In this article, we will discuss the 11 best penny stocks trending on Robinhood. If you want to explore similar stocks, you can also take a look at 5 Popular Penny Stocks On Robinhood.
There are various reasons why an investor might want to invest in penny stocks. Apart from being easy on the pockets, penny stocks tend to be overlooked by the market and investors can unlock value by finding companies with solid fundamentals and robust product pipelines. No investment comes without some degree of risk, and penny stocks are often riskier than mature and established businesses. One should remember that volatility goes both ways. For investors that have the temperament for risk-taking, penny stocks can offer incredible returns and be some of the highest-returning components of their portfolios. For every successful penny stock investment, there are many more that fail. However, the potential rewards of investing in penny stocks are attractive and they can offer investors the chance to make large profits in a short period of time. Finally, some investors simply enjoy the challenge of finding and investing in penny stocks. These investors may find the process of research and analysis to be enjoyable and may view their investments as a way to "beat the market".
Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services company that pioneered the commission-free trading of stocks, exchange-traded funds, and cryptocurrencies. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the most popular apps used by retail investors and traders. The company was founded in 2013 and its mobile app was launched in March of 2015. As of 2022, Robinhood Markets, Inc. (NASDAQ:HOOD) has more than 15 million monthly active users. In this article, we will discuss in detail some of the best penny stocks that Robinhood investors are buying right now.
While penny stocks may be a good way to get started with investing and experimenting in the stock market, some investors simply do not have the stomach for the high degree of risk that comes with investing in these securities. For investors that want to play it safe, blue chip stocks are the best option. Some of the top blue chip stocks to own for the long term include Microsoft Corporation (NASDAQ:MSFT), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
Photo by Chris Liverani on Unsplash
Our Methodology
To determine the best penny stocks to buy on Robinhood, we scoured the Robinhood app, Robinhood forums on Reddit including r/RobinHoodPennyStocks and r/RobinHoodand looked at what retail investors are currently watching. We narrowed down our selection to stocks that had bullish calls associated with them and had positive market sentiment. Along with each stock, we have included the hedge fund sentiment, analyst ratings, and salient features that make them good investment options. These stocks are ranked according to their popularity among elite hedge funds.
11. Sayona Mining Limited (OTC:SYAXF)
Share Price as of October 27: $0.17
Number of Hedge Fund Holders: N/A
Sayona Mining Limited (OTC:SYAXF) is a Canadian mining company focused on sourcing and developing the highest-grade lithium deposits in the world. The company also explores graphite and gold deposits. Sayona Mining Limited (OTC:SYAXF) has a large portfolio of prospective lithium projects in Australia and Canada and is expected to benefit from the growing global demand for battery-grade lithium. The stock is ranked among the best penny stocks to buy now.
Sayona Mining Limited (OTC:SYAXF) is experiencing high levels of activity on Wall Street. As of October 27, the stock has a 3-month average trading volume of 1.32 million and has gained 89% year to date. The company has also come to the attention of Wall Street analysts and, on October 17, Canaccord analyst Reg Spencer took coverage of Sayona Mining Limited (OTC:SYAXF) with a Hold rating and an A$0.21 price target.
10. Jupiter Wellness, Inc. (NASDAQ:JUPW)
Share Price as of October 27: $0.93
Number of Hedge Fund Holders: N/A
Jupiter Wellness, Inc. (NASDAQ:JUPW) develops CBD-based medical therapeutics. The company has a strong portfolio of health & wellness products and a growing customer base. The company's products are backed by clinical research and development. Jupiter Wellness, Inc. (NASDAQ:JUPW) has a growing global footprint and is well-positioned to capitalize on the global trends in health & wellness. On October 6, Jupiter Wellness, Inc. (NASDAQ:JUPW) announced that it has commenced a triple-blinded clinical study for a possible treatment for tinnitus. The stock is one of the best penny stocks to buy now according to investors on Robinhood.
While Jupiter Wellness, Inc. (NASDAQ:JUPW) has the potential to capture further market share, its shares have been on a wild ride in 2022. For investors with low risk tolerance, some of the top stocks to own include Microsoft Corporation (NASDAQ:MSFT), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
9. Mullen Automotive, Inc. (NASDAQ:MULN)
Share Price as of October 27: $0.55
Number of Hedge Fund Holders: 2
Mullen Automotive, Inc. (NASDAQ:MULN) is an American electric vehicle company that manufactures and distributes electric vehicles. The company also operates a digital platform known as CarHub which facilitates the buying and selling of cars using artificial intelligence. Moreover, the company offers battery technology solutions. Mullen Automotive, Inc. (NASDAQ:MULN) has a secular growth story and is well-positioned to benefit from the speedy transition to electric vehicles. The stock ranks among the best penny stocks to buy now.
On October 19, Mullen Automotive, Inc. (NASDAQ:MULN) announced that it has acquired a bankrupt EV company, Electric Last Mile Solutions. Mullen Automotive, Inc. (NASDAQ:MULN) now owns the company's manufacturing plant, inventory, and intellectual property. With the acquisition of ELMS' manufacturing plant, Mullen Automotive, Inc. (NASDAQ:MULN) will be able to produce over 50,000 vehicles per year.
At the end of Q2 2022, 2 hedge funds were long Mullen Automotive, Inc. (NASDAQ:MULN) and held stakes of $121,000 in the company.
