five watching the stock in May, three rated it a “buy” and two rated it a “strong buy,” for a consensus rating of “strong buy.” The average 12-month price target is $4.38.

4. Precipio Inc.

• Price: $0.6174
• Market Cap: $14.41 million
• Consensus Rating: Strong buy

Precipio Inc. (Nasdaq: PRPO) manufactures blood testing products such as reagents and culture media, and it also provides blood cancer diagnostic services. Based in New Haven, Connecticut, Precipio’s products are distributed via a global network of providers.

Precipio’s stock closed at $0.6174 per share on June 2, well above its 52-week low of $0.47. The highest it has traded in the past year is $1.70. One analyst follows the stock. They gave it a “strong buy,” which is an upgrade over the “buy” ratings issued in April and May. The 12-month price target is $1.85.

5. TOMI Environmental Solutions Inc.

• Price: $0.62
• Market Cap: $13.10 million
• Consensus Rating: Buy

TOMI Environmental Solutions (Nasdaq: TOMZ) makes indoor-surface decontamination products, including its flagship SteraMist line. Originally created to fight anthrax contamination, SteraMist devices use ionized hydrogen peroxide to disinfect surfaces at facilities operating in such industries as healthcare, life science and food safety.

TOMZ closed at $0.62 on June 2, closer to its 52-week low of $0.45 than its 52-week high of $1.74.The analyst who follows the company rates it a “buy” and predicts a 12-month price target of $3.50.

6. Oncocyte Corp.

• Price: $0.2157
• Market Cap: $35.55 million
• Consensus Rating: Buy

Oncocyte (Nasdaq: OCX) develops diagnostic tests to enable physicians to provide better treatment options for cancer. One product, which is currently available, is a test to identify patients with non-squamous non-small cell lung cancer who may be at risk of recurrence.

Oncocyte has a 52-week range of $0.20 to $1.345. Four analysts follow the stock, and one rated it a “strong buy” and three rated it a “buy.” The average 12-month price target is $0.35.

7. Mogo Inc.

• Price: $0.71
• Market Cap: $51.52 million
• Consensus Rating: Strong buy

Mogo (Nasdaq: MOGO) is a Canadian company that develops technologies and products to help Canadians build wealth and achieve financial freedom. The Mogo app helps consumers track and manage their finances.

Mogo stock closed at $0.71 on June 2, closer to its 52-week low of $0.4040 than its 52-week high of $1.44. Of the two analysts who followed the company in May, one rated it a “strong buy” and one rated it a “buy.” The average 12-month price target is $3.98.

8. Organigram Holdings Inc.

• Price: $0.3926
• Market Cap: $122.47 million
• Consensus Rating: Buy

Organigram (Nasdaq: OGI) is a Canadian producer of medical and recreational cannabis. The company has three cultivation and production facilities, including an indoor growing facility, a manufacturing site for edibles and a greenhouse facility. The company uses a proprietary system to track grow cycles by strain, environmental conditions, harvest period and other factors, allowing it to optimize cultivation and harvesting.

Organigram stock closed at $0.3926 on June 2. Over the past 52 weeks, its share price has ranged from a low of $0.3710 to a high of $1.27. Just one analyst has followed the stock over the last few months, and they rate it a buy. The 12-month price target is $2.23.

Final Take

Most of these companies are in the medical sector, including biotechnology, pharmaceuticals, therapies and more. Companies in this sector 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.

Daria Uhlig contributed to the reporting for this article.

Data is accurate as of June 2, 2023, and is subject to change. Information on analyst ratings was sourced from Yahoo Finance.