10 Best High-Risk Penny Stocks to Buy Right Now

In this article, we will explore the 10 best high-risk penny stocks to buy right now.

On March 17, a report published by Royce Investment Partners highlighted an interesting aspect of the performance of microcap stocks. Between the lows of April 2025 and the end of February 2026, the Russell Microcap Index gained 64.5% vs the S&P 500’s 39.6% and the Russell Large-cap index’s 39.7%. This suggests that despite the high risk, microcaps have been worth it for investors.

With retail interest slowing down in AI stocks and the Mag 7 stocks now often criticized to be the ‘Lag 7’, retail traders continue to look for high-risk opportunities for outsized gains. Royce Investment Partners believes smaller companies are set to repeat their previous performance this year:

We saw this dynamic begin to play out in 2025, when smaller companies on average had significant earnings outperformance compared to their large- and mega-cap peers—and we expect this trend to continue in 2026.

The war in Iran and its subsequent effects on the global economy have led traders to flee these stocks, creating an interesting opportunity for new buyers. If retail traders are to play the high-risk game, penny stocks offer exactly the opportunity to utilize the positive sentiment around small-cap stocks.

To identify such penny stocks, we decided to create a list of the 10 best high-risk penny stocks to buy right now.

Our Methodology

To come up with our list of 10 best high-risk penny stocks to buy right now, we looked at stocks with a market cap of under $2 billion, trading at a price under $5. These stocks have a beta of 1.5 and a one-month volatility of at least 10%. Moreover, they are popular among analysts and hedge funds, with an average target price indicating at least 30% upside. Finally, we ranked these stocks in ascending order of the number of hedge funds holding them.

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).

Note: All share price data in the article is as per market close on March 20.

10. Safe Pro Group Inc (NASDAQ:SPAI)

Safe Pro Group Inc (NASDAQ:SPAI) received two rating updates from Wall Street in the last month, both of which reiterated the stock’s significant upside potential. On February 26, Max Michaelis of Lake Street maintained his $9 price target on the stock, implying 110% further upside from here. Michael Latimore of Northland Securities was even more bullish, assigning a price target of $13 on February 23.

The company also announced on February 20 that it had signed a $1 million agreement with a US contractor offering AI-powered video and imagery analysis systems through its wholly owned subsidiary Safe Pro AI LLC. These systems have threat detection capabilities and involve AI processing at the edge, which enables them to be deployed directly on autonomous vehicles and sensors in the battlefield, without needing to stay connected to a cloud service, for example. The award further solidifies SPAI’s role in AI-driven defense solutions for the US government. It also encourages the firms that have invested in the company, such as Ondas Inc (NASDAQ:ONDS) and Unusual Machines (NYSEAMERICAN:UMAC), to continue backing the firm in its future endeavors.

Safe Pro Group Inc (NASDAQ:SPAI) is an American aerospace and defense company that offers security and protection products along with drone imagery analysis using AI. It serves both the US government and public infrastructure clients. It is headquartered in Aventura, Florida.

9. Getty Images Holdings Inc (NYSE:GETY)

Alicia Reese of Wedbush Securities maintained her Buy rating on the Getty Images Holdings Inc (NYSE:GETY) stock on March 17, along with a price target of $7. Her rating update came just after the company announced its Q4 2025 earnings on March 16.

The company reported an EPS of $-0.01 vs expectations of $0.02. Revenue came in at $282.29 million, beating Wall Street estimates by $36.11 million. For the ongoing full year, management expects revenue in the range of $948 million to $988 million. This only represents a 0.6% growth in the best-case scenario, but the CEO, Jennifer Leyden, attributed this disappointing guidance to the way revenue recognition works. Since the company announced 2 relatively large deals in the previous quarter, the comparison for Q4 2026 may not be favorable. If the $40 million accelerated revenue recorded in Q4 2025 is excluded, the company is on track to register 0.7% to 4.9% growth.

