In this article, we will look at the 10 Best High Volume Penny Stocks to Buy.
The Russell 2000 index, which represents small-cap companies, outperformed the “Mag 7” stocks over the past month with 1.68% returns compared to the “Mag 7” 1.03% returns. Julie Biel, chief market strategist at Kayne Anderson Rudnick, believes that every sector in the small-cap space is expected to show improved earnings in 2026. She joined CNBC television for an interview on December 19, to discuss her outlook for the sector.
Kayne expects that the technology sector will continue its performance, but the leadership is expected to change. She noted that the market is going to finally realize that earnings growth is really what matters. She noted that a lot of the companies in the Russell 2000 index that have been performing well are those that don’t have good earnings. She expects that in 2026, growth will accelerate, but among the higher-quality small-cap stocks that have shown strong earnings. Kayne notes that investors will find more breadth in small-caps during the next year and expects almost every sector in the small-cap space to show earnings growth. However, she advises investors to look for quality businesses and likes the technology and healthcare segment in general.
With that, let’s take a look at the Best High Volume Penny Stocks to Buy.
Our Methodology
To curate the list of Best High Volume Penny Stocks to Buy, we used the Yahoo Finance stock screener, WSJ, and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of penny stocks (trading below $5) with more than 1 million 3-month average and current volume. Next, from this list, we shortlisted stocks with a market capitalization of more than $300 million. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders.
Please note that the current and 3-month average volumes were recorded from Yahoo Finance, the market capitalization from WSJ, and the number of hedge funds from Insider Monkey’s database. The data was recorded on December 28, 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best High Volume Penny Stocks to Buy
10. Cosan S.A. (NYSE:CSAN)
Price: $4.01
Market Capitalization: $3.77 B
Volume: 2,438,334
Average Volume: 2,015,525
Number of Hedge Fund Holders: 9
Cosan S.A. (NYSE:CSAN) is one of the Best High Volume Penny Stocks to Buy. Cosan S.A. (NYSE:CSAN) has fallen more than 25.75% year-to-date. However, Wall Street sees more than 33% upside from the current levels. Recently, on December 16, Fitch Ratings affirmed the company’s Long-Term Foreign and Local Currency Issuer Default Ratings at BB, but revised the outlook to negative from stable. The rating agency also upheld the National Scale Rating at ‘AAA(bra)’ for Brazil.
The firm noted that the downgrade is due to the company’s elevated leverage and reliance on selling assets to ease debt pressures. The firm also highlighted that, despite the recent BRL 10.5 billion follow-on share offering, the company needs to cut its debt further.
That said, earlier on December 5, HSBC upgraded Cosan S.A. (NYSE:CSAN) from Sell to Hold with a price target of $5. The firm noted that the upgrade reflects the company’s earlier BRL10.5 billion equity issuance at BRL5.00 per share. This issuance led to an increase in the company’s outstanding shares by 112%. HSBC noted that while the company has not been profitable over the past 12 months, they expect the company to return to profitability in 2026, with sales forecasted to grow at 2.63%.
Cosan S.A. (NYSE:CSAN) is a Brazilian company specializing in the fuel distribution business. Founded in 1936, the company operates through five segments: Raízen, Compass, Moove, Rumo, and Radar.
9. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Price: $4.25
Market Capitalization: $2.21 B
Volume: 15,439,378
Average Volume: 42,222,750
Number of Hedge Fund Holders: 19
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Best High Volume Penny Stocks to Buy. On December 17, Priyanka Grover from J.P. Morgan upgraded Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from Hold to Buy and also raised the price target from $10 to $11.
The analyst noted that the upgrade is based on strong results from Phase 1b/2 data of the TUPELO trial of REC-4881, which is a MEK1/2 inhibitor for familial adenomatous polyposis. The analyst noted that REC-4881 has a strong potential with over $1 billion in US sales and a 60% probability of success.
The treatment in the trial showed rapid polyp burden reductions in 75% of evaluable FAP patients, along with a 43% median drop after 12 weeks. Notably, the durable effects persisted after the treatment. Moreover, the safety profile aligns with MEK inhibitors, featuring mostly Grade 1/2 adverse events like rash and elevated CPK, with no Grade 4 issues reported.
The analyst highlighted that the positive results from the trial validate the company’s AI-driven pipeline. Moreover, the company has already generated more than $500 million in milestone payments through its pharmaceutical partnerships.
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) operates as a clinical-stage biotech company that decodes biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the US. The company has replaced human-led hypothesis testing with an AI-integrated operating system.
