If you’re looking for penny stocks, you’ll have the best luck on NASDAQ. While there are penny stocks on the LSE and the NYSE, for example, the majority of companies who are offering shares for around $5 or less list on NASDAQ.
For the purpose of this article, we’re going to ignore OTC stocks and focus solely on those listed on NASDAQ. And for clarity, we’ll define penny stocks as any stock which is trading for under $10.
We’ve been doing a lot of research on penny stocks lately, and have noticed a trend. Stocks within three industries have been experiencing growth recently: biopharmaceuticals, technology and marijuana. We’re of the opinion that these are the best NASDAQ penny stocks; read on to find out more about them.
Marijuana stocks on NASDAQ are pretty new. So with the exception of the larger biopharmaceutical companies, most marijuana stocks are penny stocks. There are a few, however, which seem to be seeing a bit of promise lately.
- Corbus Pharmaceuticals (NASDAQ:CRBP) – This little stock is currently listed at around $7 per share. Headquartered in Massachusetts, the group researches and develops cannabis based drugs which are meant to treat chronic inflammatory disease. Recently, Corbus experienced a fall in its share prices as a drug test was not as successful as hoped, but is working on approval for a Cystic Fibrosis drug which, upon that approval, should see stock prices rise again.
- Insys Therapeutics (NASDAQ:INSY) – We had to throw this one in here because, although it’s selling at about $10 per share and technically not a penny stock, it’s still doing great. Insys Therapeutics is currently working on a drug to treat the symptoms associated with anorexia and AIDS. Once the drug receives a classification and FDA approval, it’ll be a big seller for the company.
As marijuana continues to be legalized in locations around the world, governments are becoming more receptive to approving their medicinal use. But biopharmaceutical companies which don’t use cannabis in research are taking off, as well. Here are a couple of stocks which are showing a positive forecast.
- Curis (NASDAQ:CRIS) – At the time this article was written, CRIS was trading at less than $2 per share. This stock has been on a downtrend lately, but analysts are expecting a reversal. The company specializes in research and development of cancer treatments.
- Dynavax Technologies Corporation (NASDAQ:DVAX) – This biopharmaceutical company is based in California, and is currently trading at just over $5 per share. The company researches infectious diseases, allergens and cancer, and develops drugs to aid in treatment. The stock spiked recently as DVAX announced research for a Hep B vaccine, and has several other projects in the pipeline. Analysts are expecting this stock to increase in value over the next 12 months.
Some of the best NASDAQ penny stocks to watch are in the technology sector. There are actually some big names which trade at small prices, and by watching these stocks, you could see a bit of a positive impact on your portfolio. Here are some of the best NASDAQ technology stocks.
- Zix Corporation (NASDAQ:ZIXI) – Zix is an email encryption service provider, and though you may have never heard of it, their shares climbed in the first quarter of 2017. It’s currently trading at about $5.50 per share, a 20% increase over where the stock was just six weeks ago. The Texas-based company stock is still a bit volatile, but analysts are expecting an overall increase in returns.
- Glu Mobile (NASDAG:GLUU) – What sells better than a technology stock? Shares in technology with the Kardashian name attached. Glu Mobile is an app development team which is headquartered in San Francisco. Their product lineup includes a few Kim Kardashian-branded products, which have been big sellers for the company. Glu has recently received a bit of positive press, and while the stocks are selling at around $2.50 per share, that’s expected to increase.
- Arotech Corporation (NASDAQ:ARTX) – Arotech is a defense and security manufacturer based in Michigan. It develops and produces aircraft, armored vehicles and drones, among other products. It’s currently trading around $3.30 per share, and is consistently increasing in value. Over the past 5 years, EPS growth for ARTX was over 30%.
Other NASDAQ Penny Stocks
There are a few other penny stocks on the NASDAQ exchange which have caught our attention. And while they don’t fit into any of the above categories, we feel that they’re worth mentioning as part of the list of penny stocks to watch.
- Sunrun (NASDAQ:RUN) – Sunrun is a California provider of solar electricity. Recently, the stock has seen a bit of turbulence, but has recently released its prospectus which shows promise. Analysts are expecting this stock to take off within the next few months as the company outlook looks strong.
- Uni-Pixel (NASDAQ:UNXL) – Uni-Pixel is a California based manufacturer of those little sensors that go behind your touch screen. Stock in the company is currently trading at less than a dollar, but Roth Capital and other analysts have recently issued “buy” ratings on the stock. It’s a $25 million market cap company, with a 20.3% debt to equity ratio, so Wall Street is expecting that this stock has nowhere to go but up.
- Office Depot (NASDAQ:ODP) – Last year, ODP earnings plummeted 44%. But as their Q1 reports were released in April, the share prices have jumped 7.8% over the course of only 3 months. The company is outperforming the industry, and is restructuring a bit, including the sale of its South Korea, Australian and New Zealand operations. As Office Depot fine tunes, its earnings are increasing, and analysts are recommending that investors hold ODP shares.
While this is by no means a complete list of NASDAQ penny stocks, we feel that it would serve you well to watch these stock prices. Penny stocks are certainly not stable. They’re risky, at best, but mindfulness of this fact can help you to earn quite a bit of profit.