Top 10 Penny Stocks That Will Skyrocket

5. Kosmos Energy Ltd. (NYSE:KOS)

Price: $2.25

Analyst Upside Potential: 143.90%

Number of Hedge Fund Holders: 27

Kosmos Energy Ltd. (NYSE:KOS) is an independent, full-cycle oil and gas exploration and production company specializing in deepwater operations along the offshore Atlantic Margins. The company has operations in Ghana, Equatorial, Mauritania, Senegal, and the United States Gulf of Mexico. On February 25, Wall Street analyst Matthew Smith from Bank of America Securities reiterated a Buy rating on the stock, with a price rating of $6.

The analyst highlighted that the company is approaching a significant FCF inflection, driven by the first cargo from the Tortue project, which has shown promising early production data. This is complemented by a substantial reduction in capital expenditures, leading to projected FCF yields of 20% in 2025 and increasing to 35% in 2026. Smith also noted that the discussion about future phases of the Tortue project indicates potential for further expansion, despite possible capital expenditure pressures. The Kosmos Energy Ltd. (NYSE:KOS) long reserve life and robust resource base provide a stable foundation for continued operations. Moreover, analysts expect more than 140% upside for the stock, making it one of the top penny stocks that will skyrocket.