With big stocks running high and many investors looking for affordable alternatives, penny stocks are once again in the spotlight. These low-priced shares can offer explosive upside, but they also carry major risk.
In this article, we'll walk you through how to pick penny stocks to buy now, what criteria to use, the warning signs to watch out for, and we'll spotlight penny stocks currently catching attention in November 2025.
What Are Penny Stocks?
Penny stocks are stocks that trade below $5 per share and often belong to small or micro‐cap companies listed on over-the-counter (OTC) markets or smaller exchanges. The U.S. Securities and Exchange Commission (SEC) defines "microcap" stocks in many cases as those with market caps under $250 million.
Because of their low price, penny stocks attract interest from traders looking for big gains. But remember: low price doesn't mean "safe" or "cheap asset." Often the opposite.
Criteria for Choosing Penny Stocks to Buy Now
When scanning for penny stocks with genuine potential, consider the following screening criteria:
Rising Trading Volume
A recent surge in volume is a signal that the company is progressive and garnering market interest.
Recent Catalyst or News Event
Look out for recent reports from earnings beats, new contracts, regulatory approvals, or sector tailwinds. These act as a catalyst to determine if a penny stock is worth the hassle. Also note, while news can quickly drive a stock up, negative updates can just as easily trigger steep declines.
Reasonable Financials
Do not make the mistake of investing in penny stocks that are not transparent with their financials or have a dwindling financial report. Penny stocks benefit if the business shows signs of progress all around, especially in their financials.
Liquidity and Market Access
You want a stock you can buy and sell, so avoid ultra-thin OTC shares with no market.
Avoid Obvious Hype Traps
Do not fall for hype and promotions; rather, do a thorough analysis; many penny stocks are pump‐and‐dump targets. You can check out platforms like Marketbeat, Tipranks, etc, for information before adding a penny stock to your portfolio.
Read More: 50+ Day Trading Terms Every Trader Should Know (Beginner-Friendly Guide)
Penny Stocks to Buy Now
While this is not financial advice, and we advise you to do your due diligence before investing, here are penny stocks worth watching out for this month.
Cambium Networks (CMBM)
Cambium Networks is a U.S.-based manufacturer of wireless telecommunications equipment, specializing in fixed wireless broadband, enterprise WiFi, network switches, and IT solutions. With operations extending to the U.K. and India, the company has been drawing attention lately for its impressive market movement.
CMBM recently reported a Dollar Volume of $1.54 billion alongside a remarkable 377% stock price surge. What's fueling this rise? The company announced a strategic integration with SpaceX's Starlink, aimed at enhancing network security, traffic intelligence, and multi-WAN scalability for customers using Starlink's Low Earth Orbit (LEO) satellite connections. This collaboration could open new growth channels in the fast-expanding global connectivity space.
Ernexa Therapeutics (ERNA)
Biotech investors may want to take a closer look at Ernexa Therapeutics. The company is focused on developing innovative treatments for cancer and autoimmune diseases, areas with massive long-term potential.
ERNA recently reported a Dollar Volume of $375.25 million, with its stock price climbing nearly 41%. The upward momentum follows news of a partnership with Cellipont Bioservices to advance ERNA-101, its lead cell therapy for ovarian cancer. This collaboration focuses on engineering and clinical preparation for large-scale production, a significant step toward bringing this therapy to patients and potentially boosting investor confidence.
Empyrean Energy
Empyrean Energy is an Australian-based oil and gas exploration company listed on the London Stock Exchange (LSE). The firm operates key projects across Australia, the United States, and Indonesia.
While 2024 wasn't its strongest year, due to delays in the Mako Gas Field project, the tides seem to be turning in 2025. The company's share price has already climbed by an impressive 325%, signaling renewed investor optimism. With ongoing project developments and improved production outlooks, Empyrean could be positioning itself for a stronger performance this year.
Purple Biotech (PPBT)
Purple Biotech is a clinical-stage company developing innovative cancer therapies aimed at improving patient outcomes through advanced immuno-oncology research.
Recently, PPBT recorded a Dollar Volume of $438.91 million and saw its stock price jump by 81%. The excitement centers around a production milestone for IM1240, a tri-specific antibody from its CAPTN-3 platform. With the production of the IM1240, a powerful contender in the next generation of cancer therapies, there is a high potential that Purple Biotech will witness continued growth.
Femasys Inc.
