In this article, we will look at the 10 Most Oversold Penny Stocks to Buy According to Analysts.
Small Cap Stocks Outlook 2025
In February 2025, Wellington Management published its outlook for small-cap stocks in 2025. The firm believes that 2025 could be the year for small-cap outperformance as the large-cap performance cycle is getting longer than usual. Peter Carpi, the Equity Portfolio Manager at Wellington noted that historically, small-cap and large-cap equities have traded in cycles, with outperformance cycles typically lasting 11 years. However, the market has entered the 14th year of large-cap outperformance. Moreover, Carpi highlighted that the large-cap stocks may be entering their final stage as noted by the increased narrowness and unsustainable valuations. On the other hand, small and mid-cap indices like the Russell 2500 Value and Mid Cap Value are near record-low relative valuations versus the S&P 500, creating a favorable entry point.
In addition, David DuBard, Micro-cap Equity Portfolio Manager argues that micro-cap companies present compelling undervaluation opportunities in 2025. He explained that the micro-cap market has become “less efficiently scrutinized” as investors increasingly favor larger, more liquid equities. This reduced attention lowers competition for alpha generation in the space. DuBard asserts that current conditions, which are marked by investor preference for larger stocks and cyclical shifts, are ideal for identifying undervalued microcaps. His strategy relies on exploiting inefficiencies in a segment where fundamental analysis can yield outsized returns.
Equity Portfolio Manager, Ranjit Ramachandran also likes small-cap growth stocks. He noted that after years of lagging behind large caps, small caps are projected to surpass large-cap earnings growth in 2025. This marks a critical inflection point, as small caps have trailed the S&P 500 in earnings and sales growth for the past two years. Ramachandran highlighted that valuations for small caps are near multiyear lows compared to large caps, creating a favorable entry point. This contrasts with large-cap indices like the S&P 500, which remain concentrated in tech-heavy sectors relative. He emphasizes that small caps are poised for accelerated earnings growth as a group, supported by broader economic tailwinds. While his colleague Sean Kammann attributes this to de-globalization trends and employment gains, Ramachandran’s focus remains on the cyclical shift toward small caps as large-cap dominance fades away.
With that let’s take a look at the 10 most oversold penny stocks to buy according to analysts.
Our Methodology
To compile the list of the 10 most oversold penny stocks to buy according to analysts, we used the Finviz stock screener and CNN. Using the screener we aggregated a list of penny stocks (under $5) that have fallen by more than 25% over the past 6 months but analysts see more than 25% upside to. We cross-checked the upside potential from CNN and ranked the stocks based on this metric, in ascending order. Please note that the data was recorded on March 14, 2025. Additionally, we have included the hedge fund sentiment around each stock.
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 Most Oversold Penny Stocks to Buy According to Analysts
10. Angi Inc. (NASDAQ:ANGI)
Price: $1.57
6-Month Performance: -42.07%
Number of Hedge Fund Holders: 16
Analyst Upside Potential: 59.24%
Angi Inc. (NASDAQ:ANGI) operates as a digital marketplace connecting homeowners with home service professionals across over 500 categories. It provides tools for professionals to advertise services, engage with customers, and manage invoicing. It manages multiple brands, including Angi, HomeAdvisor, and Handy, each catering to distinct aspects of home services.
On February 13, Benchmark Co. analyst Daniel Kurnos reaffirmed a Buy rating on the stock with a price rating of $6. The analyst noted that the company surpassed Street expectations in recent quarters, with service requests declining less sharply than anticipated. This reflects operational stability despite macroeconomic headwinds. Moreover, despite Q1 2025 guidance for breakeven operating income, the company’s full-year 2025 Adjusted EBITDA outlook of $135 to $150 million aligns with long-term growth expectations. Angi Inc. (NASDAQ:ANGI) is proactively implementing opt-in changes to align with FCC rulings, which may enhance user experience and conversion rates. Kurnos notes that while this could cause short-term volatility, stabilization is anticipated by 2026, improving growth prospects. It is one of the most oversold penny stocks to buy according to analysts.
