The NASDAQ Stock Market is home to some of the world’s largest companies in the world and also hosts several hundred penny stocks. These companies must meet certain requirements to remain listed on the NASDAQ exchange, including the $1 per share minimum share price thresholds, revenue standards, and market capitalization thresholds. If a company fails to meet these requirements, it may receive noncompliance notifications and eventually be delisted. According to a report by Bloomberg, this year’s market rally has boosted many of the struggling stocks, helping some companies regain compliance with NASDAQ’s listing requirements.
Optimism in U.S. Markets
On December 3, Bloomberg reported that Fed Governor Christopher Waller, while addressing a conference in Washington, indicated that he is inclined to vote for a rate cut at the upcoming Federal Reserve meeting on December 17-18. However, Waller emphasized that his decision will depend on the economic data released before the meeting, particularly if it shows an unexpected uptick in inflation.
According to Bloomberg, New York Fed President John Williams in a speech in New York said that the economy is continuing to look strong and inflation is likely moving down toward the Fed’s target. However, he emphasized that the path for monetary policy will be contingent upon incoming economic data. He underscored the uncertainty of the economic outlook, noting, “If we’ve learned anything over the past five years, it’s that the outlook remains highly uncertain.”
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In an interview with CNBC on November 15, Nicholas Colas, Co-founder of DataTrek Research, discussed his views on the US stocks and the potential of small caps. Colas recalled how U.S. stocks outperformed global markets during the first Trump administration. Colas acknowledged that current multiples are high, but he is optimistic and believes that multiples can hold or even rise, given the high level of confidence in the US market. Regarding small caps, Colas suggested that they are a great trade for the year-end. The Russell 2000, which tracks small-cap performance, has been flat and lagged significantly behind the S&P 500 over the past three years, and presents an amazing opportunity, given that it typically sees a 20% increase. This underperformance makes small caps reasonable holds for the longer term, as they are due for a rebound.
While the broader market is showing signs of overvaluation, small-cap, and penny stocks have lagged significantly behind over the past few years, creating a compelling opportunity for investors. With that in context, let’s take a look at the 11 best NASDAQ penny stocks to buy right now.
Our Methodology
To compile our list of the 11 best NASDAQ penny stocks to buy right now, we used Finviz and Yahoo stock screeners to find the 25 largest companies trading below the price of $5 as of December 4. We then used Insider Monkey’s Hedge Fund database to rank 11 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best NASDAQ Penny Stocks To Buy Right Now
11. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Number of Hedge Fund Holders: 18
Stock Price as of December 4: $2.07
Olaplex Holdings, Inc. (NASDAQ:OLPX) is a premium hair care company known for its patented bond-building technology, which restores and strengthens hair. The company earns revenue through direct-to-consumer sales, salon partnerships, and retail distribution.
Olaplex Holdings, Inc. (NASDAQ:OLPX) is exploring new markets, such as the Lashbond Building Serum Market. The company’s new product, LASHBOND, is designed to enhance the appearance of thicker, longer, and fuller lashes. With its existing client base and reputation, Olaplex Holdings, Inc. (NASDAQ:OLPX) plans to capitalize on this new market opportunity.
Olaplex Holdings, Inc. (NASDAQ:OLPX) is also expanding its presence in the global market through various initiatives. The company is establishing connections with professional distributors worldwide to drive revenue growth. The company is signing agreements with distributors that do not work with competitors, giving the company a competitive edge. This expansion is expected to accelerate the growth of the company’s network outside of the United States.
10. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 19
Stock Price as of December 4: $2.12
Lucid Group, Inc. (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles (EVs) and provides associated services. The company is known for its innovative technology, stunning design, long-range, and exceptional performance.
Lucid Group, Inc. (NASDAQ:LCID) is focused on its upcoming SUV, the Lucid Gravity. On November 7, the company opened customer orders for the car. To support the launch of Lucid Gravity, Lucid Group, Inc. (NASDAQ:LCID) is investing in its brand awareness and go-to-market strategy. The company has seen a significant increase in foot traffic at its studios, with a 70% increase in the past 30 days. This increased awareness is expected to drive demand for both Lucid Gravity and Lucid Air.
