Best Stocks Under $1 to Buy Now

Stocks under $1 have a reputation to be speculative investments and the trade trends of these penny stocks are volatile.

Investors make a sizable number of investments in stocks under a dollar based on speculations and hope that the volatility of the stock trend shifts in their favor.

Penny stock investors burn a lot of their investment due to volatility. They also lose a lot of money due to poor decision-making behind the investment – now this is because penny stocks are often subjected to pump-and-dump plays by investors.

What Are Penny Stocks?

Penny stocks are low-priced, speculative securities traded outside major exchanges.

Typically valued at less than $5 per share, they represent small companies with high growth potential but also heightened volatility and risk.

Where To Buy Penny Stocks

Penny stocks can be purchased through various online brokerage platforms or over-the-counter markets.

It’s essential to research reputable brokers and understand the associated fees and risks before investing.

Why Penny Stocks Under $1?

Penny stocks under $1 are considered ultra-speculative due to their affordability and potential for substantial gains.

Investors are enticed by the opportunity to buy large quantities with limited capital, but this also magnifies the risk of significant losses.

The Risky Business of Penny Stocks

Investing in penny stocks carries substantial risks for their low liquidity, lack of financial history, and vulnerability to manipulation.

It makes them a breeding ground for fraud and pump-and-dump schemes.

Novice investors must exercise caution and conduct thorough due diligence before diving in.

List of Penny Stocks Under $1

Here are the 5 best stocks under 1 to buy now:

• • Castellum, Inc. (NYSE: CTM) 

    Castellum, Inc. (CTM) emerges as a noteworthy candidate in our list of top stocks under $1 to buy now, offering strong growth potential.

    The company specializes in cybersecurity, electronic warfare, and software engineering solutions tailored for federal government contracts.

    With the increasing demand for advanced digital security, Castellum is well-positioned to capitalize on this expanding sector.

    Currently, Castellum’s stock is trading at approximately $0.76, with a market capitalization of $61.45 million.

    Over the past year, it has seen an impressive 169.46% gain, reflecting investor confidence.

    Additionally, its earnings per share (EPS) have climbed by 63.76% year-over-year, showcasing steady financial progress.

    In December 2024, Castellum successfully raised $3.7 million through a public offering of over 4.3 million shares at $0.85 per share.

    These funds are earmarked for corporate expansion and operational improvements.

    Moreover, a strategic alliance formed in mid-2024 with Krilla Kaleiwahea, LLC (K2), a Native Hawaiian Organization, opens new doors for securing federal defense contracts valued at up to $100 million.

    The broader cybersecurity market is undergoing rapid transformation, with increasing mergers and acquisitions expected in 2025.

    Major firms are consolidating to strengthen their market position, creating opportunities for agile players like Castellum to expand through new partnerships and government contracts.

    Additionally, the rise of artificial intelligence (AI) in cybersecurity is reshaping the industry, with a growing need for sophisticated digital protection against evolving threats.

    Given its upward trajectory, strategic partnerships, and favorable industry trends, Castellum, Inc. presents a promising investment opportunity for those looking to capitalize on stocks priced under $1.

  • Northern Dynasty Minerals Ltd. (NYSE: NAK)

    The second stock in the list of best stocks under $1 is – Northern Dynasty Minerals Ltd. (NAK).

    It is a Vancouver-based company specializing in mineral exploration and development.

    Its primary asset is the Pebble Mine project in southwest Alaska, known for its vast reserves of copper, gold, molybdenum, silver, and rhenium.

    Spanning approximately 274 square miles with around 1,840 mineral claims, this project positions the company within a crucial segment of the mining industry.

    Currently, Northern Dynasty Minerals has a market capitalization of $348.23 million, with its stock trading at $0.625 per share.

    Over the past year, the stock has surged by 169.83%, highlighting increasing investor interest.

    The company also maintains an average 90-day trading volume of 3.56 million shares, reflecting active market participation.

    Northern Dynasty’s subsidiary, Pebble Partnership, this month agreed to a 90-day pause at the request of the Environmental Protection Agency (EPA), allowing for further review of the project’s future.

    Earlier in the month, the company reassured investors with an open letter detailing progress and reaffirming its commitment to advancing the Pebble Mine.

    The broader mining industry, especially the copper sector, is experiencing strong demand due to the global shift toward renewable energy and electric vehicles.

