In this article, we discuss the 12 best get rich fast stocks to buy now.
Investing in penny stocks—typically defined as shares trading below $5—can be alluring due to their potential for rapid financial gains. These low-priced stocks often represent small companies with the possibility of significant price fluctuations, offering investors the chance to realize substantial profits in a short period. However, it’s essential to understand both the opportunities and inherent risks associated with penny stock trading. Penny stocks are known for their volatility, which can lead to swift and substantial price movements. For instance, certain stocks have experienced notable upward trends, presenting opportunities for quick profits. Technical analysis of these stocks often reveals bullish patterns, such as bull flags and inverse head and shoulders, indicating potential upward momentum. Investors who can accurately identify these patterns and time their trades may capitalize on these price movements.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The low price point of penny stocks makes them accessible to investors with limited capital. Purchasing shares at a fraction of the cost of more established companies allows individuals to enter the stock market without significant financial commitment. This accessibility can be particularly appealing to novice investors looking to explore stock trading. While the allure of quick profits exists, experts advise caution. Last year, the Financial Times highlighted concerns over the surge in penny stock trading, noting that sub-dollar stocks accounted for 14% of all US trading volume, nearly double that of the previous year. This surge includes companies with questionable operations, leading to increased scrutiny and calls for tighter regulations. Doug Cifu, CEO of market-maker Virtu, has urged the Securities and Exchange Commission (SEC) to tighten listing standards and require more disclosures to protect investors from potential fraud and manipulation.
Similarly, The Wall Street Journal reported in August 2024 that Nasdaq was implementing new regulations to eliminate penny stocks trading under $1, aiming to remove risky and unstable companies from the exchange. These changes are intended to protect investors from companies exhibiting signs of significant financial or operational distress. Investing in penny stocks carries significant risks. The volatility that offers the potential for rapid gains can also lead to substantial losses. Additionally, the lack of liquidity in penny stocks can make it challenging to execute trades promptly, potentially exacerbating losses if the market moves unfavorably. The prevalence of fraud and manipulation in the penny stock market further underscores the need for thorough research and due diligence before investing.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The companies that are priced around $5 per share or under and have a beta of greater than 2 were shortlisted. The top thirty were then selected and the twelve best ranked according to hedge fund sentiment. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Best Get Rich Fast Stocks To Buy Now
12. Wheels Up Experience Inc. (NYSE:UP)
Number of Hedge Fund Holders: 5
Wheels Up Experience Inc. (NYSE:UP) provides private aviation services in the United States and internationally. In the third quarter of 2024, the Adjusted Contribution Margin reached 14.8%, marking the highest level since becoming a public company, reflecting an increase of 380 basis points year-over-year and 700 basis points sequentially. In December, the company announced that it had filed a prospectus for a mixed shelf offering of up to $400 million. This move allows the company to issue various types of securities, such as equity or debt, over time, providing flexibility to raise capital as needed.
11. CureVac N.V. (NASDAQ:CVAC)
Number of Hedge Fund Holders: 6
CureVac N.V. (NASDAQ:CVAC) is a clinical-stage biopharmaceutical company that focuses on developing various transformative medicines based on messenger ribonucleic acid. It is developing prophylactic vaccines, such as mRNA-based vaccine candidates CV2CoV, which is in Phase 1 clinical trial against SARS-CoV-2, CV7202 which is in Phase 1 clinical trial for the treatment of rabies, and CVSQIV to treat multivalent seasonal influenza. In mid-November, the firm posted earnings for the third quarter of 2024. The revenue over the period was €493.9 million, while pre-tax profit was €370.6 million.
10. Companhia Siderúrgica Nacional (NYSE:SID)
Number of Hedge Fund Holders: 10
Companhia Siderúrgica Nacional (NYSE:SID) is a producer of steel and related products. In the third quarter of 2024, net revenue totaled R$11,066.6 million, representing a growth of 1.7% compared to the previous quarter. In February, the company announced that it is in the final phase of implementing a new monitoring and access control system at its units in Volta Redonda. Utilizing artificial intelligence and cutting-edge technology, the new model ensures greater security for workers, service providers, and visitors who access the company’s facilities daily. Railway access will also be monitored using radars, strengthening control and ensuring comprehensive and efficient security across the facilities.
9. Sasol Limited (NYSE:SSL)
Number of Hedge Fund Holders: 11
Sasol Limited (NYSE:SSL) is an integrated energy and chemical company. In mining, saleable production in the second quarter of the fiscal year 2025 remained consistent with the previous quarter, while production for the first half of fiscal year 2025 was 1% lower than the same period in fiscal year 2024. In February, the company, with Anglo American, a global mining company, and De Beers, a leading diamond company, signed a Joint Development Agreement (JDA) to pilot the production of feedstock for renewable diesel. The objective of the JDA is to assess the technical and commercial viability of feedstock production, starting with Solaris and Moringa plantations to generate vegetable oil. Sasol’s existing assets can take a variety of feedstocks, enabling them to produce renewable diesel using vegetable oil quicker than greenfield projects and at lower costs.
8. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 19
Tilray Brands, Inc. (NASDAQ:TLRY) is a global lifestyle and consumer packaged goods company. In the third quarter of 2024, net revenue rose by approximately 30% to $188.3 million, up from $145.6 million in the same quarter of the previous year. In February, the company’s Montauk Brewing secured a JetBlue partnership, making Surf Beer Golden Ale available on all flights. This move is part of Tilray’s strategy to expand its alcohol division by securing mainstream placements and increasing market share. Tilray Medical is also expanding its medical cannabis extract portfolio in Germany with new offerings to meet growing demand.