Getty Images Holdings Inc (NYSE:GETY) offers content creation tools and generative AI services through its popular brands Unsplash, iStock, and Getty Images. It was founded in 1995 and is headquartered in Seattle, Washington.

8. FTC Solar, Inc. (NASDAQ:FTCI)

On March 9, Roth Capital analyst Philip Shen lowered the firm’s price target on FTC Solar, Inc. (NASDAQ:FTCI) from $15 to $10 while keeping a Buy rating. The firm’s adjusted price target still reflects an impressive 116% upside from the current levels. The analyst highlighted that the company reported fourth-quarter revenue, which was in line with expectations, along with stronger-than-expected EBITDA and margins. The firm attributed the 38% decline in the stock since March 5 to what it described as weak first-quarter guidance and a 2026 outlook that falls short of consensus expectations. Despite these concerns, the firm noted that the recent covenant default is not a major issue and expects the company to return to compliance in the short term.

In addition to Roth Capital, TD Cowen also cut its price target on FTC Solar, Inc. (NASDAQ:FTCI) on March 6. Jeff Osborne from TD Cowen lowered the firm’s price target on the stock from $12.5 to $8 while maintaining a Buy rating. In its updated model, the firm said that the stock likely declined due to liquidity concerns related to a technical covenant default. Additionally, guidance for the first quarter of 2026 came in lighter than expected, which also contributed to the decline. These factors have overshadowed the company’s near EBITDA breakeven and record margin, which otherwise remain positive indicators of its underlying operational strength.

FTC Solar, Inc. (NASDAQ:FTCI) is involved in the service and manufacture of solar tracker systems across the Middle East, Australia, Europe, the United States, South Africa, Asia, and North Africa. It offers a two-module portrait solar tracker system and a one-module portrait solar tracker solution.

7. Ocugen, Inc. (NASDAQ:OCGN)

Ocugen, Inc. (NASDAQ:OCGN) released its fourth-quarter fiscal 2025 results on March 4. The company reported research and development expenses of $10.7 million for the quarter. General and administrative costs came in at $6.1 million. For the quarter, net loss per common share reached $0.06. Research and development expenses for the full year totalled $39.8 million, while general and administrative expenses were $27.6 million. Net loss per share for the year was reported at $0.23.

Ocugen, Inc. (NASDAQ:OCGN) also stated that its cash and cash equivalents are expected to support operations into the fourth quarter of 2026. A possible extension into the second quarter of 2027 could be achieved if warrants are exercised.

The company reaffirmed its target of filing three Biologics License Applications (BLAs) over the next three years. According to the CEO, Shankar Musunuri, Ocugen, Inc. (NASDAQ:OCGN) remains on track to begin a rolling BLA submission in the third quarter of 2026, with commercialization of OCU400 expected in 2027. Looking ahead, topline Phase II/III data for OCU410ST are expected in the second quarter of 2027, after which the company plans to move forward with a BLA submission. The phase III trial for OCU410 is projected to start in 2026, with full Phase II data for OCU410 set to be reported this month.

Ocugen, Inc. (NASDAQ:OCGN) is a biopharmaceutical company. The company is engaged in the development, discovery, and commercialization of biologics, innovative gene and cell therapies, and vaccines aimed at enhancing patient health. It was incorporated in 2013 and is based in Malvern, Pennsylvania.

6. Tenaya Therapeutics, Inc. (NASDAQ:TNYA)

Andy Hsieh of William Blair maintained a Buy rating on Tenaya Therapeutics, Inc. (NASDAQ:TNYA) on March 12, expressing a positive outlook for the stock. His view is supported by the company’s advancing pipeline and improving regulatory clarity. Expected alignment with regulators on the pivotal trial designs for TN-201 and TN-401 could serve as a major de-risking event, offering clearer approval pathways and better visibility on potential value drivers and timelines.

Momentum into 2026 is backed by resumed enrollment in the MyPEAK-1 study for TN-201 and positive DSMB safety feedback on TN-401, allowing dose expansion. Early data from TN-301 is also important, as it expands the platform beyond gene therapy and could add a third growth pillar, supported by sufficient capital to execute current plans.

