While the market offers myriad avenues for high-risk speculation, the best penny stocks under $1 may present some of the most sweat-inducing, blood-pressure-racing moments ever. Yeah, sure, they’re priced below a buck – what can go wrong? Well, plenty of things can go wrong.
Let’s set the proper framework here. Of course, we all know that in the market, your profitability centers on the underlying percentage gains, not the nominal price tag of the shares in question. So, while so-called affordable stocks to buy may appear that way on paper, their underlying beta or volatility could make the acquisition the most expensive in terms of the pain caused.
At the same time, not all cheap penny stocks will likely evaporate into nothingness. A rare few may actually have the goods to drive higher. It’s just that you’ve got to be aware of the possibility that circumstances can get ugly very quickly. If you can accept that, these are the July penny stock picks to consider.
Pedevco (PED)
The only name on this list of best penny stocks under $1, Pedevco (NYSEAMERICAN:PED) risks losing that status if it continues to be priced under a buck. At the time of writing, shares traded hands at around 92 cents, which is a loss of more than 15% since the start of the year. Based in Houston, Texas, Pedevco is a premier public oil and gas company focused on developing conventional assets using unconventional technologies.
Per its website, Pedevco features operations in the Permian Basin of Texas and the D-J Basin located in Colorado. Despite its ridiculously risky profile, Pedevco may rank among the July penny stock picks because of its balance sheet. According to Gurufocus, the company features a cash-to-debt ratio of over 277 times. This stat is above 84.52% of its oil and gas peers.
Notably, Pedevco features a Piotroski F-Score of 7 out of 9, indicating decent operational efficiency. As well, its Altman Z-Score comes in at 4, indicating low bankruptcy risk. Also, it’s worth mentioning that its net margin is 10.5%, beating out 63.36% of sector rivals.
PT Adaro Energy Indonesia (PADEF)
Headquartered in South Jakarta, Indonesia, PT Adaro Energy Indonesia (OTCMKTS:PADEF) is its namesake nation’s second-largest coal miner by production volume, per its public profile. Fueling a vital emerging market, PT Adaro Energy could be intriguing for those seeking the best penny stocks under $1. However, with shares tumbling nearly 40% since the beginning of this year, prospective gamblers will need to be careful.
Still, what might surprise those targeting (very) affordable stocks to buy is PT Adaro’s broadly resilient financials. For one thing, the company carries a Piotroski F-Score of 9, indicating superior operational efficiency. Also, its Altman Z-Score clocks in at 4.55, suggesting fiscal stability.
On the operational side, PT features a three-year revenue growth rate (on a per-share basis) of 43.2%, above 82% of its peers. Also, its EBITDA growth rate during the same frame is 98.5%, blowing past 87.59% of the competition. You’re still going to want to be careful because you’re dealing with a security priced at 15 cents. Nevertheless, for those seeking cheap penny stocks, it might not get much better than this.
Destiny Media Technologies (DSNY)
Hailing from Vancouver, British Columbia, Canada, Destiny Media Technologies (OTMCKTS:DSNY) owns and operates the Play MPE platform, which Destiny’s website claims is the world’s leading music promotion platform. It connects record labels and artists to influential music curators around the world. While priced at 80 cents a pop at the time of writing, DSNY could be one of the best penny stocks under $1.
I say this in part because it might not be priced under a buck for much longer. Since the Jan. opener, DSNY gained nearly 51% of its equity value. Over the trailing one-year period, it’s up over 48%. Plus, it has some strong fundamentals to back up the rally. Most notably from a fiscal stability standpoint, Destiny incurs zero debt. Therefore, management enjoys flexibility ahead of an uncertain economic backdrop.
Also, while Destiny could use some shoring up of its revenue growth, it’s a highly profitable enterprise. Its trailing-year net margin stood at 11.32%, above 81.47% of its peers. Thus, it’s one of the low-cost stock investments for extreme speculators to consider.
Patriot Gold (PGOL)
Running its ship from Reno, Nevada, Patriot Gold (OTCMKTS:PGOL) is exactly what its name implies: a gold and silver company with a focus on Nevada and Arizona. According to its website – which looks like it was built by GeoCities template in 1997 if I’m being honest – Patriot’s flagship project is Moss Mine, which is in commercial production and in which Patriot owns a 3% royalty interest.
