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Best Stocks Under $2 To Watch Right Now

Here's a closer look at penny stocks trading under $2 in 2026, including why investors are drawn to them.

By Jordan Major

Edited by Kristy DeSmit

Updated Jan. 27, 2026

A stock trading under $2, often referred to as a penny stock, can often look like a bargain, especially when it starts moving quickly. That low price is what draws many investors in, since even small moves can translate to large investment gains.

At the same time, that potential comes with sharp volatility and added risk. For that reason, understanding how penny stocks work is an important part of overall financial awareness — alongside other top signs of financial fitness — and helps explain why investors watch them closely and which sub-$2 names are drawing attention in 2026.

Editor's note: Stock prices are accurate as of the time of publication.

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Microcap and penny stocks

Stocks priced below $2 typically fall into the category of penny stocks or microcaps. Some trade on major exchanges like the Nasdaq, while others trade over the counter. These companies often have small market capitalizations, limited liquidity, and wider bid-ask spreads than larger, established stocks.

Because of these characteristics, penny stocks can move sharply in either direction. Prices can surge on a single piece of news, but they can also fall just as quickly. Thus, many investors treat them as speculative positions rather than long-term core holdings.

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Why investors watch penny stocks

The appeal of stocks under $2 comes down to percentage gains. When a stock trades at a low price, even a modest move higher can translate into large returns. A new contract, regulatory update, or improvement in revenue can quickly change how the market views a small company.

However, that upside comes with trade-offs. Many penny stocks face cash flow pressure, dilution risk, or uneven business results. Others see price swings driven more by speculation than fundamentals, making careful research essential.

With those risks in mind, below is a list of stocks trading under $2, along with a brief context on each company and why investors have been following them closely in 2026.

TRX Gold Corp (NYSE:TRX)

Natural resource penny stocks often draw attention when commodity prices are rising, and TRX is one example investors are watching amid strength in gold. The company operates in the mining sector and has benefited from higher spot gold prices, which reached new all-time highs in early 2026.

TRX shares are trading below $2 and are up more than 300% over the past year, with additional gains of around 50% already in 2026. The stock's momentum has been supported by improving operational results rather than speculation alone.

In its most recent quarter, TRX reported gold production of roughly 6,600 ounces, a notable increase compared to prior periods. That higher output helped the company more than double quarterly revenue to just over $25 million, highlighting stronger performance in a favorable pricing environment.

Looking ahead, TRX has issued fiscal 2026 production guidance of 25,000 to 30,000 ounces at an average cash cost between $1,400 and $1,600 per ounce.

Beyond Meat (NASDAQ:BYND)

One of the most talked-about penny stocks under $2 right now is Beyond Meat. Once trading in the hundreds of dollars per share after its 2019 initial public offering (IPO), the stock has since fallen sharply as consumer demand softened and the company struggled financially.

BYND shares now trade below $1, plunging more than 98% from their peak as the business navigates declining revenue and a heavy debt load. Despite its weak fundamentals, Beyond Meat has attracted attention from retail traders as a meme stock. Heavy short interest has made it a target for short squeezes, sending the stock up sharply at times when buying pressure spiked on social media.

Notably, in late 2025, shares climbed double-digit percentages in volatile trading and briefly moved above $0.52 to above $3.60 in October on renewed speculative interest.

To diversify beyond burgers and sausages, Beyond Meat is exploring new formats, including an entry into the beverage aisle with plant-based protein drinks, part of a broader push to expand beyond traditional meat substitutes and attract new customers.

Because Beyond Meat is a well-known consumer brand, its stock often gets more retail interest than typical microcaps. For investors watching penny stocks based on social sentiment rather than fundamentals, Beyond Meat remains one of the most watched names in the space.

Vaxart (OTCQX:VXRT)

Vaxart is a clinical-stage biotechnology company developing oral vaccines for infectious diseases such as COVID-19. Unlike traditional injectable vaccines, the company's tablet-based platform is designed to simplify storage and distribution, which could improve accessibility in large-scale immunization efforts.

The stock has already seen strong momentum in early 2026, rising over 89% year to date as renewed interest in vaccine development and speculative biotech names lifted trading activity. That move has pushed VXRT back onto the radar of penny stock investors, even as the company remains pre-revenue.

The longer-term bull case centers on the scalability of Vaxart's platform. Positive clinical data, regulatory progress, or a commercial partnership could significantly improve sentiment, especially given the stock's low starting valuation. However, risks remain elevated. Vaxart has yet to bring a product to market, and vaccine development is costly, competitive, and uncertain.

For now, VXRT is best viewed as a high-risk, high-reward biotech stock, with future performance likely tied to trial results rather than near-term financials.

Bottom line

Penny stocks under $2 can offer eye-catching upside, but they come with a level of risk that is far higher than that of larger, more established companies.

If you are willing to do the research and accept volatility, penny stocks can be worth watching. However, they are best approached cautiously and treated as speculative positions rather than long-term cornerstones of a portfolio — especially when compared with more accessible tools available through many best investment apps designed for diversified, long-term investing.

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