    Copper’s role in electrical infrastructure places companies like Northern Dynasty in a favorable position.

    NAK’s ongoing engagement with regulators and its resilient market performance suggest potential for future growth.

    The significant upside prospect led us to add this stock to our list of best stocks under a dollar.

    Those looking for promising growth potentials, Northern Dynasty Minerals remains a noteworthy option.

  • Ocean Power Technologies, Inc. (NYSE: OPTT) 

    Next on our list is a Monroe Township, New Jersey-based penny stock known as Ocean Power Technologies (OPTT)

    OPTT is a key player in the marine energy sector, providing advanced low-carbon power and data solutions.

    The company specializes in intelligent maritime technologies, serving industries such as defense, offshore wind, oil and gas, and scientific research.

    One of its standout offerings is the PowerBuoy system, a wave energy converter that supports offshore operations with renewable energy.

    Additionally, OPTT’s Merrows platform integrates artificial intelligence to enhance maritime domain awareness across various applications.

    Currently, OPTT’s stock trades at approximately $0.6537, holding a market capitalization of $96.92 million and has demonstrated an impressive one-year growth rate of 134.71%.

    In the second quarter of fiscal year 2025, OPTT generated $2.4 million in revenue, a 2.7x increase from the previous year, while its earnings per share (EPS) saw a year-over-year gain of 39.87%.

    The broader marine renewable energy industry is experiencing strong momentum, with governments worldwide prioritizing sustainability initiatives.

    The United Kingdom recently introduced policies aimed at streamlining offshore wind development, extending financial incentives to energy companies, and expediting regulatory approvals.

    Such measures highlight the increasing global investment in renewable energy, positioning Ocean Power Technologies for long-term success for promising metrics and growth in its fundamentals.

    With the increasing focus on sustainability and clean energy, OPTT’s stock presents an attractive opportunity for investors seeking exposure to the growing marine technology sector.

    This makes OPTT a phenomenal among cheap stocks to buy now under $1 dollar.

    These last two stocks are also worth watching over the next few weeks.

  • Origin Materials Inc. (NASDAQ: ORGN)

    Next on our list is Origin Materials Inc. (ORGN), a technology company dedicated to facilitating the global shift toward sustainable materials.

    With a market capitalization of approximately $135.98 million and a current stock price of $0.9398, the company has demonstrated a notable 79.32% improvement in its one-year performance.

    The sustainable materials sector is experiencing significant growth, driven by increasing environmental awareness and regulatory pressures.

    With a size of over $200 billion in 2024 and the sector is projected to reach $367.2 billion by 2029.

    However, the industry faces challenges, including scrutiny over the true environmental benefits of bioplastics and the need for more robust recycling infrastructures.

    In its latest financials, Origin Materials reported revenue of $8.2 million, primarily from its supply chain activation program.

    A significant milestone was the successful Factory Acceptance Test of their first CapFormer System, achieving over 98% manufacturing efficiency.

    This system is poised to produce PET caps, with revenue generation anticipated in the first quarter of 2025.

    The company plans to deploy at least eight CapFormer Systems by the end of 2025, aiming for a production capacity of 8 to 12 billion caps annually.

    Given the company’s advancements and strategic positioning within a burgeoning industry, high-risk investors might find Origin Materials a compelling opportunity for potential future gains.

  • Tiziana Life Sciences, Ltd. (Nasdaq: TLSA)

    Tiziana Life Sciences (TLSA), headquartered in London, UK, is a clinical-stage biopharmaceutical company pioneering innovative therapies through advanced drug delivery technologies, focusing on alternative immunotherapy routes.

    With a current price of $0.8806, the company has a market capitalization of approximately $104.86 million.

    Over the past year, TLSA has demonstrated a robust performance, with its market cap increasing by 65.96%.

    Tiziana recently regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market.

    This compliance underscores the company’s commitment to adhering to regulatory standards and maintaining investor confidence.

    Financially, Tiziana has adopted a disciplined approach, securing non-dilutive funding to strengthen its balance sheet, thereby facilitating the progression of clinical trials and expansion of research and development capabilities.

    The biopharmaceutical manufacturing market size is poised for significant growth in 2025 to $539 billion from $467 billion in 2024.

    It is also anticipated to reach around $1.79 trillion by 2034, driven by advancements in drug development and strategic collaborations.