This U.S.-based biomedical company, focused on women's reproductive health, with innovative products targeted at innovative fertility treatment, recently witnessed a rise in stock, gaining attention in the market. This rise was spurred by the regulatory approval of FemBloc, one of its products, sparking a surge in trading volume and a short-term price gap-up of over 30%. At around $0.66 per share, FEMY trades as a micro-cap penny stock with a market capitalization of about $60 million, which makes it highly volatile and speculative. While its mission and pipeline look promising, particularly for long-term investors betting on the success of non-invasive women's health technologies, the company still faces significant risks. It currently operates at a loss, reports limited revenue, and frequently raises capital through public offerings and private placements, all of which can lead to share dilution.
Femasys offers exciting potential if its products achieve commercial traction, but the risk-reward profile leans heavily toward the speculative side.
Premier African Minerals
This is a natural resource development and mining company with projects across Africa in places such as Togo, Zimbabwe, Mozambique, and the Benin Republic. In the past month, this company has witnessed a share price increase of 123% with further increases predicted in the future. Spurred by its growing involvement in natural resources across African countries, it deals in resources such as tungsten, lithium, and other natural resources.
This is a welcome development, considering that in 2024, the company had a mixed performance after facing delays on some projects.
Tips Before Buying These Penny Stocks
- Avoid trading purely on social media tips. Do your homework; this includes checking the financial reports of the company you intend to buy penny stocks from. Read through their financial reports and balance sheet. That way, you know about what you are getting into and set an entry and exit plan.
- Set very clear stop losses: Imposing strict limits can protect you from large swings. Time yourself to know when to sell and make a sizeable profit.
- Stick to a small portion of your portfolio: Penny stocks should be a small part of your trading capital. Also, diversify, as this helps you gain from both.
Read More: Trading Penny Stocks: What You Need to Know Before You Jump In
Final Thoughts
Penny stocks can deliver exciting opportunities, but only when approached with caution and a clear plan. If you treat them like speculative trades rather than sure bets, you'll be better positioned to manage risk and seize upside. Remember: Trading penny stocks is not about hitting it big overnight; it's about disciplined trading, smart screening, and controlling what you can.
Read More: How Much Money Do You Need to Start Day Trading in 2025?
Frequently Asked Questions
Are penny stocks safe to invest in?
Penny stocks are not exactly safe because they tend to be highly volatile and thinly traded. Many of these companies have limited financial transparency, making them riskier than blue-chip stocks. However, disciplined traders who research thoroughly, use stop-losses, and limit their exposure can still find profitable opportunities.
How much money do I need to start trading penny stocks?
You don't need much to get into trading penny stocks. There are penny stocks you can get into with $5; you can go above if you want. Remember to always risk only 1–2% per trade and never invest money you can't afford to lose.
Where can I buy penny stocks?
You can trade penny stocks through reputable brokers like Interactive Brokers, Fidelity, TD Ameritrade, or Charles Schwab. Avoid unverified platforms or apps that promote "hot stock tips." If you're trading OTC or Pink Sheet stocks, ensure your broker provides access and research tools.
Can penny stocks make you rich?
Technically, yes. But it's rare and requires skill, patience, and luck. While a few penny stocks occasionally deliver 300–500% returns, most never reach that level or end up delisted. The real edge comes from spotting undervalued small-caps with improving fundamentals before they get mainstream attention.
How long should I hold penny stocks?
Most traders treat penny stocks as short-term trades, not long-term investments. They're often held from a few hours to a few weeks. The best approach is to set clear entry and exit targets and sell once your profit goal or stop-loss is hit.
What are the biggest red flags in penny stocks?
Watch out for companies that have no real business operations or revenue, rely on frequent share offerings to raise funds, are promoted aggressively on social media or email lists, lack SEC filings or audited financial statements. These are signs of potential pump-and-dump schemes or failing businesses. Always research before investing in a penny stock.
What tools can help me find good penny stocks?
Platforms like MarketBeat, Finviz, TipRanks, Yahoo Finance, and TradingView are great for screening penny stocks by volume, price movement, and market capitalization. Look for technical indicators (like RSI, MACD, and volume spikes) alongside recent news catalysts.
Why do most penny stock traders lose money?
Most losses come from chasing hype, ignoring stop losses, or trading emotionally. Successful penny stock traders treat it as a data-driven process, not a gamble. Consistency, patience, and position sizing are what separate winners from losers.
Should beginners trade penny stocks?
Beginners can learn valuable lessons from penny stock trading, but it's not the safest place to start. If you're new, begin with paper trading (virtual trading) to practice before risking real capital. Learn technical analysis and market psychology before diving in.
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