One of the easiest way to find undervalued penny stocks is to use a free penny stock screener. A good screener lets you search a variety of filters to create a powerful, personalized list of bargain penny stock buys.
According to SEC.gov, a penny stock is a security issued by smaller companies for less than $5. The only thing you need to do is set the price to “less than $5” on any of these screeners listed below.
Best of all, they are free to use and you can access them at anytime by logging onto the internet. Every screener isn't created equal, so I listed my reviews of Top 10 favorite online penny stock screener tools.
Which is the Best Penny Stock Screener?
Yahoo! offers a powerful stock tool that lets you short your results by:
- Share Data
- Sales and Profitability
- Valuation Ratios
- Analyst Estimates
Remember to set the “Price (intraday)” to less than $5 max to only retrieve penny stocks.
Finiz is probably my 2nd favorite screener other than Yahoo! Finance. FinVIZ is short for “Financial Visualizations” and the site does a great job of displaying technical & fundamental analysis with beautiful stock charts.
You can sort penny stocks based on lots of different technical & fundamental indicators.
Change the “Price” in under the description section to “under $5” to easily filter penny stocks only.
MarketWatch's screener is the most web 2.0 like of the bunch. You can sort the results based on:
- Exchange & Industry
MarketWatch gives you the most control over your results better than any other stock tool. Remember to activate stocks “trading from $0 to $5” to only show penny stocks.
MorningStar's tool is more suited for mutual fund investors, but you can ignore the MorningStar ratings to return some incredibly accurate penny stock recommendations. You can sort the results by:
- Stock Basics
- MorningStar Stock Grades (Optional)
- Company Performance
- Stock Performance
Morningstar lacks a trading price function, so limit the market capitalization to $1 billion.
Investing.com is one of my recent favorite stock screeners that lets you sort penny stocks using lots of different screens :
- Company Basics
Change the “Last” price under Add Criteria -> Price from $0 to $5 to filter penny stocks only.
Zack's research offers a handy tool for finding good penny stocks to watch under $10.
They offer a bunch of stock screener tools to find penny stocks under $5
8. OTC Markets
OTC Markets is a great tool for screening over the counter (OTC) penny stocks as well. It's a lot different from most tools because they don't display any NASDAQ or NYSE stocks.
Enter $5 as the Max price under the Growth section to filter penny stocks only.
Dojispace offers a simple list of penny stock gains & losers without all the advanced fundamental indicators. It's useful for generating a quick penny stock watchlist without much hassle. Not as comprehensive as other screenrs but still a useful too.
Go to the Penny stock page and select the “Stocks under $5” box to show all the available penny stgocks.
PastStat is a handy free stock screening app for investors.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
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While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.