Lucid Group, Inc. (NASDAQ:LCID) is also expanding its physical presence, with a growing network of studios and service centers. The company ended the third quarter with 55 studios and service centers, up from 53 in the second quarter, and plans to continue to strategically expand its footprint in the future.
The Lucid Gravity is expected to be a game-changer for the company, with its innovative technology and design set to reshape the market for SUVs. The vehicle has already generated significant interest, with test rides of the Lucid Gravity beta and pre-production vehicles receiving positive feedback. The company is confident that Lucid Gravity will be a major success, with its technology and cost competitiveness set to drive growth and profitability.
9. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Number of Hedge Fund Holders: 20
Stock Price as of December 4: $4.92
GoodRx Holdings, Inc. (NASDAQ:GDRX) operates a digital healthcare platform that helps consumers save money on prescription medications. The company generates revenue through partnerships with pharmacies and offering premium subscription services.
GoodRx Holdings, Inc. (NASDAQ:GDRX) is making significant strides in growing its pharma manufacturer solutions offering, which is expected to deliver 20% year-over-year top-line growth in the fourth quarter. The company is partnering with pharma manufacturers to provide unique cash, co-pay, and assistance programs to reach patients and physicians. These programs are designed to provide patients with more affordable options for their medications. One notable example of this is GoodRx Holdings, Inc.’s (NASDAQ:GDRX) partnership with Dexcom, which offers a discounted cash price for the Dexcom G7 diabetes unit.
GoodRx Holdings, Inc. (NASDAQ:GDRX) is also exploring new ways to work with pharma manufacturers, including the launch of an e-commerce solution with Opill, the first over-the-counter birth control pill. Furthermore, the company is working on expanding its telehealth offerings and improving its app features to attract more users and increase retention.
8. Advantage Solutions Inc. (NASDAQ:ADV)
Number of Hedge Fund Holders: 22
Stock Price as of December 4: $3.64
Advantage Solutions Inc. (NASDAQ:ADV) provides sales and marketing solutions to consumer goods manufacturers and retailers. The company’s services include in-store merchandising, digital marketing, and analytics.
Advantage Solutions Inc. (NASDAQ:ADV) is focusing on expanding its relationships with clients, enhancing its data-driven capabilities, and pursuing strategic partnerships to help clients optimize their marketing spend and grow their brands. The company is also growing its direct-to-home sampling, which offers higher margins and an attractive market as consumers utilize online solutions for shopping. This effort enables sampling for online shopping as well as drives traffic to physical stores.
By focusing on the Experiential Services segment, which offers in-store events, product demonstrations, and sampling services to consumer packaged goods companies and retailers, Advantage Solutions Inc. (NASDAQ:ADV) aims to provide its clients with a unique and valuable service that meets their needs and drives growth. The company’s ability to execute against this demand and provide high-quality service is a key differentiator and a major driver of its success.
7. OPKO Health, Inc. (NASDAQ:OPK)
Number of Hedge Fund Holders: 22
Stock Price as of December 4: $1.58
OPKO Health, Inc. (NASDAQ:OPK) is a diversified healthcare company that is involved in the development and commercialization of diagnostics, pharmaceuticals, and healthcare services. The company is focused on cancer, metabolic disorders, infectious diseases, and women’s health. The company’s Pharmaceutical segment sells products such as Rayaldee, which treats secondary hyperparathyroidism in adults with chronic kidney disease, and Somatrogon (branded as NGENLA), a human growth hormone injection developed in partnership with Pfizer.
OPKO Health, Inc. (NASDAQ:OPK) is advancing its oxyntomodulin analog, OPK-88006, which has shown promise in preclinical studies as a potential once-weekly injectable treatment for patients with obesity or metabolic disorders. Additionally, OPKO Health, Inc. (NASDAQ:OPK) is collaborating with Entera Bio to develop an oral version of OPK-88006, which could provide a competitive advantage in the market.
Furthermore, OPKO Health, Inc. (NASDAQ:OPK) is exploring partnerships and business development opportunities to drive growth and unlock value across its segments. The company has established a collaboration with Merck to develop an Epstein-Barr virus multivalent nanoparticle vaccine, which is expected to enter the clinic soon. The company is also eligible to receive milestone payments and royalties on global sales of this vaccine.
6. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 25
Stock Price as of December 4: $3.62
Sabre Corporation (NASDAQ:SABR) is a leading technology provider for the global travel and tourism industry that operates backend software and provides data-driven solutions for airlines, hotels, and travel agencies. The company generates revenue by charging fees for every flight or hotel booking processed through its systems and has an extensive network of travel agents and online platforms, enabling its clients to maximize their reach and revenue opportunities.
Sabre Corporation (NASDAQ:SABR) is also building out a new multisource platform, which offers New Distribution Capability (NDC), low-cost carrier, and traditional Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT) content with intelligent algorithms and efficient workflow integration. This platform is now in production with an early adopter program and is expected to be rolled out more broadly in the coming quarters.
Sabre Corporation (NASDAQ:SABR) is also focusing on growing its AI-powered SabreMosaic platform. In May, Sabre Corporation (NASDAQ:SABR) introduced SabreMosaic, a platform designed to modernize travel retailing. SabreMosaic is designed to replace and modernize traditional Passenger Service System (PSS) systems, providing airlines with a more efficient and effective way to manage their retailing capabilities. Virgin Australia has selected SabreMosaic to modernize its retailing capabilities, and Riyadh Air has chosen the platform to power its offer optimization technology and retailing capabilities.
5. Taboola.com Ltd. (NASDAQ:TBLA)
Number of Hedge Fund Holders: 27
Stock Price as of December 4: $3.97
Taboola.com Ltd. (NASDAQ:TBLA) is a digital advertising company that operates a discovery platform that matches advertisers with publishers on the open web and monetizes their online presence. The company generates revenue from its advertisers through various pricing models. Taboola.com Ltd.’s (NASDAQ:TBLA) client base includes prominent publishers such as Yahoo, Apple, BBC, CBS, USA Today, and National World, among others.
Taboola.com Ltd. (NASDAQ:TBLA) is focusing on expanding its distribution channels to drive traffic to its publisher partners and create new revenue streams. Moreover, the company is exploring new avenues in e-commerce, particularly in the realm of social commerce. This initiative has seen impressive growth, especially in markets like China, where e-commerce companies are leveraging Taboola to drive higher customer acquisition and purchasing activity.
Taboola.com Ltd. (NASDAQ:TBLA) recently launched Abby, an AI-powered content creation tool for advertisers that produces high-quality, engaging content resonating with their target audience. The company is actively working on increasing awareness of Abby among small and medium-sized businesses (SMBs) through targeted efforts. By making these tools accessible and user-friendly, Taboola.com Ltd. (NASDAQ:TBLA) aims to attract a broader range of advertisers and drive more revenue from self-serve products.
4. Geron Corporation (NASDAQ:GERN)
Number of Hedge Fund Holders: 29
Stock Price as of December 4: $3.95
Geron Corporation (NASDAQ:GERN) is a biopharmaceutical company that has made a strong start to its commercial journey with its flagship product, imetelstat, a disease-modifying treatment for lower-risk myelodysplastic syndromes (LR-MDS), an abnormal blood cell production disorder in the bone marrow. Geron Corporation’s (NASDAQ:GERN) primary revenue stream comes from the sales of imetelstat, which affects approximately 25,000 patients in the United States. The company’s clients are primarily hematologists and oncologists who treat patients with LR-MDS, a market that is expected to grow significantly as the product gains traction.
Geron Corporation (NASDAQ:GERN) is focused on expanding its commercial reach, both in the United States and internationally. The company has secured favorable funding deals with Royalty Pharma and Pharmakon Advisors, which provided $375 million in non-dilutive financing to support commercialization efforts. The company plans to use these funds to invest in sales and marketing initiatives, expand its commercial team, and build out its distribution network. Geron Corporation (NASDAQ:GERN) is also pursuing additional indications for imetelstat, including a marketing authorization application (MAA) review in the European Union for lower-risk MDS, which could lead to approval in early 2025.
In addition to its commercial efforts, Geron Corporation (NASDAQ:GERN) is advancing its pipeline with several ongoing clinical trials, including a Phase 3 study in relapsed/refractory myelofibrosis (MF) patients, a condition with no curative treatments. The company expects interim data from this study in early 2026, with topline results anticipated in early 2027.
