Top 7 Robinhood Penny Stocks to Watch in 2026

Penny stocks on Robinhood, typically priced at $5 or less per share, offer opportunities for traders who are building small accounts. While these stocks are affordable, they often come with higher volatility and require different strategies from those used for larger, more established stocks. For beginners, Robinhood provides a straightforward entry point into penny stock trading, thanks to its policy of no trading fees and no required minimum deposit. However, traders with more experience might consider other brokers that offer advanced features and tools for more complex trading needs.

7 Robinhood Penny Stocks to Watch

My top Robinhood penny stock watchlist picks for January 2026 — based on pattern, price action, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: TLRY	Tilray Brands Inc
NASDAQ: BBGI	Beasley Broadcast Group Inc
NASDAQ: RKLB	Rocket Lab Corp
NASDAQ: DVLT	Datavault AI Inc
NASDAQ: RIVN	Rivian Automotive Inc
NASDAQ: GCT	GigaCloud Technology Inc
NASDAQ: AMCI	AMC Robotics Corporation

The penny stocks on this list are some of the craziest movers on the market …

Only trade these stocks if you have a solid plan and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top Robinhood penny stocks!

List of the Hottest Penny Stocks on Robinhood in January 2026

My top 7 Robinhood penny stocks to watch for January 2026 are:

• NASDAQ: TLRY — Tilray Brands Inc — The Pot Stock That Trump Might Soon Legalize
• NASDAQ: BBGI — Beasley Broadcast Group Inc — The Chat Pump Stock
• NASDAQ: RKLB — Rocket Lab Corp — The “Buy the Rumor, Sell the News” Aerospace Stock
• NASDAQ: DVLT — Datavault AI Inc — The Meme Stock With the Meme Coin
• NASDAQ: RIVN — Rivian Automotive Inc — The Autonomous EV Stock
• NASDAQ: GCT — GigaCloud Technology Inc — The Cloud Tech Stock at 52-Week Highs
• NASDAQ: AMCI — AMC Robotics Corporation — The Low-Float Robotics Stock

I try to focus on the momentum that I can see with my eyes. I’m not going to speculate on future moves.

The key is to approach every day the same. Be prepared to capitalize on volatility.

I let the trades come to me.

That’s why I’m not holding any long-term positions in these tickers.

I’m just watching these stocks. And this is one of many watchlists I maintain…

Sign up here to get my weekly watchlist each Sunday!

There’s no guarantee that any of my watchlist picks will be tradeable. But if something happens, smart traders should be ready.

Here’s some background info on Robinhood penny stocks:

• What is the most promising Robinhood penny stock?

A stock with a lot of volatility like Tilray Brands Inc (NASDAQ: TLRY) is a good bet for the most promising Robinhood penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Robinhood penny stocks to buy now?

My top 3 Robinhood penny stocks to buy now (as long as their price action is strong) are Tilray Brands Inc (NASDAQ: RKLBAMCILRY">TLRY), Rocket Lab Corp (NASDAQ: RKLB), and AMC Robotics Corporation (NASDAQ: AMCI).

• Which Robinhood penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Robinhood penny stocks “strong buy” ratings. These stocks are sketchy and unstable — you should never “invest” in them. Always trade with a plan.

Let’s get to the picks …

Best Robinhood Penny Stocks for January 2026

These are the top 7 Robinhood penny stocks to watch in January 2026…

They have a chance to catch fire…

Watch them — and don’t get burned!

Tilray Brands Inc (NASDAQ: TLRY) — The Pot Stock That Trump Might Soon Legalize

My first Robinhood penny stock pick is Tilray Brands Inc (NASDAQ: TLRY).

This is a former runner from earlier in 2025 that spiked in September and is back in focus on policy headlines. Recent reports indicate the White House could reclassify marijuana, and that kind of government catalyst can keep attention on the sector for weeks. Tilray has a history of sharp moves when policy talk heats up, and its one-month chart shows momentum returning after a long pullback. If rescheduling happens, easier banking and simpler tax treatment can attract new money and keep larger, liquid names like TLRY in play.

