In this article, we will discuss the 12 Popular Penny Stocks on Robinhood to Watch.
The stock market is navigating a complex landscape influenced by geopolitical tensions, trade policies, and shifting investor sentiments. Recent developments, such as the U.S. administration’s decision to impose tariffs on Canada and Mexico, have introduced volatility, with the broader market experiencing a 5.2% decline over the past month.
Impact of Tariffs on the U.S. Economy
The Trump administration’s implementation of tariffs on imports from Canada and Mexico has raised concerns about potential economic repercussions. The Organization for Economic Cooperation and Development (OECD) forecasts that these tariffs could reduce U.S. GDP growth to 2.2% in 2025 and 1.6% in 2026. Additionally, Canada and Mexico are expected to experience economic slowdowns, with Canada’s growth slowing to 0.7% and Mexico’s economy contracting by 1.3% in 2025.
The announcement and implementation of these have contributed to market volatility. The Dow Jones Transportation Average, which includes companies like FedEx and Delta Air Lines, has declined over 17% from its November peak, reflecting investor concerns about the economic impact of trade policies. However, despite these challenges, there are emerging opportunities, particularly in the realm of penny stocks.
Return Potential of Penny Stocks
Penny stocks provide an accessible entry point for investors with limited capital. Their affordability allows individuals to diversify their portfolios without significant financial commitment. This characteristic is particularly appealing to novice investors seeking to enter the market.
While large-cap stocks offer stability and generally lower volatility, penny stocks present an opportunity for considerably higher percentage gains due to their smaller size and the potential for rapid expansion into niche markets or through innovative products and services. Academic research also indicates that the higher risk associated with the smaller market capitalization and lower liquidity of penny stocks is often compensated by higher expected returns through size and liquidity premiums. For instance, a study titled “On the Trading Profitability of Penny Stocks” examines the characteristics and pricing behavior of penny stocks, highlighting that these stocks are characterized by low liquidity and small market capitalization. The research suggests that these factors contribute to higher expected returns, aligning with the size and liquidity premiums observed in broader markets. The trade-off between risk and potential reward is a key factor that attracts growth-oriented investors to this segment. Given this, we will take a look at some of the best penny stocks on Robinhood.
Our Methodology
For this article, we performed an extensive analysis of leading financial websites to identify 12 penny stocks available on Robinhood. Our selection process was based on a consensus approach, where we considered only those stocks that consistently appeared across multiple sources during our research. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q4 2024. The stocks are ranked according to hedge funds having stakes in them.
At Insider Monkey, we are obsessed with hedge funds. 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).
12. MicroAlgo Inc. (NASDAQ:MLGO)
No of hedge fund holders: 1
MicroAlgo Inc. (NASDAQ:MLGO) specializes in central processing algorithm solutions tailored for the internet advertisement, gaming, and intelligent chip industries. The company has unveiled an innovative multi-simulator collaborative algorithm based on subgraph isomorphism. It aims to break down the constraints of qubit numbers while maximizing the benefits of distributed computing to boost quantum computer performance. The algorithm dissects large quantum circuits into several smaller sub-circuits, distributing computational tasks across multiple quantum computers or simulators. Through this effective utilization of limited quantum bit resources, the algorithm enhances the execution efficiency of quantum circuits.
MicroAlgo Inc. (NASDAQ:MLGO) has announced plans to issue new shares. It entered into a $20 million convertible bond purchase agreement on October 7, 2024, with a maturity period of 360 days. The bonds are convertible into common shares at a price equal to 70% of the lowest closing market price during the 60 trading days preceding the conversion request.
Following a request from creditors, MicroAlgo Inc. (NASDAQ:MLGO) intends to issue new shares at $0.80 per share to fulfill the terms of the agreement. It is among the best penny stocks on Robinhood.
11. Interactive Strength Inc. (NASDAQ:TRNR)
No of hedge fund holders: 1
Interactive Strength Inc. (NASDAQ:TRNR) is a digital fitness platform that combines innovative connected fitness hardware with expert health coaching and on-demand classes.
Interactive Strength Inc. (NASDAQ:TRNR) has announced plans to acquire a $15 million+ revenue-generating connected fitness equipment company. This all-stock transaction, expected to close by the end of March 2025, follows months of due diligence and discussion. It marks TRNR’s second transaction of the year, underscoring its aggressive growth strategy in the global health and wellness market. It is among the best penny stocks on Robinhood.
