Stocks To Trade
Jun. 14, 202424 min read

Best Penny Stocks To Buy on Webull in 2024

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg

Penny stocks on Webull are stocks priced at $5 or less per share. They offer opportunities for traders who are building small accounts, but come with higher volatility and require different strategies from those used for larger, more established stocks. For beginners, Webull provides a straightforward entry point into penny stock trading, thanks to its policy of no trading fees and no required minimum deposit. However, traders with more experience might consider other brokers that offer advanced features and tools for more complex trading needs.

Table of Contents

7 Best Penny Stocks to Buy on Webull

My top 7 Webull penny stock picks are:

  • NYSE: SNAP — Snap Inc — The Potential Winner of the TikTok Ban
  • NASDAQ: MULN — Mullen Automotive Inc — My Troll Meme Stock Pick for the Bagholders Out There
  • NASDAQ: CGC — Canopy Growth Corp — The Legal Weed Stock With the Huge Catalyst
  • NASDAQ: BDRX — Biodexa Pharmaceuticals plc — The Licensing Deal Biotech Penny Stock
  • NASDAQ: CAUD — Collective Audience Inc — The Partnership News E-Commerce Penny Stock
  • NASDAQ: SBFM — Sunshine Biopharma Inc — The Biotech Penny Stock With a Tiny Float
  • NASDAQ: BOF — BranchOut Food Inc — The Speculative Wellness Stock That’s on a Tear

Now, to the nitty-gritty. Finding the best penny stocks to buy on Webull is a quest that requires research, strategy, and patience. By understanding the company’s performance, sector trends, and market sentiment, you can unearth potential gems. But always keep your risk tolerance in mind and never put your entire portfolio into a single penny stock.

A diversified approach is crucial when trading penny stocks. Explore different sectors and industries, analyze company fundamentals, and follow news and trends that could impact stock prices. I won’t tell you which specific stocks to buy – remember, you need to develop your own strategy. However, Webull provides you with the tools and resources you need to make informed decisions.

Here’s some background info on Webull penny stocks:

  • What is the most promising Webull penny stock?

A stock with a lot of volatility like Snap Inc (NYSE: SNAP) is a promising Webull penny stock. But remember — we’re traders, not investors. We’re watching the stocks on this list for short-term volatility that we can trade, not predicting which of these stocks will still be around in 2030.

  • What are the top 3 Webull penny stocks to buy now?

My top 3 Webull penny stocks to buy now (as long as their price action is strong) are Snap Inc (NYSE: SNAP), Canopy Growth Corp (NASDAQ: CGC), and Biodexa Pharmaceuticals plc (NASDAQ: BDRX).

  • Which Webull penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Webull penny stocks “strong buy” ratings. These stocks are sketchy and unstable — you should never “invest” in them. Always trade with a plan.

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

7 Webull Penny Stocks To Watch

My top Webull penny stock watchlist picks for 2024 — based on pattern, price action, and catalyst — include the following:

Stock Ticker Company Performance
NYSE: SNAP Snap Inc – 5.98%
NASDAQ: MULN Mullen Automotive Inc – 49.75%
NASDAQ: CGC Canopy Growth Corp + 127.97%
NASDAQ: BDRX Biodexa Pharmaceuticals plc – 50.93%
NASDAQ: CAUD Collective Audience Inc – 56.71%
NASDAQ: SBFM Sunshine Biopharma Inc – 96.75%
NASDAQ: BOF BranchOut Food Inc + 89.06%

The penny stocks on this list are some of the craziest movers on the market …

Only trade these stocks if you have a solid plan and an understanding of the risks involved. I don’t trade until I see a setup I like.

Let’s get to the picks …

Snap Inc (NYSE: SNAP) — The Potential Winner of the TikTok Ban

My first Webull stock pick is Snap Inc (NYSE: SNAP).

TikTok is on the chopping block in 2024.

President Joe Biden signed a bill on Wednesday, April 24 that forces the U.S. TikTok to find a U.S. owner within nine months … or leave the U.S. entirely.

SNAP is a social media platform that’s already popular and headquartered in the U.S., Santa Monica, California.

On Thursday, April 25 the company announced bullish earnings during after hours, share prices spiked 40% as a result.

On the chart below, every candle represents one trading minute:

SNAP chart multi-day, 1-minute candles Source: StocksToTrade

SNAP isn’t eyeing a TikTok purchase that we know of. But it’s already a direct business rival of the social media giant.

  • If TikTok leaves the U.S., Snapchat will likely pick up users.
  • If someone in the U.S. buys TikTok, the software switch could still cause users to leave TikTok. Similar to the debacle that happened when Elon took over Twitter.

Keep an eye on other U.S. social media companies too, like META Platforms Inc. (NASDAQ: META) or the newly IPOed, Reddit Inc. (NYSE: RDDT).