Tenaya Therapeutics, Inc. (NASDAQ:TNYA) reported its fourth-quarter results on March 11, posting a GAAP EPS of -$0.12, which came in line with expectations. As of December 31, 2025, the company held $100.5 million in cash, cash equivalents, and investments in marketable securities, compared to $61.4 million at the end of December 2024. This increase reflects the additional net proceeds of $55.8 million raised through the December 2025 public offering, after accounting for underwriting discounts, commissions, and related expenses.

Tenaya Therapeutics, Inc. (NASDAQ:TNYA) operates as a clinical-stage biotechnology company across the United States. It develops, discovers, and delivers therapies for heart disease. The company’s lead product candidates are TN-401, TN-201, and TN-301.

5. Equillium, Inc. (NASDAQ:EQ)

On March 13, Roth Capital analyst Adam Walsh initiated coverage of Equillium, Inc. (NASDAQ:EQ), assigning a Buy rating and a price target of $12. The firm’s assigned price target suggests a compelling 458% upside from the current levels. The firm noted that Equillium’s EQ504, an oral colon-targeted therapy, is entering Phase 1 trials for ulcerative colitis, using a mechanism that has already been validated. Despite this advancement, the analyst highlighted that the stock is currently trading as if it held an unproven asset, indicating a potential upside for investors who recognize the value of the drug’s clinical and scientific progress.

On the same day, Equillium, Inc. (NASDAQ:EQ) announced another development. The company entered into a definitive securities purchase agreement with RA Capital Management to raise approximately $35 million in gross proceeds. As part of the agreement, the company will issue around 18.9 million shares of its common stock, priced at $1.854 per share, or $1.8539 per pre-funded warrant sold instead of common stock at closing. The total gross proceeds are expected to reach $35 million before expenses, providing the company with additional capital to support its operations and ongoing development programs.

Equillium, Inc. (NASDAQ:EQ) operates as a clinical-stage biotechnology company. It develops therapies for severe autoimmune and inflammatory disorders in the United States, focusing on conditions with significant unmet medical needs. The company’s lead product candidate is Itolizumab (EQ001).

4. Codexis Inc (NASDAQ:CDXS)

On March 12, Matt Hewitt of Craig-Hallum reiterated his Buy rating on Codexis Inc. (NASDAQ:CDXS). Just a day prior to this, TD Cowen analyst Brendan Smith also maintained his Hold rating on the stock with a price target of $2. This is the lowest price target for the shares on Wall Street, and it still offers 36% upside from here.

Codexis Inc (NASDAQ:CDXS) announced its Q4 2025 earnings on March 11, reporting $38.9 million in revenue for the quarter and $70.4 million for the full year. In addition to 18.7% YoY revenue growth, the firm improved its gross margin from 56% to 64% over the same period.

For the year 2026, CDXS expects $74 million in revenue at the midpoint, with most of the revenue coming in the latter half of the year. Here’s how CEO Alison Moore described the company’s 2026 plans:

“Our goals for 2026 are simple, show our investors proof of success. We can do this by signing the types of contracts I mentioned above and also new innovative licensing deals.”

Codexis Inc (NASDAQ:CDXS) owns the CodeEvolver platform, which helps in the discovery, development, and commercialization of novel enzymes across the world. It also offers the ECO Synthesis manufacturing platform, which is used in the manufacturing of RNAi therapeutics. It was founded in 2002 and is headquartered in California, USA.

3. Domo, Inc. (NASDAQ:DOMO)

On March 12, Domo, Inc. (NASDAQ:DOMO) announced that Nine Entertainment Co. selected its AI and data platform to upgrade its data setup, bring its analytical tools into one system, and support self-service insights across the company. Nine Entertainment, which operates across TV, publishing, streaming, and digital platforms, had been working with multiple tools and separate reporting systems, making it difficult to keep data consistent. By moving to Domo, the company aims to create a single, reliable data source and improve decision-making speed.