Why I Like It

Weed stocks are usually inconsistent on their own. When the policy story takes center stage, the crowd watches. That’s the edge here. I’m treating TLRYref="/quote/TLRY /" data-stock="TLRY ">TLRY as a multi-week headline trade tied to clear milestones. If policy progress is confirmed and the stock holds its recent gains, I’ll look to build on strength after calm sessions rather than chase spikes. If headlines stall and the chart cools off, I’ll let it base and only re-engage once it shows steady, controlled advances again.

Trade Potential:

• Bullish scenario: A push and hold above the recent one-month high can open a move toward the mid-teens if policy steps continue.
• Bearish scenario: If the timeline slips and momentum fades, a pullback toward the low-$10s base is possible. In that case, I wait for a clean, slow uptrend before re-entering.

Beasley Broadcast Group Inc (NASDAQ: BBGI) — The Chat Pump Stock

My second Robinhood penny stock pick is Beasley Broadcast Group Inc (NASDAQ: BBGI).

This is the pattern you look for in chat-fueled moves. BBGI traded between $3.70 and $5.00 for months, then spiked to $16.69* on December 10 before settling back near $5–$6 within a day. That kind of blow-off and reset keeps the ticker on momentum screens for weeks because traders remember the symbol and set alerts around the prior spike zone. Beasley is talking up digital growth, but the driver right now is attention.

Why I Like It

This stock falls under the “former runners can run again” rule. If price holds above $5.50–$6.00 and starts to climb, I’ll add slowly into strength and take profits near round numbers. If it struggles to stay over $5.00, I wait for a better base.

Trade Potential:

• Bullish scenario: A steady climb back toward $10–$12 opens the door for a retest of $14–$17 if volume return.
• Bearish scenario: A fade under $5.00 says enthusiasm is gone for now. Wait for a higher base above $5.50–$6.00.

Rocket Lab Corp (NASDAQ: RKLB) — The “Buy the Rumor, Sell the News” Aerospace Stock

My third Robinhood penny stock pick is Rocket Lab Corp (NASDAQ: RKLB).

RKLB ran into a successful JAXA mission, then slipped when the win hit the tape. You can see it on the six-month chart: a push toward $63–$64 on December 11, a pullback into the low $50s, then a bounce near $56. That sequence leaves room for a measured re-test as the market prices what the mission means. For the news-to-price chain, read why shares slipped after a win.

Why I Like It

I like strong uptrends that pause and consolidate. If RKLBref="/quote/RKLB /" data-stock="RKLB ">RKLB can hold $52–$54 between catalysts, I’ll look for a trade. If it falls under $52, I step aside.

Trade Potential:

• Bullish scenario: Hold $52–$54 and clear $57–$60. Then the $63–$64 high is in play.
• Bearish scenario: Lose $52 and watch for a rebuild in the high $40s to $50 zone.

Datavault AI Inc (NASDAQ: DVLT) — The Meme Stock With the Meme Coin

My fourth Robinhood penny stock pick is Datavault AI Inc (NASDAQ: DVLT).

DVLT spent months under $1.00, then ramped to $2.50–$3.00 in October, spiked near $3.30 in early November, and pulled back to $1.20–$1.40. The catalyst is tailor-made for attention: a one-time distribution of “Dream Bowl 2026” meme coins to DVLTref="/quote/DVLT /" data-stock="DVLT ">DVLT and Scilex holders, with dates and airdrop mechanics set. A clear calendar keeps traders engaged.

Why I Like It

Calendar catalysts help frame risk. As long as price holds the $1.20–$1.30 level and news stays active, I’ll look to build on steady days and trim into quick pushes. If it breaks $1.20, I wait.

Trade Potential:

• Bullish scenario: Hold $1.20–$1.30 and push through $1.50; then $1.90–$2.10 and $2.50–$3.00 are reasonable targets.
• Bearish scenario: Under $1.20, let it base closer to $1.00 before re-engaging.

