In this article, we discuss the 15 best penny stocks to buy now. If you want to skip our detailed analysis of these companies, go directly to the 5 Best Penny Stocks to Buy Now.
Many novice investors are bullish on penny stocks with growth potential for capital appreciation. All iconic stocks were once penny stocks. Investors who are early to spot the potential of small companies working on the "next big thing" end up making a lot of money. Analysts believe that some of the most attractive penny stocks are in high-growth domains like tech, biotechnology, pharmaceuticals, AI and related domains.
Is Penny Stock Investing Still Profitable?
One penny stock that skyrocketed during the COVID-19 pandemic is Novavax, Inc. (NASDAQ:NVAX). The pharmaceutical company was trading as low as $3.65 in mid-January 2020. In November 2020, at the height of the COVID-19 pandemic, the company's NVX-CoV2373 was given a Fast Track Designation by the Food and Drug Administration (FDS). Following the announcement, the stock rose to $101.20 per share. The stock currently trades for $188.59 and has 52-week high of $192. This June, analysts from Cantor Fitzgerald maintained an Overweight rating on Novavax and raised the price target to $272.
What Penny Stocks Should I Invest In?
Penny stock investing is primarily the province of extremely risk-averse investors. However, getting the proper penny stock can result in significant capital gains. For example, American multinational semiconductor developer Advanced Micro Devices, Inc. (NASDAQ: AMD) held its IPO in May 2016 at $4 per share. The company currently trades for $90.90 and has a market cap of $110.45 billion. Advanced Micro Devices, Inc. (NASDAQ: AMD) has a 52-week high of $91.26. In April, Raymond James started covering Advanced Micro Devices (NASDAQ: AMD) with an Outperform rating and $100 price target. Advanced Micro Devices (NASDAQ: AMD) recently made a $35 billion acquisition deal with Xilinx, Inc. (NASDAQ: XLNX). The deal will create one of the industry's most high-performance computing firms. The acquisition is expected to close by the end of 2021.
Another company that was once trading at a low price is disease management producer Medifast Inc. (NYSE:MED). The company was trading for $0.25 in 2001. The company currently trades for $284.22 and has a market cap of $3.34 billion. Medifast Inc. (NYSE:MED) has a 52-week high of $286.45. In May, analysts from DA Davidson maintained a Buy rating on Medifast and raised the price target to $395. Shares of MED rose 87% over the last twelve months.
The market is always teeming with penny stocks that are set to gain in the future. What separates smart investors from average investors is the ability to spot these stocks before they make headlines.
Another penny stock to watch out for is Dogness (International) Corporation (NASDAQ: DOGZ). The company produces technology-powered pet products such as Dogness Smart GPS Pet Tracker. The platform allows pet owners to track their pets in real-time positioning. In the first quarter of 2021, the company has an EPS of $0.03 per basic and diluted share as compared to $0.01 in the same period of 2020. The company recorded revenue of $12.2 million, a 6.7% increase year over year. The company currently has a market cap of $63.16 million and a 52-week high of $2.26. Shares of Dogness (International) Corporation (NASDAQ: DOGZ) rose 36% over the last twelve months. Furthermore, in January 2021, Dogness added three new distributors to aid in the Company's sustained commercial expansion driven by the high demand for intelligent and traditional pet products. The distributer will focus on Asia and Europe.
The penny stock market is experiencing some new trends that are upending long-held customs. 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 February 26th 2021 our monthly newsletter's stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. 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.
With this context in mind, here is our list of the 15 best penny stocks to buy now. These were ranked keeping in mind trade price, business fundamentals, and the analyst ratings for each firm.
Share Price as of July 9: $0.8451Number of Hedge Fund Holders: N/A
Ranking 15th on the list is Zosano Pharma Corporation (NASDAQ: ZSAN). The company entered the biopharmaceutical industry in 2006 with the discovery of different medicines and other bioactive compounds to relieve patients suffering from migraine. The company specializes in the innovative use of transdermal microneedle patch technology which can create a room-temperature product that can be used to facilitate large-scale deployment of a therapeutic solution. Zosano Pharma Corporation (NASDAQ: ZSAN) through their Qtrypta technology uses microneedles to aid acute migraine. The technology is currently undergoing research to support the resubmission of the QtryptaTM (zolmitriptan transdermal microneedle device) 505(b)(2) New Drug Application ("NDA") as a requirement of the U.S. Food and Drug Administration (FDA).
In the first quarter of 2021, The company recorded a net loss of $8.1 million, or $0.08 per share on a basic and diluted basis, compared to a net loss of $8.7 million in the same quarter in 2020, or $0.24 per share on a basic and diluted basis. The company currently has a market cap of $88.7 million. Shares of ZSAN rose 57% year-to-date. On March 15, Maxim Group maintained a Buy rating on Zosano Pharma Corporation (NASDAQ: ZSAN) and raised the price target to $2.5.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Zosano Pharma Corporation (NASDAQ: ZSAN) is one of the best stocks to buy now.