    Notably, Western pharmaceutical companies are increasingly partnering with Chinese firms to develop and commercialize “super me-too” drugs, aiming to enhance treatment efficacy for diseases such as obesity and cancer.

    This trend reflects a dynamic shift in the industry, emphasizing the importance of innovative therapies and strategic alliances.

    Tiziana’s lead candidate, intranasal foralumab, a fully human anti-CD3 monoclonal antibody, is currently undergoing a Phase 2a clinical trial for non-active secondary progressive multiple sclerosis.

    The intranasal delivery method is designed to modulate T cell function, potentially offering a more effective and tolerable treatment option compared to traditional intravenous therapies.

    The U.S. Food and Drug Administration has granted Fast Track designation for foralumab, expediting its development and review process.

    Given the company’s innovative approach, recent regulatory achievements, and the favorable industry landscape, Tiziana Life Sciences presents a compelling opportunity for investors seeking exposure to the biopharmaceutical sector.

    However, potential investors should conduct thorough due diligence and remain cognizant of the inherent volatility associated with clinical-stage biotech stocks.

We have also compiled here a list of best potential stocks under $1:

Penny Stock Strategies

Penny stocks, low-priced equities typically traded outside major exchanges, have garnered both fascination and skepticism in the financial world.

While these stocks offer the allure of astronomical gains, they come with substantial risks.

As such, investors should approach them with caution and adopt specific strategies to optimize their chances of success.

• Diligent Research and Due Diligence

  Thorough research is paramount when dealing with penny stocks. Investigate the company’s fundamentals, financials, and management team.

  Scrutinize market trends and industry outlooks to make informed decisions.

  By performing due diligence, you can identify viable opportunities from possible scams in order to safeguard your investment.

• Risk Management and Diversification

  Due to their volatile nature, penny stocks can be highly unpredictable. Employ risk management techniques like stop-loss orders to protect your capital from significant losses.

  Diversifying your portfolio across various industries can mitigate risk and balance potential rewards.

• Technical Analysis for Entry and Exit Points

  Utilize technical analysis to identify suitable entry and exit points. Analyzing price charts and patterns can assist in timing trades, optimizing gains, and minimizing losses.

• Avoiding Emotional Trading

  Stay rational and avoid emotional trading. Penny stocks’ rapid price fluctuations may trigger impulsive decisions, leading to regrettable outcomes.

  Adopt a disciplined approach and stick to a well-defined strategy.

How To Trade Penny Stocks

While Penny stocks can be enticing due to their low entry costs and potential for rapid gains, they also carry significant risks.

To trade penny stocks effectively, conduct thorough research on companies, focusing on financials and potential catalysts.

Develop a disciplined strategy and stick to it, avoiding impulsive decisions. Diversify your portfolio to mitigate risks and set clear entry and exit points.

Stay updated with market trends and news to make informed choices.

Penny Stock Rules

Before delving into penny stock trading, it is essential to understand the rules that govern these volatile securities. Some key rules include:

• Research Extensively

  Penny stocks often lack sufficient information, making thorough research critical. Analyze company fundamentals, financials, news, and market trends before investing.

• Limit Orders Are Crucial

  Due to high volatility, place limit orders instead of market orders to control the price at which you buy or sell penny stocks.

• Diversify Your Portfolio

  Avoid putting all your funds into a single penny stock. Diversification can help mitigate risk.

• Be Cautious Of Pump And Dump Schemes

  Beware of fraudulent practices where scammers artificially inflate stock prices before selling their shares.

• Understand Market Trends

  Keep an eye on overall market trends and industry performance to make informed decisions.

How To Find Stocks Under $1

Finding penny stocks with potential requires a systematic approach. Here are some methods to identify these stocks:

• Screening Tools

  Utilize stock screening tools and platforms that allow you to filter stocks based on specific criteria, including price, market capitalization, and volume.

• Stock News and Websites

  Follow financial news outlets and websites that focus on penny stocks. They often highlight companies with promising prospects.

• Social Media and Forums

  While it’s essential to be cautious, social media platforms and online forums may offer insights into trending penny stocks.

• Company Filings

  Access the SEC’s EDGAR database to examine a company’s financial reports and disclosures.

