QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Most Popular Penny Stocks

Penny stocks are public companies that have a share price of under $1.00 and a market capitalization of under $100 million. This page lists the most popular penny stocks among MarketBeat Subscribers. These stocks are sorted by the number of MarketBeat users following each company. Learn more about investing in penny stocks.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceMarketBeat FollowersMarket CapTrading VolumeIndicator(s)
Aurora Cannabis Inc. stock logo
Aurora Cannabis
6,526$221.52 million4.30 million shs
Inovio Pharmaceuticals, Inc. stock logo
Inovio Pharmaceuticals
4,351$171.39 million14.24 million shsAnalyst Downgrade
Analyst Revision
High Trading Volume
Sorrento Therapeutics, Inc. stock logo
Sorrento Therapeutics
4,224$126.20 million2.35 million shsGap Up
Workhorse Group Inc. stock logo
Workhorse Group
3,524$176.95 million5.93 million shsAnalyst Report
Nikola Co. stock logo
3,078$512.72 million24.83 million shs
Ocugen, Inc. stock logo
2,793$149.01 million10.41 million shs
Bed Bath & Beyond Inc. stock logo
Bed Bath & Beyond
2,000$77.32 million12.49 million shs
Bionano Genomics, Inc. stock logo
Bionano Genomics
1,830$208.31 million6.96 million shsAnalyst Report
Energous Co. stock logo
1,823$29.68 million189,770 shs
Zynerba Pharmaceuticals, Inc. stock logo
Zynerba Pharmaceuticals
1,574$17.17 million389,596 shsEarnings Report
News Coverage
Gap Down
Organigram Holdings Inc. stock logo
1,502$153.59 million1.09 million shsGap Up
22nd Century Group, Inc. stock logo
22nd Century Group
1,414$145.38 million1.45 million shsPositive News
Ideanomics, Inc. stock logo
1,402$36.44 million50.19 million shs
Skillz Inc. stock logo
1,340$240.43 million2.64 million shsInsider Buying
NightHawk Biosciences, Inc. stock logo
NightHawk Biosciences
1,266$19.65 million38,565 shs
Electrameccanica Vehicles Corp. stock logo
Electrameccanica Vehicles
1,107$55.53 million703,193 shs
Lordstown Motors Corp. stock logo
Lordstown Motors
1,071$72.43 million3.30 million shsUpcoming Earnings
Amyris, Inc. stock logo
1,053$243.83 million7.54 million shsAnalyst Downgrade
Canoo Inc. stock logo
1,039$307.93 million9.08 million shsAnalyst Revision
Meta Materials Inc. stock logo
Meta Materials
996$106.06 million5.47 million shs
Adamis Pharmaceuticals Co. stock logo
Adamis Pharmaceuticals
987$11.83 million1.42 million shsGap Up
Athersys, Inc. stock logo
944$16.33 million173,708 shsShort Interest ↓
Gap Down
Atossa Therapeutics, Inc. stock logo
Atossa Therapeutics
856$90.27 million273,323 shsAnalyst Report
Castor Maritime Inc. stock logo
Castor Maritime
850$63.68 million249,677 shsUpcoming Earnings
Gap Up
Acasti Pharma Inc. stock logo
Acasti Pharma
836$21.74 million91,642 shsPositive News
Gap Down
Westport Fuel Systems Inc. stock logo
Westport Fuel Systems
831$125.40 million113,723 shs
Verastem, Inc. stock logo
814$85.37 million965,963 shsAnalyst Report
Analyst Revision
Gap Up
Nektar Therapeutics stock logo
Nektar Therapeutics
805$126.79 million3.59 million shsAnalyst Report
Village Farms International, Inc. stock logo
Village Farms International
757$74.18 million508,377 shsAnalyst Revision
Westwater Resources, Inc. stock logo
Westwater Resources
738$43.27 million220,029 shs
Titan Pharmaceuticals, Inc. stock logo
