We recently compiled a list of the 10 Hot Penny Stocks to Buy Now. In this article, we are going to take a look at where KULR Technology Group, Inc. (NYSE:KULR) stands against the other hot penny stocks.
How Did Small Caps Do In Q4 2024?
On January 2, Royce Investment Partners published their analysis regarding the performance of the small caps during the fourth quarter of 2024. The report highlighted that small-cap stocks, represented by the Russell 2000 Index, achieved a modest gain of 0.3%, marking the second consecutive positive quarter. However, this performance lagged behind large-cap stocks, as the Russell 1000 Index rose by 2.7% in the same period. Francis Gannon, Co-Chief Investment Officer, and Managing Director, pointed out a unique “bowl-shaped” return pattern among US equities in the last quarter of 2024, with the Russell Microcap Index increasing by 5.9% and the Russell Top 50 Index by 5.5%.
Gannon highlighted that while December’s results were disappointing for many stocks, particularly small-cap and micro-cap indexes, the overall year was strong for small-cap performance, with an annual increase of 11.5%. However, on the other hand, this also marked the eighth consecutive year where small-caps underperformed relative to large-caps. Historically speaking the data reveals that the Russell 2000 has only outperformed the Russell 1000 in four of the last twenty years, with a significant underperformance streak noted since 2016. Gannon acknowledged that this is a long period of wait to see small cap leadership but he sees promising signs for the leadership to be just around the corner.
While explaining his bullish sentiment Gannon discussed the dynamics of volatility in the US equity markets. He contrasted large-cap and small-cap stocks’ performance in 2024 and noted that large-cap stocks experienced relatively low volatility throughout the year, as indicated by the CBOE Volatility Index. Apart from a brief spike in early August, large-cap stocks maintained a notably stable performance, mirroring trends observed in 2023. However, on the other hand, small-cap stocks exhibited a slightly different volatility profile. Gannon highlights that historically, about 42% of trading days in the Russell 2000 see price movements of 1% or more. In 2024, this figure was marginally lower at 41%, indicating that small-caps remained somewhat volatile but not significantly. He emphasizes that this trend of volatility is expected to change, predicting a return to more typical levels of volatility across stocks in 2025. He encouraged investors to view increased volatility not merely as a source of fear but as an opportunity for long-term investment strategies.
Our Methodology
To create the list of 10 hot penny stocks to buy now, we used the Finviz stock screener. Using the screener we first aggregated a list of penny stocks (price between $1-$5) and then sorted it in ascending order of their 6-month performance. Next, we ranked these stocks based on the number of hedge fund holders, in ascending order, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 20, 2025.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A technician wearing a safety suit and goggles working on a battery pack for an electric vehicle.
KULR Technology Group, Inc. (NYSE:KULR)
Price: $2.02
6-Months Performance: 815.91%
Number of Hedge Fund Holders: 6
KULR Technology Group, Inc. (NYSE:KULR) focuses on improving battery safety and efficiency through advanced thermal management technologies. Its technology is used in powering high-consumption industries such as aerospace, defense, and commercial usage. Its products include Thermal Runaway Shields, which protect batteries from overheating, and Automated Battery Testing Systems that ensure the quality and safety of battery cells.
KULR Technology Group, Inc. (NYSE:KULR) is strategically expanding into the AI infrastructure market by focusing on cooling solutions and energy management. It has partnered with EDOM Technology, an NVIDIA Channel Partner, to distribute its KULR Xero Vibe and KULR ONE product lines in Taiwan’s AI supply chain market. This collaboration aims to provide cooling solutions for both server and edge computing devices within the AI ecosystem. Moreover, the company has also secured licensing partnerships, including one with a Japanese corporation, to utilize its KXV technology for data center cooling and HVAC systems.
During the fiscal third quarter of 2024, KULR Technology Group, Inc. (NYSE:KULR) achieved record revenue of approximately $3.19 million. The revenue was driven by an 83% growth in paying customers and a 143% increase in Engineering service revenue. It is one of the hot penny stocks to buy now.
Overall KULR ranks 5th on our list of the hot penny stocks to buy now. While we acknowledge the potential of KULR as an investment, our conviction lies in the belief that 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 KULR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.