In this article, we will take a look at some of the best high risk penny stocks to invest in.
Shifting regulations and market recalibration are defining the current financial environment, and penny stocks remain one of the most potentially rewarding asset classes for retail investors. Often trading under $5, these low-priced equities frequently represent small-cap companies at their early-stage growth, and are increasingly sought by the market.
The Federal Reserve has made a move to lower the top-tier capital requirement by $13 billion for holding companies and $210 billion for subsidiaries, as reported by CNBC. This easing of capital rules for Major Wall Street banks is expected to have a ripple effect across financial markets.
Though originally aimed at bringing liquidity to Treasury markets and lowering the pressure on balance sheets, this new regulatory leniency also enables institutional investors to now seek more aggressive returns. The loosening capital and decreasing potential interventions shine a brighter light on riskier bets like penny stocks.
Penny stocks have garnered the attention of online communities and algorithmic trading desks seeking micro-momentum. The new surge in speculative interest increases the attention, thus moving the stocks towards the center stage. Investor caution is highly recommended, since speculative assets, though they outperform during such regulatory phases, can take unpredictable turns.
With that context, we have picked for you the 10 best high risk penny stocks for you to invest in right now. Stay with us as we count them down from 10 to 1. The top 5 might just make it to your portfolio.
Our Methodology
When putting together our list of 10 best high risk penny stocks to invest in right now, we followed a few criteria. Primarily, all the stocks in our list are taken at their current price of less than $5 as of June 30, 2025. To increase the chances of a profitable investment, we have only considered those stocks with a Buy rating or higher. For listing the stocks, we have used the current price.
All the data used in the article was taken from financial databases and analyst reports, with all information updated as of June 30, 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).
10. Custom Truck One Source, Inc. (NYSE:CTOS)
Current Price as of June 30, 2025: $4.94
Beta: 1.18
Custom Truck One Source, Inc. (NYSE:CTOS) ranks among our list of 10 best high risk penny stocks to invest in. Following a generally positive sentiment in the Q1 earnings call, the company confirms the election of four Class C directors.
Missouri-based company, Custom Truck One Source, Inc. (NYSE:CTOS) is North America’s premier provider of specialty trucks and heavy equipment. Founded in 1988, the company offers vehicle-related solutions including sales, rentals, customization, financing, aftermarket parts, and servicing. Its client base is comprised of electric utilities, telecom, rail, construction, forestry, and waste management sectors.
In its 2025 Q1 earnings call, the company reported a 13% year-over-year increase in revenue for the ERS segment. Additionally, with a 14% increase in backlog, reaching over $54 million during the quarter, the company has reaffirmed its full-year 2025 guidance, reinforcing confidence in achieving its growth targets.
Later, on June 12, 2025, in its annual stockholders meeting, the company confirmed the election of four Class C directors. Accordingly, Fred Ross, Georgia Nelson, Mary Jackson, and Ryan McMonagle will hold positions till the 2028 meeting.
The company’s stocks have a moderate 1-year media price target of $5.50. Investors interested in purchasing the stock are also cautioned towards the company’s volatility, represented by a noteworthy beta of 1.19.
9. TeraWulf Inc. (NASDAQ:WULF)
Current Price as of June 30, 2025: $4.38
Beta: 3.14
TeraWulf Inc. (NASDAQ:WULF) holds a position among the 10 best high risk penny stocks to invest in. Analysts are maintaining a Buy rating on the stock following the Q1 2025 earnings call.
Maryland-based company, TeraWulf Inc. (NASDAQ:WULF) develops and operates large-scale, zero-carbon Bitcoin mining and high-performance computing facilities. The company’s flagship Lake Mariner site on a repurposed coal plant offers up to 500 MW of predominantly hydroelectric and nuclear-powered operations. In addition to mining, the company offers GPU-based HPC hosting services to enterprise clients.
On May 9, 2025, the company made its 2025 first quarter earnings call, where it claimed to have taken a conservative approach to project financing. TeraWulf Inc. (NASDAQ:WULF) attempts to reduce the challenges by investing its own equity to build out facilities.
Later, on June 12, 2025, while maintaining the Buy rating for the stock, Rosenblatt raised the company’s target price from $4.50 to $6.00. The sentiment was reflected on June 26, 2025, when, in a report released by Roth MKM, the company’s Buy rating was maintained but with a price target of $7.00, indicating confidence among analysts in the company’s growth prospects.
While the current price of the stock as of June 30, 2025, stands attractively at $4.38, investors need to be mindful of the beta of 3.14, which suggests high volatility to market movements.
