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.
8. Baytex Energy Corp. (NYSE:BTE)
Price: $3.25
Market Capitalization: $2.44 B
Volume: 5,255,991
Average Volume: 21,598,423
Number of Hedge Fund Holders: 19
Baytex Energy Corp. (NYSE:BTE) is one of the Best High Volume Penny Stocks to Buy. On December 22, Menno Hulshof from TD Cowen reiterated a Buy rating on Baytex Energy Corp. (NYSE:BTE) and also raised the price target from C$4.75 to C$5. On the same day, Jeremy McCrea from BMO Capital also reiterated a Buy rating on the stock with a price target of C$6.
Jeremy from BMO Capital noted that the company’s fundamentals and upside potential are improving. He highlighted that the company’s 2026 plan includes steady capital spending, which is expected to keep production ahead of previous expectations. Moreover, the analyst also views the company to be attractively placed to manage the fluctuating commodity prices.
BMO Capital also highlighted the strong multi-year growth outlook, driven by its Canadian assets. Lastly, the firm also likes the recent asset sales that refocus the company on higher-return operations.
The positive ratings follow the company’s announcement of its three-year outlook and 2026 budget allocation on December 22. Baytex Energy Corp. (NYSE:BTE) highlighted its 2026 capital budget of $550 million to $625 million. Management targets 3% to 5% production growth and aims to prioritize meaningful shareholder returns. The company also highlighted that a significant portion of the $2.305 billion Eagle Ford sale proceeds will return to shareholders via resuming the Normal Course Issuer Bid.
Baytex Energy Corp. (NYSE:BTE) is a Canada-based oil and gas company focused on acquiring, developing, and producing crude oil and natural gas in the Western Canadian Sedimentary Basin.
7. BlackBerry Limited (NYSE:BB)
Price: $3.97
Market Capitalization: $2.36 B
Volume: 4,637,106
Average Volume: 9,649,552
Number of Hedge Fund Holders: 21
BlackBerry Limited (NYSE:BB) is one of the Best High Volume Penny Stocks to Buy. Analysts are largely neutral on BlackBerry Limited (NYSE:BB) since the company released mixed results for its fiscal Q3 2026 on December 18. 6 out of 10 analysts covering the stock maintain a Hold rating on the stock. However, the 12-month average price target of $4.88 reflects more than 25.6% upside from the current level.
Recently, on December 22, Daniel Chan from TD Securities reiterated a Hold rating on the stock without disclosing any price targets. Earlier on December 19, Paul Treiber from RBC Capital also reiterated a Hold rating on the stock with a $4.5 price target.
Analyst Treiber from RBC Capital noted that BlackBerry Limited (NYSE:BB) exceeded the firm’s expectations during its fiscal Q3 2026 results. The firm highlighted that this performance also led to an increased fiscal 2026 guidance from the management. However, regardless of the company beating the firm’s guidance, it still maintained a neutral rating. This neutral stance is based on BlackBerry’s QNX automotive software platform, which was gaining momentum in the previous quarters but fell short of expectations in Q3. Moreover, the fourth quarter guidance also suggests further deceleration from QNX’s previous double-digit pace.
That said, the company, during its fiscal Q3 2026 results, reported a 12.47% year-over-year decrease in revenue to $141.8 million. However, despite the decrease, revenue topped estimates by $4.26 million. Moreover, the EPS of $0.05 also topped consensus by $0.01.
BlackBerry Limited (NYSE:BB) is a Canadian provider of intelligent security software and services to both enterprises and government organizations. Incorporated in 1984, the company operates through three segments: Secure Communications, QNX, and Licensing.
6. Clarivate Plc (NYSE:CLVT)
Price: $3.50
Market Capitalization: $2.32 B
Volume: 2,525,301
Average Volume: 4,777,087
Number of Hedge Fund Holders: 25
Clarivate Plc (NYSE:CLVT) is one of the Best High Volume Penny Stocks to Buy. On December 18, Clarivate Plc (NYSE:CLVT) announced that its IPfolio has been selected by Nissan Motor Co., Ltd. IPfolio is an intellectual property management software, which will help the company manage and protect its IP efficiently. Nissan will also be able to use the company’s advanced workflow automation technology and its leading data analytics tools.