7. Opendoor Technologies Inc. (NASDAQ:OPEN)
Number of Hedge Fund Holders: 20
Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform for residential real estate transactions in the United States. The firm reported its third-quarter 2024 financial results in early November last year. It achieved $1.4 billion in revenue for the quarter, surpassing its own guidance expectations. During this period, Opendoor purchased 3,504 homes, representing a 27% sequential decline. This reduction is attributed to elevated spread levels and a deliberate decrease in marketing expenditures. Despite these challenges, the company reported a contribution margin of 3.8%, exceeding the high end of its guidance range. Adjusted operating expenses were $90 million, lower than the projected $105 million, leading to an adjusted EBITDA loss of $38 million, which was better than anticipated.
6. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 22
QuantumScape Corporation (NYSE:QS) operates as a developer of advanced battery technology for electric vehicles (EVs) and other applications. Capital expenditures in the third quarter were $17.9 million, in line with expectations. In December last year, the company announced the successful installation of its new heat treatment equipment, Cobra, which is now ready for initial separator processing. This milestone keeps the company on track to deliver larger samples of its first commercial product, QSE-5, in 2025, moving closer to commercializing solid-state batteries for electric vehicles. Capital expenditures in the fourth quarter were $11.2 million, and for the full year 2024, were $62.1 million, within guidance.
5. Butterfly Network, Inc. (NYSE:BFLY)
Number of Hedge Fund Holders: 26
Butterfly Network, Inc. (NYSE:BFLY) develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. The company reported total revenue of $20.6 million in the third quarter of 2024, a 33% increase from $15.4 million in the same quarter of 2023. In January, the company announced early results from a key study by Rutgers Robert Wood Johnson Medical School and Robert Wood Johnson University Hospital. The study shows that point-of-care ultrasound (POCUS) improves patient outcomes and hospital efficiency. The study was a prospective, head-to-head comparison between hospital physicians using Butterfly iQ+ and iQ3 POCUS devices and those not using POCUS. The results revealed a significant reduction in both hospital length of stay (LOS) and overall healthcare costs.
4. Kosmos Energy Ltd. (NYSE:KOS)
Number of Hedge Fund Holders: 27
Kosmos Energy Ltd. (NYSE:KOS) is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. For the third quarter of 2024, revenues totaled $408 million, or $70.18 per boe, excluding the impact of derivative cash settlements. In February, the company announced that the BP-operated Greater Tortue Ahmeyim (GTA) LNG project had achieved its first gas production. Gas began flowing in December last year, with Phase 1 expected to produce 2.3 million tonnes of LNG annually. The first LNG cargo is expected in the first quarter of 2025, marking the start of revenue generation.
3. Hertz Global Holdings, Inc. (NASDAQ:HTZ)
Number of Hedge Fund Holders: 35
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is a provider of rental and leasing services. In the fourth quarter of 2024, direct vehicle and operating expenses rose 2% year-over-year, driven by higher insurance costs and additional non-cash rent expenses from lease recognition after the third quarter of 2024 asset impairment. In February, media reports indicated that the company is facing significant risks associated with its electric vehicle (EV) fleet despite a strategic shift away from prioritizing electrification. These risks include price volatility of new EVs, customer demand influenced by perceptions of EV reliability and infrastructure, and challenges in maintaining and repairing EVs due to a maturing market for parts and skilled labor.
2. EVgo, Inc. (NASDAQ:EVGO)
Number of Hedge Fund Holders: 37
EVgo, Inc. (NASDAQ:EVGO) is a prominent leader in the electric vehicle (EV) charging industry, operating one of America’s largest public EV fast charging networks. The company reported record revenue of $67.5 million in the third quarter of 2024, representing an increase of 92% year-over-year. In January, the company announced that it had received the first $75 million from its $1.25 billion guaranteed loan from the US Department of Energy’s Loan Programs Office. The loan, finalized in December 2024 after an 18-month review, will fund EVgo’s nationwide charging infrastructure expansion over the next five years. The company has already completed its first charging stalls with this funding and will continue focusing on locations with retail, dining, and service amenities across the US.
1. Transocean Ltd. (NYSE:RIG)
Number of Hedge Fund Holders: 38
Transocean Ltd. (NYSE:RIG) provides offshore contract drilling services for oil and gas wells worldwide. In the third quarter of 2024, contract drilling revenues rose by $87 million sequentially, reaching $948 million. This increase was driven by higher rig utilization, increased day rates for two rigs, and a full quarter of earnings from the newbuild ultra-deepwater drillship Deepwater Aquila. In December last year, Barclays upgraded the stock to Overweight with a $4.50 price target. While the offshore drilling sector has faced slow tenders, lower day rates, and gaps in schedules, Transocean’s entire deepwater fleet is fully contracted through 2026. Barclays expects offshore drilling activity to pick up by late 2025, driven by new deepwater projects and more exploration. The fourth-quarter results for 2024 included $20 million in discrete tax items, net, equivalent to $0.02 per diluted share.
While we acknowledge the potential of Transocean Ltd. (NYSE:RIG) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Transocean Ltd. (NYSE:RIG) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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