Best penny stocks to invest in

Screening Filters

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.