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We compiled a list of the best penny stocks based trade volume, market cap and, of course, price. 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.
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10 best penny stocks to buy now
Here are the top 10 penny stocks based trade volume, market cap and, of course, price. These are stocks that traded below $5 at the time we compiled the list.
Logo
Stock and ticker
Stock description
YTD return
Volume
Market Cap
Bit Digital Inc (BTBT)
BTBT is a cryptocurrency mining company involved in the production of digital assets, notably Bitcoin.
244.17%
3.1M
176.01M
Bitfarms Ltd. (BITF)
BITF is a cryptocurrency mining company engaged in the mining of Bitcoin and other digital currencies.
146.77%
6.9M
263.25M
Cybin Inc (CYBN)
CYBN is a biotechnology company dedicated to developing innovative therapies for mental health disorders using psychedelic medicines.
97.91%
4.80M
141.95M
BigBear.ai Holdings (BBAI)
BBAI is a technology company specializing in artificial intelligence, machine learning, and data analytics solutions.
77.38%
2.33M
184.66M
American Superconductor Corp (AMSC)
AMSC is a global energy solutions provider, specializing in renewable energy and grid solutions, including wind and power systems.
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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 with a “micro” market cap between $50 million and $300 million. 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.
Frequently asked questions about penny stocks
According to our analysis, as of October 2023, the top 3 penny stocks to buy right now are:
MSP Recovery Inc (LIFW)
Canoo Inc (GOEV)
Meta Materials Inc (MMAT)
According to our analysis, as of October 2023, the top 20 penny stocks are:
Company
Ticker
Market Cap
Price
Volume
MSP Recovery Inc
LIFW
$82.55M
$0.25
109,619,179
Canoo Inc
GOEV
$282.45M
$0.45
6,928,368
Meta Materials Inc
MMAT
$108.72M
$0.23
5,126,065
SoundHound AI Inc
SOUN
$71.98M
$1.92
5,037,710
Bitfarms Ltd.
BITF
$242.72M
$1
4,661,202
Workhorse Group Inc
WKHS
$81.81M
$0.39
4,393,361
TeraWulf Inc
WULF
$242.14M
$1.10
3,045,263
Terran Orbital Corp
LLAP
$126.49M
$0.73
2,709,982
Tingo Group Inc
TIO
$195.12M
$0.95
2,595,602
Lilium N.V
LILM
$268.13M
$0.66
2,506,643
Esperion Therapeutics Inc.
ESPR
$99.34M
$0.93
2,186,282
Rigetti Computing Inc
RGTI
$161.58M
$1.22
2,157,366
Seres Therapeutics Inc
MCRB
$262.83M
$2.05
2,131,318
Cybin Inc
CYBN
$133.81M
$0.56
1,865,276
X4 Pharmaceuticals Inc
XFOR
$152.38M
$0.93
1,790,038
Zomedica Corp
ZOM
$159.14M
$0.16
1,456,660
Gevo Inc
GEVO
$262.33M
$1.11
1,336,735
Bit Digital Inc
BTBT
$173.89M
$2.05
1,314,039
D-Wave Quantum Inc
QBTS
$92.46M
$0.93
1,090,927
Canaan Inc ADR
CAN
$264.19M
$1.77
864,768
Yes, penny stocks traded in a taxable brokerage account are subject to the same taxes as any other stock.
Robinhood supports seven of the 10 best penny stocks mentioned in our list. These include:
Nomura Holdings, Inc. ADR (NMR)
Mizuho Financial Group, Inc. ADR (MFG)
Nokia Corp ADR (NOK)
Ambev S. A. ADR (ABEV)
Banco Bradesco S. A. ADR (BBD)
IRSA Inversiones Y Representaciones Sociedad Anónima (IRS)
The best penny stocks platform would have to be Interactive Brokers, which offers $0 commission trades on US-listed stocks and low commissions on OTC stocks and stocks that trade on foreign exchanges.
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.
Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University.
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