- If you want to find stocks with heavy trading volume and are trading for less than $5, then this list of Robinhood stocks is for you.
- Sundial Growers (SNDL): This is the poster child for the bad things that can happen to a meme stock.
- Aurora Cannabis (ACB): Aurora has lost 97% of its value since 2019.
- Nokia Oyj (NOK): The IT company may not be a penny stock for long.
- OrganiGram (OGI): OrganiGram is the No. 3 licensed producer of cannabis products in Canada.
- FuelCell Energy (FCEL): Fuel cells are considered much more efficient than gasoline engines.
Robinhood (NASDAQ:HOOD) changed the way millions of people invest. So much so that there’s a special class of stocks we refer to as Robinhood stocks.
Robinhood stocks are those that are the most commonly traded on the free trading platform. Robinhood publicizes its list of most popular stocks, as determined by the trading volume from its massive consumer base.
What makes Robinhood stocks stand out is that they are heavily weighted toward meme plays. You won’t see Cathie Wood or Peter Thiel trade on Robinhood. Instead, it’s retail investors who flocked to the platform because they were drawn to the simple functionality and the allure of no-fee trading.
Currently, Robinhood boasts more than 15.9 million monthly active users and 22.8 million funded accounts. So there’s a lot going on with Robinhood on a daily basis.
Here are five very cheap stocks – all valued at less than $5 per share – that you can buy on Robinhood these days.
Sundial Growers (SNDL)
Sundial Growers (NASDAQ:SNDL) is a poster child for the bad things that can happen to a meme stock.
The Canadian cannabis company went public in July 2019 and traded for more than $11 per share. People had high hopes for SNDL stock because of expectations that Washington would legalize recreational marijuana use on a national scale in the U.S.
That hasn’t happened, as the world has been focused on other things – the economy, the election, a little thing called Covid-19 – I don’t think that anyone’s had the bandwidth to push marijuana legalization through Congress.
Earnings for the company’s fourth quarter included 63% year-over-year revenue growth. And the gross margin improved to nearly breakeven. Sundial says it plans to be free cash flow positive by the end of this year.
That would be a massive achievement. If they’re successful it’s going to take a lot to make Sundial anything more than a penny stock.
Aurora Cannabis (ACB)
Remember, meme plays are huge for Robinhood stocks, particularly when they’re priced at less than $5. So another marijuana company, Aurora Cannabis (NASDAQ:ACB) is next on the list.
Like Sundial, Aurora has lost a lot of steam over the last few years, but the losses here are a lot more painful. ACB stock was at $115 per share as recently as March 2019. Since then it’s lost more than 97% of its value.
But there are some ACB bulls out there, like my colleague Steve Booyens. He calls Aurora Cannabis “one of the most overlooked assets on the market” and a “best-in-class” marijuana stock.
Booyens notes that with 53%, Aurora has the best gross profit margins in the industry. It also is growing quickly in international markets like Israel, Germany, France, Poland and the United Kingdom.
Earnings for the fiscal third quarter ending March 31 included total cannabis net revenue of $50.4 million, which was down 17% from a year ago. The adjusted EBITDA loss of $12.3 million was an improvement from the loss of $20.9 million in the same quarter the year before.
Nokia Oyj (NOK)
Shares of the telecommunications and information technology company Nokia Oyj (NYSE:NOK) are down more than 20% so far this year, putting it just below the $5 cutoff for this list of Robinhood stocks valued at less than $5.
But will it remain a penny stock?
NOK stock bulls say no, and the company’s earnings report may have something to say about that.
First-quarter earnings came in at $6 billion in revenue, beating analysts’ estimates of $5.92 billion. Earnings per share of 8 cents also topped predictions for EPS of 7 cents.
Nokia said it had $237.9 million in net income. “Overall, Q1 was a strong start for the year in terms of net sales and profitability,” CEO Pekka Lundmark said.
Analysts at AlphaValue upgraded NOK stock from “add” to “buy” following the earnings report.
OrganiGram Holdings (OGI)
Yes, it’s another marijuana stock. Canada-based OrganiGram Holdings (NASDAQ:OGI) traces its roots back to 2010.
Like others on this list, OrganiGram is in a downward spiral, off nearly 30% so far this year. Since May 2019, OGI stock has lost nearly 90% of its value.
OrganiGram started off strictly as a medical marijuana company, but it has expanded into recreational use now that Canada legalized cannabis.
Gross sales for the quarter ending Feb. 28 were $43.9 million CAD, up from $19.3 million CAD in the same quarter a year ago. Net revenue was $31.8 million CAD, which was an increase of 117% year-over-year.
OrganiGram is the No. 3 licensed producer of cannabis products in Canada, where it holds a market share of 8.2%.
FuelCell Energy (FCEL)
Alternative power is a popular play in the meme stock world, so it’s really no surprise that FuelCell Energy (NASDAQ:FCEL) makes the list of most popular Robinhood stocks.
The company designs, manufactures, operates and services fuel cell power plants powered by hydrogen, which is classified as an alternative vehicle fuel. The U.S. Energy Information Administration (EIA) states that a fuel cell may be “two to three times more efficient than an internal combustion engine running on gasoline.”
FCEL stock has jumped in and out of penny stock territory so far this year and trades down about 36% in 2022.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.