The transition showed quick progress, with nearly 50 dashboards delivered in the first two weeks. Nine also pointed to DOMO’s natural language querying feature, which allows non-technical users to analyze data easily while maintaining accuracy and control.

Peter Steggall, vice president of APAC at Domo, Inc. (NASDAQ:DOMO), said:

“Nine is a great example of a modern media company rethinking how data actually gets used day to day. They were looking for more than just dashboards; they wanted fewer tools, faster delivery, and something their teams could actually use. Domo gives them a foundation they can build on over time.”

Domo, Inc. (NASDAQ:DOMO) reported its fourth-quarter fiscal 2026 results on March 10, with total revenue of $79.6 million, coming in above the high end of its guidance range. Gross margin for the quarter was 78.2%, up by more than 2% points year-over-year. Adjusted free cash flow for the year was nearly zero, marking the company’s best full-year cash flow ever. Additionally, the company also reported its highest-ever EPS, with three consecutive quarters of positive earnings and a record full-year EPS.

Domo, Inc. (NASDAQ:DOMO) provides a cloud-based platform for modern AI and data products. The company serves customers across Western Europe, India, North America, Japan, and Australia. It was founded by Joshua G. James in 2010 and is based in American Fork, Utah.

2. C4 Therapeutics Inc (NASDAQ:CCCC)

According to CNN’s compilation of price targets, all 8 analysts covering C4 Therapeutics Inc. (NASDAQ:CCCC) are bullish. The median price target of $7 suggests significant upside, something that was reiterated by Guggenheim and Barclays analysts on Feb 26th and 27th, respectively. While Guggenheim analyst Bradley Canino already had a $7 price target on the stock, Barclays’ Etzer Darout raised his price target from $5 to $7.

These ratings came just after the company’s Q4 earnings on Feb 26, when the firm reported a revenue of $11.016 million vs estimates of $4.48 million. Since the stock had already run up considerably leading up to the earnings, the rally fizzled out a few days after the earnings despite the stellar result. The firm isn’t yet profitable, but a cash position of $297.1 million compared to $199.8 million in the previous quarter suggests it is doing well enough to continue funding its research initiatives to reach the next value-inflection milestone.

C4 Therapeutics Inc (NASDAQ:CCCC) is a biopharma company that develops products that help degrade disease-causing proteins. It is also working on developing oncology products such as the CFT8919 for lung cancer. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.

1. Gossamer Bio Inc (NASDAQ:GOSS)

Gossamer Bio Inc (NASDAQ:GOSS) reported its fourth-quarter results on March 17, delivering a mixed performance as earnings missed expectations while revenue came in stronger than expected. The company posted a GAAP loss of $0.21 per share, falling short of estimates by $0.02 per share. On the revenue side, sales reached $13.8 million, representing a 47.8% year-over-year increase. The figure beat consensus estimates by $6.28 million, indicating a solid top-line growth despite the earnings shortfall.

Faheem Hasnain, Chairman, Co-Founder and CEO of Gossamer Bio Inc (NASDAQ:GOSS) commented:

“Following our PROSERA topline results, we are focused on fully understanding the PROSERA dataset, engaging with the FDA, and evaluating strategic options and capital allocation to position the Company for the future. PROSERA narrowly missed the prespecified statistical threshold for its primary endpoint; however, we believe the totality of evidence supports that seralutinib is an active drug in PAH, with the most pronounced effects observed in patients with more advanced disease.”

On March 6, H.C. Wainwright analyst Patrick Trucchio lowered the firm’s price target on Gossamer Bio Inc (NASDAQ:GOSS) from $10 to $5 while maintaining a Buy rating. The price target adjustment follows a change in the firm’s outlook for seralutinib in pulmonary arterial hypertension. The analyst lowered the estimated probability of success for the drug to 50%, down from the previous 70%, which resulted in the revised valuation and lower price target.

Gossamer Bio Inc (NASDAQ:GOSS) is a pharmaceutical company specializing in the discovery, development, and marketing of treatments in the medical fields of immunology, inflammation, and oncology.

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