Share Price as of July 9: $1.17Number of Hedge Fund Holders: 2
Celsion Corporation (NASDAQ: CLSN) is an integrated oncology company that specialized in the treatment of cancer patients. The company's product list includes directed chemotherapies, DNA-mediated immunotherapy, and RNA-based therapies. The company's lead product ThermaDox was discovered in 2013 and intended for the treatment of liver cancer. Celsion is currently in the early stage of its next breakthrough innovation that will fight against various types of tumors, GEN-1.
The company reported a net loss of $5.7 million or $0.09 per share for Q1 of 2021 as compared to $5.51 million or $0.20 per share during the same period of 2020. Moreover, the company currently has a market cap of $102.13 million and a 52-week high of $3.68. Shares of Celsion Corporation (NASDAQ: CLSN) jumped 65% year-to-date.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Celsion Corporation (NASDAQ: CLSN) is one of the best stocks to buy now.
Share Price as of July 9: $1.80Number of Hedge Fund Holders: 13
Waitr Holdings Inc. (NASDAQ: WTRH) specializes in on-demand food ordering and delivery services in the U.S. market. Headquartered in Lake Charles, LA the company has gained much momentum during the COVID-19 pandemic with enforced lockdowns and social distancing, users' average daily deliveries reached 39,071 while the active user count reached over 2 million. The company recently entered a deal with Florida-based food delivery company Delivery Dudes. The definitive agreement allowed Waitr to acquire all assets of Delivery Dudes to grow its presence in the Florida area.
Waitr Holdings Inc. (NASDAQ: WTRH) currently has a market cap of $203.7 million and a 52-week high of $5.85. Further, the company reported adjusted earnings per diluted share of $0.01 as compared to $0.03 in the first quarter of 2020. The company's first-quarter 2021 revenue came in at $59.0 million, a 15% increase from $44.2 million in the same period of 2020. On March 8, analysts from Deutsche Bank upgraded Waitr Holdings Inc. (NASDAQ: WTRH) from a Hold rating to a Buy rating and raised the price target to $4.00.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Waitr Holdings Inc. (NASDAQ: WTRH) is one of the best stocks to buy now.
Share Price as of July 9: $2.17Number of Hedge Fund Holders: 5
vtv Therapeutics Inc. (NASDAQ: VTVT) is making its mark in the biopharmaceutical industry with its innovative medicines that specialize in utilizing functional manipulation of human proteins into safe and efficacious drugs. The company's TTP399 recently received FDA breakthrough therapy designation for the treatment of type 1 diabetes. The FDA breakthrough therapy designation is a significant step forward in the development of TTP399.
vtv Therapeutics Inc. (NASDAQ: VTVT) reported Q1 results for the year 2021 with diluted net loss per share of $0.08 as compared to $0.02 in the Q4 of the year 2020. The company also reported revenue of $1.0 million for the quarter ended March 31st a decrease from $6.4 million in the fourth quarter of 2020.The 52-week high of vtv Therapeutics Inc. (NASDAQ: VTVT) is $4.7. Shares of VTVT rose 16% year-to-date.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), vtv Therapeutics Inc. (NASDAQ: VTVT) is one of the best stocks to buy now.
Share Price as of July 9: $2.21Number of Hedge Fund Holders: N/A
Creative Realities, Inc. (NASDAQ: CREX) operates under the name of Creative Realities and provides digital marketing technology solutions such as digital shopping assistance, point-of-sale transactions, and customer engagement systems. The company ranks 11th on our list of the best penny stocks to buy now. One of the most significant acquisitions of the company was in 2018, Creative Realities, Inc. (NASDAQ: CREX) acquired Allure, which is one of the biggest producers of digital signage and digital menu boards that has a wide customer base including Coca-Cola Company (NYSE: KO) and AMC theaters. Allure will provide CREX with significant expansion prospects in the theater and QSR channels.
In the first quarter of 2021, Creative Realities, Inc. (NASDAQ: CREX) revenue was $5.0 million, up $1.3 million or 35% year over year. The company currently has a market cap of $26.1 million and a 52-week high of $3.26. Shares of CREX jumped 71% year-to-date.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Creative Realities, Inc. (NASDAQ: CREX) is one of the best stocks to buy now.
Share Price as of July 9: $2.59Number of Hedge Fund Holders: 7
Ideanomics, Inc. (NASDAQ: IDEX) is a financial technology company that operates in New York, Beijing, Guangzhou, and Qingdao, China. The company is notable for its promotion of commercial electric vehicle adoption. Ideanomics, Inc. (NASDAQ: IDEX) ranks 10th on our list of the best security stocks to buy now. Earlier this year, the company acquired title and settlement solutions provider Timios Holdings Corporation. The acquisition will allow the firm to grow its database in the residential and commercial areas.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Ideanomics, Inc. (NASDAQ: IDEX) is one of the best stocks to buy now.
