11 Best Fundamentally Strong Penny Stocks to Buy Now

3. Arko Corp. (NASDAQ:ARKO)

Number of Hedge Fund Holders: 21

Arko Corp. (NASDAQ:ARKO) is a convenience store operator and fuel retailer in the United States, operating through its primary subsidiary, GPM Investments. The company operates a network of company-operated stores and dealer locations under multiple regional and national brands. ARKO’s business segments include retail, wholesale, and fleet fueling, offering convenience products, prepared foods, and motor fuels. It sources fuel from major oil companies and independent refiners and sells it through both owned and third-party sites.

Arko Corp. (NASDAQ:ARKO) faced a challenging year in 2024 amid persistent inflation and constrained consumer spending, delivering results near the midpoint of their annual guidance. The company made significant progress in its transformation plan, notably exceeding targets in its dealerization program by converting more than 150 retail stores to dealer sites in 2024, with approximately 100 more stores planned for conversion by the end of Q1 2025. The dealerization program is expected to generate an annualized benefit exceeding $20 million to combined wholesale and retail segment operating income, with additional opportunity from G&A expense reduction.

In response to evolving customer preferences, Arko Corp. (NASDAQ:ARKO) launched strategic initiatives including the “Fueling Americas Future” campaign, offering customers up to $2 off per gallon for up to 20 gallons when purchasing value promotions inside stores. The company’s loyalty program showed strong performance, with enrolled members spending an average of $104 per month, nearly 60% more than non-enrolled customers, and visiting stores about 3 more times per month. Looking ahead to 2025, management expects total company adjusted EBITDA to be in the range of $233 million to $253 million, assuming a retail fuel margin of $0.395 to $0.415 per gallon and mid-teen percent operating profit growth in the Wholesale segment. With 21 hedge funds owning the stock and strong guidance ahead, ARKO is one of the best fundamental stocks to buy now.