Meridian Small Cap Growth Fund stated the following regarding Angi Inc. (NASDAQ:ANGI) in its Q4 2024 investor letter:
“Angi Inc. (NASDAQ:ANGI) operates an online marketplace connecting homeowners with local, pre-screened home service professionals. During the quarter, Angi’s stock price declined following continued revenue challenges amid its strategic business refocusing. Despite strong underlying metrics, including service professional retention and net promoter scores, uncertainty surrounding new regulatory rules and the decision by its majority owner to spin off its holdings, weighed on the stock. We view these challenges as temporary and remain committed to a patient, long term approach. Angi’s efforts to improve lead quality and expand EBITDA margins are promising, and we believe downside risks are limited. We slightly trimmed our position during the quarter and will continue to monitor progress.”
9. Sasol Limited (NYSE:SSL)
Price: $4.33
6-Month Performance: -39.19%
Number of Hedge Fund Holders: 11
Analyst Upside Potential: 63.57%
Sasol Limited (NYSE:SSL) is a global integrated energy and chemical company that operates through two core divisions: Energy and Chemical, with operations spanning 33 countries. The company demonstrated resilience in the fiscal second quarter of 2025 (six months ended 31 December 2024) despite macroeconomic challenges.
It improved its free cash flow by 84% year-over-year, driven by reduced capital expenditure, lower taxes paid, and positive working capital movements. However, FCF remained negative at ZAR1.1 billion, reflecting ongoing debt pressures. Moreover, as a strategic initiative, Sasol Limited (NYSE:SSL) partnered with Anglo American and De Beers to pilot renewable diesel feedstock using Solaris and Moringa plantations. The deal leverages the company’s existing infrastructure to process diverse feedstocks, potentially lowering production costs for renewable diesel.
On the mining side, the production remained stable quarter-over-quarter but fell 1% year-over-year due to lower demand and operational constraints. Earnings related to Gas operations rose 71% on higher prices and volumes, offsetting declines in Fuels and Chemicals Africa. The stock has fallen around 39% during the past 6 months, however, analysts expect more than 63% upside, making it one of the most oversold penny stocks to buy according to analysts.
8. Kosmos Energy Ltd (NYSE:KOS)
Price: $2.23
6-Month Performance: -47.03%
Number of Hedge Fund Holders: 27
Analyst Upside Potential: 146.64%
Kosmos Energy Ltd (NYSE:KOS) is a full-cycle, deepwater oil and gas exploration and production company specializing in offshore Atlantic Margin operations. On February 25, Analyst Matthew Smith from Bank of America Securities maintains a Buy rating on the stock with a price target of $6.
The analyst highlighted that the company is nearing a major FCF inflection point due to the Tortue LNG project’s first cargo shipment, which has shown strong early production metrics. Smith projects a 20% FCF yield in 2025, rising to 35% in 2026, driven by reduced capital expenditures and stable oil prices. Moreover, he also highlighted significant operational strengths of the company including debt reduction and long-term resource base.
Kosmos Energy Ltd (NYSE:KOS) had a challenging fiscal fourth quarter of 2024, as the production fell due to water injection reliability issues and power generation problems. Looking ahead, management expects flat production quarter-over-quarter due to planned maintenance. It is one of the most oversold penny stocks to buy according to analysts.
7. Lotus Technology Inc. (NASDAQ:LOT)
Price: $1.60
6-Month Performance: -68.06%
Number of Hedge Fund Holders: 11
Analyst Upside Potential: 148.45%
Lotus Technology Inc. (NASDAQ:LOT) is an international luxury electric vehicle manufacturer focused on battery electric vehicles (BEVs) with advanced automotive technologies. The fiscal year 2024 was marked with strong operational performance by the company. During the year, the company delivered 12,065 vehicles, reflecting a 70% year-over-year growth. This growth was driven by a strong performance in China which accounted for around 25% of the global deliveries.
