Stocks priced under 50 cents are the scratch-off lotto tickets of speculative investments. Their low price points provide the potential for high returns, making them attractive for traders looking for quick gains. But the same volatility that creates opportunities also carries significant risk.
The selection of these stocks involves several key criteria. Here’s what I looked at:
- Market Trends: Stocks that align with emerging trends and are part of hot sectors have higher growth potential.
- Financial Health: Companies with strong financials and sales metrics are better positioned for long-term success… or at least won’t fold overnight.
- Innovation in Technology: Hot technology products and services generate news, and news is good.
- Stock Catalysts: News, product launches, earnings reports, 52-week highs,
- Volatility: Stocks with high volatility offer more trading opportunities, especially when their trading volume is decent.
- Market Potential: Evaluate the company’s potential to capture market share.
Upcoming market events, such as product launches or industry advancements, can significantly impact these stocks. Keeping an eye on these catalysts can help you capitalize on their growth potential.
If trading stocks under 50 cents is too sketchy, check out my list of stocks priced under $1. These stocks can provide a broad range of opportunities while maintaining affordability. Here’s my curated list of penny stocks under $1!
Table of Contents
Best Stocks Under 50 Cents That Will Explode in 2025
To find the best stocks to buy under 50 cents in 2025 requires a top-level stock screener. I use the one in StocksToTrade — it has all the tools and customizations that traders like me look for to create hot penny stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
To find watch-worthy penny stocks under 50 cents, I input the following criteria:
- Last Price ≤ $0.50
- Last Price ≥ $0.10
- Volume ≥ 30,000
- Number of Trades ≥ 100
When I run this screen and sort by today’s biggest gainers, it gives me the following top results:
You can see how the plan with micro-cap stocks is rarely buy-and-hold…
Trading these cheap stocks should be approached with a clear strategy and an understanding of the risks involved. 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 in this article. 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!
Here’s what I’m watching now:
| Stock Ticker | Company Name | Performance (YTD) |
| NASDAQ: OP | OceanPal Inc. | |
| NASDAQ: OTRK | Ontrak Inc. | |
| NASDAQ: GTI | Graphjet Technology Ord | |
| OTCPK: TLOFF | Talon Metals Corp | |
| NASDAQ: IXHL | Incannex Healthcare Inc. | |
| OTCQB: ZNOG | Zion Oil & Gas Inc | |
| NASDAQ: RVYL | Ryvyl Inc. |
OceanPal Inc. [NASDAQ: OP]
OceanPal Inc is a provider of shipping transportation services. It specializes in the ownership of vessels. Each of its vessels are owned through a separate wholly-owned subsidiary.
Ontrak Inc. [NASDAQ: OTRK]
Ontrak Inc is an Al and telehealth enabled, virtualized outpatient healthcare treatment company. The company’s integrated, technology-enabled OntrakTM solutions, a component of the PRE platform, are designed to treat members with behavioral conditions that cause chronic medical conditions such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure.
Graphjet Technology Ord [NASDAQ: GTI]
Graphjet Technology Sdn. Bhd was founded in 2019 in Malaysia as an innovative graphene and graphite producer. Graphjet Technology has the world’s first patented technology to recycle palm kernel shells generated in the production of palm seed oil to produce single layer graphene and artificial graphite. Graphjet’s sustainable production methods utilizing palm kernel shells, a waste agricultural product that is common in Malaysia, will set a new shift in graphite and graphene supply chain of the world.
Talon Metals Corp [OTCPK: TLOFF]
Talon Metals Corp is a mineral exploration company. It is engaged in the exploration and development of the Tamarack nickel-copper-cobalt project in Minnesota, United States of America. The company operates in one business segment, namely, mineral exploration and geographically in the United States of America.
Incannex Healthcare Inc. [NASDAQ: IXHL]
Incannex Healthcare Ltd is developing medical cannabis products for the treatment of Obstructive Sleep Apnea (OSA), Traumatic Brain Injury (TBI)/Concussion, Rheumatoid Arthritis, Inflammatory Bowel Disease, and Inflammatory Lung Conditions.
The company has an Australian license to import, export, and distribute medicinal cannabis products and has launched a line of cannabinoid products.
Read more: IXHL Surges: A Turning Point or Temporary Spike?
Zion Oil & Gas Inc [OTCQB: ZNOG]
Zion Oil & Gas Inc is the United States-based oil and gas exploration and production company. Zion currently holds one active petroleum exploration license onshore Israel, the Megiddo-Jezreel License covering an area of approximately 99,000 acres.