Mullen Automotive Inc (NASDAQ: MULN) — My Troll Meme Stock Pick for the Bagholders Out There

My second Webull stock pick is Mullen Automotive Inc (NASDAQ: MULN).

This stock is a legendary runner from 2020.

It’s an EV play. And EV stocks were hot during the pandemic.

That’s when Tesla Inc. (NASDAQ: TSLA) surged to insane heights. And it’s when the U.S. government started the push toward a larger EV market.

Some of the stocks that spiked during that time are still doing well. TSLA is a great example.

Other stocks … Not so much.

And this is why it’s so important to day trade these runners instead of investing. We don’t believe in the future of the company. We just play the volatility.

I kid you not, there are still bagholders with shares at the top of the spike in 2020. Take a look at this multi-year selloff, on the chart below every candle represents one day:

MULN chart multi-year, 1-day candles Source: StocksToTrade

The price never actually traded around $400k per share. That’s a ratio issue due to a 1-for-100 reverse split at the end of 2023 … 

Speaking of which, StocksToTrade shows that MULN has a float of only 6.4 million shares post-reverse split. The low supply of shares helps prices spike higher when demand increases. We aim for anything below 10 million shares. It ensures volatility.

As traders, we need volatility to profit.

Which means, there are profit opportunities on MULN right now. But don’t join the long list of bagholders.

We have to stick to our trade plan. Take profits before the momentum switches.

If you don’t know how to craft a trade plan, take notes from the XGPT trading bot. It nailed the most recent move on MULN, trading plan included.

Take a look below at the alert we got on April 29 before the market closed:

MULN chart intraday, 1-minute candles Source: StocksToTrade

>> Here’s where you can get the next XGPT trade alert <<

MULN is still in play as a volatile stock. Plan your trades carefully!

Canopy Growth Corp (NASDAQ: CGC) — The Legal Weed Stock With the Huge Catalyst

My third Webull stock pick is Canopy Growth Corp (NASDAQ: CGC).

The weed sector comes and goes. It’s never been the strongest batch of runners, but every now and then there’s some hot-button legislation that sparks the industry.

In 2024, there’s been a lot of talk about marijuana legalization. Both in the U.S. and worldwide:

  • POTUS Biden and VPOTUS Harris both recently expressed an interest in reforming the U.S. approach toward marijuana.
  • Germany decriminalized marijuana.

But CGC is also running thanks to a catalyst that was announced on March 14.

  • There was news of a potential acquisition. The vote deadline for the acquisition was April 10. On April 15 we learned of a successful shareholder vote to endorse the acquisition.

Business acquisitions are bullish catalysts because two companies combined are theoretically always more valuable than either alone.

The most recent surge in the CGC stock price comes from April 30 news: It’s possible the U.S. will reclassify marijuana from a schedule 1 drug to a schedule 3 drug.

This drastically decreases the ill effects of marijuana recognized by the U.S. government and also makes the drug easier for researchers to test.

Keep an eye on the entire weed sector. This news might have reignited some insane momentum!

Biodexa Pharmaceuticals plc (NASDAQ: BDRX) — The Licensing Deal Biotech Penny Stock

My fourth Webull stock pick is Biodexa Pharmaceuticals plc (NASDAQ: BDRX).

On April 26, this company announced a new licensing deal with Rapamycin Holdings Inc. to acquire eRapa, a Phase-3-ready treatment for the genetic orphan disease known as FAP.

A key note about the acquisition, the treatment comes with $17 million of grant-support funding.

StocksTotrade shows that the float is only 4.7 million shares. That’s below our goal of 10 million shares or fewer. BDRX is officially a low-float spiker that’s ready to push higher.

The chart shows sideways consolidation after the 140%* spike on April 26 … 

If BDRX can push to new highs with a large trading volume, we’re off to the races.

Collective Audience Inc (NASDAQ: CAUD) — The Partnership News E-Commerce Penny Stock

My fifth Webull stock pick is Collective Audience Inc (NASDAQ: CAUD).

On April 29 the company announced a business partnership with Insticator. The news especially boasted about Insticator’s 35 million monthly consumers.

A partnership of that size is a big catalyst for a penny stock. We don’t know if anything will ever come of it. But it sure looks nice on paper.

And the price reacted well to the announcement. That’s a hint that we can trade the follow-up volatility.

CAUD launched 120% after the news came out. And the price is consolidating sideways … 

StocksToTrade also shows that the float is only 11.5 million shares. That’s close enough to our goal of 10 million shares or fewer. This is an inexact science, sometimes we can bend the rules.

My plan is the same as it is on BDRX … wait for the price to push toward the highs with strong trading volume.