Interactive Strength Inc. (NASDAQ:TRNR) reported a net loss of $7.1 million for Q3 2024, which translates to a loss of $1.53 per diluted share. This is an improvement from the corresponding quarter in 2023, which registered a net loss of $10.4 million or a loss of $29.35 per diluted share. The company’s revenue met the guidance at $2.0 million, marking a significant 325% growth compared to Q2 2024. Adjusted EBITDA for Q3 2024 was a loss of $2.3 million, a $1.0 million improvement compared to Q3 2023. Looking ahead, TRNR expects to generate $2.4 million in revenue in Q4 2024.
10. Rapid Micro Biosystems Inc. (NASDAQ:RPID)
No of hedge fund holders: 3
Rapid Micro Biosystems Inc. (NASDAQ:RPID) is a life sciences technology company dedicated to enhancing microbial contamination detection in the pharmaceutical, medical device, and personal care sectors. The stock has surged by over 164% since the start of 2025, which makes it one of the best penny stocks on Robinhood.
Rapid Micro Biosystems Inc. (NASDAQ:RPID) has announced a five-year global distribution and collaboration agreement with MilliporeSigma, the Life Science business of Merck KGaA. This agreement will provide MilliporeSigma with global co-exclusive rights to sell Rapid Micro’s Growth Direct systems and related consumables to a wide spectrum of industries, including pharmaceutical, medical device, cosmetics, and food and beverage. Rapid Micro will retain its direct sales team and distribution channels. It will be responsible for the installation, validation, and service of any Growth Direct system sold by MilliporeSigma.
Rapid Micro Biosystems Inc. (NASDAQ:RPID) reported a record Q4 2024 performance with $8.2 million in total revenue, reflecting a substantial 30% increase compared to Q4 2023. The company also recorded a 27% surge in recurring revenue during the same period. The company’s net loss for Q4 2024 was $9.7 million, an improvement from $11.2 million in Q4 2023, with net loss per share narrowing to $0.22 from $0.26. As of December 31, 2024, the company had $50.7 million in cash, cash equivalents, and investments, with no outstanding debt.
9. Aterian Inc. (NASDAQ:ATER)
No of hedge fund holders: 4
Aterian Inc. (NASDAQ:ATER) is a dynamic technology-enabled consumer products company specializing in a diverse range of home and kitchen appliances, health and beauty products, and essential oils.
Aterian Inc. (NASDAQ:ATER) has authorized a $3 million share repurchase program, reflecting the board’s confidence in its future and undervalued stock. CEO Arturo Rodriguez highlighted the firm’s significant strides over the last 18 months to foster sustainable growth from 2025 onwards. The repurchase plan represents a direct capital return to shareholders, reflecting the firm’s strong financial position and optimistic outlook.
The company’s net revenue for Q4 was $24.6 million, down from $32.8 million in Q4 2023. However, it saw improvements in the operating loss, which decreased to ($1.6) million, compared to ($8.2) million in Q4 2023. The net loss also improved, coming in at ($1.3) million, down from ($7.7) million in the same period last year. Aterian Inc. (NASDAQ:ATER)’s adjusted EBITDA loss improved to ($0.1) million from a loss of ($5.6) million. The company ended 2024 with a total cash balance of $18.0 million, up from $16.1 million at the end of Q3 2024.
8. Nine Energy Service Inc. (NYSE:NINE)
No of hedge fund holders: 6
Nine Energy Service Inc. (NYSE:NINE) is a leading onshore completion services provider specializing in unconventional oil and gas resource development across North America and beyond.
Nine Energy Service, Inc. (NYSE:NINE) is making significant changes to its Board of Directors, reducing its size from eight to six members and altering its composition by year-end. The changes come as part of the Company’s strategic priorities, following unanimous agreement from the Board. The company believes these changes will bring fresh perspectives and greater operational leadership to the table.
For Q4 2024, the company posted revenues of $141.4 million, a net loss of $(8.8) million, or $(0.22) per share, and adjusted EBITDA of $14.1 million. Despite a flat average US rig count, Q4 revenue showed a ~2% quarter-over-quarter increase, driven by a 7% increase in cementing revenue and a 6% increase in completion tool revenue. Nine Energy Service Inc. (NYSE:NINE) ended the year with total liquidity of $52.1 million, aided by a reduction in capital expenditures to $14.6 million. It is among the best penny stocks on Robinhood.
