Low-priced stocks may be risky and volatile, but sometimes this high volatility can work in your favor. Hence, many aggressive investors may be on the search for the best $1 stock to buy.

There are scores of stocks that trade at or near $1 per share, both on major U.S. equity markets like the New York Stock Exchange and Nasdaq Exchange, as well as in the over-the-counter market.

Most of these names, though, make for questionable investment opportunities. This is due either to poor current fundamentals and/or questionable future prospects.

However, there are a few worthy of a closer look, because of a low valuation, potentially game-changing catalysts, or a combination of the two.

Among this whittled-down list of candidates, there are three that stand out as possibly being the best $1 stock to buy this month. Let’s take a closer look at each one.

FlexShopper (FPAY)

FlexShopper (NASDAQ:FPAY) is a fintech firm that operates a lease-to-own e-commerce platform.

Users of the platform can get their hands on big ticket consumer items like appliance, electronics, and jewelry, with zero money down, in exchange for making weekly payments.

Macro issues like high inflation and weak consumer sentiment have affected the company’s fiscal performance in recent years. In turn, this has affected the performance of FPAY stock. Trading for as much as $3 per share as recently as 2022, today FPAY costs around $1.20 per share.

However, as seen in FlexShopper’s most recently-released fiscal results, operating performance has started to improve.

The company beat sell side forecasts for both revenue and earnings. While it’s not certain that fiscal performance will carry on in exceeding the market’s expectations, a spate of insider buying conducted late last year may suggest better results just around the corner.

Hemisphere Energy (HMENF)

Hemisphere Energy (OTCMKTS:HMENF) has surged from under $1 to over $1 per share over the past two months. Is it hope and hype, or something more substantive, that’s been driving this extended rally for shares in this Canada-based energy exploration company?

I would go with the latter. The steady run-up in the price of HMENF stock comes on the heels of a corporate update released by the company on Jan. 25. This update combined many positive announcements. These included news of record energy production during the preceding quarter, promising guidance for 2024.

In the update, Hemisphere also noted that it plans to continue with its aggressive return-of-capital (buyback and dividend) policy.

In light of the latest developments, HMENF’s high forward dividend yield (6%), as well as its low valuation (5.4 times forward earnings), consider it a strong contender for best $1 stock to buy status this month.

Innovative Food Holdings (IVFH)

I wrote about Innovative Food Holdings (OTCMKTS:IVFH) earlier this week, but I must again point it out as a strong opportunity for risk-hungry investors. No, not simply because IVFH trades near $1 per share (fitting for any discussion about the best $1 stock to buy).

Rather, as argued previously, IVFH stock has massive upside potential, thanks to a sweeping restructuring plan being implemented at present by the management of this specialty foods purveyor.

Innovative Food Holdings’ moves to divest its direct-to-consumer business will remove what has been an unprofitable unit for the overall company.

This divestiture is also freeing up capital. Namely, through the sale of company-owned real estate. Per one commentator, this restructuring, plus other efforts by current management to grow Innovative’s commercial food wholesaling segment, could lead to significant long-term upside. This comes even as shares have nearly tripled in price over the past year.

On the date of publication, Thomas Niel did not hold (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.