Rivian Automotive Inc (NASDAQ: RIVN) — The Autonomous EV Stock

My fifth Robinhood penny stock pick is Rivian Automotive Inc (NASDAQ: RIVN).

RIVN is leaning into autonomy and software to stand out. The six-month chart shows higher lows from $11 in July to $14 in October and pushes toward $18–$19 into December, still below the $19.60 52-week high.

For what’s driving renewed interest, see this software-and-autonomy update.

Why I Like It

I prefer building in on calm sessions above $16–$17, then taking partial profits near round numbers. If funding fears or weak delivery headlines knock it under $16, I wait for a new base.

Trade Potential:

• Bullish scenario: Hold $16–$17 and clear $18.50–$19.00 to set up a run at $19.60, with $20–$21 as stretch.
• Bearish scenario: Lose $16 and look for a rebuild around $14–$15.

GigaCloud Technology Inc (NASDAQ: GCT) — The Cloud Tech Stock at 52-Week Highs

My sixth Robinhood penny stock pick is GigaCloud Technology Inc (NASDAQ: GCT).

This is one of the steadier trends on the board. Over six months GCT climbed from $18 to $40, with controlled pullbacks to $27–$30 in September and $33–$35 in November, then a grind to a new $40.95 52-week high. Execution updates around its marketplace and fulfillment network have supported the move.

Why I Like It

With trenders, I prefer simple rules. Buy pullbacks that hold $37–$38, add only after strong closes, and trim into strength. If price slips under $37, I wait for $34–$35 support to rebuild.

Trade Potential:

• Bullish scenario: Respect $37–$38 and break $41; then $44–$45 is a reasonable near-term zone.
• Bearish scenario: Under $37, wait for support near $34–$35 before trying again.

AMC Robotics Corporation (NASDAQ: AMCI) — The Low-Float Robotics Stock

My seventh Robinhood penny stock pick is AMC Robotics Corporation (NASDAQ: AMCI).

Fresh float, fresh attention. Early trading hung around $3–$5, then volume expanded and price squeezed through $8–$10 into the $12–$14 range. The company completed its business combination and rebrand and now pitches visual-AI warehouse robots.

For the structure and float details behind this surge, read what’s really driving the move.

Why I Like It

Low float cuts both ways, so I keep size small and only add after tight, steady closes above $10–$11.

If it loses $10 on heavy selling, I’m out and I wait for $7–$8 to build a base.

Trade Potential:

• Bullish scenario: Hold $10–$11 and push through $13–$14; then $15–$16 is possible while attention is high.
• Bearish scenario: Break $10 with volume and look for a base closer to $7–$8.

*Past performance does not indicate future results

Trading on Robinhood

Robinhood is a popular platform for trading penny stocks because it offers commission-free trades. However, it’s essential to understand that Robinhood has limitations, like the unavailability of certain stocks and limited research tools. In my courses, I often discuss the pros and cons of various trading platforms, including Robinhood.

Robinhood Penny Stocks Market

Robinhood does offer a range of penny stocks, but they’re limited compared to other platforms. The app is user-friendly, making it a popular choice for beginners. However, I always recommend that my students diversify their trading platforms to access a broader range of stocks.

If you’re looking for a beginner-friendly alternative, Webull offers a user-friendly platform that’s been compared to Robinhood. Known for its commission-free trades and comprehensive analytical tools, Webull can be an excellent starting point for new investors. Its intuitive interface makes it easier to manage and execute trades, while real-time market data helps in making informed decisions. However, due diligence remains key as penny stocks are notoriously volatile. For more details on how to trade penny stocks on Webull, check out my Webull penny stocks guide.

What Is a Good Penny Stock To Buy on Robinhood?

There’s no one-size-fits-all answer to this question. A good penny stock has strong fundamentals, high trading volume, and a positive news flow. I’ve shared specific recommendations in my newsletter, focusing on stocks with high growth potential.

What To Consider When Trading Penny Stocks

Penny stocks, often priced under $5 per share, represent small companies with high growth potential but also come with significant risks. These stocks can make substantial intraday moves, sometimes influenced more by hype than fundamentals. This market segment requires a solid trading strategy and a keen understanding of market dynamics to navigate effectively. For an in-depth look into the world of penny stocks, check out my guide on How to Find and Trade Penny Stocks.

