In this article, we discuss the 10 best one dollar stocks to buy now. You can skip our detailed analysis of these stocks and the current market situation, and go directly to 5 Best One Dollar Stocks To Buy Now.
When most people think about trading stocks, they imagine million-dollar brokers trading shares of major corporations like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Tesla Inc. (NASDAQ:TSLA). However, trading like a pro doesn’t necessarily require millions of dollars of free capital in your brokerage account. While multiple negative developments like the Russia-Ukraine conflict, the COVID-19-related lockdowns in China, and the rising inflation in the US have frightened seasoned market veterans and aspiring investors alike, there are numerous opportunities if one seeks to find them.
Penny stocks, often referred to as “micro-cap” or “nano-cap” stocks are low-value stocks representing smaller companies. As the name suggests, these stocks are often priced under $5 per share — making them much more accessible to new investors or those with less capital. While they often represent high risk since there is a chance that they can stay at the bottom-end of the stock market, such stocks also offer exponential growth potential as they attract retail investors to the stock market, causing them to often dabble in cheap securities that can rally with time and sometimes grow up to huge multi-billion companies due to positive catalysts. These catalysts can include, but are not limited to, government contracts and subsidies, regulatory approvals for patents, and lucrative consumer product developments.
Some examples of old penny stocks that eventually surged to become extremely profitable market leaders include the retail giant Amazon.com, Inc. (NASDAQ:AMZN), the tech giant Apple Inc. (NASDAQ:AAPL), and the American automotive leader Ford Motor Company (NYSE:F).
To compile a list of the 10 best one dollar penny stocks stocks to buy, we assessed companies that were priced around $1 per share with upcoming growth catalysts, optimistic analyst ratings, and positive hedge fund sentiment. These stocks could potentially explode on the back of their growth catalysts or rising market demand. Hedge fund sentiment around each stock has been derived from Insider Monkey’s database of 912 elite hedge funds, and provided to give readers better context for their investment choices.
Best One Dollar Stocks To Buy Now
10. Mind Medicine (MindMed) Inc. (NASDAQ:MNMD)
Number Of Hedge Fund Holders: 6
Share Price as of August 1: $0.60
Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) is a New York-based psychedelic medicine biotech company that develops psychedelic-inspired medicines known as psychoplastogens and therapies to address addiction and mental illnesses.
Earlier this May, Roth Capital analyst Elemer Piros initiated coverage of Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) with a Buy rating and $7 price target. The company is bringing back the most researched psychedelic, an improved composition of LSD, to clinical trials, Piros tells investors in a research note. Currently, there are 40 psychedelic clinical programs either under way or being planned, the analyst points out.
Among the hedge funds being tracked by Insider Monkey, Ken Griffin's Citadel Investment Group is a leading shareholder in Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) with 1.2 million shares worth more than $1.3 million. Overall, 6 hedge funds reported holding stakes in Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) as of the first quarter of 2022.
While stocks like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Ford Motor Company (NYSE:F) can often be expensive options for beginner investors, Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) is a notable penny stock that those seeking to step into the stock market can look into.
9. Biora Therapeutics, Inc. (NASDAQ:BIOR)
Number Of Hedge Fund Holders: 6
Share Price as of August 1: $0.72
Biora Therapeutics, Inc. (NASDAQ:BIOR), usually known as Progenity, Inc., is a biotechnology company focused on developing oral biotherapeutics. It delivers therapeutics in two areas: targeted delivery of therapeutics to the site of disease in the gastrointestinal tract and systemic delivery of biotherapeutics.
On July 14, H.C. Wainwright analyst Joseph Pantginis raised the price target on Biora Therapeutics, Inc. (NASDAQ:BIOR) to $6 from $4 and kept a Buy rating on the shares after the company announced presentations of preclinical data related to its oral biotherapeutic delivery system. In the first series of data, the company showed its OBDS capsules successfully deploying cargo and loaded agents reaching therapeutic bioavailability as intended, Pantginis tells investors in a research note. The analyst points out that eight trial animals showed detectable levels of adalimumab, an FDA approved anti-TNF therapy, with an oral bioavailability average of 25%. Pantginis says multiple studies provide insight into how the OBDS platform is being optimized for success in upcoming human trials.