3. Hertz Global Holdings, Inc. (NASDAQ:HTZ)
Number of Hedge Fund Holders: 30
Stock Price as of December 4: $4.51
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is a well-established player in the car rental industry that offers a wide range of vehicles and services to customers worldwide. The company has built a reputation as one of the most recognized car rental brands globally. Hertz Global Holdings, Inc.’s (NASDAQ:HTZ) portfolio includes brands such as Hertz, Firefly, and Dollar. The company caters to both individual and corporate clients. The company’s services include daily rentals, long-term leases, and specialist programs like the Hertz Gold Plus rewards loyalty program.
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is focusing on fleet optimization by reducing its average fleet age and increasing the number of electric vehicles (EVs) in its fleet. The company has a goal to offer a 100% electric fleet by 2027. This move is expected to not only reduce emissions but also attract environmentally conscious customers. According to a report by Global Market Insights, the global car rental market is expected to grow at a CAGR of 7% from 2024 to 2032, Hertz Global Holdings, Inc. (NASDAQ:HTZ) is well-positioned to benefit from this trend.
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is also targeting the growing shared mobility market and has partnered with companies such as Uber and Lyft to offer car-sharing services. The company is also exploring opportunities in the electric vehicle subscription market by offering customers flexible, month-to-month rentals of EVs. Furthermore, Hertz Global Holdings, Inc. (NASDAQ:HTZ) is investing in digital transformation, enhancing its online booking platform and mobile app to improve the customer experience.
2. Marqeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 33
Stock Price as of December 4: $3.84
Marqeta, Inc. (NASDAQ:MQ) is a leading innovator in the global payments industry, providing modern card issuing and payment processing solutions to companies and organizations around the world. The company provides a cloud-based, API platform for card issuing and transactions, allowing businesses to build and embed customized payment solutions directly into their applications. The company serves financial institutions, tech companies, and e-commerce businesses.
Marqeta, Inc. (NASDAQ:MQ) is focusing on expanding its global presence and enhancing its API offerings to capitalize on the growing demand for digital payments. Despite the recent regulatory hurdles, Marqeta, Inc. (NASDAQ:MQ) is poised to capitalize on the growing demand for embedded finance solutions. The company’s strong balance sheet, with $1.1 billion in net cash and virtually no debt, positions it to weather any short-term challenges and invest in its future.
Marqeta, Inc. (NASDAQ:MQ) is also expanding its product pipeline and increasing revenue. In Q3, Marqeta, Inc. (NASDAQ:MQ) reported an 18% year-over-year increase in revenue, with a gross profit margin of 70%. The company’s product pipeline includes new solutions such as Portfolio Migration, Marqeta Flex, and UX Toolkit. These new products will further enhance the company’s competitive position and drive growth in the embedded finance market.
1. CommScope Holding Company, Inc. (NASDAQ:COMM)
Number of Hedge Fund Holders: 38
Stock Price as of December 4: $4.79
CommScope Holding Company, Inc. (NASDAQ:COMM) provides infrastructure solutions for telecommunications networks. The company sells products such as fiber-optic cables and connectivity solutions to telecom operators and enterprises.
CommScope Holding Company, Inc. (NASDAQ:COMM) is investing heavily in capacity expansion, and expanding its product portfolio to meet the growing demand of 5G technology, and the data center market, particularly in the hyperscale and cloud data center business. CommScope Holding Company, Inc. (NASDAQ:COMM) is also investing in its vertical market strategy, focusing on expansion into manufacturing and Pro-AV markets. The company believes that these investments will drive growth and help to gain market share in the medium and long term.
In Q3, CommScope Holding Company, Inc. (NASDAQ:COMM) reported a 25% year-over-year increase in adjusted EBITDA to $220 million, driven by strength in the Connectivity and Cable Solutions (CSS) segment. This led the company to approve an additional capacity expansion project that is expected to generate an additional $300 million in revenue. In addition to expanding capacity, CommScope Holding Company, Inc. (NASDAQ:COMM) is also investing in technology to drive growth in its CCS segment.
While we acknowledge the potential of CommScope Holding Company, Inc. (NASDAQ:COMM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than COMM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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