The best stocks under $40 to buy today depend on today’s chart. I’m a trader, not an investor. I don’t care if a stock is “overvalued” or “undervalued” — I’m watching the stocks grabbing the market’s attention and planning quick trades that leave ME in control.
The best traders watch more stocks than they trade. That’s essential for getting to know the charts of these stocks — these charts will give you valuable info about their future moves. If you study the patterns these stocks follow, you can find opportunities for the kind of small gains that can grow a small account fast.
Today I’ll show you how to build a watchlist for stocks under $40. Read on for the results!
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What Are the Best Stocks to Buy Under $40 in February 2025?
To find the best stocks to buy under $40 in February 2025 requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
To find watch-worthy stocks under $40, I input the following criteria:
- Last Price ≤ $40
- Last Price ≥ $20
- Volume ≥ 50,000
When I run this screen in February 2025 and sort by percent change, it gives me the following top results:
Best Stocks Under $40 to Buy in February 2025
The best stocks under $40 in February 2025 are:
- Trump Media & Technology Group Corp. [NASDAQ: DJT]
- Capricor Therapeutics Inc. [NASDAQ: CAPR]
- Telephone and Data Systems Inc. [NYSE: TDS]
- DAQO New Energy Corp. [NYSE: DQ]
- Hims & Hers Health Inc. Class A [NYSE: HIMS]
This is a watchlist — not a “buy list.”
I’m sharing this so you can see my process. If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.
Read on for the best stocks that I’m watching today!
Trump Media & Technology Group Corp. [NASDAQ: DJT]
Trump Media & Technology Group Corp. (NASDAQ: DJT), is a social media and technology-focused company. The Company’s social media platform, TruthSocial, provides an outlet outside of Big Tech that encourages open global conversation without discriminating against political ideology. The Company is also focused on developing a subscription-based video streaming service, TMTG+, which intends to include access to non-woke entertainment, news, documentaries, podcasts and more.
Capricor Therapeutics Inc. [NASDAQ: CAPR]
Capricor Therapeutics, Inc. is a San Diego based biotechnology company focused on the development of transformative cell and exosome-based therapeutics for the treatment and prevention of muscular and other select diseases. Capricor’s lead candidate, CAP-1002, is an allogeneic cardiac-derived cell therapy that is currently in late-stage clinical development for treating Duchenne muscular dystrophy (DMD). Capricor is also developing its exosome technology as a next-generation therapeutic platform. Capricor’s proprietary StealthX exosome platform has potential for a broad range of new therapeutic applications in the field of vaccinology as well as targeted oligonucleotide, protein and small molecule therapeutics to treat or prevent a variety of diseases.
Telephone and Data Systems Inc. [NYSE: TDS]
Telephone and Data Systems Inc is a diversified telecommunications operator that provides mobile, telephone, and broadband services to approximately 6 million customers. The firm’s mobile operations are conducted by its 81%-owned subsidiary, U.S. Cellular, which serves nearly 5 million wireless customers. The firm’s wireline operations are conducted by its wholly owned subsidiary, TDS Telecom, which services nearly 1 million phone and Internet access lines in predominantly rural and suburban areas.
DAQO New Energy Corp. [NYSE: DQ]
Daqo New Energy Corp is a polysilicon manufacturer based in China. The company is engaged in the manufacturing and selling of high-purity polysilicon to photovoltaic product manufacturers who processed polysilicon into ingots, cells, and modules for solar power solutions. It offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling, and solidification needs. All of its revenues gets derived from the People’s Republic of China.
Hims & Hers Health Inc. Class A [NYSE: HIMS]
Hims & Hers Health Inc is a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, enabling them to access high-quality medical care for numerous conditions related to mental health, sexual health, dermatology, primary care, and more.
Which Is the Cheapest High-Potential Stock to Buy Right Now?
To find the cheapest high-potential stocks, you have to study their charts.
Take a look at the 1-year chart for Clean Vision Corp. [OTCPK: CLNV]:
See how many 100% spikes this stock had in the past year? Each one of these spikes was a trading opportunity — that’s the way I’ve made over $8,000 in total earnings trading this stock (click the link to see my individual trades).
However, that’s not a recommendation to “buy” this stock. See how it drops after every spike?
CLNV follows my 7-step pennystocking framework perfectly. This framework isn’t just for penny stocks though… You can also see its patterns play out in higher priced stocks like Tesla Inc. (NASDAQ: TSLA).
This is the chart you have to commit to memory:
Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp
— Timothy Sykes (@timothysykes) February 28, 2021
Stocks Under $40 FAQs
Just because a stock trades for under $40 doesn’t make it cheap. Read on for some more questions you might be asking…
Where can one find the list of companies’ stocks under $40?
Get a powerful stock screener like the one in StocksToTrade, and start building parameters. When I’m looking for tradable stocks under $40, I want their volume to be great enough for the stock to be liquid. This way I can enter and exit a position more easily.
What are high-volume stocks under $40?
A stock under $40 needs high volume for me to trade it. When I’m building my stock scan, I’ll typically look for stocks that have traded over 1 million shares so far that day.
The scanner I’m using in this article is set to look for stocks that have traded more than 50,000 shares. This will help you identify watch-worthy stocks — even if you’re looking in pre-market.
What are some great stocks under $40 for selling calls and puts?
I don’t trade options, but my former student Mark Croock has made more than $4 million mostly with this strategy! He’s done this by adapting my penny stock strategies to the world of options… If you’re interested in learning his risk-informed approach, check out “The Ultimate Options Trading Blueprint For Small Accounts” — it’s no cost for a limited time!
What is Tim Sykes’ favorite stock under $40?
I don’t have a “favorite” stock under $40 — I mostly trade penny stocks, which trade under $5. However, penny stocks will often run above the $5 range, which happened with the SPAC stock Ocean Biomedical Inc. (NASDAQ: OCEA). It still moved like a penny stock, so I was able to use my penny stock strategies in trading it… I made $517 in four conservative trades (click the link to see my individual trades).
What are the best stocks to buy under $40 that pay dividends?
I wouldn’t recommend any stocks to buy under $40 that pay dividends, or any dividend stocks at all. You have to hold stocks through their dividend date to receive payouts, and I am more of a trader than an investor. Dividend stocks are traditionally seen as less risky to hold than other stocks — but I think that every stock is risky to hold.
Plus, dividend stocks give away some of the value that would otherwise add to their share price. That means they see less growth than non-dividend stocks, which doesn’t make them great for trading either.