I’m about to drop a truth bomb about speculative stocks under $1.
Back when I was a freshman in college, the on-campus security officer had this to say: “Tijuana? You don’t wanna.” Subsequently, the crowd erupted in laughter but the officer got his point across. Yes, Tijuana is an exciting and vibrant city, no doubt about it. However, people – especially young underage college students – can get carried away.
That’s the reality behind speculative stocks under $1. It’s like Tijuana, where the same restrictions you might find in the U.S. (for your own protection) might not be so prevalent south of the border. So, if you’re going to speculate, speculate responsibly.
That’s all. Here are some speculative stocks under $1 to mull over.
Akoutsis Technologies (AKTS)
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Based in North Carolina, Akoustis Technologies (NASDAQ:AKTS) is a specialist in the radio frequency (RF) industry. Fundamentally, RF technology plays a critical role in protecting information and assets across wireless device networks. In terms of applications, industry products are used in GPS trackers, weather forecasting, satellite communications, and more. If you think this space is relevant, it is.
Even better, Akoustis has been a revenue monster. For example, the company posts a three-year revenue growth rate of 100.3%. Of course, such a top-line performance won’t last indefinitely. Nevertheless, analysts project that by the end of this year, Akoustis will generate sales of $32.86 billion. If so, that would translate to growth of 21.2% from last year’s tally.
What’s more, in 2025, the company may post revenue of $53.62 million. In that case, growth would soar to 63.2% from 2024’s projected sales.
Of course, nothing’s for free on Wall Street. You want to play? AKTS is highly risky, losing 26% year-to-date. Still, analysts rate shares a moderate buy with a $1 price target. That makes it one of the speculative stocks under $1.
Vertical Aerospace (EVTL)
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Electric vertical takeoff and landing (eVTOL) aircraft seem to be all the rage these days and Vertical Aerospace (NYSE:EVTL) wants a piece of the pie. Per its website, Vertical is pioneering electric aviation through its VX4 aircraft. It boasts a cruising speed of 150 miles per hour and a range of 100 miles. For environmentalists, the VX4 carries the advantage of zero emissions.
Although it’s an intriguing idea for speculative stocks under $1, that’s what it largely is: an idea. Looking at its financials, the company does not generate revenue. Other states don’t seem particularly encouraging. For example, it sees a three-year EBITDA growth rate of 88.7% below breakeven. However, on the positive side, Vertical enjoys a cash-to-debt ratio of 26.69X.
Will that be enough to keep EVTL stock a float? That’s a major question mark. Over the past 52 weeks, EVTL lost more than 64% of equity value. On the “positive” side, shares trade hands at 68 cents. That’s much closer to the 52-week low of 50.8 cents than it is to the 52-week high of $2.35. It’s possible, then, that EVTL could bounce higher.
Emcore (EMKR)
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An aerospace and defense specialist, Emcore (NASDAQ:EMKR) represents one of the speculative stocks under $1 that I’ve discussed previously. As a market wager, it could be intriguing for its focus on autonomous platforms. Specifically, drone warfare has become one of the most pivotal developments in modern warfare. Moving forward, more conflicts may see the increased deployment of unmanned aerial vehicles.
Of course, control such vehicles effectively will be key. And that cynically could see Emcore rise far higher from its current position. Further, analysts believe the company has the goods to back up its potential. By the end of 2024, they anticipate that revenue will reach $101.6 million. That would be up 4% from last year’s tally of $97.72 million.
Looking out to 2025, they anticipate revenue to hit $114.66 million. If so, that’s almost a 13% lift from projected 2024 sales.
Is it risky? Absolutely – we’re talking about an enterprise with a market capitalization of only $32.64 million. However, analysts rate shares a unanimous strong buy with a $1.18 price target, up over 179%.
Northern Dynasty Minerals (NAK)
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A metals and mining exploration firm, Northern Dynasty Minerals (NYSEAMERICAN:NAK) focuses on what its website calls the world-class Pebble Project in Alaska. Further, the company claims that it’s the world’s most significant undeveloped copper and gold resource. Therefore, if Northern Dynasty can live up to its potential, NAK could easily be one of the top speculative stocks under $1.
