In this article, we will look at the Top 10 Penny Stocks That Will Skyrocket.
Is It a Good Time to Diversify Your Portfolio With Small Caps?
On March 21, Jason D. Pride, Chief of Investment Strategy & Research at Glenmede, and Stephen DeNichilo Senior Portfolio Manager at Federated Hermes appeared on a CNBC interview to talk about the favorable sectors in the market. Jason noted that the market needs to calm down on the Magnificent Seven, as this category has been one of the most concentrated sectors in history. He believes that this above-par level of concentration will lead the Magnificent Seven down, similar to what the market saw back in 1999 and the 20s.
This high level of concentration tells a lot about the future performance and as far as the Magnificent Seven stocks are concerned, Jason does not see the future performance coming from this sector. He argues that the future performance will come from sectors that are not too concentrated at the moment such as the small-cap and pretty much the other 493 stocks in the S&P 500. Investors should be looking at diversifying their portfolios as this is the environment where investors should own the risk and the small caps to get better gains moving forward.
In addition, Stephen further added to the discussion by mentioning that to understand the stock market today investors need to look at this basic idea that a stock only moves higher if there are people who want to buy it from you at a better price. Therefore, if everyone already owns the same stocks then there is no one left to buy it at a better price. Stephen noted that the market is currently in an extremely volatile situation where nobody knows the rules of the market. This is due to the series of headlines related to tariffs, inflation, and interest rates. This situation makes it tough for already expensive companies to predict an encouraging outlook. On the other hand, if we look at the small-cap companies and other less concentrated sectors of the market, these stocks are highly undervalued as compared to their history. Stephen says that fast forwarding to 6 to 12 months from today the market will be in a lower interest rate and more confident environment, which is the best-case scenario for small caps to rally.
With that, let’s take a look at the top 10 penny stocks that will skyrocket.
A close-up of a stock market ticker displaying the company’s stocks.
Our Methodology
To compile the list of the top 10 penny stocks that will skyrocket we used the Finviz stock screener and CNN as our sources. Using the screener we aggregated a list of penny stocks (trading between $1 and $5) with more than 50% analyst upside potential. After sorting the list by market capitalization we cross-checked the upside potential for each stock using CNN and selected companies with more than 100% upside. Lastly, we ranked the stocks based on the number of hedge fund holders as of Q4 2024, sourced from Insider Monkey’s database. Please note that the data was recorded on March 21, 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 10 Penny Stocks That Will Skyrocket
10. Lotus Technology Inc. (NASDAQ:LOT)
Price: $1.58
Analyst Upside Potential: 153.16%
Number of Hedge Fund Holders: 11
Lotus Technology Inc. (NASDAQ:LOT) is a leading international luxury electric vehicle company that focuses on manufacturing and selling high-end electric vehicles. It manufactures premium electric vehicles for everyday use, expanding beyond traditional sports car offerings. Moreover, it invests heavily in research and development for next-generation automotive technologies, including electrification and intelligent driving systems.
On March 13, Lotus Technology Inc. (NASDAQ:LOT) announced that it has established a strategic partnership with CaoCao Mobility through its autonomous driving division Lotus Robotics. CaoCao Mobility is a leading ride-hailing service provider in China. The collaboration focuses on launching an innovative intelligent mobility platform for robotaxis, marking a significant milestone in the ride-hailing industry. As a result, Robotaxis equipped with Lotus Robotics autonomous driving systems has begun pilot operations in Suzhou and Hangzhou, showcasing reliability with over 13,545 kilometers of unmanned driving without human intervention.
Moreover, in fiscal 2024, the company delivered 12,065 vehicles, representing more than 70% year-over-year growth. China was one of the biggest contributors as it accounted for more than 25% of the deliveries during the year. With an analyst upside potential of more than 153%, Lotus Technology Inc. (NASDAQ:LOT) is one of the top penny stocks that will skyrocket.
9. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Price: $2.98
Analyst Upside Potential: 101.68%
Number of Hedge Fund Holders: 13
BigBear.ai Holdings, Inc. (NYSE:BBAI) specializes in artificial intelligence-powered decision intelligence solutions. It delivers AI and machine learning technologies for decision intelligence, using tools like computer vision, anomaly detection, and predictive analytics to provide insights and manage risks. The company serves both public and private sectors including US defense and intelligence agencies, and border protection and transportation security, among others.
BigBear.ai Holdings, Inc. (NYSE:BBAI) demonstrated significant financial and operational progress in 2024 while addressing challenges in profitability. It grew its fiscal fourth quarter revenue by 8% year-over-year to reach $43.8 million. Moreover, the company also secured significant contracts, including a $165 million US Army production contract. As a result, its backlog expanded to $418 million by the end of 2024, reflecting a 2.5x increase compared to the previous year.
