In this article, we discuss 12 NASDAQ penny stocks under 10 cents. If you want to see more stocks in this selection, check out 5 NASDAQ Penny Stocks Under 10 Cents.
According to Morgan Stanley, it is possible that stocks will see robust performance in the first half of this year, though the threat of a recession in the latter half cannot be disregarded. Investors should be on the lookout for value stock opportunities and those in the Asia ex-Japan region. Over the 12-month period following a midterm election year like 2022, the S&P 500 has historically seen an average increase of 33%. The trend has held true in every midterm election year thus far, suggesting a promising outlook for the current quarter. Additionally, economic indicators remain robust – such as GDP and employment rate – which means there will not be a collapse in first quarter earnings. The strong performance of financials, industrials, and materials sectors in recent months also suggests that a first quarter collapse in earnings may not occur, as prices of these cyclical stocks typically decrease before the economy weakens.
Emerging markets are believed to be in the early stages of outperforming due to the declining trend of the US dollar since September 2022. This has led to non-US markets performing better, with Asia ex-Japan leading the charge since October 2022, followed by Europe and Japan. These markets have also outperformed the US. Based on the trend of outperforming emerging markets, Asia ex-Japan, particularly China, is considered to be an attractive equity area for 2023.
On February 7, Fed Chair Jerome Powell stated that the process of disinflation has begun and that he anticipates significant decreases in inflation this year. These comments align with what he said after a recent policy-setting meeting, which many in the market expected him to retract. Powell’s comments at the Economic Club of Washington have boosted investor confidence in a possible easing of monetary tightening, even though he emphasized that returning inflation to the Fed’s 2% target will take time and will not be a smooth process. Rick Meckler, partner at Cherry Lane Investments in New Jersey, told Reuters:
“He seems to reiterate the fact that in his view inflation is cresting. That’s been the biggest fear for participants in the market: that with all the rate increases, that in the Fed’s view no real progress is being made against inflation. And he’s saying ‘no, it’s having its effect.'”
According to futures, the Federal Reserve’s overnight lending rate is expected to reach its peak of 5.12% in the summer and then decrease to 4.785% by December, due to the anticipation of Fed rate cuts as the economy slows down. Phil Orlando, the chief equity strategist at Federated Hermes in New York, has expressed concerns about the stock market due to a slowing economy, rising corporate expenses, and declining profit margins. He noted:
“The stock market is overvalued. The Street hasn’t quite figured that out in terms of what the implication is for the full year. You have the sword of Damocles hanging over the market’s head during a period seasonally where the market tends to struggle anyway.”
Despite a dire market outlook and anticipation for an improved future, the stock market will continue to make moves. Penny stocks are frequently ignored by investors who prefer blue chip stocks like Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG). However, investing in penny stocks, which are stocks that trade for less than $5 per share, has several advantages that make them an appealing option. The low stock price allows investors to buy more shares, which can enhance their potential gains. Additionally, penny stocks, due to their smaller market value and elevated risk, have the possibility of yielding much higher returns than blue chip stocks. Penny stocks are characterized by high volatility, resulting in rapid price changes within a short period. This feature presents both opportunities for substantial profits as well as significant losses. Although the investment in penny stocks comes with more risk, it offers the prospect of investing in companies with robust growth prospects and the chance for quick, substantial returns. Penny stocks also present investors with a distinct possibility to attain long-term gains not typically found in blue chip investments.
Our Methodology
We used a stock screener and filtered stocks listed on the NASDAQ exchange which were also priced under 10 cents on February 7. Then, we selected the 12 cheapest NASDAQ penny stocks for this list. We have arranged the list in ascending order of the share price.
NASDAQ Penny Stocks Under 10 Cents
12. Glory Star New Media Group Holdings Limited (NASDAQ:GSMGW)
Share Price as of February 7: $0.0060
Glory Star New Media Group Holdings Limited (NASDAQ:GSMGW) was founded in 2016 and is headquartered in Beijing, the People’s Republic of China. The company offers advertising and content creation services in China, and is involved in digital advertising on mobile and online platforms, as well as media and entertainment industries. Glory Star New Media Group Holdings Limited (NASDAQ:GSMGW) also runs the CHEERS app, which provides access to e-commerce stores, live streaming, television shows, online games, short videos, variety shows, and dramas.
