In this article, we discuss the 15 best penny stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Penny Stocks to Buy Now.
Retail investors who do not have the billions of dollars that institutional investors have access to often look towards penny stocks as an entry into the world of investing. This strategy often proves to be fruitful since research on small companies and the growth potential they offer is a tried and tested way of understanding how the market functions. Although it is not often that penny stocks lead investors to the next Amazon.com, Inc. (NASDAQ: AMZN) or Facebook, Inc. (NASDAQ: FB), they do offer the chance for short-term handsome returns owing to their volatility.
To put this into perspective, consider how market giants like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Novavax, Inc. (NASDAQ: NVAX), and Cassava Sciences, Inc. (NASDAQ: SAVA) were all in the penny stock range not too long ago. These stocks have gained 3,277%, 590%, 54%, 3,043% over the past twelve months, respectively, representing the explosive growth potential that good penny stocks can offer to those investors who are willing to take the time to analyze small companies.
Some of the best penny stocks to buy now include Transocean Ltd. (NYSE: RIG), IAMGOLD Corporation (NYSE: IAG), and CarLotz, Inc. (NASDAQ: LOTZ), among others discussed in detail below. According to news platform CNBC, the explosion in stock volumes over the past two years has also helped push penny stocks higher. A CNBC report from January 2021 highlighted how the average daily volume of the market has gone up from 7 billion in 2019, to almost 11 billion in 2020, and stood at over 14 billion at the beginning of 2021.
The influx of retail investors and the equities they favor have had a huge impact on the overall market dynamics. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context in mind, here is our list of the 15 best penny stocks to buy now. We chose stocks of companies working on products and services having long-term growth potential.
We also took into account analyst ratings and research reports to gauge market sentiment for these stocks.
These stocks were ranked according to the number of hedge fund holders in each stock. Even though hedge funds are not big fans of penny stocks, data of 873 hedge funds tracked by Insider Monkey was used to gauge hedge fund sentiment around each company.
All the stocks mentioned below have a share price below $5.
Best Penny Stocks to Buy Now
15. PowerBand Solutions Inc. (OTC: PWWBF)
Number of Hedge Fund Holders: N/A
PowerBand Solutions Inc. (OTC: PWWBF) is a technology company that markets software and financing solutions. It is placed fifteenth on our list of 15 best penny stocks to buy now. The firm is based in Canada and primarily serves the automotive industry. In earnings results for the first half of the fiscal year, posted on August 18, the company reported a revenue of $7.6 million, up more than 645% compared to the revenue over the same period last year. It has a market cap of $138 million and posted $2.3 million in revenue in 2020.
Some of the products marketed by PowerBand Solutions Inc. (OTC: PWWBF) include LiveNet Auction, Marketplace Auction, Dynamic Appraisal, PowerDesk, IntellaCar, and DRIVRZLane, among others. It is headquartered in Burlington.
On July 12, PowerBand Solutions Inc. (OTC: PWWBF) reported a 31% increase in June gross revenue. The growth was attributed to the increase in lease originations that grew from just 69 in late 2020 to over 216 in the next six months.
Just like Transocean Ltd. (NYSE: RIG), IAMGOLD Corporation (NYSE: IAG), and CarLotz, Inc. (NASDAQ: LOTZ), PowerBand Solutions Inc. (OTC: PWWBF) is one of the best penny stocks to buy now for those who cannot afford Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Novavax, Inc. (NASDAQ: NVAX), and Cassava Sciences, Inc. (NASDAQ: SAVA).
14. HIVE Blockchain Technologies Ltd. (NASDAQ: HVBT)
Number of Hedge Fund Holders: N/A
HIVE Blockchain Technologies Ltd. (NASDAQ: HVBT) is ranked fourteenth on our list of 15 best penny stocks to buy now. The company operates from Canada and engages in cryptocurrency mining operations. It was founded in 1987 as Leeta Gold Corp but changed the name to HIVE Technologies in 2017 to concentrate on crypto mining. On August 13, the firm announced that it had ordered 1,800 Antminer S19j Pro miners from Bitmain Technologies as part of a plan to upgrade mining equipment. The share price surged 6.4% after the announcement.