Titan Pharmaceuticals
724$11.83 million3,709 shsAnalyst Report
News Coverage
SVB Financial Group stock logo
SVB Financial Group
723$28.42 million909,335 shsGap Up
SmileDirectClub, Inc. stock logo
718$139.45 million1.12 million shsAnalyst Revision
Gap Down
ReWalk Robotics Ltd. stock logo
ReWalk Robotics
694$36.17 million134,553 shsAnalyst Revision
Diebold Nixdorf, Incorporated stock logo
Diebold Nixdorf
683$29.11 million1.82 million shsShort Interest ↑
Gap Down
Diversified Healthcare Trust stock logo
Diversified Healthcare Trust
669$238.67 million5.02 million shsAnalyst Report
Analyst Revision
Positive News
Boxlight Co. stock logo
665$23.08 million254,279 shsAnalyst Revision
9 Meters Biopharma, Inc. stock logo
9 Meters Biopharma
663$11.47 million59,264 shsAnalyst Report
Analyst Revision
Positive News
Vroom, Inc. stock logo
626$110.95 million782,504 shsAnalyst Revision
VirnetX Holding Co. stock logo
601$30.16 million300,450 shsUpcoming Earnings
Aterian, Inc. stock logo
587$51.90 million1.96 million shs
Cinedigm Corp. stock logo
582$54.22 million548,400 shsGap Down
ASAP, Inc. stock logo
574$46.87 million72,344 shsGap Down
Tupperware Brands Co. stock logo
Tupperware Brands
569$34.08 million1.43 million shsUpcoming Earnings
Analyst Report
Positive News
Tattooed Chef, Inc. stock logo
Tattooed Chef
554$55.65 million2.64 million shsNews Coverage
High Trading Volume
Aptose Biosciences Inc. stock logo
Aptose Biosciences
553$44.55 million161,572 shs
Sunworks, Inc. stock logo
549$34.88 million1.37 million shsHigh Trading Volume
Curis, Inc. stock logo
548$82.35 million171,873 shsAnalyst Report
Positive News
Blue Apron Holdings, Inc. stock logo
Blue Apron
545$48.95 million8.10 million shsShort Interest ↓
Gap Up
Credit Suisse Group AG stock logo
Credit Suisse Group
534$2.70 billion9.84 million shsAnalyst Report
AppHarvest, Inc. stock logo
516$75.09 million1.69 million shs
VistaGen Therapeutics, Inc. stock logo
VistaGen Therapeutics
515$31.08 million655,613 shsGap Up
Accelerate Diagnostics, Inc. stock logo
Accelerate Diagnostics
506$75.23 million292,540 shsAnalyst Report
Short Interest ↓
Phunware, Inc. stock logo
500$69.29 million1.12 million shsAnalyst Revision
vTv Therapeutics Inc. stock logo
vTv Therapeutics
495$97.24 million40,809 shsEarnings Report
Analyst Revision
Genprex, Inc. stock logo
489$39.51 million172,550 shsUpcoming Earnings
Humanigen, Inc. stock logo
483$17.86 million995,800 shs
Sphere 3D Corp. stock logo
Sphere 3D
467$26.26 million559,648 shs
Moleculin Biotech, Inc. stock logo
Moleculin Biotech
466$18.92 million101,884 shs
Acorda Therapeutics, Inc. stock logo
Acorda Therapeutics
453$18.99 million303,584 shsAnalyst Report
Gap Down
ToughBuilt Industries, Inc. stock logo
ToughBuilt Industries
445$14.05 million257,001 shsUpcoming Earnings
Fortress Biotech, Inc. stock logo
Fortress Biotech
436$68.76 million5.34 million shsAnalyst Report
High Trading Volume
ESS Tech, Inc. stock logo
ESS Tech
435$145.27 million3.81 million shsHigh Trading Volume
Hycroft Mining Holding Co. stock logo
Hycroft Mining
425$77.12 million2.29 million shs
Ontrak, Inc. stock logo
420$12.90 million59,271 shs
Express, Inc. stock logo
420$60.48 million595,553 shsUpcoming Earnings
Analyst Report
Short Interest ↑
AquaBounty Technologies, Inc. stock logo
AquaBounty Technologies
406$34.82 million125,091 shs