Sunshine Biopharma Inc (NASDAQ: SBFM) — The Biotech Penny Stock With a Tiny Float

My sixth Webull stock pick is Sunshine Biopharma Inc (NASDAQ: SBFM).

I’ve mentioned the importance of a low float already in this blog.

But SBFM takes it to a whole new level. StocksToTrade shows the float is only 606k shares.

And this runner is in the biotech sector. We’ve seen biotech stocks spike higher ever since early 2023. For traders, the sector’s volatility is only matched by AI runners.

SBFM hasn’t started to spike yet … we’re still early.

The stock’s history already shows runs in 2024.

  • 210%* in March.
  • 110%* in April.

Get ready for May.

BranchOut Food Inc (NASDAQ: BOF) — The Speculative Wellness Stock That’s on a Tear

My seventh Webull stock pick is BranchOut Food Inc (NASDAQ: BOF).

On April 24, the company announced a third contract with the “nation’s largest retail” business. 

The partnership is estimated to yield $8 million in annual revenue. BOF products are expected to reach 1,400 stores by September of this year.

The stock is on a multi-day run that’s approaching resistance from a 160%* spike in February earlier this year. Take a look at the chart below, every candle represent one day:

BOF chart multi-month, 1-day candles Source: StocksToTrade

If prices can break past February levels with high trading volume, get ready for another leg upward.

Webull Stocks Under $5

The appeal of hot sector stocks on platforms like Webull, especially those classified as penny stocks, is compelling for a growing number of traders. The energy and technology sectors, for instance, are witnessing rapid growth and innovation, making stocks within these domains particularly attractive for those on the lookout for the next breakout investment. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

It’s important to trade these stocks with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of hot sectors, underscores the importance of a meticulous trading plan. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 on platforms such as Webull hinges on a selective and strategic approach. The goal is to tap into the explosive growth potential of sectors like renewable energy and technology while implementing robust risk management practices. By zeroing in on companies making headlines in their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

If you’re convinced that penny stocks are worth a look, check out my guide on How to Find and Trade Penny Stocks!

How to Choose the Best Webull Penny Stocks

Choosing the right penny stocks on Webull is the name of the game. Knowing what to watch and when can mean the difference between taking smart gains and having career-ending losses. 

Protection first. As a beginner, focusing on the right criteria can guide your decision-making and set you up for success. Here’s what you should look for:

  • Volatility: High market volatility can lead to significant gains, but it also comes with high risk.
  • Volume: Stocks with higher trading volumes are more liquid, making it easier to enter and exit positions and get a good execution price when you do.
  • Company Fundamentals: Understanding a company’s basics can help you stay away from sketchy stocks!
  • Market Data: Use Webull’s comprehensive market data to analyze trends and patterns.
  • News and Reports: Stay updated with the latest news and company reports to catch any significant events that could impact stock prices.
  • Technical Indicators: Use Webull’s tools to track indicators like moving averages and RSI.
  • Brokerage Fees: Be mindful of commissions that can eat into your profits, especially on low-priced stocks. Margin trading, futures, options trading, and other leverage tools can all affect your bottom line. Advisory services and other account types diversification strategies that Webull offers its clients may also cost you cash.
  • Platform Tools: You can try out Webull’s platform tools on your home computer or mobile devices.

Remember that these are highly speculative stocks and should be approached with a trading mindset. Penny stocks are great for trading due to their volatility, offering opportunities for significant intraday gains. However, this same volatility makes them risky for long-term investments. 

My trading and teaching experience recommendations  using these stocks for quick trades rather than investments, leveraging market fluctuations for potential profits. Always manage your risks and have a clear strategy in place.

How to Invest in Webull Penny Stocks

Investing in penny stocks on Webull requires a strategic approach, and Webull is one way to get there. But I’d advise that you shop around first.

Robinhood is one of the most popular platforms out there, and it appeals to traders for many of the same reasons that Webull does. My article on trading penny stocks on Robinhood discusses the pros and cons of using Robinhood for penny stocks. This comparison can help you decide which platform — and watchlist — suits your trading style best. Check out my Robinhood Penny Stocks Watchlist here!

Opening an Account With Webull

Opening a Webull account is a straightforward process. You’ll need some basic information like your name, address, and social security number. The platform also asks about your investment experience and objectives. This helps tailor the platform to your needs.

Understanding the Trading Platform

Getting to know Webull’s trading platform is critical. You need to familiarize yourself with its features and how to use them effectively. Webull offers a suite of advanced tools and indicators that can help you analyze penny stock movements and identify potential trading opportunities.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Setting Up Your Portfolio

Your portfolio should reflect your trading goals and risk tolerance. Consider diversifying your holdings across various industries and sectors. Avoid the urge to put all your eggs in one basket. A balanced portfolio can help mitigate potential losses and increase your chances of steady gains.