On July 30, HIVE Blockchain Technologies Ltd. (NASDAQ: HVBT) announced that it had achieved an annual run rate of $200 million based on the current prices of Bitcoin and Ethereum. The firm also revealed the purchase of 4,000 miners for the purpose.
HIVE Blockchain Technologies Ltd. (NASDAQ: HVBT) has a market cap of $1 billion and posted close to $30 million in revenue last year. The shares were approved for listing on the NASDAQ exchange in June this year.
13. Verb Technology Company, Inc. (NASDAQ: VERB)
Number of hedge fund holders: 3
Verb Technology Company, Inc. (NASDAQ: VERB) is placed thirteenth on our list of 15 best penny stocks to buy now. It is a Utah-based software firm. The company is one of the most mentioned stocks on Reddit forums. From June to July 15, the stock registered an incredible 160% rally before taking a breather in the coming weeks.
On July 23, investment advisory Alliance Global reiterated a Buy rating on Verb Technology Company, Inc. (NASDAQ: VERB) stock and raised the price target to $4 from $2.75, underlining that the firm was over the development stage and now entering monetization phase.
At the end of the second quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $710,000 million in Verb Technology Company, Inc. (NASDAQ: VERB), the same as in the previous quarter worth $195,000.
12. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Number of Hedge Fund Holders: 6
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) is Greece-based international shipping company. It is ranked twelfth on our list of 15 best penny stocks to buy now. It operates a fleet of 11 Capesize vessels. On August 11, the share price of the firm soared by more than 3% after the board announced plans for a share repurchase worth $17 million. The firm has a market cap of $183 million and posted $63 million in revenue last year. The firm primarily engages in the transportation of iron ore and coal.
In March, investment advisory Noble Capital upgraded Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) stock to Outperform from Market Perform with a price target of $1.50, noting that the pullback in share price of the firm was an attractive buying opportunity.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $3.9 million in Seanergy Maritime Holdings Corp. (NASDAQ: SHIP), up from 3 in the previous quarter worth $2.1 million.
11. Ideanomics, Inc. (NASDAQ: IDEX)
Number of Hedge Fund Holders: 6
Price as of August 13, 2021: $2.40
Ideanomics, Inc. (NASDAQ: IDEX) is a New York-based company that concentrates on providing fintech services for the adoption of electric vehicles. It is placed eleventh on our list of 15 best penny stocks to buy now. In earnings results for the second quarter, posted on August 16, the company reported a revenue of more than $33 million, up 606% compared to the revenue over the same period last year and beating market estimates by $2.2 million. The gross profit over the period was $9.3 million, representing a gross margin of 28%.
In April, investment advisory Roth Capital assumed coverage of Ideanomics, Inc. (NASDAQ: IDEX) stock with a Buy rating and a price target of $7, highlighting that the firm was targeting emerging opportunities in the electric vehicle space.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $34 million in Ideanomics, Inc. (NASDAQ: IDEX), down from 7 in the preceding quarter worth $20 million.
In addition to Transocean Ltd. (NYSE: RIG), IAMGOLD Corporation (NYSE: IAG), and CarLotz, Inc. (NASDAQ: LOTZ), Ideanomics, Inc. (NASDAQ: IDEX) is one of the best penny stocks to buy now for those who cannot afford Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Novavax, Inc. (NASDAQ: NVAX), and Cassava Sciences, Inc. (NASDAQ: SAVA).
10. Electrameccanica Vehicles Corp. (NASDAQ: SOLO)
Number of Hedge Fund Holders: 7
Electrameccanica Vehicles Corp. (NASDAQ: SOLO) is ranked tenth on our list of 15 best penny stocks to buy now. The firm is based in Canada and makes and sells electric vehicles. In earnings results for the second quarter, posted on August 11, the company reported a revenue of $0.3 million, beating market predictions by $0.21 million. In late June, the company had filed for a mixed shelf offering to raise $750 million for use in sales, marketing, capital, and product development expenditures.
On May 12, Electrameccanica Vehicles Corp. (NASDAQ: SOLO) announced the start of construction on a new assembly and technical center in Arizona that is spread over 18 acres of land and includes a manufacturing plant as well.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Electrameccanica Vehicles Corp. (NASDAQ: SOLO) with 1 million shares worth more than $4.7 million.
