search icon

    Market Snapshot

    blog search icon

    Five Best Stocks under $2 to Watch in 2022

    By Ali Hassan

    Apr 14,2022

    2:28 AM UTC

    Stocks under $2 are a great way to begin your investing journey in the stock market. Penny stocks are often risky but the chance of making larger profits is equally high. Since volatility is more frequent than higher-priced is a good rule of thumb to look for stocks that offer at least 50% upside potential. For instance, if you invest $100 into two companies and each company grows at 15% per year, you will have a total return of 300% in five years. Thus, a stock under $2 can be a great way to invest, especially when looking for long-term trends.

    Most people never take the time to research a stock before they purchase it, and they usually buy stocks based on what friends or family members tell them to do. That might lead to huge losses. We’ve covered things for you and compiled the five best penny stocks under $2 to buy in 2022.
    [optin-monster-inline slug=”zm3dhqtrewum83ga4kr4″]

    ReWalk Robotics (RWLK)

    ReWalk Robotics (RWLK) is the world’s leading innovator in exoskeletons for people with lower limb disabilities. The company produces and markets robotic products to rehabilitation centers, clinics, and home users – including the ReWalk Personal System.

    RWLK stock trades around its 52-week lows and is in a great upside position. ReWalk is a high undervalued stock under $2 based on its functions and how it will capture the market in the next few years.

    The company has developed a “robotic exoskeleton,” known as ReWalk. That allows people “with spinal cord injury to stand upright, walk, turn, and climb and descend stairs. Importantly, the company reported recently that the device had obtained “breakthrough status” by the FDA.

    ReWalk has also developed ReStore, a powered, lightweight soft exo-suit. ReStore helps in the rehabilitation of individuals with lower limb disabilities due to stroke. That product was approved by the FDA in 2019.

    ReWalk has reported unimpressive revenues so far. With ReWalk product getting a breakthrough device designation, we’ll see an increase in sales.

    In Germany, insurers that have a total of 25 million clients have agreed to cover ReWalk. While nearly every German worker who has “work-related injuries” is eligible to receive the device.

    Given the company’s tremendous opportunities and its current market capitalization of just under $80 million, shares of RWLK can be considered the best stocks under $2.

    eMagin Corporation (EMAN)

    eMagin (EMAN) is one of the leading OLED developers in the world. The company develops microdisplays for high-resolution, AR/VR, and other near-eye imaging products.

    The company recently announced that it had developed the world’s brightest high-resolution, full-color OLED microdisplay. Displays are the key enabling component for both AR and VR. eMagin’s new full-color OLED prototype will be sought by consumer, industrial, medical and military customers for the next generation of AR/VR headsets and devices. This is a historic moment for the industry and is eMagin’s greatest achievement to date in advancing its proprietary dPd technology.

    According to DSCC, a research firm that specializes in the display market, eMagin’s new, improved microdisplay should interest consumer, industrial, medical and military customers. Given the increasing popularity of metaverse and AR and VR systems, that sounds like a very large addressable market for the company.

    Moreover, providing some validation for eMagin’s technology, the company recently put the finishing touches on a $33.6 million deal with the Pentagon. Under the agreement, eMagin will provide the military with high-resolution, high-brightness OLED microdisplays.

    EMAN stock is changing hands for 5.5 times analysts’ average 2022 revenue estimate for the company. eMagin has a competitive advantage in microdisplays. Given the rapid growth and huge potential of the AR/VR market, EMAN stock can be considered to invest while looking at the best stocks under $2.

    Globalstar Inc. (GSAT)

    Globalstar (GSAT) has been a leader in the satellite voice and data communications service industry for over 25 years. It has been a pioneer in developing a breakthrough system that provides a global network consisting of 66 low-Earth orbiting satellites. In 2001, GSAT became one of the first companies to launch a satellite phone service with permanent Earth coverage.

    With the ever-increasing use of mobile devices, the need for global satellite communication has never been greater.

    GSAT was just one of many penny stocks under $2 that made some wild moves in 2021. Thanks to speculative frenzy. Specifically, this satellite communications play has spiked and sunk thanks to rumors of Apple signing on as a customer to give iPhones satellite connectivity.

    Unfortunately, at the moment, we do not see an Apple partnership anytime soon. The verdict on that rumor is pretty much in at this point. However, the tremendous upside for GSAT stock could arise due to factors independent of any sort of possible partnership with the FAANG component.

    Globalstar could go parabolic if it manages to lock down a connectivity deal with another big-ticket end user. Given the continued high growth of the internet of things industry, demand is only going to get stronger for satellite communications services.

    Considering how much C-band spectrum it owns, Globalstar can take on much more business than it generates today. That is around $123 million in annual sales. A quarter or two of bad results could sink shares to sub-$1 levels. Yet, with its high leverage serving as a double-edged sword, a major deal would likely result in another round of epic moves for GSAT stock.

    Sesen Bio (SESN)

    Sesen Bio (SESN) is a cancer therapeutic that designs and develops targeted fusion protein therapeutics for patients. SESN stock has hit its near all-time lows after dropping from $6 in August 2021. It has been quite a sell-off.

    If you’re looking for stocks under $2 with 10x potential, biotechnology is a great place to search. It’s not definite that SESN stock has what it takes to raise 1000% in 2022. But, given the degree to which this biotech play has been beaten down this year. As well as the fact it’s not “game over” just yet for its flagship drug candidate? A big recovery for Sesen Bio may be possible.

    Well, the stock surged earlier this year in hopes that its bladder cancer treatment could get U.S. Food and Drug Administration approval. Unfortunately, that didn’t happen. Instead, the drug was flat-out rejected in August.

    Because of that, SESN stock collapsed in price. Trading for as much as $6.04 right before the announcement, shares fell over 50% on that day alone and fell further the following day. By October, shares neared the 52-week low of 70 cents.

    That said, things are now looking brighter for this risky clinical-stage company. Announcing that it had a meeting with the FDA in December 2021. The company has anticipated a regulatory path forward for Vicineum. Vicineum is being developed for the treatment of BCG-unresponsive non-muscle invasive bladder cancer. There is a bit of hope for the biotech. As such, ahead of it making more progress, you may want to buy SESN stock. However, keep in mind that it’s still a very risky play.

    Sundial Growers (SNDL)

    Sundial Growers (SNDL) is a Canadian company that primarily sells cannabis products for recreational use. The Canadian cannabis and liquor company is infamous for its extreme dilution of stock by over 19-fold to fund its operations and expansions.

    Historically, the company has not been EBITDA profitable due to intense competition in Canada. However, things are expected to turn around soon. With massive cash and equivalents, the company managed to achieve acquisitions and pay off most of its long-term debts in 2021.

    In 2021, SNDL acquired multiple liquor and cannabis companies while also offering loans to other cannabis producers, such as Zenabis Global and Indiva. The company pursued these strategic expansions following its massive cash flow from the extreme dilution of stock in 2021.

    Traders got ahead of themselves last winter, bidding up SNDL stock due to its appeal as a pot legalization play. If U.S. federal cannabis legalization finally happens next year, Cannabis stocks will skyrocket and so will SNDL fall in the list of best stocks under $2.

    Although the market isn’t confident in that happening with signs it’s becoming a bi-partisan issue. Still, the legalization could come about much sooner than expected. But better yet, big gains could happen even without legalization progress in the near future.

    More From Stocks telegraph