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Best penny stocks for 2022

These are the 10 best penny stocks to buy now on the NYSE and Nasdaq.

Most financial advisors will likely tell you to avoid penny stocks in your retirement portfolio because they’re too risky. But does that mean penny stocks have no place in an investment strategy? Not necessarily.

By adding penny stocks to your portfolio you might find yourself invested in the next hot penny stock. We compiled a list of the best penny stocks based on the results of our proprietary ranking system.

These are stocks that traded below $5 at the time we compiled the list. The stocks on this list are investment ideas only, and should not be taken as advice. You should still do your own research before deciding to invest.

Client disclaimer: US Brokerage services through eToro USA Securities Inc, member of FINRA, SIPC. Crypto assets through eToro USA LLC.

10 best penny stocks to buy now

1. Nomura Holdings, Inc. ADR (NMR)

Nomura Holdings is a Japanese financial holding company incorporated in 1935. It has a controlling stake in 24 companies and provides various investment and financial services to individuals, corporations, financial institutions and government entities worldwide.

  • Market cap: $11.23 billion
  • YTD performance: -16.03%
  • One-year performance: -21.85%
  • Five-year performance: -34.51
  • P/E ratio: 13.99

Buy NMR stock now


2. Mizuho Financial Group, Inc. ADR (MFG)

Mizuho Financial Group is a Tokyo-based financial holding company formed in 2002 through a merger between Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan. Through its group companies, Mizuho Financial offers banking, securities, trust and asset management, credit card, private banking and venture capital services.

  • Market cap: $29.54 billion
  • YTD performance: -10.81%
  • One-year performance: -19.23%
  • Five-year performance: -32.46%
  • P/E ratio: 8.88

Buy MFG stock now


3. Telefónica, S. A. ADR (TEF)

Telefónica, S.A. is a telecommunications company headquartered in Madrid, Spain. It’s one of the world’s largest mobile networks providers by subscribers and revenue, with operations in 12 countries in Europe and Latin America. Its brands include Movistar, O2 and Vivo, which operate throughout Latin America and Europe.

  • Market cap: $24.85 billion
  • YTD performance: -2.31%
  • One-year performance: -15.43%
  • Five-year performance: -60.82%
  • P/E ratio: 46.89

Buy TEF stock now


4. Nokia Corp. ADR (NOK)

Nokia is a Finnish telecommunications and technology company established in 1865. In 1998, Nokia became the world’s best-selling mobile phone brand. Today, the company operates in 130 countries globally and is among the world’s top telecom equipment manufacturers.

  • Market cap: $27.86 billion
  • YTD performance: -21.46%
  • One-year performance: -17.94%
  • Five-year performance: -20.96%
  • P/E ratio: 17.03

Buy NOK stock now


5. Ambev S. A. ADR (ABEV)

Ambev is a Brazilian brewing company. While its main business is in beer, it also operates in the soft drinks, nonalcoholic and noncarbonated beverage businesses, with exclusive bottler and distributor rights for Pepsico soda products, Gatorade, H2OH! flavored water and Lipton Iced Tea in Brazil through 2027.

  • Market cap: $48.57 billion
  • YTD performance: 9.56%
  • One-year performance: -6.29%
  • Five-year performance: -52.62%
  • P/E ratio: 17.53

Buy ABEV stock now


6. Banco Bradesco S. A. ADR (BBD)

Banco Bradesco is a Brazilian financial services company that provides various banking products and services to individuals and businesses in Brazil and internationally. Founded in 1943, Banco Bradesco is the third-largest banking institution in Brazil and the 99th-largest bank in the world by total assets.

  • Market cap: $40.18 billion
  • YTD performance: 8.65%
  • One-year performance: -11.08%
  • Five-year performance: -57.84%
  • P/E ratio: 8.38

Buy BBD stock now


7. IRSA Inversiones Y Representaciones Sociedad Anónima (IRS)

IRSA Inversiones Y Representaciones Sociedad Anónima is the largest real estate development firm in Argentina. It’s involved in various real estate activities in Argentina, including the acquisition, development and operation of shopping centers, office buildings and luxury hotels, as well as the development and sale of residential properties.

  • Market cap: $343 million
  • YTD performance: -0.7%
  • One-year performance: -2.53%
  • Five-year performance: -83.11
  • P/E ratio: 105.75

Buy IRS stock now


8. Lloyds Banking Group PLC ADR (LYG)

Lloyds Banking Group is a British financial services group focused on retail and commercial customers. It operates 14 brands through three core divisions: Retail, Commercial Banking and Insurance and Wealth. Its brands include Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows, among others.