When trading penny stocks, several factors need to be considered:

Price Action

Price action refers to the movement of a stock’s price and is crucial for predicting future price movements.

Remember: the trend is your friend. Understanding price action can help you identify profitable trends.

Understanding market trends goes beyond just looking at the stocks that are hot on Robinhood. The energy sector, particularly oil, often has penny stocks that show significant volatility. These oil penny stocks can be a goldmine for traders who understand the market trends in the energy sector. But remember, these stocks come with their own set of risks and should be traded carefully. If you’re interested in exploring this further, here’s a guide on oil penny stocks.

Unusual Volume

Unusual trading volume indicates strong investor interest and can be a sign of an impending price move. In my trading career, I’ve found that high volume often precedes significant price action.

Real News

Always look for stocks that have a strong news flow. Real, impactful news can be a significant price driver. I teach my students how to differentiate between impactful news and noise.

Scam Possibilities

Be cautious of scams and pump-and-dump schemes. These are prevalent in the world of penny stocks. I’ve seen traders lose their entire investment by falling for these scams.

Robinhood Stocks Under $5

The appeal of hot sector stocks on platforms like Robinhood, especially those classified as penny stocks, is compelling for a growing number of traders. The energy and technology sectors, for instance, are witnessing rapid growth and innovation, making stocks within these domains particularly attractive for those on the lookout for the next breakout investment. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

It’s important to trade these stocks with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of hot sectors, underscores the importance of a meticulous trading plan. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 on platforms such as Robinhood hinges on a selective and strategic approach. The goal is to tap into the explosive growth potential of sectors like renewable energy and technology while implementing robust risk management practices. By zeroing in on companies making headlines in their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

Types of Penny Stocks on Robinhood

Robinhood is a retail-focused brokerage. That means it only allows clients to trade on major exchanges such as the NYSE and the Nasdaq.

There are a ton of stocks below $5 on these exchanges. The problem is, you’re only getting part of the pie.

The OTC markets and pink sheets also offer a huge range of volatile penny stocks … But you’ll need a different brokerage account to trade them. Robinhood won’t cut it.

For those interested in exploring penny stocks on other platforms, I have a whole series of articles on the topic! Learn more about using E-Trade for day trading to expand your trading horizons and discover how different platforms offer unique features.

Check out this post for the lowdown on how to find the best brokerage for you.

How to Find Penny Stocks on Robinhood

Don’t follow my stock picks blindly. You’ve gotta become self-sufficient. Sure, you can find penny stocks on Robinhood’s mobile app…

But I recommend creating your watchlists from your laptop — it’s a lot easier. Use a screener to search for stocks below $5. You’ll probably want to find some with volume too.

But it’s impossible for one person to watch every penny stock on Robinhood. So either grab a couple of friends to help you stare at hundreds of stocks … or choose a few that show good potential.

Creating a well-researched watchlist is the key to successful penny stock trading. Compiling a list of active penny stocks can help traders identify potential opportunities based on trading volume, recent news, and market trends. Utilizing reliable resources to track these stocks can aid in making timely and informed trading decisions. Regularly updating your watchlist ensures you are always aware of new opportunities in the market. If you want an example, check out my top penny stock watchlist!

Reddit is a popular choice for researching trading trends and connecting with other traders. If you’re looking to broaden your knowledge and explore other resources, read about penny stocks on Reddit to see how social media influences trading trends.

How to Choose Penny Stocks on Robinhood

Choosing penny stocks to trade requires a number of well-planned steps. Doesn’t matter which broker you use.

It’s all about finding hyped-up stocks. Then you ride the momentum and jump off before the move crashes. That can make it sound easy. It’s not. It takes years of education and planning to learn how to ride the momentum in this niche.

But here’s a quick overview…

First, look at stocks with hype. Maybe there’s a news catalyst that day. It could be trending on social media, or maybe it’s just a current hot stock.