7. Imperial Petroleum Inc. (NASDAQ:IMPP)
No of hedge fund holders: 8
Imperial Petroleum Inc. (NASDAQ:IMPP) specializes in international seaborne transportation services for oil producers, refineries, and commodities traders.
Imperial Petroleum Inc. (NASDAQ:IMPP) has declared a dividend of $0.546875 per share on its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock. This dividend, scheduled for payment on March 31, 2025, is for the period from December 30, 2024, to March 29, 2025, with the record date set as March 26, 2025. This move signifies the company’s robust financial health and commitment to returning value to its shareholders.
Imperial Petroleum Inc. (NASDAQ:IMPP) reported a decrease in Q4 2024 revenues from $29.9 million in Q4 2023 to $26.2 million, primarily due to a fall in spot market rates. The company also saw a decline in net income from $6.5 million to $3.9 million year-over-year, largely due to a $3.3 million foreign exchange loss. Despite these setbacks, the fleet operational utilization saw a significant improvement from 68.5% in Q4 2023 to 86.0% in Q4 2024. The company’s cash position also improved, with cash and cash equivalents, including time deposits, rising by 66.7% to $206.7 million as of December 31, 2024.
6. Enel Chile S.A. (NYSE:ENIC)
No of hedge fund holders: 9
Enel Chile S.A. (NYSE:ENIC) is an electricity utility company specializing in the generation, transmission, and distribution of electricity across Chile.
On March 11, 2025, Enel Chile S.A. (NYSE:ENIC)’s subsidiary, Enel Generación Chile, commenced commercial operations of the Los Cóndores Hydroelectric Power Plant. Located in the Maule Region, this plant boasts a net capacity of 153 MW and was constructed with advanced technology, including specialized tunnel boring machinery, to address geological challenges. It contributes approximately 350 GWh of renewable energy annually to Chile’s National Electric System.
For FY 2024, Enel Chile S.A. (NYSE:ENIC) reported a decline in its reported EBITDA, which decreased by 31% year-over-year to $764 million. However, adjusted EBITDA showed an improvement, up by 29% to $1.42 billion. The company also saw a 22% increase in adjusted Group Net Income, which reached $622 million, compared to $508 million in FY 2023. The company’s renewable energy projects, including the Los Cóndores Hydroelectric Power Plant, are expected to enhance future cash flow and support continued growth in the coming years.
5. Sensus Healthcare Inc. (NASDAQ:SRTS)
No of hedge fund holders: 11
Sensus Healthcare Inc. (NASDAQ:SRTS) is a medical device company specializing in innovative radiation therapy solutions for healthcare providers around the globe.
Sensus Healthcare Inc. (NASDAQ:SRTS) announced the publication of a retrospective study examining the efficacy of their SRT-100® system in the treatment of keloids. The study, carried out at Taiwan’s Tri Service Military Hospital, demonstrated that combining surgical excision of keloids with primary wound closure, followed by Superficial Radiation Therapy using the SRT-100® system, resulted in no keloid recurrence in the majority of patients followed for over six months. The results not only underline the effectiveness of Sensus Healthcare’s approach but also reinforce the company’s commitment to improving the quality of life for those suffering from dermatological issues.
Sensus Healthcare Inc. (NASDAQ:SRTS) reported its fifth consecutive quarter of profitability with a net income of $1.5 million. It achieved record-high shipments of 39 superficial radiotherapy (SRT) systems, an 18% increase compared to the same quarter prior year. The company’s revenues were also robust, reaching $13.1 million for the quarter, a 4% increase year-on-year. Sensus Healthcare ended the year with a healthy balance sheet, possessing $22.1 million in cash and cash equivalents while carrying no debt.
4. Tuya Inc. (NYSE:TUYA)
No of hedge fund holders: 13
Tuya Inc. (NYSE:TUYA) is a provider of a purpose-built Internet of Things (IoT) cloud development platform. It empowers businesses, original equipment manufacturers, and developers to create and manage innovative smart devices and services. The stock has surged by over 100% since the start of 2025, which places it on the list of the best penny stocks on Robinhood.
