In this article, we will take a look at the 5 best new penny stocks to buy now. To see more such companies, go directly to 10 Best New Penny Stocks to Buy Now.
5. Thoughtworks Holding, Inc. (NASDAQ:TWKS)
Number of Hedge Fund Holders: 14
IT services and consultancy company Thoughtworks Holding, Inc. (NASDAQ:TWKS) ranks 5th in our list of the best new penny stocks to buy now according to hedge funds.
Earlier this month, Thoughtworks Holding, Inc. (NASDAQ:TWKS) announced Q2 results. GAAP EPS in the quarter came in at -$0.04, missing estimates by $0.06. Revenue in the quarter fell 13.5% year over year to $287.2 million, missing estimates by $14.44 million.
As of the end of the first quarter of 2023, 14 hedge funds in Insider Monkey’s database of 943 funds reported owning stakes in Thoughtworks Holding, Inc. (NASDAQ:TWKS). The biggest stakeholder of Thoughtworks Holding, Inc. (NASDAQ:TWKS) during this period was Phill Gross and Robert Atchinson’s Adage Capital Management which owns an $11.4 million stake in the company.
4. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Number of Hedge Fund Holders: 15
Hair care products company Olaplex Holdings, Inc. (NASDAQ:OLPX) went public in 2021. Olaplex Holdings, Inc. (NASDAQ:OLPX) got a valuation of about $15 billion at the time of its IPO. However, it failed to maintain investors’ interest and Olaplex Holdings, Inc. (NASDAQ:OLPX) is down about 80% over the past one year. Earlier in August Olaplex Holdings, Inc. (NASDAQ:OLPX) posted weak Q2 results. Adjusted EPS in the quarter came in at $0.03 missing estimates by $0.02. Revenue in the quarter fell 48.2% YoY to $109.24 million.
Nonetheless, 15 hedge funds in Insider Monkey’s database of 943 hedge funds had stakes in Olaplex Holdings, Inc. (NASDAQ:OLPX) at the end of the first quarter. The biggest stakeholder of Olaplex Holdings, Inc. (NASDAQ:OLPX) was Cliff Asness’s AQR Capital Management which owns a $20.1 million stake in the company.
Polen U.S. Small Company made the following comment about Olaplex Holdings, Inc. (NASDAQ:OLPX) in its Q1 2023 investor letter:
“We exited three positions during the quarter: Duck Creek Technologies, Azenta, and Olaplex Holdings, Inc. (NASDAQ:OLPX). We believe Olaplex highlights our willingness to change our mind when information changes, even with a new position. Olaplex is a highly profitable and uniquely positioned prestige beauty brand focused on science-based hair care. When we first invested in Olaplex in the fourth quarter of last year, it was on the back of the stock re-rating lower as revenue growth decelerated from rapid growth to a more sustainable growth rate. We felt this re-rating represented a significant discount on the stock’s long-term potential. In the short time since we became owners, a tail risk emerged related to a claim that the products cause hair loss and damage. At worst, this presents an existential threat to the business and, in the best-case scenario, makes everything that they are trying to do today a lot harder. No longer comfortable with the significantly widened range of potential outcomes, we eliminated the position as we have investment alternatives of equal or better reward today with meaningfully less risk. While it is unusual for us to exit positions so quickly, sometimes this is necessary. Not only is it important to be open to changing one’s mind quickly as new risks emerge—it is essential to protecting and preserving our clients’ capital.”
3. Theseus Pharmaceuticals, Inc. (NASDAQ:THRX)
Number of Hedge Fund Holders: 16
Theseus Pharmaceuticals, Inc. (NASDAQ:THRX) is a biopharmaceutical company that is engaged in the discovery, development, and commercialization of targeted therapies for the treatment of cancer patients. In July Theseus Pharmaceuticals, Inc. (NASDAQ:THRX) took a nosedive after the company said it will abandon its lead asset THE-630 for gastrointestinal stromal tumors.
Theseus Pharmaceuticals, Inc. (NASDAQ:THRX) will now focus on THE-349, an EGFR inhibitor for EGFR mutant non-small cell lung cancer. Out of the 943 hedge funds tracked by Insider Monkey 16 hedge funds reported owning stakes in Theseus Pharmaceuticals, Inc. (NASDAQ:THRX). The biggest hedge fund stakeholder of Theseus Pharmaceuticals, Inc. (NASDAQ:THRX) was Samuel Isaly’s OrbiMed Advisors which had a $153 million stake in the company.
2. FTAI Infrastructure Inc. (NASDAQ:FIP)
Number of Hedge Fund Holders: 19
Infrastructure company FTAI Infrastructure Inc. (NASDAQ:FIP) ranks 2nd in our list of the best new penny stocks to buy now according to hedge funds. FTAI Infrastructure Inc. (NASDAQ:FIP) has gained about 24% year to date through August 10. A total of 19 hedge funds in Insider Monkey’s database of 943 hedge funds reported owning stakes in FTAI Infrastructure Inc. (NASDAQ:FIP).
During the second quarter of 2023, FTAI Infrastructure Inc. (NASDAQ:FIP)’s GAAP EPS came in at -$0.38, missing estimates by $0.06. Revenue in the quarter jumped about 24.2% year over year to $81.83 million.
1. Expensify, Inc. (NASDAQ:EXFY)
Number of Hedge Fund Holders: 25
Expense management software company Expensify, Inc. (NASDAQ:EXFY) tops our list of the best new penny stocks to buy now. Expensify, Inc. (NASDAQ:EXFY) went public in 2021. As of the end of the first quarter of 2023, 25 hedge funds in Insider Monkey’s database of 943 funds reported owning stakes in Expensify, Inc. (NASDAQ:EXFY). The most significant stakeholder of Expensify, Inc. (NASDAQ:EXFY) during this period was Ali Motamed’s Invenomic Capital Management which owns a $12 million stake in the company.
Here is what Baron Fintech Fund has to say about Expensify, Inc. (NASDAQ:EXFY) in its Q2 2022 investor letter:
“Shares of Expensify, Inc., an expense management software provider for businesses, contributed to performance. The company reported strong quarterly earnings, expressed confidence in the business outlook, and initiated a share repurchase authorization. High-growth software stocks have recently been out of favor, but we retain long-term conviction in Expensify due to its large addressable market, rapid pace of innovation, and impressive combination of growth and profitability.”
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