Penny stocks are highly popular among day and swing traders because of their low prices and volatility. Most of these stocks are usually bad long-term investments because of their unprofitability, especially in a high-interest rates environment. Here are some of the top penny stocks to trade.

HUB Cybersecurity (NASDAQ: HUBC) is a technology company that provides cybersecurity solutions to individuals and companies. Its services include HUB Secure File Vault, HUB Guard, and Attack Surface Management. 

HUB Cybersecurity’s revenue grew from $32.5 million in 2021 to over $79.6 million in 2022. Its loss jumped from $13.6 million to $80 million in 2022. It is unclear why HUBC stock price surged by more than 185% on Monday.

A likely reason is that there are elevated fears of cybersecurity risks as the Israel-Hamas war continues. This is notable since HUB Cyber Security is an Iranian company. Technicals suggest that the stock will likely retreat as this momentum fades.

T2 BioSystems (NASDAQ: TTOO) is a penny stock whose shares were trading at $0.28 on Monday. TTOO stock price surged in 2021 because of its Covid-19 testing business. Recently, however, this business has struggled as the demand for these testing eased.

As a result, T2 Biosystem’s business has struggled, with its quarterly revenue falling from $5.9 million in Q2’22 to just $2.0 million. It made a $6.3 million in the last quarter. And as I wrote here, the company’s key shareholder has been dumping shares. It has sold stock worth millions of dollars this month.

T2 BioSystems is a good penny stock because of its high volatility and volume. For example, on Monday, its volume was over 116.3 million shares. 

Novo Integrated Sciences (NASDAQ: NVOS) is another good penny stock for day traders. The company, which has a market cap of over $48 million, made headlines when it secured a $1 billion master collateral transfer agreement. Since then, the company’s relative volume and volatility have risen.

Novo Integrated’s collateral transfer facility will come from the Blacksheep Trust, a New York-based private express trust. 

Still, Novo Integrated Sciences finances are not all that good. Revenue in the most recent quarter rose to $3.3 million while its net loss was $1.5 million. 

To be clear, these three companies have major fundamental issues, which makes them risky long-term investments. In a period of high interest rates, there is a likelihood that some of these companies will go bankrupt. Some of the other penny stocks to trade are Mullen Automotive (MULN), Canoo (GOEV), Allbirds, and Virgin Galactic.

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