While its website will almost surely turn off conservative investors, the company’s financials represent a difference. With zero debt, the precious metals enterprise enjoys tremendous flexibility. In addition, it features an equity-to-asset ratio of 0.97, ranking better than 87.19% of its peers. Not surprisingly, its stout Altman Z-Score of 18.02 implies extremely low bankruptcy risk.
Operationally, we’re looking at a three-year revenue growth rate of 19.7%, beating out 68.39% of its peers. As well, its book growth rate during the same period comes in at 36.6%, above 84.72%. With a trailing-year net margin of 43.12%, PGOL proves you can’t judge a book by its cover. If you’re into speculation, it’s one of the July penny stock picks.
Reviv3 Procare (RVIV)
Headquartered in Alhambra, California, Reviv3 Procare (OTCMKTS:RVIV) is a hair care product specialist. Per its website, Reviv3 claims to offer its customers thicker stronger hair in just 30 days. Leveraging natural ingredients, clinically tested and proven formulations, and feature pieces in mainstream media outlets, the brand seems quite popular. Indeed, RVIV might not be one of the best penny stocks under $1 for too long.
To be sure, it will likely remain one of the July penny stock picks. However, trading at 61 cents, this nominal price tag translates to a year-to-date return of over 110%. In the trailing month, RVIV gained over 17%. Still, on the move, shares might not be on the sub-dollar menu for too long.
Financially, despite its status as one of the affordable penny stocks, Reviv3 commands excellent strengths in the balance sheet. Specifically, it features a cash-to-debt ratio of 13.75 times, ranked better than 85.68% of its competitors. Also, its Altman Z-Score lands at 14.65, indicating an extremely low risk of bankruptcy. To be fair, it’s priced into oblivion against earnings and sales. Still, the hot momentum makes RVIV among the best penny stocks under $1 (for now).
Pharma-Bio Serv (PBSV)
Based in Dorado, Puerto Rico, Pharma-Bio Serv (OTCMKTS:PBSV) claims to be the leading provider of its enterprise-level clients’ quality, regulatory and compliance requirements. Catering largely to the life sciences industry, Pharma-Bio offers current good manufacturing practice (cGMP) compliance services throughout the product lifecycle. This means from research and development to commercialization. It also offers relevancies for the food and beverage and consumer products sectors.
Priced at 90 cents at the time of writing, Pharma-Bio may be one of the best penny stocks under $1 today. However, with shares up over 13% since the Jan. opener, PBSV might lose this specific classification soon enough. On the financial side, Pharma-Bio enjoys stability in the balance sheet. Its cash-to-debt ratio comes in at 32.54 times, above 85.52% of its rivals. Also, its equity-to-asset ratio stands at 0.8%, well above the industry median stat of 0.49 times.
Lastly, for those who want to take a bet on cheap penny stocks, PBSV trades at a multiple of 15.43. As a discount to earnings, Pharma-Bio ranks better than 74.36% of the competition.
Enwell Energy (RGPMF)
Easily the riskiest idea on this list of best penny stocks under $1, I hesitate to mention Enwell Energy (OTCMKTS:RGPMF). It’s not the business itself. As a highly focused oil and gas business, on paper, Enwell should eventually rise on burgeoning demand. After all, I don’t think the remote work landscape will become permanent. And it’s not so much the 15-cent price tag since we’re talking about extreme speculation.
Rather, Enwell operates solely in Ukraine, which is not exactly a stable region right now. Of course, I appreciate that the company is developing the war-torn country’s domestic gas market. It could use all the help it can get. However, RGPMF slipped over 48% over the past year and it’s hardly surprising.
Still, Enwell benefits from a stout balance sheet, which is rich in cash. Also, its Altman Z-Score clocks in at 4.9, indicating a low risk of imminent bankruptcy. On the operational side, Enwell’s three-year revenue growth rate clocks in at 20.5%, above nearly 72% of its peers. And it’s highly profitable with a net margin of 44.16%.
Penny Stocks
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any 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.
