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10 best penny stocks

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

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.

LogoStock and tickerStock descriptionYTD returnVolumeMarket Cap
MSP Recovery Inc logoBit Digital Inc (BTBT)BTBT is a cryptocurrency mining company involved in the production of digital assets, notably Bitcoin.244.17%3.1M176.01M
Bitfarms Ltd logoBitfarms Ltd. (BITF)BITF is a cryptocurrency mining company engaged in the mining of Bitcoin and other digital currencies.146.77%6.9M263.25M
Cybin Inc logoCybin Inc (CYBN)CYBN is a biotechnology company dedicated to developing innovative therapies for mental health disorders using psychedelic medicines.97.91%4.80M141.95M
BigBear.ai Holdings logoBigBear.ai Holdings (BBAI)BBAI is a technology company specializing in artificial intelligence, machine learning, and data analytics solutions.77.38%2.33M184.66M
American Superconductor Corp logoAmerican Superconductor Corp (AMSC)AMSC is a global energy solutions provider, specializing in renewable energy and grid solutions, including wind and power systems.72.15%2.61M192.64M

Buy now

TeraWulf Inc logoTeraWulf Inc (WULF)WULF is a cryptocurrency mining company specializing in sustainable Bitcoin mining and utilizing green energy sources.65.26%6.09M242.47M
Rigetti ComputingRigetti Computing (RGTI)RGTI is a quantum computing company that provides quantum hardware, software, and cloud-based services. 38.51%6.60M137.64M
Eos Energy Enterprises Inc logoEos Energy Enterprises Inc (EOSE)EOSE is a company that focuses on energy storage solutions, particularly zinc-based battery technologies for grid and industrial applications12.50%8.04M224.43M
Zomedica Inc logoZomedica Inc (ZOM)ZOM is a veterinary diagnostic and pharmaceutical company known for developing innovative products and solutions for companion animals’ healthcare.7.73%3.43M172.08M

Buy now

VistaGen Therapeutics logoVistaGen Therapeutics (VTGN)VTGN is a biopharmaceutical company dedicated to developing innovative therapies for mental health disorders and neurological conditions.-1.13%2.00M74.08M

Buy now

How to buy the best penny stocks 5 easy steps

  1. Choose an online stock trading platform. Choose from our Top Picks above or jump straight to the best stock trading apps of 2024.
  2. Sign up for an account. Provide your personal information and sign up.
  3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
  4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
  5. Place your order. Buy the stock. It’s that simple.

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

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.

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Written by

Matt Miczulski

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. See full profile

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