Tuya Inc. (NYSE:TUYA), has announced a strategic partnership with Viettel Telecom, the largest telecommunications operator in Vietnam, and T3 Technology, a leading telecom solutions provider in Southeast Asia. This partnership will leverage Tuya’s Cube Cloud solution and the collective expertise of the three companies to expedite the development of the smart home ecosystem in the region. This move is expected to enhance user convenience and engagement, improve business expansion, and boost market competitiveness.
Tuya Inc. (NYSE:TUYA) reported a positive full fiscal year 2024. The company’s total revenue for the full year was $298.6 million, reflecting a 29.8% increase from $230 million in 2023. The net profit for the year came in at $5 million, a significant improvement from a net loss of $60.3 million in 2023. The company also generated $80.4 million in net cash from operating activities for the year, marking a 120.5% increase from the previous year.
3. Safe Bulkers Inc. (NYSE:SB)
No of hedge fund holders: 14
Safe Bulkers Inc. (NYSE:SB) is a provider of international marine dry bulk transportation services, specializing in the efficient movement of essential bulk cargoes such as coal, grain, and iron ore.
Safe Bulkers Inc. (NYSE:SB) has announced its participation in the 19th Annual Capital Link International Shipping Forum, scheduled for Monday, March 31, 2025, at the Metropolitan Club in New York City. The forum, a key event in the global shipping industry, will gather executives, investors, and analysts to discuss critical macroeconomic trends and market dynamics affecting the shipping sector. Safe Bulkers will be available for one-on-one meetings with institutional investors, providing an opportunity to engage with the company’s leadership and gain insights into its performance and outlook.
Safe Bulkers Inc. (NYSE:SB) reported its unaudited financial results for the fourth quarter and full year ending December 31, 2024. The company’s annual net revenues increased from $284.4 million in 2023 to $307.6 million in 2024. Net income also saw growth on an annual basis, rising from $77.4 million in 2023 to $97.4 million in 2024. The earnings per share (EPS) for 2024 was $0.83, a significant increase from 2023’s EPS of $0.61.
2. TETRA Technologies Inc. (NYSE:TTI)
No of hedge fund holders: 19
TETRA Technologies Inc. (NYSE:TTI) is an energy services and solutions provider specializing in innovative products and services for the oil and gas industry.
TETRA Technologies Inc. (NYSE:TTI) has appointed Kurt Hallead as its new Treasurer and Vice President of Investor Relations. With over 30 years of experience in the energy sector, including roles as Head of Global Energy at The Benchmark Company and Managing Director at RBC Capital Markets, Hallead brings extensive expertise to TETRA. His background in equity research and portfolio management positions him well to enhance TETRA’s financial strategy and investor communication.
TETRA Technologies Inc. (NYSE:TTI) reported a solid fourth-quarter performance for 2024, with income from continuing operations of $102 million, significantly improving from $2.8 million in the third quarter. The company generated $5.6 million in operating cash flow and posted a use of $9.3 million in adjusted free cash flow. TETRA saw strong performance in its Completion Fluids & Products segment, which saw revenue rise by 6% to $69 million.
1. Gossamer Bio Inc. (NASDAQ:GOSS)
No of hedge fund holders: 35
Gossamer Bio Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company dedicated to developing innovative treatments for pulmonary arterial hypertension (PAH).
The company remains focused on its lead asset, seralutinib, which is currently in Phase 3 registrational study for pulmonary arterial hypertension (PAH) with topline data expected in Q4 2025. Additionally, Gossamer Bio Inc. (NASDAQ:GOSS) is preparing to launch a Phase 3 trial for pulmonary hypertension associated with interstitial lung disease (PH-ILD) in the second half of 2025. The company also received an Orphan Drug Designation for the treatment of PAH in Japan, positioning it for potential global market expansion.
For the full year ended December 31, 2024, Gossamer Bio Inc. (NASDAQ:GOSS) reported a net loss of $56.5 million, or $0.25 per share, a significant improvement compared to the $179.8 million net loss, or $1.18 per share, in 2023. The company ended the year with $294.5 million in cash, cash equivalents, and marketable securities, which it expects will fund operations through the first half of 2027. Research and Development (R&D) expenses were $138.5 million, slightly higher than the previous year’s $135.3 million, reflecting ongoing investments in clinical trials.
Overall, Gossamer Bio Inc. (NASDAQ:GOSS) ranks first on our list of the 12 Popular Penny Stocks on Robinhood to Watch. While we acknowledge the potential for GOSS as an investment, our conviction lies in the belief that some 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 GOSS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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