Penny Stocks On Robinhood To Buy Under $1
Like we discussed earlier this week, penny stocks are some of the most speculative asset classes in the stock market today. The lower the price, the higher the chances of increased volatility swings. What I mean by this is that cheaper stocks will generally shift in percentage changes quicker. Stocks under 10 cents or under $1 require less price movement for higher gain percentages.
While the simple math of it works out, day traders sometimes forget about this as one of the risks involved. They simply look at it as “All I need is a 10 cent move for a 50% gain” and forget about what happens if the trade goes the other direction. Just as quickly as these low-priced stocks move up, they can fall.
We saw this, first-hand with many of the top electric vehicle stocks to watch recently. Many of them – former penny stocks – jumped hundreds of percentage points within a matter of days. What has followed, in some cases, has been much quicker and larger sell-offs. Whereas things like headline risk and general market risk play bigger roles for things like blue-chip stocks, add in price risk when you’re talking about trading penny stocks.
Robinhood Penny Stocks Under $1
- Check-Cap Ltd. (CHEK Stock Report)
- Eyepoint Pharmaceuticals Inc. (EYPT Stock Report)
- Hexo Corp. (HEXO Stock Report)
- Zosano Pharma Corp. (ZSAN Stock Report)
With the shorter holiday week and half-day on Friday, traders are positioning for December. There’s technically 1 more day left in November on Monday but the final month of the year tends to be a bit more “interesting” to put it nicely. We’ve seen volatility swings take certain sectors to new highs. Meanwhile, tax loss selling has also negatively impacted other areas of the market. Now that the countdown to the end of the year has begun, traders turn their focus on some of the top penny stocks to buy. Also keep in mind that in 2020, millions of new traders flocked to brokerages.
With COVID restrictions triggering “work at home” requirements and mass layoffs, this year has seen one of the biggest surges in new account creation especially when it comes to penny stock brokers. Robinhood was one of the platforms that saw the most growth during the first 3 quarters of the year. In light of this, many continue searching for penny stocks on Robinhood under $1.
That’s due to the simple fact that most penny stocks under $1 trade on the OTC exchange, which is restricted from traders using apps like Robinhood & Webull. This list, however, includes names listed on major exchanges. In light of that, will any of these stocks under $1 be on your list heading into next week?
Robinhood Penny Stocks To Buy Under $1: Check-Cap Ltd.
Check-Cap Ltd. has been a strong performer in November. Despite hitting new 52-week lows during the first week of November, CHEK stock has managed to climb over 70% so far. Furthermore, the last 5 trading sessions have seen higher than average trading volumes help propel momentum as well.
Earlier this month, CHEK stock began pushing higher after reporting earnings. EPS was up significantly, year-over-year. Meanwhile, Check-Cap revealed big progress in its business development initiatives. The company submitted an Investigational Device Exemption application to the FDA. This was for a pivotal study of its C-Scan platform. C-Scan is a screening test to detect polyps before they may transform into colorectal cancer.
“The IDE submission constitutes a major milestone towards the initiation of our U.S. pivotal study, ” said Alex Ovadia , chief executive officer of Check-Cap . “We plan to provide a further investor update on the timelines for the initiation of the U.S. pivotal study, expected in 2021, following guidance from the FDA.”
Right now, analysts at H.C. Wainwright have a Buy rating on the stock. The firm also set a $1.50 price target, which is 265% higher than the current trading levels in the stock market today.
Robinhood Penny Stocks To Buy Under $1: Eyepoint Pharmaceuticals Inc.
Eyepoint Pharmaceuticals Inc. has also gone onto perform well in November. Since the start of the month, EYPT stock has climbed nearly 50% with recent sessions experiencing significantly higher trading volumes. Similar to Check-Cap, momentum began building strong following the latest round of earnings and business update.
Eyepoint recorded noticably better than expected earnings per share and sales for the quarter. Analysts expected an EPS loss of 5 cents on sales of $10.54 million. The company came in with an EPS loss of just 3 cents on $15.7 million in sales. Furthermore, the company had announced that four abstracts featuring its YUTIQ® and DEXYCU® were selected for presentation at the American Academy of Ophthalmology Annual Meeting. Both treat different eye diseases and inflammatory conditions.
Next week the company’s set to host a key opinion leader roundtable discussion on the future of local drug delivery for wet aged-related macular degeneration. Eyepoint also gives an overview of EYP-1901, its potential six-month sustained delivery intravitreal anti-VEGF therapy for wet AMD. Aside from this as a speculative lead-up to next Friday’s event, we’re seeing some attention on the company from analysts as well.
Right now, H.C. Wainwright has a Buy rating on the stock. The firm also put a $2 price target as far as those looking for an EYPT price forecast. If that becomes the case, H.C.’s target is currently 270% higher than the price the stock’s trading at on Friday.
Robinhood Penny Stocks To Buy Under $1: Hexo Corp.
Shares of Hexo Corp. took off on Friday. There weren’t any company-specific headlines or filings to note. However, when it comes to marijuana penny stocks, sector catalysts can be that rising tide to lift all ships. In this case, some legislative news broke late in the Friday session.
House Majority Leader Steny Hoyer said the chamber will take up the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act “some time between Wednesday and Friday.” This comes just weeks after the leader first confirmed that the House would advance the proposal before the year’s end.
NORML Political Director Justin Strekal told Marijuana Moment told Marijuana Moment, “By advancing the MORE Act, the House of Representatives sends an unmistakable signal that America is ready to close the book marijuana prohibition and end the senseless oppression and fear that this failed policy wreaks on otherwise law-abiding citizens.”
With that, shares of marijuana stocks under $1 and over it traded higher during the session. As far as analysts are concerned, HEXO stock isn’t the highest rated name. However, BMO Capital Markets analysts have a Market Perform rating on the penny stock. The firm also put a $1.30 target out there; over 50% higher than the current trading levels.
Robinhood Penny Stocks To Buy Under $1: Zosano Pharma Corp.
Zosano Pharma Corp. rounds out this list of penny stocks under $1. Like most names in this article, November has become a stronger month after prior weeks or months of weakness. Since reaching 52-week lows of $0.3275 on the 6th, ZSAN stock has bounced back more than 100%. Something that has helped was results posted from its latest round of quarterly financials.
Last year, during the third quarter, Zosano reported an EPS loss of 55 cents. This year, that was dramatically decreased to just an 11 cent loss per share. Aside from this, the company has taken most of its focus and placed it on advancing its treatment pipeline.
“Our priority focus is obtaining resolution regarding the NDA for Qtrypta(TM),” said Steven Lo, President and CEO of Zosano. “We plan on having a Type A meeting with the FDA as soon as possible and look forward to clarification on next steps and the possibility of resubmitting our NDA. We continue to believe in the promise that Qtrypta holds as an attractive alternative for patients suffering from migraine. Separately during the quarter, we executed a feasibility study agreement with Mitsubishi Tanabe Pharma Corporation that reinforces the potential of our transdermal microneedle system technology.”
As far as analysts are concerned, H.C. Wainwright maintains a Buy rating on the penny stock. However, it recently cut its price target from $2.50 to $2. Even in light of this, the current ZSAN stock forecast is nearly 190% higher than the current trading levels.