Molecular Templates, Inc. stock logo
Molecular Templates
406$25.19 million103,688 shsPositive News
Gap Down
AIM ImmunoTech Inc. stock logo
AIM ImmunoTech
406$24.21 million101,916 shsNews Coverage
Ocean Power Technologies, Inc. stock logo
Ocean Power Technologies
402$28.73 million107,549 shs
Infinity Pharmaceuticals, Inc. stock logo
Infinity Pharmaceuticals
395$15.37 million248,393 shsNews Coverage
Gap Down
Synchronoss Technologies, Inc. stock logo
Synchronoss Technologies
388$84.14 million67,220 shsAnalyst Report
Gap Down
Compugen Ltd. stock logo
364$65.84 million149,356 shsEarnings Report
Analyst Report
Short Interest ↓
Astra Space, Inc. stock logo
Astra Space
357$95.37 million1.56 million shs
Precipio, Inc. stock logo
355$14.98 million50,873 shs
IZEA Worldwide, Inc. stock logo
IZEA Worldwide
352$48.10 million400,012 shsGap Down
High Trading Volume
TRACON Pharmaceuticals, Inc. stock logo
TRACON Pharmaceuticals
343$15.16 million52,834 shsAnalyst Report
Analyst Revision
Gap Down
Hyzon Motors Inc. stock logo
Hyzon Motors
336$119.88 million2.09 million shsUpcoming Earnings
Adverum Biotechnologies, Inc. stock logo
Adverum Biotechnologies
335$76.30 million101,602 shsNews Coverage
Celyad Oncology SA stock logo
Celyad Oncology
327$10.62 million49,047 shs
Vascular Biogenics Ltd. stock logo
Vascular Biogenics
327$13.35 million290,641 shs
Pieris Pharmaceuticals, Inc. stock logo
Pieris Pharmaceuticals
326$70.43 million2.20 million shsAnalyst Report
Analyst Revision
Gap Up
High Trading Volume
Chembio Diagnostics, Inc. stock logo
Chembio Diagnostics
325$16.71 million351,600 shsAnalyst Report
Spire Global, Inc. stock logo
Spire Global
321$109.15 million871,417 shsGap Down
CBAK Energy Technology, Inc. stock logo
CBAK Energy Technology
316$67.88 million68,530 shsGap Down
Affimed stock logo
315$144.47 million1.02 million shsUpcoming Earnings
Analyst Report
Short Interest ↓
Precision BioSciences, Inc. stock logo
Precision BioSciences
310$83.08 million280,913 shsAnalyst Revision
Ayro, Inc. stock logo
308$22.69 million50,705 shs
Acer Therapeutics Inc. stock logo
Acer Therapeutics
303$18.86 million164,831 shsShort Interest ↓
Positive News
GT Biopharma, Inc. stock logo
GT Biopharma
301$10.83 million119,551 shsNews Coverage
Positive News
ViewRay, Inc. stock logo
300$119.54 million2.16 million shsAnalyst Report
Analyst Revision
Gap Up
Cenntro Electric Group Limited stock logo
Cenntro Electric Group
295$93.47 million1.14 million shsNews Coverage
Farmmi, Inc. stock logo
291$12.01 million589,161 shs
Sio Gene Therapies Inc. stock logo
Sio Gene Therapies
291$29.69 million29,098 shs
National CineMedia, Inc. stock logo
National CineMedia
288$55.70 million1.73 million shsAnalyst Report
Analyst Revision
Flora Growth Corp. stock logo
Flora Growth
287$32.94 million1.42 million shsPositive News
Gap Down
Nymox Pharmaceutical Co. stock logo
Nymox Pharmaceutical
285$39.21 million4,672 shsAnalyst Report
News Coverage
Gap Up
Marin Software Incorporated stock logo
Marin Software
270$11.11 million63,497 shs
Faraday Future Intelligent Electric Inc. stock logo
Faraday Future Intelligent Electric
266$165.63 million67.05 million shsPositive News
Gap Down
Frequency Therapeutics, Inc. stock logo
Frequency Therapeutics
266$13.77 million115,845 shs
What to Know About Investing in Penny Stocks

