10 Top Penny Stocks To Buy For Under $1 May 2022 Edition (2024)

Most people think of penny stocks as shares of companies trading for pennies. The standard definition considers these as stocks under $5, but you can’t argue with popular opinion. The exciting part about penny stocks under $1 is the volatility and gain potential they hold. Case in point, a 5-cent move in a 50-cent stock is a cool 10% gain. That same move in a $50 stock, for example, is barely noticeable.

It’s worth noting that just as quickly as they can jump, they can also collapse, as we’ve seen in many instances. The recent IPO of Edible Garden (NASDAQ: EDBL) is a clear example of how the tide can quickly change for penny stocks. Nevertheless, if you know what you’re doing, the risk can far outweigh the reward. Today we look at 10 of the top penny stocks under $1 based on social mentions and recent trading activity with a deeper dive into the top 5.

10 Top Penny Stocks To Watch

1. IT Tech Packaging Inc. (NYSE: ITP)
2. Sesen Bio Inc. (NASDAQ: SESN)
3. Evoke Pharma Inc. (NASDAQ: EVOK)
4. Globalstar Inc. (NYSE: GSAT)
5. Kala Pharmaceuticals (NASDAQ: KALA)
6. Pingtan Marin Enterprises Ltd. (NASDAQ: PME)
7. Sonim Technologies (NASDAQ: SONM)
8. MEI Pharma Inc. (NASDAQ: MEIP)
9. PolarityTE Inc. (NASDAQ: PTE)
10. Kiromic Biopharma Inc. (NASDAQ: KRBP)

1. IT Tech Packaging Inc. (NYSE: ITP)

Virus cases are rising, and data, especially from China, has triggered some flashbacks to 2020. More news today cited growing concerns from some of the top retail brands. Apple, Starbucks, and others have voiced troubling guidance that China’s latest COVID lockdowns could take another slice out of 2022’s growth trajectory.

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Why mention this? During the early days of the pandemic, personal protective equipment stocks were red hot. While it isn’t as sweeping as in 2020, the PPE trend may be something traders are following with companies more closely related to China.

This is where IT Tech Packaging seems to have struck a chord with investors this month. ITP stock has been on the move, rallying from around $0.20 to highs this week of over $0.50. IT Tech’s focus: paper products. In particular, facemasks are one of these products. Thanks to rising cases in China and focus on things like facemasks, ITP stock seems to have become a speculative bet for some this month.

2. Sesen Bio Inc. (NASDAQ: SESN)

A strategic update from Sesen Bio has put the company in focus this week. As we discussed on May 3, Sesen announced that it had started the process of a strategic review for business alternatives. Its more than $160 million cash and equivalents position was a significant point of focus for Sesen management. The company appears to be on the lookout for a potential acquisition “or other business combination.”

Sesen was one of the hottest biotech stocks last year. Shares exploded in anticipation of an FDA decision on one of its treatments, Vicineum. After failing to meet the mark, SESN stock tumbled to levels of where it’s at today. Other than strategic alternatives, the company also has plans to meet with the FDA. It had requested a meeting to agree on outstanding items related to another Phase 3 clinical trial. At the end of March, Sesen filed an 8-K that showed the company participated in a Type C meeting with the FDA, which agreed to most of Sesen’s proposed analysis and protocol plans and design elements.

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Given the level of mergers, acquisitions, and IPOs, SESN stock has come into focus for reasons outside of its treatment pipeline. According to Sesen’s May 3rd update, the company has $169.8 million in cash and cash equivalents and no outstanding debt. Those figures are as of March 31, 2022.

3. Evoke Pharma Inc. (NASDAQ: EVOK)

Penny stocks are well-known for their volatility and Evoke Pharma is a recent example. At the end of April, EVOK stock exploded from under $0.40 to $1.40 in 2 days. The move came after the company announced that it was granted FDA market exclusivity for its GIMOTI nasal spray. This gave the company marketing rights for three years. Within three days of reaching those $1.40 highs, EVOK stock plummeted below $0.50.

The company’s GIMOTI spray is indicated for symptom relief for recurrent diabetic gastroparesis. It’s a gastrointestinal disorder of which GIMOTI is said to be the only drug currently approved in the US to treat gastroparesis.

Now that EVOK stock has seemingly “come back to earth,” it appears that traders may have begun refocusing on the company. That may be based on what’s to come this month. Evoke Pharm reports its first-quarter earnings next Tuesday, May 10th.

4. Globalstar Inc. (NYSE: GSAT)

Personal safety satellite systems company Globalstar is once again on the list of penny stocks to watch. Despite the slide in April, the company’s latest round of earnings has brought back a bit more bullish sentiment this week. Globalstar’s model is based on connecting assets and transmitting data to its customers in industrial and government settings in more than 120 countries.

In its first quarter, 2022, Globalstar recorded a 22% jump in revenue vs. the same period in 2021. Globalstar attributed the growth to an increase in service revenue from engineering services. Meanwhile, its Internet of Things service revenues jumped more than 20% over the last year thanks to higher equipment sales of existing devices.

“Despite the headwinds caused by component part shortages, Commercial IoT revenue increased 8% from the prior year’s first quarter. We have several thousand units on back-order of our most popular and profitable Commercial IoT products and expect to resume production during the second quarter to fill these orders and get back to a healthy inventory level which helps protect against the risk of future supply chain disruptions.”

Dave Kagan, Chief Executive Officer of Globalstar

In light of these results and since they’ve come out after the market close on May 5th, GSAT stock could be on the watch list heading into the end of the week.

5. Kala Pharmaceuticals (NASDAQ: KALA)

Back in March, we discussed Kala Pharmaceuticals on a list of penny stocks with high marks from analysts. In particular, HC Wainwright’s $9 price targetbecame a core point of interest at the time. Kala had also announced that its EYSUVIS platform was added to the coverage of UnitedHealthcare. This covers roughly 13 million lives, according to the company’s March 8th press release. Downbeat earnings results triggered the latest selling pressure, which took KALA stock back down to sub-$1 levels.

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EYSUVIS is a commercially available and FDA-approved medicine for treating symptoms of dry eye disease. This year, it has gained interest thanks to coverage deals like the one announced in March. This week, that trend continued. Kala gave an update that the largest Pharmacy Benefit Manager in the US added EYSUVIS as a covered brand to its commercial formularies. According to the company, this latest move adds more than 28 million commercial lives to EYSUVIS coverage. The new total of commercial coverage for the platform is now north of 155 million.

Thanks to this update, KALA stock is back in focus.

More Penny Stocks To Watch

Below are an additional 5 penny stocks under $1 that have gained some attention in recent sessions:

• Pingtan Marin Enterprises Ltd.
• Sonim Technologies
• MEI Pharma Inc.
• PolarityTE Inc.
• Kiromic Biopharma Inc.

These are just a few of the top penny stocks under $1 that are gaining momentum in the stock market this week. It’s always important to note that just as quickly as bullish moves can be made, the bearish moves can soon follow. Many of the names on this list of penny stocks have demonstrated precisely that dynamic. If any of these are on your list right now, leave a comment and tell us what initially brought your attention to them.

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