Best Penny Stocks to Buy

3290 views

This is an overview of the best penny stocks to buy now according to popularity, social sentiment, and fundamentals. Although these are not all of the top penny stocks to buy now, this is an overview of some of the most popular choices.

Make no mistake, penny stocks have built just as many fortunes as they have destroyed due to their wild and explosive price movements. Penny stocks are volatile, cheap, and can make or break traders in a matter of hours. Here are a few penny stocks to buy for September 2018. Summary

Table Summary of Penny Stocks to Buy Now

Company

Ticker Symbol

Sector

Stein Mart, Inc.

SMRT

Retail

Nevovasc Inc.

NVCN

Biotech

Cannabis Strategic Ventures

NUGS

Cannabis

Office Depot

ODP

Retail

Verastem, Inc.

VSTM

Biotech

Pier 1 Imports, Inc.

PIR

Retail

J. C. Penney Company, Inc.

JCP

Retail

Infinity Pharmaceuticals, Inc.

INFI

Pharma

InspireMD, Inc.

NSPR

Health

Avinger, Inc.

AVGR

Med Tech

Sears Holdings Corporation

SHLD

Retail

With that said, however, amid all of the volatility, there is a significant profit opportunity present in penny stocks that is simply not present in low-volatility bluechip stocks with small price movements.

1. Stein Mart, Inc.

(NASDAQ: SMRT) – Clothing store

Stein Mart has seen its stock price go from the mid-teens to less than $1.00 per share in the last five years. The company offers designer clothing brands “for less” to men and women across the country. Given that SMRT is near its all-time low, it could be an interesting buy in the short-term, because the physical presence of the Stein Mart stores have some intrinsic value.

 

2. Neovasc Inc.

(NASDAQ: NVCN) – Biotechnology company

Neovasc is a Canadian specialty medical device company that researches, develops, and manufactures products in the cardiovascular field. Just like Stein Mart, Neovasc has recently traded near its all-time low, suggesting shorts are taking profits or long are finally jumping in. From a purely technical standpoint, going long NVCN is an interesting play. According to data from stocktwits, 93.1% of users have a bullish investment outlook on NVCN.

 

3. Cannabis Strategic Ventures

(OTCMKTS:NUGS) – Medical and recreational marijuana company

Although NUGS only has a market cap of $42 million, the company is acutely focused in a high-growth area, and that is reflected in their stock price. NUGS went from $0.05 per share to just over $3.00 in less than a month due to bullish announcements and positive marijuana legislation news. Now that marijuana is recreationally legal in several high-population states, it seems reasonable that a company who specializes in outsourced staffing for the marijuana industry, financial administration, and industry expertise could perform well given the newfound demand for services like this.

 

4. Office Depot, Inc.

(NASDAQ: ODP) – Office supply store

Many of you have probably heard of Office Depot or been to one of their 1,200 locations in North America. Despite revenue of $14.48 billion in 2015, only three years ago, ODP stock has been taking it on the chin lately with decreased earnings and lowered guidance. The stock recently just touched a 5-year low, but for the contrarian, ODP is an interesting stock, particularly at these very low prices.

 

All These All of the Best Penny Stocks to Buy Now?

Of course not. Don’t be fooled, there is no single best penny stock to buy. Because they’re so cheap and often move up or down dramatically, penny stocks are extremely difficult to predict short-term trends in.

Often times, prices can swing wildly solely due to liquidity issues, not because of any fundamental reasons about the company. Needless to say, penny stocks are not for the faint of heart. Nonetheless, perhaps you haven’t heard of these four penny stocks before and they might be worth a look. But there are also other ways to find hot penny stocks.

How to Discover More Hot Penny Stocks

One of the best ways to discover new penny stocks on a daily basis is with the Market Research tool on Ally Invest’s platform.

You’ll have to open an account to gain access, but once you’re in, you can sort for penny stocks and other low priced stocks based on the highest percentage gain for the day, or the highest percentage loss for the day.

