In this article, we will look at the 10 Best Day Trading Penny Stocks to Buy.
Day trading penny stocks is not a normal buy-and-hold setup. The appeal comes from movement, liquidity, and the possibility that a low-priced stock with heavy turnover can create short-term trading windows. Nasdaq, in an article entitled ‘How to Trade Volatility: An Introduction’, notes that “volatility of a financial instrument is often seen as a risk,” but adds that “it can also present opportunities” for traders who know how to navigate “dynamic market conditions.”
Volume is the other half of the story. Charles Schwab, in an article entitled ‘Trading Volume as a Market Indicator,’ says “above average and/or increasing trading volume can signal that traders are truly committed to a price move,” while “below average and/or decreasing volume can signal a lack of enthusiasm.” For penny stocks, this matters because a sharp move in a thinly traded name can be hard to enter or exit cleanly. Schwab also notes that “Market volatility brings increased opportunity to profit in a shorter amount of time,” but “also carries increased risk.” Day traders are usually looking for the combination of volatility and participation: enough price movement to trade, and enough turnover to make the move more actionable.
That is why the most interesting penny stocks for day trading are the stocks showing unusual activity, heavy volume traded, and large intraday swings that can attract short-term attention. With that in mind, let’s take a look at the 10 Best Day Trading Penny Stocks to Buy.
Our Methodology
We used the Finviz screener to identify stocks that are trading below $5 per share, have an average daily trading volume of over 1 million, and have high volatility. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Compass Therapeutics, Inc. (NASDAQ:CMPX)
On April 28, 2026, Canaccord lowered its price target on Compass Therapeutics, Inc. (NASDAQ:CMPX) to $7 from $13 and maintained a Buy rating. The firm said Tovecimig+paclitaxel showed improved progression-free survival versus paclitaxel monotherapy, but noted that 54% crossover complicated the interpretation of any overall survival benefit in the ITT population. Canaccord added that while the active arm showed numerically better overall survival among patients who did not crossover, it does not expect this to be enough for full FDA approval.
In a similar move, Stifel reduced its price target on Compass Therapeutics, Inc. (NASDAQ:CMPX) to $6 from $12 while keeping a Buy rating. Stifel said COMPANION-002 secondary endpoint data support the efficacy of tovecimig, shifting the discussion toward how the FDA may interpret the results. The firm noted that several questions are likely to shape the near-term narrative but reiterated its Buy rating, pointing to tovecimig optionality and an earlier-stage pipeline with upcoming catalysts.
Meanwhile, Jefferies said the 63% selloff in Compass Therapeutics appears “an over-reaction,” citing the company’s data and the biliary tract cancer opportunity, while adding that the trial’s crossover design “confounds the ITT readout” even as it maintained a Buy rating and a $9 price target.
Compass Therapeutics, Inc. (NASDAQ:CMPX) is a clinical-stage oncology-focused biopharmaceutical company developing antibody-based therapeutics for the treatment of various human diseases in the United States.
9. Ryde Group Ltd. (NYSEAMERICAN:RYDE)
On April 30, 2026, Ryde Group Ltd. (NYSEAMERICAN:RYDE) entered into a Memorandum of Understanding with VinaTaxi, a licensed taxi operator in Vietnam, to explore potential strategic collaboration in the country’s mobility and electric transport market. The companies will assess a framework to modernize mobility services by combining Ryde’s ride-hailing technology with VinaTaxi’s fleet operations. Areas under discussion include deploying Ryde’s platform across VinaTaxi’s taxi fleet, building an electric motorcycle ride-hailing ecosystem suited to Vietnam’s urban transport landscape, and gradually introducing electric vehicles to support longer-term sustainability goals.
Last month, Ryde Group Ltd. (NYSEAMERICAN:RYDE) announced the adoption of a Digital Asset Treasury, or DAT, Strategy as part of its broader treasury management and long-term balance sheet planning. The company said it is evaluating digital assets to diversify and modernize its treasury in response to the macroeconomic environment, with potential allocations to Bitcoin, Ethereum, and Solana depending on market conditions and internal approvals. The framework is intended to add flexibility in managing reserves while maintaining capital discipline and risk oversight, supported by two governance bodies: the Digital Asset Investment Committee, which oversees asset allocation and capital deployment decisions, and the Digital Asset Compliance and Risk Committee, which handles operational controls, regulatory compliance, counterparty review, and portfolio risk monitoring.
Ryde Group Ltd. (NYSEAMERICAN:RYDE) provides mobility and quick commerce solutions in Singapore, including ride-hailing, carpooling, and parcel delivery services.
Hedge Fund Resource Center