Pros And Cons of Stocks Under $1

Trading penny stocks comes with advantages and disadvantages. Understanding these can help you make informed decisions:

Top Platforms to Trade Best Stocks Under $1

Selecting the right trading platform is crucial for successful penny stock trading. Some popular platforms that offer access to best stocks under 1 include:

• Robinhood

  Known for its user-friendly interface and commission-free trading, Robinhood is favored by many beginner traders.

• E-Trade

  With a wide range of investment options and research tools, E-Trade caters to both beginners and experienced traders.

• TD Ameritrade

  This platform offers a variety of educational resources and advanced trading tools.

• Fidelity

  Fidelity is a well-established platform that provides access to penny stocks alongside other investment products.

Should You Invest in Penny Stocks?

Deciding whether to invest in penny stocks depends on your risk tolerance, investment goals, and trading experience. Consider the following factors before making a decision:

• Risk Tolerance: If you can withstand significant volatility and potential losses, penny stocks may be an option.

• Experience: Penny stocks are not recommended for novice investors due to their complexity.

• Diversification: Never allocate your entire portfolio to penny stocks. Maintain a diversified investment approach.

• Long-Term Vs. Short-Term: Determine whether you are a long-term investor or a short-term trader.

List of the Best Stocks Under $10

Although we have comprehensively discussed various cheap stocks to buy now under $1 dollar to consider investment in, listed below are the best performing stocks under $10 that you can get in the market:

Features to Look for in Best Stocks Under $10

Whether you are looking for hot stocks to buy under $10 or are simply interested in stocks under one dollar, it is important to focus your sights on a number of features regarding the particular stocks.

Each of the stocks mentioned in this article, including the stocks under $1, hold these features within them:

• Growth Potential

  Look for companies with strong growth potential that are likely to increase their revenue and earnings over time.

  This can be indicated by positive earnings growth, expanding margins, and increasing market share.

• Attractive Valuation

  Consider stocks that are reasonably priced relative to their earnings, cash flow, and other metrics.

  Avoid companies that appear to be overvalued or have a high price-to-earnings ratio. This is true for stocks under $1.

• Competitive Strengths

  Select stocks of companies with a competitive advantage, such as a unique product or service, a strong brand, or proprietary technology.

  These companies are better positioned to maintain their market position and continue to grow over time.

• Financial Stability

  Look for companies with solid financials, including a healthy balance sheet, low debt levels, and positive cash flow.

  Companies with strong financials are better able to weather economic downturns and other challenges, even for stocks under $1.

Conclusion

Exploring the world of best stocks under $1 can be a rewarding venture for investors seeking potential growth opportunities.

These low-priced stocks often present the chance to enter burgeoning markets or emerging companies with significant upside potential.

However, it is crucial to approach such investments with caution and thorough research.

Due to their inherent volatility and speculative nature, a diversified portfolio strategy is recommended to mitigate risks.

Investors should remain focused on long-term growth prospects, keeping an eye on the fundamentals of the companies in question.

While these stocks may carry higher risk, their potential for substantial returns can be enticing for those willing to embrace a calculated approach to their investment journey.

FAQs

How Can I Invest $1000 In Penny Stocks?

Investing $1000 in penny stocks can be a high-risk, speculative endeavor.

Conduct thorough research on the companies you’re interested in, considering their financial health and growth potential.

Diversify your portfolio to reduce risk, and set stop-loss orders to protect your investment. Stay disciplined and avoid impulsive decisions. Seek advice from financial experts if uncertain.

Is Investing In Stocks Under $1 Profitable?

Investing in stocks under $1 can be alluring due to their affordability, but it carries significant risks.

While some may see explosive gains, many low-priced stocks are highly volatile and susceptible to manipulation.

Prudent investors should exercise caution, conduct thorough research, and diversify their portfolios to mitigate potential losses.

Why Do Most Penny Stocks Fail?

Most penny stocks fail due to their inherent risks and speculative nature. Often associated with small, volatile companies, they lack financial stability and regulatory scrutiny.

Their low prices attract inexperienced investors seeking quick gains, leading to inflated demand and subsequent crashes.

Limited liquidity, poor fundamentals, and susceptibility to manipulation contribute to the high failure rate.

Do Penny Stocks Ever Go Big?

Penny stocks, though highly speculative, hold the potential to skyrocket. Unpredictable market forces can propel them to exponential growth, turning small investments into significant returns.

However, caution is advised due to their inherent volatility, susceptibility to scams, and lack of liquidity. Diligent research and risk management are crucial for success.