9. Exela Technologies, Inc. (NASDAQ: XELA)
Number of Hedge Fund Holders: 7
Exela Technologies, Inc. (NASDAQ: XELA) is placed ninth on our list of 15 best penny stocks to buy now. It is based in Texas and markets digital processing solutions. On August 11, the firm announced that it would be extending a strategic agreement signed with a healthcare firm that utilized the technology and operational capability of the former in a contract worth $7.5 million. The firm has a market cap of $165 million and posted more than $1.2 billion in revenue last year. The short interest on the stock is 18.9%.
On June 2, investment advisory Cantor Fitzgerald initiated coverage of Exela Technologies, Inc. (NASDAQ: XELA) stock with an Overweight rating and a price target of $4, noting the improvement in basic business fundamentals of the firm.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $7.5 million in Exela Technologies, Inc. (NASDAQ: XELA), down from 8 in the previous quarter worth $10 million.
8. eMagin Corporation (NYSE: EMAN)
Number of Hedge Fund Holders: 6
eMagin Corporation (NYSE: EMAN) is a New York-based company that makes and sells products used by the virtual imaging industry. It is placed eighth on our list of 15 best penny stocks to buy now. In earnings results for the second quarter, posted on August 12, the company reported earnings per share of $0.00, beating market predictions by $0.03. The revenue over the period was $6.3 million, down close to 18% year-on-year and missing estimates by $1.4 million.
In March, investment advisory HC Wainwright maintained a Buy rating on eMagin Corporation (NYSE: EMAN) stock and raised the price target to $5 from $2, noting that the firm was well positioned for the rest of the fiscal year.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $4 million in eMagin Corporation (NYSE: EMAN), down from 9 in the preceding quarter worth $5.9 million.
Transocean Ltd. (NYSE: RIG), IAMGOLD Corporation (NYSE: IAG), and CarLotz, Inc. (NASDAQ: LOTZ) are some of the best penny stocks to buy now for those who cannot afford Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Novavax, Inc. (NASDAQ: NVAX), and Cassava Sciences, Inc. (NASDAQ: SAVA), in addition to eMagin Corporation (NYSE: EMAN).
7. Sesen Bio, Inc. (NASDAQ: SESN)
Number of Hedge Fund Holders: 10
Sesen Bio, Inc. (NASDAQ: SESN) is a Cambridge-based biotechnology company that focuses on the development of targeted fusion protein therapies for cancer patients. It is ranked seventh on our list of 15 best penny stocks to buy now. The firm was founded in 2008. It has a market cap of $295 million and posted $11 million in revenue last year. The short interest on the stock is over 10% and the volume is 7,053,750. The company was formerly known as Eleven Biotherapeutics but changed the name in 2018.
On August 17, investment advisory Canaccord reiterated a Buy rating on Sesen Bio, Inc. (NASDAQ: SESN) stock but lowered the price target to $3 from $7, noting that the firm was expected to address concerns about a drug in a regulatory meeting soon.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $46 million in Sesen Bio, Inc. (NASDAQ: SESN), down from 11 in the preceding quarter worth $35 million.
6. Trivago N.V. (NASDAQ: TRVG)
Number of Hedge Fund Holders: 10
Trivago N.V. (NASDAQ: TRVG) is placed sixth on our list of 15 best penny stocks to buy now. The firm is based in Germany. It owns and operates a hotel search platform. The firm hosts information about 5 million hotels and offers access to local websites and applications in 32 different languages. In earnings results for the second quarter, posted on July 29, the firm reported a revenue of €95 million. In the corresponding period last year, the revenue had been slightly more than €16 million.
On May 5, investment advisory Mizuho maintained a Buy rating on Trivago N.V. (NASDAQ: TRVG) stock and raised the price target to $4 from $2.70, noting that an improved outlook for the firm was expected in light of lifting of travel restrictions.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $67 million in Trivago N.V. (NASDAQ: TRVG), the same as in the preceding quarter worth $84 million.
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Disclose. None. 15 Best Penny Stocks to Buy Now is originally published on Insider Monkey.
