In this piece, we will take a look at the 10 Best Multibagger Penny Stocks to Buy According to Billionaires.
Penny stocks always seem like bargains for gaining exposure to some of the fastest-growing segments or spectacles, especially when popular stocks cost hundreds or thousands of dollars. Given that some cost as little as $2, they can be tempting for growing money quickly without spending much. While it’s possible to achieve significant returns while investing in companies with depressed stock prices, caution is always of utmost importance.
Low-priced stocks come with elevated levels of volatility as reduced liquidity makes them speculative, high-risk investments. Over the years, massive penny-stock scams have cheated thousands of investors out of millions of dollars, even as others have generated a fortune out of them. 2024 was one such year where investors betting on penny stocks generated a fortune as the overall stock market remained bullish. Explosive gains came into play as the equity outlook improved on expectations that the US Federal Reserve would cut interest rates.
Amid the current correction in the equity market after two years of blockbuster gains, penny stocks are increasingly becoming popular owing to their depressed valuations. President Donald Trump’s eldest son, Donald Trump Jr., and Lara Trump have already joined the fray in acquiring significant stakes in a conservative radio network, affirming renewed interest in thinly traded companies.
Nevertheless, in the face of rising trade tensions and the lowest consumer confidence seen in almost three years, US markets have faced significant fluctuations. Yet, despite these obstacles, the idea of penny stocks continues to hold relevance as investors hunt for low-cost options with potential for growth. Often linked with smaller or emerging companies, these stocks can present considerable upside when supported by robust financials and sound fundamentals.
It is possible to realize impressive returns by investing money into young firms with small market valuations or undervalued stock prices. That is especially the case at a time when President Trump is increasingly pushing for lower interest rates in the US. Like large-cap stocks, penny stocks tend to do well in low-interest rates environments as acquiring capital to accelerate operations and generate shareholder value becomes easier and more affordable for new and emerging companies.
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Our Methodology
For this article, we used a stock screener first to identify stocks priced under $5 that have posted huge gains over the past year (at least 100%). From the obtained dataset, we selected penny stocks with the highest percentage gains in stock performance over the past year (as of April 21). The list is ranked based on the number of billionaires that hold stakes in them, the data for which we sourced from Insider Monkey’s proprietary database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Multibagger Penny Stocks to Buy According to Billionaires
10. Trilogy Metals Inc (NYSE:TMQ)
Number of Billionaire Holders: 4
1-Year Gain as of April 21: 235.71%
Share Price as of April 21: $1.41
Trilogy Metals Inc (NYSE:TMQ) specializes in exploring and developing high-grade mineral deposits in Alaska’s Ambler Mining District, focusing on copper and polymetallic resources. It stands out for its advanced geological studies, strategic drilling programs, and targeted acquisition of mineral rights in one of North America’s richest mining regions. By adhering to strict NI 43-101 standards and using industry-specific techniques, the company has earned a strong reputation for credibility and expertise. Trilogy Metals Inc (NYSE:TMQ) has rallied 235.71% over the past year.
Trilogy Metals Inc (NYSE:TMQ) delivered first-quarter fiscal 2025 results on April 20, characterized by a net loss of $3.6 million, unchanged from a year ago in the same quarter. Net loss remained unchanged despite total operating expenses surging to $3.2 million from $2.8 million as of the first quarter 2024. Likewise, Trilogy exited the first quarter in a strong financial position with $25.2 million in cash and $24.6 million in working capital. On the other hand, its joint venture Ambler Metal exited Q1 2025 with $6.5 million in cash and $5.8 million in the approved budget for 2025. Similarly, Trilogy expects 1.9 billion pounds of copper production over a 17-year mine life following positive results from the Bornite Preliminary Economic Assessment (PEA).
9. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS)
Number of Billionaire Holders: 4
1-Year Gain as of April 21: 125%
Share Price as of April 21: $3.24
Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) is a clinical-stage biopharmaceutical company that develops and commercializes immune modulator therapies for a range of cancers, immune disorders, and infectious diseases. Its lead product candidate, soquelitinib, is an oral, small-molecule ITK inhibitor currently in clinical trials for T-cell lymphoma and atopic dermatitis. The stock has rallied 125% over the past year on positive clinical trial results over the past year.
In December of last year, it delivered positive interim results from its Phase 1 trial of sokolitinib for treating moderate to severe atopic dermatitis. The results showed a favorable safety and efficacy profile, affirming the drug’s potential for chronic skin conditions. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) has already started enrolling patients for the Phase 3 drug trial for relapsed peripheral T-cell lymphoma.
While Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) delivered a wider-than-expected loss of $12.1 million in Q4 2024, reflecting increased expenses and strategic investments in the product line. Likewise, Corvus remains in a strong cash position with $52 million in cash and cash equivalent to develop its pipeline. On March 26, Oppenheimer reiterated the Buy rating on the stock and increased the price target to $15, buoyed by the company’s pipeline development and financial stability.
