For the extreme gambler who has done homework regarding risk and rewards, few thrills excite as much as cheap stocks to buy under $1. By logical deduction, of course, we’re talking about penny stocks. Psychologically, this highly speculative category is extraordinarily compelling. For a small cash outlay, one could pick up thousands upon thousands of shares.
From a technical standpoint, though, the appeal of extremely cheap stocks centers on leverage. Again, with just a small amount of capital invested, those greenbacks can potentially yield tremendous returns. Basically, participants in this wild arena benefit from amplification. Still, you’ve got to consider the side effect: your losses would likewise be amplified.
Another factor that aids stocks under $1 is extreme beta or volatility. Typically, in the “normal” equities sector, volatility is something to be avoided. However, in the sub-dollar menu, this unpredictable dynamic can possibly lead to quick and dramatic returns.
Again, that also means the rug can be pulled violently beneath your feet. You’ve got to be cognizant of the extreme risks involved. However, if you can handle that, these are the cheap stocks under $1 to maybe consider if you get the A-OK from your significant other.
Comscore (SCOR)
We’re going to dive right into the deep end with extremely cheap stocks with Comscore (NASDAQ:SCOR). A global media measurement and analytics firm, Comscore provides marketing data and analytics to enterprise-level clients. These include media and advertising agencies, as well as brand marketers and publishers. While relevant based on the digital content ecosystem, SCOR is profoundly risky.
Currently, shares trade hands at 65 cents a pop. Also, since the beginning of the year, SCOR plunged almost 46%. It’s carrying a market capitalization of $61.4 million, just a bit above the nano-cap threshold. So, why bother with SCOR? On a technical view, it may have hit a bottom. In the trailing five sessions, the stock gained over 20%.
Another factor is that since suffering a revenue plunge in 2020, Comscore has been steadily expanding its top line. In addition, the company was free cash flow (FCF) positive last year and on a trailing-12-month basis.
Lastly, analysts rate SCOR a moderate buy with a $1.50 price target, projecting almost 133% upside.
Vizsla Silver (VZLA)
An odd name for a natural resource enterprise, Vizsla Silver (NYSEAMERICAN:VZLA) focuses on silver and gold projects located in Sinaloa, Mexico. I say the name is odd because Vizsla is a Hungarian dog breed. It’s like naming a company Golden Retriever Miners or Labrador Lithium. Aside from the unorthodox brand name, Vizsla compels because of the relevance of the underlying metal.
True, the Federal Reserve’s hawkish monetary policy doesn’t help lift commodity pricing. And to be sure, VZLA lost 17% of equity value since the January opener. Still, as far as cheap stocks under $1 are concerned, that’s not a bad loss; more like getting blood drawn for lab tests as opposed to a severe laceration.
On the fundamental side, silver represents a vital commodity for electric vehicles due to its conductivity. Further, silver finds use in myriad other applications, both innovative and traditional. Plus, on the financial realm, Vizsla benefits from a zero-debt profile.
Interestingly, analysts peg VZLA a unanimous strong buy with a $2.36 target, implying over 143% growth.
Clearside Biomedical (CLSD)
One of the volatile enterprises that command the remote possibility of extraordinary gains in exchange for the probability of steep losses, Clearside Biomedical (NASDAQ:CLSD) may nevertheless tempt speculators. Based in Georgia, Clearside specializes in the treatment of retinal disease. Per its website, the biotechnology firm offers the first and only approved therapeutic by the US Food and Drug Administration (FDA) to utilize suprachoroidal administration.
Under this novel approach, Clearside injects therapeutics at the location of many irreversible and debilitating ocular conditions; that is, in the back of the eye. By administering drugs at the site of disease, the biotech aims for superior patient outcomes. Given the radical forward implications, CLSD is one of the cheap stocks under $1 to put on your watch list.
Now, whether you want to move from watching to buying is up to you. Since the January opener, shares slipped almost 39%. On the plus side, analysts rate shares a unanimous strong buy with a $5.50 target, implying over 633% upside.
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.