Laura Simmons• August 19, 2025

3 Penny Stocks Worth Watching in 2025 for Beginner Investors

For new investors stepping into the U.S. stock market in 2025, penny stocks often feel like an exciting low-cost entry point. But with opportunity comes risk, and knowing which companies to watch can make a big difference. While these stocks trade under $5, they can sometimes deliver outsized returns—if chosen wisely.

Why Penny Stocks in 2025?

Penny stocks are attractive because they offer:

• Low entry cost — perfect for investors with limited starting capital.

• High growth potential — especially in emerging industries like EV, biotech, and renewable energy.

• Market volatility — while risky, the price swings can create opportunities for quick gains.

Stock #1: Mullen Automotive (MULN)

The EV market is still one of the hottest sectors in 2025, and penny stock companies like Mullen Automotive have been making waves. With rising interest in affordable EVs, Mullen is positioning itself as a competitor in the entry-level market. Although the stock is volatile, growing EV demand means MULN could see a breakout if it secures partnerships or funding.

Stock #2: Sundial Growers (SNDL)

Cannabis remains a speculative but exciting market in the U.S., and Sundial Growers is one of the most watched penny stocks in this space. With shifting federal policies potentially favoring legalization, SNDL could see significant upside. The company’s retail expansion is also helping it diversify revenue streams beyond just cannabis cultivation.

Stock #3: Zomedica (ZOM)

Healthcare is another industry where penny stocks often get overlooked. Zomedica, focused on veterinary diagnostics and products, has been quietly expanding its offerings. With pet ownership in the U.S. at all-time highs, companies like Zomedica are positioned to benefit from long-term demand. While risky, ZOM remains on the radar for speculative investors.

How to Approach Penny Stocks Safely

For beginners, here are some key strategies to manage risk when considering penny stocks:

• Start Small: Never put more money into penny stocks than you can afford to lose.

• Diversify: Don’t just buy one speculative play—spread across industries.

• Do Your Homework: Check financial reports, news, and stock trends. Resources like Nasdaq’s penny stock section can help.

• Think Long-Term: While penny stocks can pop quickly, sustainable gains often take time.

Final Thoughts

Penny stocks in 2025 can be both thrilling and intimidating. With the right research and careful risk management, beginner investors can explore these speculative plays without taking on overwhelming risk.