Moreover, Lotus Technology Inc. (NASDAQ:LOT) also launched Hyper Hybrid EV technology, offering a combined range of over 1,100 km to address evolving market demands for performance and sustainability. On the intelligence-driving front, the company’s revenue surged from non-Lotus customers reaching $11 million. Looking ahead, the company is aiming to increase global deliveries by 20% in 2025. It is one of the most oversold penny stocks to buy according to analysts.
6. EVgo, Inc. (NASDAQ:EVGO)
Price: $2.40
6-Month Performance: -44.83%
Number of Hedge Fund Holders: 37
Analyst Upside Potential: 181.25%
EVgo, Inc. (NASDAQ:EVGO) is a leading provider of electric vehicle charging infrastructure and services, focusing on public fast charging networks and transportation electrification solutions. The company operates over 1,100 fast charging stations across 40 US states, offering DC fast chargers and AC Level 2 chargers.
On March 12, analyst Bill Peterson of J.P. Morgan maintained a Buy rating on the stock, with a price target of $5. Peterson noted that EVgo, Inc. (NASDAQ:EVGO) is expected to be the first EV charging company to achieve positive EBITDA, driven by its network expansion and partnerships with automakers and rideshare operators. The company has partnerships with GM, Tesla, and Uber. Moreover, the company’s charging infrastructure supports all major EV models, including Tesla vehicles without adapters, enhancing accessibility and market appeal. Peterson also likes the company’s prudent capacity additions aligned with rising utilization rates, ensuring readiness for future demand. Management has expressed confidence in the $1.25 billion Department of Energy loan, which could accelerate network growth and reduce costs per stall.
The stock of EVgo, Inc. (NASDAQ:EVGO) has fallen more than 44% over the past six months, however, analysts expect an upside of 181% in the next 12 months. It is one of the most oversold penny stocks to buy according to analysts.
5. Studio City International Holdings Limited (NYSE:MSC)
Price: $3.75
6-Month Performance: -26.18%
Number of Hedge Fund Holders: 5
Analyst Upside Potential: 193.33%
Studio City International Holdings Limited (NYSE:MSC) operates a cinematically-themed integrated resort in Cotai, Macau, combining gaming services with hospitality and entertainment offerings. The company also manages 250 mass-market gaming tables and 45 VIP rolling chip tables through a partnership with Melco Resorts Limited.
In the fiscal fourth quarter of 2024, the company reported growing revenue by 8.2% year-over-year driven by higher casino contract revenue and non-gaming income. On the other hand, the non-gaming revenue also grew from $84.3 million in Q4 2023 to $89.3 million during the recent quarter. Management of Studio City International Holdings Limited (NYSE:MSC) has repositioned its casino to focus on premium mass and mass segments, aligning with Macau’s regulatory emphasis on diversification. This included transferring VIP operations to the City of Dreams and reducing reliance on volatile high-roller revenue. The positive results underscore a revival of tourism in Macau, which is anticipated to further boost the revenue of Studio City International Holdings Limited (NYSE:MSC). It is one of the most oversold penny stocks to buy according to analysts.
4. Geron Corporation (NASDAQ:GERN)
Price: $1.64
6-Month Performance: -62.47%
Number of Hedge Fund Holders: 46
Analyst Upside Potential: 204.88%
Geron Corporation (NASDAQ:GERN) is a commercial-stage biopharmaceutical company focused on developing first-in-class telomerase inhibitors for hematologic malignancies, particularly blood cancers. Its lead product is RYTELO, which is the first FDA-approved telomerase inhibitor for treating certain adult patients with lower-risk myelodysplastic syndromes.