Investing in penny stocks may seem like a great idea because of the low initial investment involved in your investment. In short, the main perk of investing in penny stocks is this: They're cheap! They may appeal to investors or traders who don't have a lot of capital to invest or who may be just getting started trading.

Even though they require minimal investment, they also carry significant risks. To help you decide whether penny stocks make sense for your portfolio, we'll walk through a comprehensive definition of penny stocks, whether you can make money with penny stocks, the risks associated with penny stocks, how to choose penny stocks and how to choose the right penny stocks.

By the time you're done reading, you'll have a better idea of whether you want to take on penny stocks as part of your investment strategy. 

In order to explain penny stocks, let's first go over the definition of a stock. A stock, often called a "security," represents a unit of ownership of a company. Penny stocks, which are also called “microcap” or “nanocap” stocks, are low-value stocks of smaller companies. The stocks are slightly misnamed because they do not necessarily cost a penny at all. However, they are often priced under $2 per share. The Securities and Exchange Commission (SEC), defines penny stocks as those with a market capitalization of less than $250 million.

Penny stocks are some of the most high-risk securities you can trade because they have a small market capitalization and trade for a relatively low share price. 

Where do you find penny stocks? Some penny stocks trade on large exchanges like the New York Stock Exchange (NYSE) or the Nasdaq. However, many penny stocks trade on the over-the-counter (OTC) market or off-trading exchange. This is a decentralized market which means you can trade stocks or other instruments between two parties, without a central exchange or broker. You can access thousands of stocks on the OTC Markets, which are traded on three markets.

Yes, it is possible to make money when you trade penny stocks. However, it's important to remember that it is possible to invest in a wide variety of securities and make money. However, it's important to focus on your reasoning behind choosing certain companies —you want to invest in the right companies based on your specific needs.

Penny stocks are usually considered high-risk investments due to their low price, high potential for fraud, lack of liquidity, small market capitalization, wide bid-ask spread and high potential for loss.

Penny stocks' low price can be a huge risk. Moving in either direction — a gain or a loss — can happen quickly. For example, let's say a penny stock moves from $1 a share to $1.50, it's an incredible gain. However, it could also go the other way, going from $1 a share to 50 cents per share.

Because of this inherent volatility, penny stocks can be hugely risky. Volatility means that the price of a stock increases or decreases, and higher volatility often equates to higher risk.

Some penny stocks have been pushed by fraudsters, who have a dormant shell company cover and push pump-and-dump schemes. They buy low-priced penny stocks and spread "news" that the stocks are excellent, then increase the price. These fraudsters typically get rid of their shares and investors end up with worthless shares. 

One of the best ways to avoid this issue is to thoroughly investigate the company. Incredible  growth can be a red flag because the shell company itself might exist on fairly spindly legs. It's important for investors to research whether the company has been raised from the dead, know where the stock trades — most don't trade on the major exchanges and check into frequent changes of a company's name.

The OTC Markets Group categorizes the stocks into various divisions (based on factors such as company integrity and disclosures) which essentially divides them into higher-quality stocks to lower-quality stocks:

  • OTCQX (best tier)
  • OTCQB (middle tier) 
  • OTC Pink (bottom tier)

Liquidity means how easy it is for you to transform an asset from stock into cash. Liquidity refers to how easily securities can be sold. You can consider a stock as liquid when you can't sell them without experiencing a loss when you sell. Because many people don't invest in penny stocks, it's tough to unload them, particularly when their price starts to go down.

Penny stocks are often considered small cap stocks, which means that they have a small market capitalization. It's a company's share price times the number of shares outstanding. A small market capitalization has a rough capitalization between $300 million and $2 billion.

Ultimately, small-cap companies tend to be riskier investments than larger companies because they don't have the same resources of large-cap companies, which means that small caps are more susceptible to challenges than larger companies.