You should always watch more than you trade — that’s why I maintain multiple penny stock watchlists. Check out my basic Penny Stocks Watchist if you want an idea of the most exciting opportunities happening throughout the market!

Researching Penny Stock Companies and Securities

Before purchasing any penny stock, thorough research is essential. Look at company fundamentals, industry trends, and any recent news or developments. Webull provides resources to help you analyze companies and securities. It’s not about guessing; it’s about making informed decisions.

Building a Diversified Portfolio With Webull

A diversified portfolio can help spread risk and increase your potential for returns. Webull provides a range of penny stocks across various sectors, enabling you to build a diverse portfolio. 

However, it limits access to OTC stocks, which is where some of the fastest moving penny stocks on the market reside.

Tips for Successful Penny Stock Trading on Webull

To make your mark in the world of penny stock trading, you need to play smart, keep your emotions in check, and always be prepared to learn. Here are some insights to help you thrive.

Know Your Risk Tolerance and Investment Strategies

In trading, understanding your risk tolerance is paramount. It dictates how much you’re willing to lose in pursuit of potential gains. Establish your risk tolerance level and stick to it. Develop a clear investment strategy — define your goals, determine your investment timeline, and identify the sectors that align with your risk appetite.

Keep Track of Market Trends and Volatility

Penny stocks are notorious for their volatility. It’s essential to keep track of market trends and news affecting your target stocks. Webull provides resources like real-time data, financial calendars, and analyst ratings that help you stay abreast of the market dynamics.

Utilize Paper Trading to Practice Before Investing Real Money

Webull provides a paper trading feature allowing you to test your trading strategies without risking real money. It’s a safe place to make mistakes, learn, and refine your tactics.

Monitor Your Investments Closely

When you trade penny stocks, you must monitor your investments closely. The prices can change quickly, and keeping a close eye on your portfolio can help you make timely decisions.

Consider Low Float Stocks Carefully

Low float stocks are those with a limited number of shares available for trading. They can be volatile and risky due to supply-demand dynamics. Be cautious, do your research, and only invest what you’re willing to lose.

Use Stop Loss Orders to Mitigate Risks

Stop-loss orders can help you manage risk by setting a predetermined selling price for a stock if it falls below a certain level. It’s a tool you can use to prevent significant losses.

Have you tried trading penny stocks on Webull? Write “I always trade with a plan” in the comments!

Frequently Asked Questions

Can I short stocks on Webull?

Yes, you can short sell stocks on Webull, provided you have a margin account and the shares are available for shorting. Remember, short selling involves significant risks, so proceed with caution.

How can I make money on Webull?

Making money on Webull, like any trading platform, depends on buying and selling stocks for a profit. It’s crucial to conduct thorough research, follow market trends, and execute trades strategically. Webull’s comprehensive analysis tools can be a great asset in this process.

What makes Webull different?

Webull stands out with its zero-commission trades, robust analysis tools, and comprehensive educational resources. It’s suitable for both beginners and intermediate traders, providing a platform to trade not just stocks but also ETFs and options.

How can I improve my return on investment (ROI) with Webull penny stocks?

To boost your ROI, focus on efficient cash management and careful account management. Utilize Webull’s tools to track market trends and make informed trades. Always ensure compliance with regulatory requirements to avoid any penalties that could impact your returns.

What should I know about account access and approval on Webull?

Ensure you have seamless account access to monitor your trades and manage your portfolio effectively. Getting approval for advanced trading features like margin trading involves meeting specific criteria set by Webull and regulatory bodies. Staying compliant with these requirements ensures that you can utilize all available tools to enhance your trading strategy.

What are some of the exchanges where I can buy penny stocks on Webull?

On Webull, you can purchase penny stocks listed on various exchanges, including NASDAQ, NYSE, and a limited selection on the OTC markets. It’s essential to understand each stock market’s requirements before investing.

What are the considerations for evaluating the value of a penny stock on Webull?

When evaluating penny stocks on Webull, you should consider factors like the company’s value, its liquidity, the opportunity for growth, and market conditions. It’s also essential to remember that while penny stocks offer plenty of potential, they also come with significant risks.

Who should consider buying penny stocks on Webull?

Investors looking for opportunities in small-cap and micro-cap companies might consider buying penny stocks. Analysts may also monitor penny stocks to track market trends and growth opportunities. However, everyone should do thorough research and possibly seek professional advice before investing in penny stocks.

Can I purchase products from companies whose stocks are listed as penny stocks on Webull?

You can purchase products from companies listed as penny stocks on Webull. For example, if a tech company part of this list offers a product you’re interested in, you can certainly buy it. However, it’s important to separate your investment decisions from your consumer decisions.

Are there penny stocks from Canadian businesses on Webull?

Webull includes a list of penny stocks from businesses worldwide, including Canada.