On March 12, analyst Gil Blum of Needham maintained a Buy rating on the stock with a price target of $5. The analyst noted that the European Commission has approved RYTELO for transfusion-dependent anemia in lower-risk MDS patients, strengthening Geron Corporation’s (NASDAQ:GERN) clinical and commercial position. This approval, which follows the FDA’s June 2024 authorization, positions RYTELO as the first telomerase inhibitor in both regions, addressing a high-unmet need for patients ineligible for erythropoietin-based therapies. Blum projects peak EU sales of around $475 million by 2037, driven by reimbursement approvals and expanded access programs. It is one of the most oversold penny stocks to buy according to analysts.
3. Getty Images Holdings, Inc. (NYSE:GETY)
Price: $2.04
6-Month Performance: -42.37%
Number of Hedge Fund Holders: 8
Analyst Upside Potential: 235.78%
Getty Images Holdings, Inc. (NYSE:GETY) operates as a global visual content marketplace specializing in stock images, editorial photography, video, music, and AI-generated imagery. It serves three primary markets including creative professionals, media outlets, and corporate clients.
On January 7, the company announced entering into a definitive merger agreement with Shutterstock in a merger of equals transaction, creating a premier visual content company. The combined entity will be a $3.7 billion visual content powerhouse and will be named Getty Images Holdings, Inc. This move has drawn analyst attention as Wedbush’s Michael Pachter maintained a Buy rating on the stock, with a price target of $7. The analyst highlighted that the merger will allow cross-selling of high-value content to Shutterstock’s larger client pool, potentially boosting revenue for Getty Images Holdings, Inc. (NYSE:GETY). Moreover, Pachter expects $150–200 million in annual synergies by year three, driven by reduced redundancies and operational efficiencies.
2. Nuvation Bio Inc. (NYSE:NUVB)
Price: $2.14
6-Month Performance: -30.29%
Number of Hedge Fund Holders: 34
Analyst Upside Potential: 273.83%
Nuvation Bio Inc. (NYSE:NUVB) is a clinical-stage biopharmaceutical company focused on developing innovative therapies for difficult-to-treat cancers where conventional treatments have failed. It emphasizes precision oncology, leveraging epigenetic and molecular biology insights to address drug resistance and improve patient outcomes.
On March 12, analyst Soumit Roy of JonesTrading initiated a Buy rating on the stock with a price target of $10. Roy mentioned that the company is poised to transition to a commercial-stage company by mid-2025, driven by its focus on targeted therapies for lung cancer and glioma. He noted that Taletrectinib (ROS1 inhibitor) is under FDA priority review for ROS1-positive NSCLC, with a PDUFA decision date of June 23, 2025. Phase 2 data showed an 88.8% confirmed response rate in treatment-naive patients and 55.8% in pre-treated patients. Moreover, Safusidenib (IDH1 inhibitor) is awaiting Phase 2 data in IDH1-mutant glioma, which could lead to pivotal trials in 2025. The stock has fallen around 30% over the last half year but analysts expect more than 273% upside, making it one of the most oversold penny stocks to buy according to analysts.
1. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Price: $3.59
6-Month Performance: -63.40%
Number of Hedge Fund Holders: 44
Analyst Upside Potential: 457.10%
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a biopharmaceutical company focused on developing tumor-infiltrating lymphocyte therapies for solid tumor cancers. On March 1st, analyst Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on the stock with a price target of $32.
Pantginis noted that the company exceeded revenue expectations by posting $73.7 million in revenue in Q4 2024, which surpassed the previous year’s results. For the full year, it generated $164.1 million, which was the upper end of its guidance, driven by Amtagvi’s U.S. launch and Proleukin’s growth in the Amtagvi regimen. Moreover, Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) has reaffirmed its $450 million to $475 million revenue target for 2025, signaling confidence in sustained demand.
The analyst also highlighted that management has plans to scale production to treat 5,000+ patients annually, supporting long-term growth. Moreover, the company has submitted marketing authorization applications in the EU, UK, Canada, and Australia is aimed to diversify revenue streams. It is the most oversold penny stock to buy according to analysts.
While we acknowledge the potential of Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IOVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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