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There seems to be a disconnect between the broader markets and penny stocks. While this is typically the case, the stark differences are much more apparent this month. The S&P 500, Nasdaq, and Dow have all pulled back from highs, ending a multi-week rally before the big Jackson Hole meeting. This stalled or stagnant sentiment in the stock market today has led traders to hunt for alpha elsewhere. Higher volatility equities like penny stocks are the preferred flavor right now. It isn't Chunky Monkey or Cherry Garcia, but the massive gains from stocks under $5 have whet the appetites of short-term traders. Now, the search is on for another round of multi-bagger penny stocks to buy, thanks to big moves from meme stocks, including Bed Bath & Beyond, Blue Apron, and plenty of others over the last few weeks. Best Penny Stocks to Buy Now This article looks at a handful of penny stocks that can be bought for under $5. While volatility remains high, it will be important to determine if the risk is worth the potential reward. We look at recent events, technical trends, and more so you can make that determination for yourself.