FIND PENNY STOCKSOpen Ally Invest account

Discover more penny stocks

Ally’s stock research tool is a great way to discover new penny stocks, and determine if they are trending up or down.

Here are the best penny stocks to buy

Penny Stock Best For
Link Motion Inc (LKM) Long-term growth
GoPro (GPRO) Technical bullish factors
Senseonics Holdings, Inc (SENS) Short-term price spikes
Cerecor Inc. (CERC) Long-term trends
Avinger, Inc. (AVGR) Capitalizing on volatility
Corindus Vascular Robotics, Inc. (CVRS) Continuation of YTD rally
Catabasis Pharmaceuticals, Inc. (CATB) Looming FDA approval

Thoughts About Which Penny Stocks to Buy

Keep in mind that profits, as well as losses, can mount quickly with low priced, volatile stocks. Think of this list of best penny stocks as stocks that you might have overlooked or not even known about. We are NOT endorsing any of these stocks, and we have no positions in any of these stocks and no plans to initiate any.

Recently, penny stocks related to blockchain and cannabis have outperformed the rest of the market. This is due to the immense hype associated with these two emerging fields.

Nonetheless, we’re just trying to highlight what we think are underrepresented penny stocks. The SEC defines penny stocks as “a security issued by a very small company that generally trades less than $5.00 per share.” It is important to note that penny stocks are highly speculative in nature and can result in dramatically outsized price swings for investors. With that said however, not every stock under $5.00 per share is a “very small company.” Office Depot is an example of this.

Risks Associated with Buying Low Priced Stocks

Before you dive in head-first and start buying penny stocks, it’s important to note the risks involved. As aforementioned, penny stocks often have increased levels of volatility because of their low prices and lack of liquidity.

This is one of the reasons why investors prefer to buy penny stocks as appose to short penny stocks, because if a stock is already really inexpensive, it has more upside and less downside. Being short a penny stock that suddenly opens up 300%+ the following day is not a recipe for wealth creation. As such, depending on the stock, it’s often wise to err on the side of going long.

How Many Penny Stocks Should I Buy?

Warren Buffet is famous for this quote:

“diversification is protection against ignorance. It makes little sense if you know what you are doing.”

In some ways, this quote makes sense, because if you have studied the best penny stocks to buy and invest in, and you are confident about your research, then why would you buy other penny stocks just for the sake of diversification? If you’ve done your homework, you should be confident in your stock picking decision.

With this in mind, we find it is easiest to focus on one or two penny stocks, follow them closely, and instead of deploying all of your assets into either stock, to only use a small percentage. This way, you will be inherently diversified with cash, which is always safe.

Penny Stock Success Stories

Savvy traders like Tim Sykes have turned relatively small amounts of money, around $12,000, into very large amounts of money $4,000,000+ solely by trading penny stocks. Because price movements can frequently be in the triple digit percentage gain for penny stocks, there is unequivocally a lot of opportunity with low priced stocks.

Beyond the usefulness of Ally’s stock research tools, which is free of charge, Ally also has some of the best trading commissions in the industry. If you’re paying more than $3.95 for every trade with other brokers, why are you content with overpaying for commissions? Ally is simply the best broker for OTC stocks. See the full Ally Invest review.

START TRADING PENNY STOCKSOpen an account on Ally Invest’s site

Plus, there are no minimum requirements, no maintenance fees, and 24/7 customer service. Ally also offers some pretty valuable deals: Up to $3,500 cash bonus + commission free trades for new accounts

Penny Stocks to Buy Now

  • (NASDAQ: SMRT) – Clothing store
  • (NASDAQ: NVCN) – Biotechnology company
  • (OTCMKTS:NUGS) – Medical and recreational marijuana company
  • (NASDAQ: ODP) – Office supply store
cool good eh love2 cute confused notgood numb disgusting fail