7 Best 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.

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

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:

• GEE Group Inc. (JOB)
• Cybin Inc. (CYBN)
• Tingo Group Inc. (TIO)
• Pedevco Corp. (PED)
• Netcapital Inc. (NCPL)
• ClearOne Inc. (CLRO)
• S&W Seed Co. (SANW)

1. GEE Group Inc.

• Price: $0.5342
• Market Cap: $60.59 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 $0.5342 on Dec. 15. In the past year, the stock price has ranged from $0.36 to $0.70. Both analysts following the stock in December rate it a “buy.” It’s a somewhat volatile stock with a beta of 1.57 (1.00 being neutral), but it could be undervalued right now.

2. Cybin Inc.

• Price: $0.4230
• Market Cap: $168.66 million
• Consensus Rating: 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 $0.4230 on Dec. 15. Its 52-week range is $0.21 to $0.74. Analysts haven’t weighed in yet in December, but of the four watching the stock in November, three rated it a “buy” and one rated it a “strong buy,” for a consensus rating of “buy.” One analyst weighed in with a 12-month price target of $7.

3. Tingo Group Inc.

• Price: $0.69
• Market Cap: $166.95 million
• Consensus Rating: Buy

Tingo Group (Nasdaq: TIO) is a multinational financial technology and agricultural financial technology group of companies operating in Africa, Southeast Asia and the Middle East. Based in Montvale, New Jersey, the company provides a digital agricultural platform in addition to insurance, automotive services, payment processing and merchant services. Its Tingo Foods business processes raw foods into staple items and operates a commodity trading platform.

TIO is a speculative stock that just one analyst tracks. They rate it a “buy.” Yahoo Finance predicts an estimated annual return of 78% over the next five years.

4. Pedevco Corp.

• Price: $0.7820
• Market Cap: $70.66 million
• Consensus Rating: Buy

Pedevco (NYSE: PED) is an oil and natural gas exploration and production company that focuses on developing conventional energy assets using unconventional technologies. It currently has properties in Texas, New Mexico, Colorado and Wyoming. The company admits to having nearly lost its listing on the New York Stock Exchange because of debt acquired in 2014 through 2017. Following a major investment in 2018, the company restructured, paid down debt and brought in a new management team.

Pedevco closed at $0.7820 on Dec. 15. Although it has trended downward over the last few months, analysts rate it a “buy.” In fact, EF Hutton has reiterated its buy recommendation six times in the last two years, most recently in September. Yahoo Finance says shares are undervalued. Analysts’ estimated 12-month price target is $2.20.

5. Netcapital Inc.

• Price: $0.3535
• Market Cap: $3.68 million
• Consensus Rating: Buy

Netcapital (Nasdaq: NCPL) is this roundup’s smallest company by far, but it has made a name for itself among equity crowdfunding companies. It’s a fintech that helps private companies raise capital online and assists in onboarding, regulatory-document filing and compliance review. The Boston-based company also serves as an advisor to tech startups and facilitates investing.

Trading near its 52-week low of $0.2490, Netcapital shares appear to be significantly undervalued. Yahoo Finance estimates a 211% annual return over five years, and the stock has an average one-year price target of $2.80.

6. ClearOne Inc.

• Price: $0.83
• Market Cap: $19.8 million
• Consensus Rating: Strong buy

ClearOne (Nasdaq: CLRO) is an audio-video company that provides cloud-based conferencing and collaboration services for professional home offices and commercial spaces. The Salt Lake City-based company’s client list includes Temple University, Rochester Institute of Technology, WebMD and Marriott.

ClearOne closed at $0.83 on Dec. 15, nearly 30% above its 52-week low of $0.64 but well below its 52-week high of $2.65. Yahoo Finance says the stock is undervalued and could produce an annual return of 48% over the next five years. The two analysts who follow the stock have issued consistent ratings of “buy” and “strong buy,” respectively, over the last four months.

7. S&W Seed Co.

• Price: $0.4939
• Market Cap: $21.98 million
• Consensus Rating: Buy

S&W Seed Co. (Nasdaq: SANW) produces seeds for a variety of crop products, including alfalfa, sorghum and stevia. The company distributes seeds via direct sales and dealer-distributors. S&W’s research and development projects include hybrid crops and gene-edited alfalfa plants as well as a yield-boosting sorghum solution.

The three analysts who watch S&W rate the stock a “buy” with a price target of $3. A low P/E ratio of 1.65 and beta of 1.20, indicating low volatility, support the analysts’ target.

Final Take

These companies represent a range of sectors, including technology and medical. Companies in these sectors 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 was compiled on Dec. 18, 2023, and is subject to change. Information on analyst ratings was sourced from Yahoo Finance.