8. Pineapple Energy Inc. (NASDAQ:PEGY)
Share Price as of October 27: $3.76
Number of Hedge Fund Holders: 3
Pineapple Energy Inc. (NASDAQ:PEGY) is a renewable energy company that provides photovoltaic solar energy systems to residential homeowners in the United States. The company is well-positioned to benefit from the growing demand for renewable energy in the United States and is one of the best penny stocks that are attracting the attention of Robinhood investors. As of October 27, Pineapple Energy Inc. (NASDAQ:PEGY) has a 3-month average trading volume of over 6.6 million and has gained 19% over the past six months.
At the close of Q2 2022, 3 hedge funds held stakes in Pineapple Energy Inc. (NASDAQ:PEGY). The total value of these stakes amounted to $792,000. This is compared to 1 hedge fund in the previous quarter with stakes worth $892,000.
7. CleanSpark, Inc. (NASDAQ:CLSK)
Share Price as of October 27: $3.71
Number of Hedge Fund Holders: 5
CleanSpark, Inc. (NASDAQ:CLSK) is a technology company that provides advanced energy software and bitcoin mining solutions. The company's software allows customers to optimize energy use and control their energy costs. On October 25, CleanSpark, Inc. (NASDAQ:CLSK) announced that its bitcoin mining hash rate topped 5 EH/s, up 150% since January 2022. The company revised its year-end guidance to 5.5 EH/s and also said that it aims to meet its 2023 year-end guidance of 22.4 EH/s, which would make it rank among the world's largest public bitcoin mining companies.
CleanSpark, Inc. (NASDAQ:CLSK) is gaining popularity among Robinhood investors and is one of the best penny stocks to buy now. As of October 27, the stock has a 3-month average trading volume of over 2.6 million. Over the past 3 months, two Wall Street analysts have given Buy ratings on CleanSpark, Inc. (NASDAQ:CLSK). The stock has an average price target of $10.5, which implies an upside of 188% from current levels.
At the end of Q2 2022, 5 hedge funds were eager on CleanSpark, Inc. (NASDAQ:CLSK) and held stakes worth $3.4 million in the company. Of those, Intrinsic Edge Capital was the top shareholder and disclosed stakes of $1.68 million in the company.
6. PDS Biotechnology Corporation (NASDAQ:PDSB)
Share Price as of October 27: $5.10
Number of Hedge Fund Holders: 6
PDS Biotechnology Corporation (NASDAQ:PDSB) is a clinical-stage immunotherapy company. The company is involved in developing and commercializing its proprietary immunotherapy and drug delivery platform technologies for the treatment of cancer. The stock has come to the attention of Robinhood investors and is ranked high among the best penny stocks to buy now. The stock has a 3-month average trading volume of over 250,000.
Over the past 3 months, PDS Biotechnology Corporation (NASDAQ:PDSB) has received 5 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock's average price target sits at $18 and represents an upside of 252% from current levels.
At the close of Q2 2022, 6 hedge funds disclosed ownership of stakes in PDS Biotechnology Corporation (NASDAQ:PDSB). These funds held collective stakes of $4.4 million in the company. As of June 30, Two Sigma Advisors is the most prominent shareholder in PDS Biotechnology Corporation (NASDAQ:PDSB) and has stakes worth $1.98 million in the company.
While PDS Biotechnology Corporation (NASDAQ:PDSB) has a long way to go and may experience excessive volatility, for investors that want to park cash in stable and less volatile stocks, some of the best options are Microsoft Corporation (NASDAQ:MSFT), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
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Disclosure: None. 11 Popular Penny Stocks On Robinhoodis originally published on Insider Monkey.
As someone deeply immersed in the world of stock market investing, particularly in penny stocks, I've delved into the intricate dynamics of market trends, investor sentiments, and financial analyses. The article you provided discusses the allure of penny stocks, emphasizing their potential for high returns alongside their inherent risks. It also highlights the methodology used to select the 11 best penny stocks trending on Robinhood, leveraging insights from various sources including the Robinhood app itself and forums like Reddit's r/RobinHoodPennyStocks.
Let's break down the key concepts and companies mentioned in the article:
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Robinhood Markets, Inc. (NASDAQ: HOOD): This company pioneered commission-free trading and has become immensely popular among retail investors. Its platform facilitates trading of stocks, ETFs, and cryptocurrencies.
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Sayona Mining Limited (OTC: SYAXF): A Canadian mining company focused on lithium, graphite, and gold deposits. It has projects in Australia and Canada, positioned to benefit from the increasing demand for battery-grade lithium.
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Jupiter Wellness, Inc. (NASDAQ: JUPW): This company develops CBD-based medical therapeutics and recently announced a clinical study for a possible treatment for tinnitus.
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Mullen Automotive, Inc. (NASDAQ: MULN): An American electric vehicle company with a digital platform for buying and selling cars, along with battery technology solutions. It recently acquired Electric Last Mile Solutions, enhancing its manufacturing capabilities.
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Pineapple Energy Inc. (NASDAQ: PEGY): A renewable energy company providing solar energy systems to residential homeowners in the US.
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CleanSpark, Inc. (NASDAQ: CLSK): A technology company offering advanced energy software and bitcoin mining solutions. It aims to become one of the world's largest public bitcoin mining companies.
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PDS Biotechnology Corporation (NASDAQ: PDSB): A clinical-stage immunotherapy company focused on developing treatments for cancer using proprietary technologies.
These companies span various sectors including mining, healthcare, automotive, renewable energy, technology, and biotechnology. Each has its unique value proposition and growth potential, making them attractive to investors seeking opportunities in penny stocks. However, it's crucial for investors to conduct thorough research and understand the associated risks before diving into penny stock investments.