Next, make sure that the stock’s daily trading volume is high enough to allow you to get in and out easily. Remember to manage risk.

It’s also important to check the price action on the stock chart. Reading the chart can help you pick a perfect entry position. It can also show good places to set your stop loss and help you understand what the stock’s next move might be.

Chart reading doesn’t have to be complicated. In fact, many seasoned traders look for clean and simple chart patterns.

Keeping up with news, watching the charts, and analyzing trading volume can all be done on a number of different apps … But if you want to get serious about your trading, there’s a much more effective way to do all of these things…

Get a 14-day trial of StocksToTrade for just $7 for access to one of the most powerful stock trading tools on the planet.

How to Trade Penny Stocks on Robinhood

If you’re gonna trade penny stocks on Robinhood — or anywhere else — you better know the restrictions.

Every platform has its own set of advantages and disadvantages. If you’re curious about how other platforms handle penny stocks, TD Ameritrade is another popular choice for day trading — especially after its merger with mega-broker Charles Schwab. Enhance your trading strategy by learning about TD Ameritrade for day trading, and find the approach that best suits your needs.

Pattern Day Trading Rule

You have to keep the pattern day trading (PDT) rule in mind. This rule isn’t specific to Robinhood. If you have a small account, it can affect your trading.

The rule limits traders to no more than three day trades within a rolling five-day trading period. That is unless you have $25K or more in your trading account.

It can seem inconvenient — especially for new and excited traders — but it’s actually meant to protect you. Most traders lose money. The PDT rule tries to stop newbies from overtrading.

Try to see it as a good thing. It’ll force you to only focus on the best trades. That’s the best study tool there is.

Robinhood Day Trading Limit

The PDT rule can be a big problem for some traders. But again, I encourage you to see it as a good thing. No, you don’t have to listen to me…

Just like when I said that I didn’t think Robinhood had the best day trading software around. You can use it if it works for you. But understand that different brokers can work better for different people.

Don’t limit your options by choosing one just because it’s easy.

This is important, so pay attention. Do your research. Only you can decide which broker and trading platform are right for you.

Decide whether you’ll trade with a cash account or use margin. Margin is automatic on some Robinhood accounts. That can be risky. Read more about margin here.

You also need to figure out if you want access to extended-hours trading. That can also come with risk. I don’t recommend that for new traders.

What’s key is access to charts, watchlists, stock research, Level 2 data, and indicators. You can get all that and more with StocksToTrade. Plus you can trade right from the platform with our broker integration — and you can add on what’s arguably the trading chat room.

When you start trading you have a lot of decisions to make. So take your time. Make a detailed list of what matters to you, then find the right broker and trading platform.

Trading Fees on Robinhood

Robinhood offers commission-free trades, but it’s essential to understand that “free” doesn’t mean there are no costs involved. The platform makes money from order flow, which can impact the execution price of your trades. Always consider the full range of fees and how they can affect your profitability.

Frequently Asked Questions About Robinhood Penny Stocks

Can You Buy Stocks Under $1 on Robinhood?

Yes, you can. Robinhood opens the door to stocks under $1, making it accessible for investors looking for a low entry point. From companies in technology to artificial intelligence, the options are vast. But remember, cheap doesn’t always mean value. Research is key.

Why Is Robinhood so cheap?

Robinhood’s mission is to democratize finance for everyone. They offer commission-free trading on stocks, which cuts the costs for the average investor. Deals with banks and financial institutions also allow them to keep deposit and account fees low. It’s not just about being cheap; it’s about making investment accessible.

Does Robinhood Really Give You a Free Stock?

As of now, yes, traders get a free stock when opening a Robinhood account. To me, it seems like another way the broker tries to entice users. But do your research. Check the terms and conditions, as they can change at any time.

Can You Day Trade Penny Stocks on Robinhood?

Day trading on Robinhood is like pulling onto the highway with two flat tires. You can do it, and it’ll work, but it won’t be pretty.

Serious traders tend to use more robust software. Research different brokerages and software to find what might work best for you.