Ryvyl Inc. [NASDAQ: RVYL]
Ryvyl Inc is a technology company that develops, markets, and sells blockchain-based payment solutions, which offers improvements to the payment solutions marketplace. It offers blockchain security and USD-pegged stablecoin technology with near-real-time attestation, RYVYL is reinventing financial transactions using its stablecoin platform as a transactional foundation.
Top Sectors for Stocks Under 50 Cents
Stocks under 50 cents can be found across various sectors, each with unique growth potentials. Selecting the right sector is crucial for speculative investors aiming for high returns. Understanding sector-specific trends and market dynamics can significantly enhance your trading strategy.
Technology and Innovation
The technology sector is particularly attractive for low-priced stocks due to constant innovation and high growth potential. Trends in artificial intelligence, machine learning, manufacturing, and tech startups offer substantial opportunities.
When evaluating tech stocks under 50 cents, consider information like patent holdings and R&D spending, as these can indicate future growth.
Biotech and Pharmaceuticals
The biotech and pharmaceutical sectors offer potential high returns due to ongoing innovations and FDA approvals. Breakthroughs in drug development and clinical trial results can lead to significant stock price increases.
Keep an eye on partnership deals and regulatory milestones, as these are critical indicators of a biotech company’s potential. And watch out for small-cap biotechs — an affordable biotech penny stock can become even more “inexpensive” by doing a new share offering which tends to tank the share price!
Sometimes cheap is not a good thing! If trading stocks under 50 cents tests your trading discipline, you should look at my list of stocks priced under $2. These stocks still have the incredible upside of cheaper stocks, but have a bit more market participation in their trading. Here’s my watchlist of penny stocks under $2!
Energy and Natural Resources
The energy sector, especially renewable energy, presents its share of opportunities for stocks under 50 cents. Government subsidies and new projects in clean energy can drive substantial growth, and utilities always generate revenue.
Key indicators for potential growth in this sector include new energy projects, technological advancements, and regulatory support for sustainable practices.
Emerging Markets
Emerging markets offer untapped potential and significant economic growth opportunities. Stocks in these markets can benefit from political stability and increased foreign investment.
Factors influencing stock prices include economic policies, market liberalization, and infrastructure development.
Common Mistakes to Avoid When Investing in Stocks
Investing in such low-priced stocks is a mistake, period. These “budget” stocks are not a bargain if you blow up your account! Take a look at SBFM’s one-year chart and you’ll see what I mean:
Any buying or selling on the stock market requires due diligence and realistic expectations. Common pitfalls include neglecting research and following hype without analysis — this is especially true for traders who get their ideas from the recommendations of others, even when it’s analysts’ ratings!
Always base your trading decisions on solid data and chart research. That’s the only way to give yourself a chance at profits, unlike the 90% of traders who lose.
OTC markets are where you’ll find the cheapest penny stocks on the market, such as those under 10 cents. These ultra-low-priced stocks can be highly volatile and offer substantial upside potential for traders who can navigate the risks effectively. Monitoring these stocks requires a hell of a lot of discipline and a strong understanding of market trends and trading plan building. My 10 cent penny stock watchlist has the stocks that I’m watching the closest!
Frequently Asked Questions
Are There Any Stable Stocks Under 50 Cents?
While stability is rare in stocks priced under 50 cents, some may exhibit less volatility. These are usually found in more established companies that are temporarily undervalued. However, always approach these stocks with caution and thorough research.
Is It Risky to Invest in Stocks Under 50 Cents?
All stock investments carry risk, and this is especially true for stocks under 50 cents due to higher volatility and market sensitivity. These stocks can offer high returns but also come with significant risk, so it’s essential to trade, not invest, in them.
Do Stocks Under 50 Cents Have High Volatility?
High volatility is common among stocks under 50 cents due to factors like low market capitalization and limited liquidity. This volatility can lead to quick gains but also rapid losses. Always be prepared for sudden price movements and trade accordingly.
Can Options Be Used to Hedge Against the High Beta of Discounted Stocks?
Yes, options can be an effective way to hedge against the high beta of discounted stocks. By purchasing put options, you can protect against potential losses if the stock price drops, providing a safety net in volatile markets. This strategy helps manage risk while taking advantage of the growth potential in low-priced, high-beta stocks.