By the end of the first quarter of 2022, Biora Therapeutics, Inc. (NASDAQ:BIOR) was spotted on 6 hedge funds’ portfolios, the same as the preceding quarter. As of March 31, 2022, Israel Englander's Millennium Management is the leading stakeholder in Bioara Therapeutics Inc (NASDAQ:BIOR) with stakes worth $2.35 million. The investor increased his stake in the company by 350%.
8. Lineage Cell Therapeutics, Inc. (NYSE:LCTX)
Number Of Hedge Fund Holders: 6
Share Price as of August 1: $1.59
Lineage Cell Therapeutics, Inc. (NYSE:LCTX) is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. The company's programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities.
On June 14, B. Riley analyst Mayank Mamtani initiated coverage of Lineage Cell Therapeutics, Inc. (NYSE:LCTX) with a Buy rating and $4 price target. The analyst views Lineage as a "deep value play" in the cell therapy sector and believes the market undervalues its platform and pipeline due to the early stage of programs that are primarily focused on non-oncology indications. According to the analyst, investor perception will likely improve as they gain visibility into the later-stage development path for OpRegen, with its "compelling" Phase I/II geographic atrophy dataset that resulted in a "transformative" deal with Roche in December 2021.
Among the hedge funds tracked by Insider Monkey, 6 funds reported owning stakes in Lineage Cell Therapeutics, Inc. (NYSE:LCTX) as of the conclusion of the first quarter of 2022, collectively valued at $55.4 million. John Overdeck and David Siegel’s Two Sigma Advisors is a significant stakeholder of the company, with 615,766 shares valued at $948,000.
7. Elevation Oncology, Inc. (NASDAQ:ELEV)
Number Of Hedge Fund Holders: 8
Share Price as of August 1: $1.19
Elevation Oncology, Inc. (NASDAQ:ELEV) is a clinical-stage biopharmaceutical company focused on the development of precision medicines for cancer treatment. The company's lead program is the seribantumab, an anti-HER3 monoclonal antibody that is in Phase II CRESTONE trial for the treatment of advanced solid tumors harboring a neuregulin-1 fusion.
On July 29, Wedbush analyst Robert Driscoll lowered the price target on Elevation Oncology, Inc. (NASDAQ:ELEV) to $8 from $15 and maintained an Outperform rating on the shares. In a research note to investors, Driscoll states that Elevation Oncology announced a licensing agreement with CSPC Pharmaceutical Group for the rights to develop an anti-Claudin18.2 MMAE-conjugated ADC EO-321 in global territories outside of China, and that the company will pay CPSC an upfront of $27 million, up to $148 million in milestones, and royalties on net sales.
Among the hedge funds tracked by Insider Monkey, Elevation Oncology, Inc. (NASDAQ:ELEV) was found in 8 public stock portfolios, with combined stakes worth $19.4 million. Mark Lampert’s Biotechnology Value Fund/BVF Inc featured as the leading shareholder in the company, with 2.3 million shares valued at $5.8 million.
6. Selecta Biosciences, Inc. (NASDAQ:SELB)
Number Of Hedge Fund Holders: 10
Share Price as of August 1: $1.53
Selecta Biosciences, Inc. (NASDAQ:SELB) is a Watertown, Massachusetts-based clinical stage biotechnology company leveraging its ImmTOR platform to develop tolerogenic therapies that selectively mitigate unwanted immune responses.
Earlier this June, SVB Leerink analyst Joseph Schwartz initiated coverage of Selecta Biosciences, Inc. (NASDAQ:SELB) with an Outperform rating and $7 price target. The analyst views the company's immune tolerance platform ImmTOR's approach as "de-risked" by early clinical data from SEL-212 and believes that the ability to tame the immune response from a "notoriously immunogenic foreign enzyme" bodes well for its clinical potential in combination with gene therapies and autoimmune therapies.
On June 13, Selecta Biosciences, Inc. (NASDAQ:SELB) announced several pipeline advancements and partnership updates. The company continues to progress its wholly owned gene therapy program, SEL-302 for the treatment of patients with methylmalonic acidemia, and expects to start a Phase 1 clinical trial in Q4 2022.
Overall, 10 hedge funds reported owning a stake in Selecta Biosciences, Inc. (NASDAQ:SELB) as of Q1 2022. The cumulative value of the stake was over $13 million.
Similar to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Ford Motor Company (NYSE:F), Selecta Biosciences, Inc. (NASDAQ:SELB) is a stock with optimistic growth catalysts.
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Disclosure: None. 10 Best One Dollar Stocks To Buy Now is originally published on Insider Monkey.