This April, Roth Capital initiated coverage on Ideanomics, Inc. (NASDAQ: IDEX) with a Buy rating with a $7 price target. In the first quarter of 2021, Ideanomics, Inc. (NASDAQ: IDEX) had an EPS of $0.01 which beat the analyst consensus estimate of ($0.03). The company's revenue was $32.7 million and it has a gross profit margin of 33.1%. The stock has gained 30% year-to-date and 87% in the last twelve months.
Share Price as of July 9: $2.91Number of Hedge Fund Holders: 8
Exela Technologies, Inc. (NASDAQ: XELA) is a global provider of business process automation. The company provides workflow automation, digital mailroom, print communications, and business solutions. Exela ranks 9th on our list of the best penny stocks to buy now. In 2019, the company expanded its healthcare assets which added around $20 million of annual revenue. With these assets the company expects its healthcare business to grow faster than the industry average.
This June, Cantor Fitzgerald initiated coverage On Exela Technologies, Inc. (NASDAQ: XELA) with an Overweight rating and announced a price target of $4. In the first quarter of 2021, Exela Technologies, Inc. (NASDAQ: XELA) had an EPS of $3.66. The company's revenue was $300.1 million, short 17% from the same period in 2020. Exela Technologies, Inc. (NASDAQ: XELA) has a gross profit margin of 22.5%. The stock has gained 34% in the past 3 months and 133% year to date.
Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Exela Technologies, Inc. (NASDAQ: XELA) is one of the best stocks to buy now.
Share Price as of July 9: $3.13Number of Hedge Fund Holders: 10
Mustang Bio, Inc. (NASDAQ: MBIO) was founded in 2015 and headquartered in Massachusetts, United States. The company operates as a biopharmaceutical company that offers a potential cure to hematologic cancers and rare genetic diseases. It ranks 8th on our list of the best penny stocks to buy now.
The company recently received approval from the FDA to initiate Phase 1/2 in its MB-106. MB-106 is a possible treatment for Leukemia. The FDA's approval permits the company to pursue CAR-T therapy as a potentially safe and effective treatment option for B-NHL and CLL.
Just like Novavax, Inc. (NASDAQ: NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Mustang Bio, Inc. (NASDAQ: MBIO) is one of the best stocks to buy now.
This May, BTIG initiated a Buy rating on Mustang Bio, Inc. (NASDAQ: MBIO) and announced an $11 price target. In the first quarter of 2021, Mustang Bio, Inc. (NASDAQ: MBIO) had an EPS of $1.14. The company's cash and cash equivalents and restricted cash were $130.4 million, surpassing the previous quarter's $98.8 million.
Share Price as of July 9: $3.26Number of Hedge Fund Holders: 10
Cerecor Inc. (NASDAQ: CERC) is a biopharmaceutical company that specializes in rare pediatric and orphan diseases. The company has various products such as CERC-801, CERC-802, and CERC-804 that are treatments for congenital diseases of glycosylation. The company ranks 7th on our list of the best penny stocks to buy now.
In 2020, Cerecor Inc. (NASDAQ: CERC) secured an all-stock transaction valued at a $16.1 million agreement with Aevi Genomic Medicine. The merger will operate under the name Cerecor which will continue to focus on pediatric orphan diseases. Cantor Fitzgerald initiated coverage on Cerecor Inc. (NASDAQ: CERC) with an overweight rating and $7 price target as of this June, while Maxim Group upgraded the stock in April to a Buy rating and announced a $7 price target.
In the first quarter of 2021, Cerecor Inc. (NASDAQ: CERC) had an EPS of $0.57. The company's cash and cash equivalents were $38.3 million, up from $18.9 million in the previous quarter. Cerecor Inc. (NASDAQ: CERC) has gained 16% in the past 3 months and 23% year to date.
Just like Novavax, Inc. (NASDAQ: NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Cerecor Inc. (NASDAQ: CERC) is one of the best stocks to buy now.
Share Price as of July 9: $3.31Number of Hedge Fund Holders: 5
Sify Technologies Limited (NASDAQ: SIFY) is a provider of end-to-end ICT solutions such as cloud and managed services and telecom services to users in India and internationally. Sify Technologies Limited (NASDAQ: SIFY) ranks 6th on our list of the best penny stocks to buy now. Earlier this year, Sify Technologies Limited (NASDAQ: SIFY) announced its plans of expanding its internet exchanges in Kolkata, Noida, Hyderabad, and Chennai through a partnership with AMS-IX.
In the first quarter of 2021, Sify Technologies Limited's (NASDAQ:SIFY) revenue was $326 million, up 6% year over year. The stock has gained 160% year to date and 278% over the last twelve months. Just like Novavax, Inc. (NASDAQ:NVAX), Advanced Micro Devices (NASDAQ: AMD), and Medifast Inc (NYSE:MED), Sify Technologies Limited (NASDAQ: SIFY) is one of the best stocks to buy now.
