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 2024
To find the best stocks to buy under 50 cents in 2024 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: ENSC | Ensysce Biosciences Inc. | – 64.95% |
| NASDAQ: NITO | N2OFF Inc. | – 83.27% |
| NASDAQ: DBGI | Digital Brands Group Inc. | – 91.90% |
| NASDAQ: IVP | Inspire Veterinary Partners Inc. | – 99.07% |
| NASDAQ: TRNR | Interactive Strength Inc. | – 99.57% |
| NASDAQ: LGMK | LogicMark Inc. | – 89.28% |
| NASDAQ: SVRE | SaverOne 2014 Ltd. | – 80.59% |
Ensysce Biosciences Inc. [NASDAQ: ENSC]
Ensysce Biosciences Inc is a clinical-stage biotech company using its proprietary technology platforms to develop safer prescription drugs. The company is developing a new class of powerful, tamper-proof opioids that prevent both drug abuse and overdoses. Ensysce’s products are anticipated to provide safer options to treat severe pain and assist in preventing deaths caused by opioid abuse, reducing human and economic costs.
N2OFF Inc. [NASDAQ: NITO]
Save Foods Inc is a development stage company which is involved in the business of developing, testing, and marketing solutions and products for extending storability and shelf life of vegetables and fruits through its subsidiary. The company develops products that treat citrus fruits, sweet potatoes, stored table potatoes and also provide storage control of fruits and vegetables. It has also started commercialization of its products.
Digital Brands Group Inc. [NASDAQ: DBGI]
Digital Brands Group Inc offers variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. The company has expanded into an omnichannel brand offering the styles and content not only online but at selected wholesale and retail storefronts.
Inspire Veterinary Partners Inc. [NASDAQ: IVP]
Inspire Veterinary Partners, Inc. owns and operates veterinary hospitals throughout the United States. The Company specializes in small animal general practice hospitals that serve all manner of companion pets, emphasizing canine and feline breeds. Services provided at the Company’s hospitals include preventive care for companion animals consisting of annual health exams that include parasite control, dental health, nutrition and body condition counseling, neurological examinations, radiology, bloodwork, skin and coat health, and many breed-specific preventive care services. Surgical offerings include all soft tissue procedures such as spays and neuters, mass removals, splenectomies and also include gastropexies, orthopedic procedures, and other types of surgical offerings based on a doctor’s training. In many locations, additional means of care and alternative procedures are also offered, such as acupuncture, chiropractic, and various other health and wellness offerings.
Interactive Strength Inc. [NASDAQ: TRNR]
Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. It offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. The company also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. The company was incorporated in 2017 and is headquartered in Austin, Texas.
LogicMark Inc. [NASDAQ: LGMK]
LogicMark Inc provides personal emergency response systems (PERS), health communications devices, and loT technologies to create a connected care platform. Its devices give people the ability to receive care at home and confidence to age in place. The company incorporates two-way voice communication technology directly into its medical alert pendant and provides this life-saving technology at a price point that everyday consumers can afford.
SaverOne 2014 Ltd. [NASDAQ: SVRE]
Saverone 2014 Ltd provides driver protection solutions. The company is engaged in developing and deploying transportation safety and advanced driver-assistance systems (ADAS) technologies and solutions. The company’s product restricts the driver from surfing, communicating and receiving alerts while driving. The Company has developed a system which provides a solution to the problem of distracted driving caused by cell phone use, which endangers the driver, passengers, other drivers on the road and pedestrians.
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.