Earlier on February 12 this year, Chief Investment Officer at Cetera Financial Group, Gene Goldman, discussed how he thinks small-caps are a good investment. Goldman thinks that the Fed is now a friend to the market instead of a foe, even if not the best of friends. This stance came from the anticipation that although the Fed might not lower rates this year, they’re not expected to raise them either. The Fed had projected four rate cuts in September last year, but this was later lowered to two in December. Goldman now thinks that market expectations now suggest just a zero to one rate cut in 2025, and the end-of-year interest rates are likely to be around 4%. According to him, higher inflation and the uncertainty because of tariffs are what’s causing the Fed’s cautious approach.
In this conversation, Goldman highlighted the healthcare sector with its advancements in biotech, personalized medicine, and health solutions. He also addressed concerns about AI investments and acknowledged that while AI has faced challenges this year, especially within the MAG7, AI’s long-term potential remains intact. This is especially fueled by the ongoing data revolution. Goldman recently started using an acronym for his new investment strategy, called SHAQ, to support 4 sectors — Small Caps, Healthcare, AI, and Quality investments. Goldman is enthusiastic about small caps due to their cheap valuations and improved business sentiment. Goldman thinks that small caps remain attractive even without rate reductions because of their valuation, although, of course, they could benefit from rate cuts as well. Goldman thinks that quality investments are crucial in this investment strategy as well.
With this acknowledgment, we’re here with a list of the 11 best penny stocks to invest in under $1.
A close-up of a portfolio of stocks, emphasizing the broad equity portfolio of the company.
Our Methodology
We used the Finviz stock screener to compile a list of the top penny stocks that were trading below $1 as of April 10. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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).
11 Best Penny Stocks to Invest in Under $1
11. Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK)
Share Price as of April 10: $0.91
Number of Hedge Fund Holders: 6
Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) explores mineral properties in the US. It explores for copper, gold, molybdenum, silver, and rhenium deposits. It holds 100% interest in the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project that comprises 1,840 mineral claims that cover an area of ~274 square miles in southwest Alaska in the US.
The company’s core business revolves around the Pebble project. This is a world-class, undeveloped copper deposit that Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) claims is among the world’s largest currently. It’s entirely held by the company’s subsidiary called the Pebble Partnership. It has 6.5 billion tonnes of measured and indicated resources, and 4.5 billion tonnes are still inferred.
However, this project involves disputes with the EPA and USACE concerning necessary permits. While these regulatory and legal challenges slow down the company a bit, it remains focused on advancing the Pebble Project with hopes that the new EPA administration will allow the project to proceed. Pebble Limited Partnership (PLP) recently agreed to a 90-day delay in the proceedings to give the new EPA admin time to review the case.
10. Senseonics Holdings Inc. (NYSEAMERICAN:SENS)
Share Price as of April 10: $0.6
Number of Hedge Fund Holders: 7
Senseonics Holdings Inc. (NYSEAMERICAN:SENS) is a commercial-stage medical technology company, that develops and manufactures continuous glucose monitoring (CGM) systems for people with diabetes. Its products include Eversense, Eversense XL, Eversense E3, and Eversense 365. These are once-yearly implantable CGM systems to measure glucose levels in people with diabetes.
In Q4 2024, the company made $8.3 million in revenue, whereas the full-year revenue stood at $22.5 million. This was driven by the success of recently launched Eversense 365 in the US. By December 2024, the company had achieved a record 600 new patient shipments, which increased the global patient base by 56% year-over-year. Total number of patients were then around 6,000. 81% of these patients switched from competitor CGM systems.
Now the company expects to make around $34 to $38 million in 2025 full-year revenue. Senseonics Holdings Inc. (NYSEAMERICAN:SENS) is now focused on its European expansion plans and has filed for CE mark approval for Eversense 365. It’s expected to launch in H2 2025.
9. Ocugen Inc. (NASDAQ:OCGN)
Share Price as of April 10: $0.69
Number of Hedge Fund Holders: 8
Ocugen Inc. (NASDAQ:OCGN) discovers, develops, and commercializes novel gene and cell therapies, biologics, and vaccines for improving patients’ health. Its innovative gene therapy platform has three main programs: OCU400, OCU410ST, and OCU410. These help restore retinal integrity and function across genetically diverse inherited retinal diseases.
OCU400 in particular is a key program for the company’s growth. It targets retinitis pigmentosa and has shown a clinically meaningful 2-line improvement in low-luminance visual acuity at two years in its Phase 1/2 clinical trial. The company is now enrolling patients in a Phase 3 trial, with a target of 150 participants and completion expected in H1 2025. Other than that, OCU410ST is aimed at Stargardt disease, and OCU410 targets dry age-related macular degeneration (dAMD).