In addition to Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), Glory Star New Media Group Holdings Limited (NASDAQ:GSMGW) is one of the best ways to navigate the uncertain stock market.
11. Semper Paratus Acquisition Corporation (NASDAQ:LGSTW)
Share Price as of February 7: $0.0345
Semper Paratus Acquisition Corporation (NASDAQ:LGSTW) is a blank check company established to engage in a business combination such as a merger, share exchange, asset acquisition, share purchase, recapitalization, or reorganization with one or more businesses or entities. It has not yet identified a specific target and has not engaged in any meaningful discussions with potential targets. Its focus is on acquiring companies in the transportation, supply chain, and logistics sector. Semper Paratus Acquisition Corporation (NASDAQ:LGSTW) has no operations or revenue as of yet. The company was incorporated in 2021 and is based in New York. It is one of the best penny stocks to invest in.
10. Intelligent Medicine Acquisition Corp. (NASDAQ:IQMDW)
Share Price as of February 7: $0.0354
Intelligent Medicine Acquisition Corp. (NASDAQ:IQMDW) is a special purpose acquisition company, also known as a blank check company. Its main purpose is to search for a target company in the life sciences field that uses artificial intelligence, machine learning, and big data for drug discovery through research and development. The company plans to achieve this through a merger, acquisition, stock exchange, or similar business combination. Currently, Intelligent Medicine Acquisition Corp. (NASDAQ:IQMDW) is not involved in any business operations and has not generated any revenue. It is one of the best NASDAQ penny stocks to consider.
9. AlphaTime Acquisition Corp (NASDAQ:ATMCW)
Share Price as of February 7: $0.0500
AlphaTime Acquisition Corp (NASDAQ:ATMCW) is a special purpose acquisition company formed for the purpose of acquiring or merging with one or more businesses. The company intends to accomplish this through a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination. AlphaTime Acquisition Corp (NASDAQ:ATMCW) was established in 2021 and is located in New York. Priced at $0.05, it is one of the NASDAQ stocks priced under 10 cents.
8. Accretion Acquisition Corp. (NASDAQ:ENERW)
Share Price as of February 7: $0.0500
Accretion Acquisition Corp. (NASDAQ:ENERW) is a special purpose acquisition company that has not identified any specific target for a business combination and has not started any substantive discussions with any potential targets. The company plans to focus its search for a target business in the energy industry, including upstream, water management, gas and vapor capture, energy transition related systems, midstream, oil and gas-related software, commodity risk management, and oil and gas services. Accretion Acquisition Corp has not yet started any operations or generated any revenue. The company was incorporated in 2021 and is based in Denver, Colorado.
7. SpringBig Holdings, Inc. (NASDAQ:SBIGW)
Share Price as of February 7: $0.0547
SpringBig Holdings, Inc. (NASDAQ:SBIGW) is a software company that provides customer loyalty and marketing automation solutions to cannabis retailers and brands in the US and Canada. Its platform connects consumers with retailers and brands through SMS, email, feedback system, and loyalty programs to enhance customer engagement and retention. It offers marketing automation solutions for consistent customer communication and reporting and analytics to help clients understand their customer base and purchasing habits. In the second quarter of 2022, SpringBig Holdings, Inc. (NASDAQ:SBIGW) added 509 new retail locations, bringing its total store count to more than 2,800. It is one of the top NASDAQ penny stocks to monitor.
6. Dave Inc. (NASDAQ:DAVEW)
Share Price as of February 7: $0.0552
Dave Inc. (NASDAQ:DAVEW) is a financial service company that provides financial products and services through its online platform. The company offers a personal financial management tool (Insights), an alternative to overdrafts and short-term credit (Extra Cash), a job application portal (Side Hustle), and a digital checking account (Dave Banking). The company was founded in 2015 and is headquartered in West Hollywood, California.
In addition to Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), investors can hold stocks like Dave Inc. (NASDAQ:DAVEW) for a diversified portfolio.
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Disclosure: None. 12 NASDAQ Penny Stocks Under 10 Cents is originally published on Insider Monkey.