To be sure, as an exploration firm, the company doesn’t generate any revenue. Further, in 2022, its free cash flow landed at $18 million below breakeven. On a trailing-12-month (TTM) basis, the cash burn came out to $17 million. It’s something to keep in mind – we’re dealing more with narratives here rather than fiscal substance.
Still, on the plus side, the company features a decently stable balance sheet. In addition, the pricing profile may be compelling to market gamblers. Presently priced at 26 cents, NAK’s 52-week low sits at 21 cents whereas the 52-week high lands at 43 cents. Therefore, it could be a relative bargain.
H.C. Wainwright’s Heiko Ihle is the sole analyst covering NAK stock with a “buy” rating. As well, the expert sees a 90-cent target, implying nearly 244% upside potential.
Outlook Therapeutics (OTLK)
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A pre-commercial biotechnology enterprise, Outlook Therapeutics (NASDAQ:OTLK) is dedicated to developing therapies for the preservation of vision. Specifically, the company is working to develop and launch the first ophthalmic formulation approved by the Food and Drug Administration (FDA) of bevacizumab for use in retinal indications. Its main disease focus centers on the treatment of wet age-related macular degeneration (wet AMD), diabetic macular edema (DME) and branch retinal vein occlusion (BRVO).
To be sure, undersized biotech names represent one of the most volatile entities. Further, OTLK – as one of the speculative stocks under $1 – takes this unpredictable profile to the extreme. In the trailing one-year period, OTLK suffered a loss of 65%. Since its public market debut in 2016, Outlook lost almost 99%.
Still, there is some limited evidence that the biotech could be de-risked. In particular, analysts on average believe that in 2024, the company could finally print revenue again. The average sales expectation calls for $280,000 while the high-side estimate clocks in at $1.43 million. In 2025, the average forecast rises dramatically to $13.09 million.
On a very positive note, analysts rate shares a consensus strong buy with a $2.22 average price target.
Affimed (AFMD)
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Another intriguing but risky biotech enterprise, Affimed (NASDAQ:AFMD) claims it is devoted to pursuing the untapped potential of the innate immune system. In this way, the protocol gives patients the chance to fight cancer via a more robust approach. Specifically, Affimed seeks to unleash the power of natural killer (NK) cells and other immune cells directly against tumors, facilitating their destruction.
To be fair, the market has a mixed response to AFMD stock. Since the beginning of the year, shares gained more than 6% of equity value. However, in the trailing one-year period, they’re down over 26%. However, what’s really intriguing is that in the past month, AFMD soared more than 19%. Since November last year, the stock has been charting a series of higher lows.
Financially, analysts only expect 2023 revenue to land at $10.29 million, which would be down 77% from 2022’s result. Also, 2024 sales could fade to $6.35 million.
Nevertheless, Wall Street’s experts are encouraged at the market potential, pegging shares a buy with a $5 price target. If AFMD stock gets there, we’re talking about a return of over 647%.
Gevo (GEVO)
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When it comes to the speculative stocks under $1 on this list, Gevo (NASDAQ:GEVO) could be the riskiest. That’s saying something. Since the beginning of the year, GEVO stock dropped over 32% of market value. In the past 52 weeks, shares declined by 57%. We haven’t even begun to talk about what the business does and already, some of you may have lost your appetite.
However, this is where circumstances get intriguing for Gevo. Per its public profile, the company specializes in renewable chemicals and advanced biofuels. In particular, Gevo is pursuing a business model based on the circular economy; that is, it develops alternatives to petroleum-based products for sustainability purposes.
Analysts are surprisingly optimistic about the company’s prospects. For the fiscal year 2023, they anticipate that sales will land at $17.28 million, up substantially from the $1.18 million posted in 2022. Further, at the conclusion of 2024, the top line could hit $19.8 million. If so, that would be a 14.6% increase from 2023’s projected revenue.
Finally, the Street’s experts rate shares a consensus moderate buy with a $7.50 price target. That comes out to almost 846% upside potential.
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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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