In H2 2024, the company secured $65 million in equity and debt financings which helped extend its cash runway into Q1 2026. R&D expenses for 2024 were $32.1 million, which was notably down from $39.6 million in 2023. At the same time, Ocugen Inc.’s (NASDAQ:OCGN) cash and restricted cash totaled $58.8 million by 2024 year-end, which was an improvement from the $39.5 million at the end of 2023.
8. I-80 Gold Corp. (NYSEAMERICAN:IAUX)
Share Price as of April 10: $0.52
Number of Hedge Fund Holders: 11
I-80 Gold Corp. (NYSEAMERICAN:IAUX) is a mining company that explores, develops, and produces gold, silver, and polymetallic deposits mainly in Nevada in the US. Its principal assets are the McCoy-Cove gold properties which are located in Lander County, along with the Granite Creek gold project located in Humboldt County, the Lone Tree project located within the Battle Mountain-Eureka Trend, and the Ruby Hill mine in Eureka County.
In 2024, the company made a revenue of $50.3 million. Its focus remains on developing the Granite Creek Underground Project, which will significantly increase the company’s gold production. The Granite Creek mine contributed 10,961 ounces of gold to the company’s total 2024 sales of 21,527 ounces. For 2025, it projects this Granite Creek production to be between 20,000 and 30,000 ounces, out of a total production of 30,000 to 40,000 ounces.
However, Granite Creek struggled with operation efficiency in 2024 because of groundwater ingress, which led to lower-than-expected mining rates and gold extraction. I-80 Gold Corp. (NYSEAMERICAN:IAUX) has taken corrective measures for this, which include expanding pumping capacity and drilling new dewatering wells. Extraction rates are anticipated to improve in H2 2025.
7. ChargePoint Holdings Inc. (NYSE:CHPT)
Share Price as of April 10: $0.6
Number of Hedge Fund Holders: 14
ChargePoint Holdings Inc. (NYSE:CHPT) provides EV charging networks and charging solutions in North America and Europe. It serves the commercial sector which includes retail, workplace, hospitality, healthcare, fueling & convenience, and parking lot operators. It also serves fleets such as municipal buses, and delivery & work vehicles, among other applications.
The company’s network charging systems and subscription services are supported by its expansive network of managed charging ports and help drive its growth. The company made a total of $102 million in revenue for FQ4 2025, where the subscription revenue increased by 14% year-over-year to $38 million. This came from the increasing number of charging ports managed by the company’s software, which reached 342,000 globally and included 33,000 DC fast chargers.
ChargePoint Holdings Inc. (NYSE:CHPT) is collaborating with GM Energy to open several GM Energy-branded DC fast-charging locations. This partnership uses ChargePoint Holdings Inc.’s (NYSE:CHPT) market position and industry relationships to accelerate network growth. For FQ1 2026, the company expects revenue between $95 and $105 million. To support this, it’s also developing next-gen software and hardware, such as anti-vandalism technology.
6. SES AI Corp. (NYSE:SES)
Share Price as of April 10: $0.56
Number of Hedge Fund Holders: 14
SES AI Corp. (NYSE:SES) develops and produces AI-enhanced lithium metal and lithium-ion rechargeable battery technologies for EVs, urban air mobility, drones, robotics, battery energy storage systems, and other applications. It manufactures and sells li-metal battery cells and battery materials, which include electrolytes for automotive OEMs.
The company reported its first revenue of $2 million in Q4 2024 with a 63% gross margin. This came from contracts to develop AI-enhanced lithium-metal and lithium-ion batteries for EVs and initial deliveries of lithium-metal cells for drone applications. The company secured contracts that total up to $10 million to develop AI-enhanced batteries for EVs.
Its AI-enhanced 2170 cylindrical cells, which are developed using the Molecular Universe platform, are being adopted in the UAM sector. There are significant purchase orders from Data Blanket for drones and SoftBank for HAPS communication satellites. SES AI Corp. (NYSE:SES) now anticipates 2025 revenue to be between $15 and $25 million.
5. Bitfarms Ltd. (NASDAQ:BITF)
Share Price as of April 10: $0.85
Number of Hedge Fund Holders: 15
Bitfarms Ltd. (NASDAQ:BITF) is an energy and compute infrastructure company that operates integrated Bitcoin data centers in Canada, the US, Paraguay, and Argentina. It owns and operates data centers housing computers to validate transactions on the Bitcoin blockchain. It also sells computational power used for hashing calculations for cryptocurrency mining in multiple jurisdictions.
It’s transitioning from a traditional Bitcoin mining company to a North American energy and compute company that has a focus on HPC and AI. This shift is driven by the company’s access to substantial energy resources and its focus on US-based operations. The company has also increased its energy capacity by more than 90% to 461 energized megawatts. It has a pipeline of over 1.4 gigawatts, with about 80% based in the US.