On March 10, BigBear.ai Holdings, Inc. (NYSE:BBAI) announced that it has been awarded a 3.5-year, $13.2 million sole-source contract by the US Department of Defense to modernize the ORION Decision Support Platform. It will enhance and maintain ORION DSP, which provides automated force management and advanced data analytics capabilities to the department. Analysts see more than 101% upside for the stock, making it one of the top penny stocks that will skyrocket.
8. ImmunityBio, Inc. (NASDAQ:IBRX)
Price: $2.71
Analyst Upside Potential: 195.20%
Number of Hedge Fund Holders: 15
ImmunityBio, Inc. (NASDAQ:IBRX) is a clinical-stage biotechnology company focused on developing advanced immunotherapies and vaccines to combat cancers and infectious diseases. It leverages proprietary platforms to enhance both the innate and adaptive immune systems, aiming to create therapies that are effective, accessible, and durable.
ImmunityBio, Inc. (NASDAQ:IBRX) has recently achieved two significant milestones with the FDA. The FDA granted Regenerative Medicine Advanced Therapy designation for ANKTIVA and CAR-NK therapies to address lymphopenia in patients undergoing chemotherapy or radiation and those with multiply relapsed, locally advanced, or metastatic pancreatic cancer. Moreover, the company also received FDA approval to provide recombinant Bacillus Calmette-Guérin through an Expanded Access Program to address the shortage of TICE BCG in the US, which is critical for treating non-muscle invasive bladder cancer.
As a result of these approvals, Analyst Justin Zelin from BTIG maintained a Buy rating on the stock with a price target of $6. The analyst noted that the FDA’s approval of an Expanded Access Program for recombinant BCG is expected to address the shortage of TICE BCG. This development could facilitate the adoption of ANKTIVA for treating non-muscle invasive bladder cancer. Moreover, Zelin highlighted that ImmunityBio, Inc.’s (NASDAQ:IBRX) agreement with the Serum Institute ensures a steady global supply of both standard and next-generation rBCG, which has shown promising trial results in Europe. ImmunityBio, Inc. (NASDAQ:IBRX) is one of the top penny stocks that will skyrocket.
7. Energy Fuels Inc. (NYSE:UUUU)
Price: $4.43
Analyst Upside Potential: 127.27%
Number of Hedge Fund Holders: 18
Energy Fuels Inc. (NYSE:UUUU) is a US-based critical minerals company specializing in uranium, rare earth elements, vanadium, heavy mineral sands, and medical isotopes. It is the leading producer of uranium in the United States, supplying natural uranium concentrates to nuclear utilities for carbon-free nuclear energy production.
In 2024, Energy Fuels Inc. (NYSE:UUUU) achieved significant milestones that strengthened its position as a leading US critical minerals company. It resumed active uranium mining operations, selling 450,000 pounds of uranium (U3O8) at profitable prices. This includes 200,000 pounds under long-term contracts at $75.13 per pound and 250,000 pounds under spot contracts at $91.51 per pound. The sales generated a gross profit of $21.32 million with a 56% gross margin.
Recently, the company formed a strategic alliance with The Chemours Company to strengthen the United States’ domestic supply chain for critical minerals, including rare earth elements, titanium, and zirconium. Energy Fuels Inc. (NYSE:UUUU) is one of the top penny stocks that will skyrocket as analysts expect more than a 127% upside.
6. Cipher Mining Inc. (NASDAQ:CIFR)
Price: $2.92
Analyst Upside Potential: 173.97%
Number of Hedge Fund Holders: 23
Cipher Mining Inc. (NASDAQ:CIFR) is a US-based technology company specializing in industrial-scale Bitcoin mining. It focuses on developing and operating Bitcoin mining data centers. On March 7, Rosenblatt initiated a Buy rating on the stock, with a price target of $6.5.
During the fiscal fourth quarter of 2024, the company generated $42 million in revenue with net earnings of $18 million. Moreover, the adjusted earnings for the quarter grew to $51 million, reflecting its ability to drive earnings from its low-cost bitcoin production model. As a major strategic development, Cipher Mining Inc. (NASDAQ:CIFR) completed the acquisition of Stingray, a data center in West Texas with 100 MW of front-of-the-meter capacity. In addition to this, the company also acquired 337 additional acres of land adjacent to its Barber Lake site.
As per the February 2025 update, Cipher Mining Inc. (NASDAQ:CIFR) mined 180 bitcoins during the month and sold 235, with an operating hash rate of 13.5. It is one of the top 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.
4. EVgo, Inc. (NASDAQ:EVGO)
Price: $2.76
Analyst Upside Potential: 135.51%
Number of Hedge Fund Holders: 37
EVgo, Inc. (NASDAQ:EVGO) is an electric vehicle charging solutions company in the United States. It focuses on building and operating public fast-charging networks and related infrastructure to support the mass adoption of EVs.
