10 Best Rising Penny Stocks to Buy According to Analysts

5. Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH)

Price: $1.49

1-Month Performance: 41.90%

Analyst Upside Potential: 101.34%

Number of Hedge Fund Holders: 22

Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is a retailer of outdoor sports goods and caters to sports including hunting, shooting, reloading, camping, fishing, and other outdoor recreational activities. The company operates around 145 stores across 29 states in the US. On April 2, Craig-Hallum upgraded the stock from Hold to a Buy rating on the stock with a price target of $3. The firm based its upgrade on positive operational improvements including increase in comparable sales for fishing and camping during the fiscal fourth quarter of 2024. The firm believes that despite the pressures from inflation and consumer confidence the stock is undervalued.

Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) has been stabilizing its core business. During the fiscal fourth quarter of 2024, same-store sales of the company declined by only 0.5% on a 13-week basis, compared to the 12.8% decline last year. Moreover, the adjusted EBITDA increased from $5.3 million last year to $14.6 million in Q4 2024. Management noted that this reflects better margins, especially in the footwear category. Despite the market challenges coming from the inflationary market and recession fear, management expects to return to positive same-store sales growth during the current year for the first time since 2020. Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is one of the best-rising penny stocks to buy according to analysts.