  • Market cap: $37.7 billion
  • YTD performance: -20.69%
  • One-year performance: -13.03%
  • Five-year performance: -38.58%
  • P/E ratio: 7.14

Buy LYG stock now


9. Banco Santander S. A. ADR (SAN)

Banco Santander is a Spanish multinational financial services company and the 19th-largest bank in the world by total assets. Founded in 1857, Banco Santander provides various retail and commercial banking products and services to more than 157 million customers globally.

  • Market cap: $42.25 billion
  • YTD performance: -26.19%
  • One-year performance: -32.61%
  • Five-year performance: -61.49%
  • P/E ratio: 4.86

Buy SAN stock now


10. Banco Bilbao Viscaya Argentaria S. A. ADR (BBVA)

Banco Bilbao Viscaya Argentaria S. A. is a Spanish multinational financial services company founded in 1857. It’s the 47th largest financial institution in the world, providing retail banking, wholesale banking and asset management services to customers in 25 countries around the world.

  • Market cap: $29 billion
  • YTD performance: -23.87%
  • One-year performance: -30.63%
  • Five-year performance: -48.413%
  • P/E ratio: 5.72

Buy BBVA stock now

Buy penny stocks through these online brokers

1 - 8 of 8
Name Product Asset types Stock trade fee Minimum deposit Signup bonus
SoFi Invest
Stocks, ETFs, Cryptocurrency
$0
$0
$10 - $100
when you open an account and place a first crypto trade of $50 - $5,000+
A free way to invest in most equities.
eToro
Stocks, ETFs, Cryptocurrency
$0
$10
8%-12% of your deposit
when you sign up and deposit at least $50. T&Cs apply.
Trade stocks in the app or online with $0 commissions. Not available in NY, NV, MN, TN, and HI.
Public
Stocks, ETFs, Cryptocurrency
$0
$0
Receive a free stock slice worth between $3–$300
when you sign up for an account and deposit at least $20.
Commission-free trading in stocks and ETFs with a social networking twist.
Tastyworks
Stocks, Options, ETFs, Cryptocurrency
$0
$0
$200 in US stocks
when you open and fund an account with min. $2,000 for 3+ mos.
Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.
JPMorgan Self-Directed Investing
Stocks, Bonds, Options, Mutual funds, ETFs
$0
$0
$125 - $625
when you open and fund an account with $25,000 - $250,000+
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Robinhood
Stocks, Options, ETFs, Cryptocurrency
$0
$0
Get a free stock
when you successfully sign up and link your bank account.
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Ally Invest Self-Directed Trading
Stocks, Bonds, Options, Mutual funds, ETFs
$0
$0
$100
when you deposit or transfer $10,000–$24,900
500+ commission-free ETFs, some of the industry's lowest fees plus a cash bonus up to $3,000.
Tradier
Stocks, Options, ETFs
$0
$0
N/A
Customize your trade platform or build your own Deep tools, charts and screens Analyzers to help you study before you trade
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Compare up to 4 providers

*Signup bonus information updated weekly.

Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

What are penny stocks?

In general, a penny stock refers to a company’s stock that trades below $5 per share, many of which are available on the major exchanges. Some narrow the definition to include only stocks of small-cap companies that trade on the over-the-counter (OTC) market for less than $1 per share.

For our list of best penny stocks, we stuck with exchange-listed stocks with share prices below $5. These stocks have the potential to make big intraday moves and are relatively cheap enough to build large positions.

Advantages and disadvantages of penny stocks

Generally, penny stocks tend to be riskier and more volatile than, say, a stable company like Apple or Coca-Cola. This is especially true for penny stocks that trade on the OTC market.

Though the Financial Industry Regulatory Authority (FINRA) regulates the OTC Bulletin Board market and requires companies to submit current financial reports to the SEC, this isn’t the case with the privately owned OTC Link.

Companies that trade on OTC Link tend to be very small, with illiquid stocks. They’re also not required to file periodic reports or audited financial statements with the SEC, making it difficult for investors to find current, reliable information about them.

Despite the added risks, penny stocks are attractive for multiple reasons. It’s their low entry price that makes them particularly appealing. It allows investors to purchase a relatively large number of shares, providing the potential to make quick, and sometimes significant, gains if the stock rises.

Pros and cons of penny stocks

Pros

  • Lower stock prices can allow investors to buy more shares for less money, which can result in bigger profits.
  • Increased volatility can lead to rapid gains.

Cons

  • OTC Link companies are high-risk, as they don’t have the same level of disclosure requirements as the major exchanges.
  • Liquidity issues can prevent investors from being able to sell if share prices rise.
  • Increased volatility can lead to rapid losses.
  • A low share price could be a signal the company isn’t doing well.

Bottom line

  • Many penny stocks are risky, but dedicating a small portion of your portfolio to these speculative stocks shouldn’t derail your investment goals.
  • Always do your own due diligence before investing, especially in penny stocks.
  • Though we hear stories of people getting rich from trading penny stocks, a majority turn out to be losers.

Frequently asked questions about penny stocks

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