Screening Filters
Price: 0.50 – 5.00 USD
- Purpose: Capture “penny stocks” while avoiding ultra-low, highly illiquid names.
- Rationale:
- In the U.S., penny stocks are commonly defined as trading under $5, so the max at $5 aligns with that.
- The minimum at $0.50 excludes the most speculative sub-penny or micro-priced stocks, which often have extreme volatility, poor liquidity, and higher manipulation risk. This keeps the list more investable while still firmly within the penny-stock universe.
Monthly Average Dollar Volume: ≥ $500,000
- Purpose: Ensure sufficient liquidity so positions can be entered and exited without excessive slippage.
- Rationale:
- “Best to invest in” implies stocks you can realistically trade.
- A minimum $500k traded per month filters out thinly traded stocks where it’s hard to buy/sell without moving the price or getting stuck in a position.
- Higher dollar volume generally indicates more active market interest and tighter bid–ask spreads.
1-Month Price Change %: ≥ +15%
- Purpose: Focus on penny stocks that have recently shown positive momentum.
- Rationale:
- A minimum 15% price increase over the last month flags stocks that are already attracting buyers and positive sentiment.
- For many investors, “best” penny stocks are those currently gaining traction rather than ones in persistent downtrends.
- Momentum can (though not always) reflect improving fundamentals, news, or institutional interest.
List Exchange: XNYS (NYSE), XNAS (NASDAQ), XASE (AMEX)
- Purpose: Restrict to major U.S. exchanges rather than OTC markets.
- Rationale:
- The user asked for “within the US stock market,” and these are the primary U.S. exchanges.
- Listing standards on NYSE, NASDAQ, and AMEX are generally stricter than OTC or pink sheets, which often have less transparency and higher fraud risk.
- This makes the resulting penny stock list relatively higher quality and more regulated.
Region: United States
- Purpose: Ensure companies are U.S.-listed and associated with the U.S. market.
- Rationale:
- Directly matches “within the US stock market.”
- Excludes foreign markets and ADRs where different regulations, reporting standards, and currency risks might apply.
Revenue (TTM): ≥ $10,000,000
- Purpose: Filter for companies with a minimum level of real, ongoing business activity.
- Rationale:
- Many penny stocks have little or no revenue and may be more like shell or story stocks.
- A $10M trailing-12-month revenue minimum screens out the most speculative companies that haven’t yet demonstrated meaningful commercial traction.
- This aligns “best to invest in” with businesses that are at least generating revenue, not just concepts.
Quarter Revenue YoY Growth: ≥ 0.01% (positive growth)
- Purpose: Highlight companies that are growing rather than shrinking.
- Rationale:
- Requiring positive year-over-year revenue growth for the latest quarter focuses on businesses that are moving in the right direction, at least on the top line.
- For penny stocks, even modest growth can be a positive sign, distinguishing them from stagnant or declining companies.
- Growth is a key factor many investors look for when deciding which penny stocks might have better long-term potential.
Why Results Match the User’s Request
- The price range (under $5) directly targets U.S. penny stocks as commonly defined.
- The exchange and region filters ensure you’re only seeing U.S.-listed names on major, regulated exchanges, matching “within the US stock market.”
- The liquidity filter (dollar volume) makes the list more practical for real investing, not just theoretical picks.
- The revenue and revenue growth filters tilt the screen toward companies with actual operations and improving fundamentals, supporting the idea of “best” rather than just “cheapest” penny stocks.
- The positive 1-month performance filter adds a momentum and market-interest component, highlighting names that the market is already rewarding.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.