On March 18, Gabriel Daoud, an analyst from TD Cowen, maintained a Buy rating on the stock with a price target of $5. Daoud highlighted that EVgo, Inc.’s (NASDAQ:EVGO) management effectively addressed concerns about the Department of Energy loan, emphasizing its stability. The loan is backed by tangible assets and consistent cash flows, reassuring investors about its reliability. Moreover, the company is pursuing additional non-dilutive financing to complement the DOE loan, which strengthens its financial position and extends its operational runway.
EVgo, Inc. (NASDAQ:EVGO) achieved significant growth and operational milestones in the fourth quarter of 2024. The fiscal fourth-quarter revenue reached $67.5 million, marking a 35% year-over-year increase. The revenue was driven by the Charging network segment which hit $46.5 million, reflecting a 73% year-over-year growth. Analysts expect more than 135% upside for the stock making it one of the top penny stocks that will skyrocket.
3. TeraWulf Inc. (NASDAQ:WULF)
Price: $3.20
Analyst Upside Potential: 196.87%
Number of Hedge Fund Holders: 43
TeraWulf Inc. (NASDAQ:WULF) specializes in environmentally sustainable, next-generation data center infrastructure designed for Bitcoin mining and high-performance computing. It operates the Lake Mariner facility in Western New York and generates revenue primarily through Bitcoin mining.
In fiscal 2024, TeraWulf Inc. (NASDAQ:WULF) experienced a transformative year, achieving significant milestones across its Bitcoin mining and high-performance computing businesses. The company doubled its revenue and adjusted EBITDA in 2024 due to increased Bitcoin production and favorable pricing. It mined 2,177 Bitcoin during the year with 423 coins mined in the fourth quarter. By year-end, its mining operations achieved a hash rate of 9.7 exahash per second, driven by approximately 60,000 miners. Management noted that once new S21 Pro miners are fully deployed in Miner Building 5, the hash rate is expected to increase to 13.1 EH/s, with fleet efficiency improving to 18.2 joules per terahash. It is one of the top penny stocks that will skyrocket.
2. Geron Corporation (NASDAQ:GERN)
Price: $1.82
Analyst Upside Potential: 147.25%
Number of Hedge Fund Holders: 44
Geron Corporation (NASDAQ:GERN) is a late-stage clinical biopharmaceutical company focused on developing and commercializing therapeutic products for cancer, specifically hematologic malignancies. Its primary focus is on the development of imetelstat, an investigational first-in-class telomerase inhibitor.
The fiscal 2024 was a significant year for the company, particularly with the development and commercialization of RYTELO. RYTELO is Geron Corporation’s (NASDAQ:GERN) first-in-class telomerase inhibitor for hematologic malignancies. It was approved by the FDA in June 2024 for treating certain lower-risk myelodysplastic syndromes. Moreover, in August 2024, RYTELO gained favorable placement in the NCCN guidelines, receiving a Category 1 treatment recommendation for second-line RS-positive and RS-negative patients. Since its launch in the US at the end of June 2024, RYTELO achieved $76.5 million in net product revenue by year-end, surpassing internal expectations.
Moreover, on March 12, Robert Driscoll from Wedbush maintained a Buy rating on the stock, with a price target of $7.00. It is one of the top penny stocks that will skyrocket as analysts expect more than 147% upside.
1. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Price: $3.54
Analyst Upside Potential: 464.97%
Number of Hedge Fund Holders: 44
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a biopharmaceutical company focused on developing and delivering tumor-infiltrating lymphocyte (TIL) therapies for the treatment of solid tumor cancers. Its Amtagvi is the first FDA-approved TIL therapy for advanced melanoma. It is an autologous T-cell immunotherapy used for patients with unresectable or metastatic melanoma who have been previously treated with specific therapies such as PD-1 inhibitors.
On March 1, Analyst Joseph Pantginis of H.C. Wainwright reiterated a Buy rating on the stock with a price target of $32. The analyst noted that Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) exceeded revenue expectations for Q4 and the full year of 2024, driven by robust demand for its products, Amtagvi and Proleukin. The company also maintained its revenue guidance of $450 million to $475 million for 2025, reflecting confidence in sustained growth. Moreover, progress in tumor-infiltrating lymphocyte therapies, particularly in addressing unmet medical needs like endometrial cancer, was highlighted. Upcoming data releases and advancements in next-generation TIL therapies further support the company’s potential. It is the top penny stock that will skyrocket.
While we acknowledge the potential of Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) to grow, 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 IOVA 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 30 Best Stocks to Buy Now According to Billionaires.
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