Looking to stretch your dollars while exploring big potential gains? You’re not alone. Many beginner and budget-conscious investors are searching for the best stocks under $1 and while they come with risks, these low-cost picks can also open doors to major upside.
Let’s explore the top penny stocks under $1, why they attract attention, how to evaluate them and what to know before investing.
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Best Stocks Under $1 in 2025
How do the best stocks under $1 stack up? Take a look at this chart to determine what investment works best for you.
|
Stock |
Ticker |
Closing Price |
Market Cap |
Consensus |
|---|---|---|---|---|
|
Biodesix |
BDSX |
$.54 |
$78.41 million |
Buy |
|
Stardust Power |
SDST |
$.50 |
$28.68 million |
Buy |
|
Reviva Pharmaceuticals |
RVPH |
$.88 |
$40.99 million |
Buy |
|
Cognition Therapeutics |
CGTX |
$.42 |
$25.86 million |
Buy |
|
Caribou Biosciences |
CRBU |
$.85 |
$79.44 million |
Buy |
Note: These prices and returns are illustrative. Penny stocks are volatile — always do your own research.
Why Invest in Stocks Under $1?
Investing in stocks under $1 may provide investors with a way to add to their existing portfolio. Here are reasons why it’s a good investment:
-
High-growth potential: Stocks under $1 often belong to companies that are in their early stages. There is a chance for an upward trajectory in growth. Even small gains may mean large percentage returns.
-
Can reflect a grassroots innovation: Sometimes companies whose stocks are valued at $1 are on the edge of new tech innovation that large companies don’t necessarily know about.
-
Potential for high reward: Although sub-$1 stocks are risky, there is a potential for high rewards.
Stocks Under $1 vs. Other Investment Options
How do stocks under $1 compare to other investments? Check out this chart that compares stocks under $1 with other investment options.
|
Investment Type |
Pros |
Cons |
|---|---|---|
|
Stocks under $1 |
-High reward |
-High risk |
|
Small-Cap ETFs |
-High reward |
-Risk is high |
|
Large-Cap ETFs |
-Steady growth-Medium risk |
-Lower potential growth than smaller cap |
|
Bonds |
-Conservative, but safe |
-Minimal growth |
|
Gold/Precious metals |
-Good investment during volatile economic times |
-Does not generate income |
Risks of Investing in Best Stocks Under $1
Although stocks under $1 can seem appealing, there are certain risks associated with this investment. These risks are as follows:
-
Extreme volatility: These stocks can swing wildly on the market. Even rumors or small news can impact the stock.
-
Low liquidity: It can be hard to find a buyer when you want to exit. You may have to keep your shares longer than you anticipated.
-
Lack of transparency: You may not necessarily know the financial health of a company whose stock is valued at less than $1.
-
No proven business model: Generally, companies that sell stocks for $1 don’t have a product and can go bankrupt.
Penny stocks are best viewed as speculative plays — not core holdings. Consider balancing them with more stable investments.
Trends Shaping Stocks Under $1 in 2025
There are a few trends shaping the market of stocks that are priced under $1. Here are a few:
-
Companies are getting an additional lifeline: Since interest rates are declining in 2025, some companies are getting a second life since borrowing costs are low.
-
AI influence: The advent of AI has caused many companies to enter the market as they seek funding for innovation.
-
SEC pressure: The SEC is increasing its regulations on companies that have several compliance failures and no real operations.
How to Buy Stocks Under $1
It’s pretty easy to invest in stocks that are priced under $1. Here’s how to move forward with your investment:
Step 1: Choose a brokerage platform – Choose a platform that supports buying stocks that are under $1. Fidelity and Charles Schwab offer under-$1 stocks.
Step 2: Do your research – Look at the stock price history, the company’s financial health, volume and liquidity as well as SEC filings, if available.
Step 3: Find the company ticker – Look for the company ticker on the platform.
Step 4: Decide how much you want to invest – You may want to evaluate your full portfolio before investing.
Step 5: Place the trade – Click buy and select the number of shares you’d like to purchase.
Need help getting started? Explore our beginner’s guide to investing for step-by-step advice.
Final Take: Should You Invest in Stocks Under $1?
Investing in the best stocks under $1 can be exciting, but it’s not for the faint of heart. These picks can skyrocket — or tank — with little warning. If you’re intrigued by the upside and willing to stomach the risk, consider adding a few to your watchlist or portfolio.
Just be sure to diversify, do your research and never invest more than you can afford to lose.
Ready to explore penny stocks further? Check out our guide to affordable investing strategies and find the right tools to trade smarter today.
Information is accurate as of May 8, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
This article originally appeared on GOBankingRates.com: Best Stocks Under $1 To Watch or Invest In Right Now