The bid-ask spread is the difference between the highest offered purchase price and the lowest offered sales price for a security. The wider the bid-ask spread, the more volatile the stock, which means that the stocks may pinball more quickly compared to stable stocks.

How do you trade penny stocks? Let's take a quick look at how to trade penny stocks, step by step. Perhaps one of the most important portions of the decision is to do your research before you start trading. Let's take a look.

It's important to do wide research before you make a final decision about your decision to trade penny stocks. Most importantly, consider whether these stocks are legitimate prior to investing — one of the worst reasons to choose them is that you get cheap shares.

How does a particular company make money? You can learn a lot by checking out the Securities and Exchange Commission (SEC) website in order to determine whether the company has been delisted from a major exchange. The company's most recent SEC filing will also give you major clues into whether you should invest in a particular penny stock. We'll also walk through a few more factors you should consider before you invest in the next section, such as revenues and fundamentals.

It's important to choose a broker that matches your preferences and needs. Researching the differences between brokers can help you decide. For example, you may want to compare the charges for penny stock trades from one brokerage account to another because many brokers charge extra for penny stocks. Also, take a look at current incentives. 

You may also want to consider the platform available among the brokers you're considering. You likely want to find the best platform that fits your comfort level. For example, if you need a lot of hand-holding, you may want to consider a platform that offers a lot of helpful tools. On the other hand, if you're an experienced trader, you may want to consider a more complicated platform that offers more bells and whistles, including independent third-party research, educational resources and planning tools.

Once you've landed on the right type of brokerage account for you, fill out the new account application, fund the account based on the required minimum investment. Finally, you can get going with your own research.

The OTC Markets website can give you a good idea of which direction you should go, particularly when you consider which investments you want to pull from high- to low-tier investments: OTCQX (best tier), OTCQB (middle tier) and OTC Pink (bottom tier). Choosing from these categories can help you determine how well your trades may pay off.

Consider learning how to trade from your broker's platform. Practicing how to trade using "fake" trading (also known as paper trading) can also help you practice so don't suffer from staggering penny stock losses.

Finally, never invest more than you're willing to lose. You could risk losing some or all of the money you invest in penny stocks. 

When you want to invest in the "right" penny stocks, it's important to take a look at various factors before you hone in on a great penny stock for your portfolio, including the soundness of the business and fundamentals as well as the management of the company. 

How does the business operate? Have there been major changes in the business lately, such as an addition to the business or a switch in management? Have the revenues of the company been growing? Furthermore, what are the basic fundamentals of the company and how has the company performed based on hard-and-fast fundamentals? 

A few key fundamentals include finding the net sales/earnings before interest, taxes, depreciation and amortization (EBITDA). (You can calculate net income by subtracting all expenses from total revenue and in order to calculate EBITDA, you add the interest and tax line items into the mix as well as the depreciation and amortization.) You can also look into other fundamentals, such as low price-to-earnings ratio and more. 

Looking into how the company is managed can give you a bird's eye view of how well the company’s management team manages the company. Gather as much information as possible about the leadership of the company.

There's an argument that says you don't necessarily have to look into "all that" when trading because you're looking for small price movements, but there's value in doing the background work.

Ultimately, it's up to you whether you think you should go this route. If you're looking for a get-rich-quick scheme, it's important to understand that they are highly speculative investments that can offer a tantalizing image, such as quintupling your money over the course of a few weeks. However, this could be a mirage — in reality, you could be at risk for serious fraud and loss of funds. 

What are the alternatives to investing in penny stocks, particularly if you're interested in investing in a small amount of money? You may want to consider investing in fractional shares of stocks instead of penny stocks. Fractional shares mean that you purchase partial shares of larger companies for the same amount that you might spend on penny stocks. That way, you'll invest in more well-respected companies. You can consider using micro-investing apps (such as Acorns) which allow you to invest in fractional shares of these well-regarded companies. 

On the other hand, if you do comprehensive research and find that a particular company meets your needs, you may want to give penny stock trading a try. 

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