The Stronghold Digital Mining acquisition and the Yguazu site sale have transformed Bitfarms Ltd.’s (NASDAQ:BITF) portfolio. It reduced CapEx requirements and freed up capital for reinvestment in US infrastructure. The sale of Yguazu particularly reduced planned CapEx for 2025 to under $100 million, and the company has no plans for large miner purchases in 2025 or 2026.
4. Canaan Inc. (NASDAQ:CAN)
Share Price as of April 10: $0.74
Number of Hedge Fund Holders: 16
Canaan Inc. (NASDAQ:CAN) researches, designs, and sells ICs, and leases final mining equipment by integrating IC products for bitcoin mining and related components. It is involved in the assembly and distribution of mining equipment and spare parts, together with the distribution of AI products, as well as the mining business.
In the company’s Bitcoin mining machines business, the current flagship product is the A15 series. In Q4 2024, the company made $73 million in revenue from these machine sales and improved 64% year-over-year. This surge was driven by the sale of 9.1 million terahashes per second of computing power, which was a 66% year-over-year increase. The A15 series sold over 17,000 units in Q4.
About 80% of these sales went to large North American public mining companies like Cipher, CleanSpark, and HIVE. The company’s growing presence in the North American market now accounts for ~40% of its total mining machine sales for the full year 2024. Canaan Inc. (NASDAQ:CAN) also has delivery schedules booked into May and June of 2025 for the A15 series. In addition, it’s developing the next-gen A16 mining machines which aim to bring even more advanced technology to the market.
3. Tilray Brands Inc. (NASDAQ:TLRY)
Share Price as of April 10: $0.53
Number of Hedge Fund Holders: 19
Tilray Brands Inc. (NASDAQ:TLRY) researches, cultivates, processes, and distributes medical cannabis products internationally. It has four segments: Beverage Alcohol, Cannabis, Distribution, and Wellness. It’s essentially a lifestyle consumer products company that offers medical and adult-use cannabis, pharmaceutical & wellness products, beverage alcohol, hemp-based food, and other wellness products.
In FQ3 2025, the company’s cannabis segment generated $57 million in net revenue which was accompanied by an increase in gross margin. It reached 41%, which is the highest it’s been in nearly two years. This was fueled by growth in international markets and a focus on higher-margin products in the Canadian adult-use market.
The international and Canadian medical operations in the global medical cannabis business account for about 80% of the company’s total cannabis profits, even though it represents only ~35% of total cannabis sales. In Canada, Tilray Brands Inc. (NASDAQ:TLRY) is the largest legal cannabis business by revenue. The company holds the number one market share in several categories, such as beverages, chocolate edibles, oils, capsules, and straight-edge pre-rolls.
2. Ecarx Holdings Inc. (NASDAQ:ECX)
Share Price as of April 10: $0.89
Number of Hedge Fund Holders: 19
Ecarx Holdings Inc. (NASDAQ:ECX) develops a full-stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology of smart mobility. It offers SoCs, central computing platforms, operating systems, and software. It recently entered into a strategic partnership agreement with Black Sesame Technologies.
In Q4 2024, the company made RMB 1.5 billion in sales of goods revenue, which was a 16% increase year-over-year due to the strong demand for its Antora series and Makalu computing platforms. These accounted for ~29% of the total sales of goods revenue. The Antora series, particularly the Antora 1000, is a key product for the company. By the end of 2024, the company had shipped ~500,000 Antora series units.
This number is expected to cross 1 million units in 2025. This platform offers automakers a cost-effective way to integrate digital cockpit and driving functionalities into a single board. The Antora 1000 is deployed in many Geely models, such as the Galaxy EX5. It is also used in the Hongqi Tiangong 05, which highlights its adaptability across different car manufacturers.
1. Gossamer Bio Inc. (NASDAQ:GOSS)
Share Price as of April 10: $0.88
Number of Hedge Fund Holders: 35
Gossamer Bio Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company that develops and commercializes seralutinib for the treatment of pulmonary arterial hypertension (PAH). It’s developing GB002, which is an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colony-stimulating factor 1 receptor, and c-KIT inhibitor.
The company is currently conducting a Phase 3 clinical trial called the PROSERA Study for PAH patients, which assesses the change in six-minute walk distance from baseline at week 24, with topline results expected in Q4 2025. The company has also received Orphan Drug Designation for seralutinib in Japan. This could lead to a marketing application in Japan if the PROSERA study is successful.
In addition to PAH, Gossamer Bio Inc. (NASDAQ:GOSS) plans to initiate a Phase 3 clinical trial for PH-ILD patients in H2 2025. The company reported $294.5 million in cash, cash equivalents, and marketable securities for the full year 2024. This amount will be sufficient to fund operations for Gossamer Bio Inc. (NASDAQ:GOSS) into H1 2027.
While we acknowledge the growth potential of Gossamer Bio Inc. (NASDAQ:GOSS), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOSS but that trades at less than 5 times its earnings, check out our report about this 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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