That said, Wall Street also maintains a positive outlook on this penny stock, with analysts’ 12 month price target suggesting more than 23.9% upside from the current level. However, recently, on December 17, Morgan Stanley analyst Tony Kaplan downgraded the stock from Hold to Sell and lowered the price target from $5 to $3.
The analyst noted that one of the main reasons behind the conservative rating is the flat to low-single-digit growth expectation for the information services company. The firm also noted significant headwinds from funding pressures for pharmaceutical, academic, and government sectors, which are expected to hamper Clarivate Plc’s (NYSE:CLVT) recovery. Moreover, according to Morgan Stanley, the market also remains competitive with AI improving competitors’ ability to ingest more data, potentially taking the company’s market share.
Clarivate Plc (NYSE:CLVT) is a United Kingdom-based information services provider operating through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. Incorporated in 1864, the company serves universities, government agencies, and other professional services organizations.
5. Plug Power Inc. (NASDAQ:PLUG)
Price: $2.07
Market Capitalization: $2.88 B
Volume: 54,472,309
Average Volume: 126,487,876
Number of Hedge Fund Holders: 27
Plug Power Inc. (NASDAQ:PLUG) is one of the Best High Volume Penny Stocks to Buy. On December 18, Eric Stine from Craig Hallum reiterated a Buy rating on the stock without disclosing any price targets. Overall, Wall Street’s consensus 12 month average price target suggests around 27% upside from the current level.
Plug Power Inc. (NASDAQ:PLUG) on December 17, announced the installation of a 5MW GenEco electrolyzer at Cleanergy Solutions Namibia’s Hydrogen Dune site in Walvis Bay. Management noted that this marks the first fully integrated commercial green hydrogen facility. The project was first opened in September 2025 and features a 5MW solar park over 6.5 hectares and a 5.9 MWh battery storage system powering the electrolyzer to produce renewable hydrogen without grid reliance.
Management noted that the vertically integrated setup creates a linkage between hydrogen and clean electricity. It also positions Namibia as a regional hub for exports and replication across Africa. Management of Plug Power Inc. (NASDAQ:PLUG) also highlighted that this aligns with the company’s strategy and accelerates global investment in hydrogen. The company believes that markets including Africa, the Middle East, and Australia are emerging hubs for next-generation hydrogen and renewable resources.
Plug Power Inc. (NASDAQ:PLUG) develops hydrogen fuel cell product solutions in North America, Europe, Asia, and internationally.
4. Coty Inc. (NYSE:COTY)
Price: $3.10
Market Capitalization: $2.71 B
Volume: 3,137,684
Average Volume: 6,162,612
Number of Hedge Fund Holders: 30
Coty Inc. (NYSE:COTY) is one of the Best High Volume Penny Stocks to Buy. On December 23, S&P Global Ratings reaffirmed a BB+ issuer credit rating on Coty Inc. (NYSE:COTY). This comes as the company, on December 19, announced selling the remaining 25.8% stake in Wella to KKR-managed capital accounts and investment affiliates.
According to the company’s press release, the company will receive an upfront cash payment of $750 million, along with 45% from any proceeds from further sale or an IPO of the business. Management believes that Wella’s strong recent and expected performance, along with its market valuation, will result in substantial cash proceeds for the company.
S&P Global Ratings noted that the sale is expected to bring the company’s leverage to the high-3x area by the end of 2025. The firm believes that the company will use the cash received from the sale of its stake to address debt maturities. Moreover, the firm also likes the additional 45% share that Coty Inc. (NYSE:COTY) is expected to receive in the event of further sale or IPO. S&P Global believes that this will allow the company to further address its debt in the future.
The sale of the Wella stake was part of the company’s strategic initiative started in 2020 to simplify its business. S&P Global noted that the company is also planning to explore opportunities for the sale of its Brazilian operations. However, the firm believes that selling these assets would not be easy, considering the highly competitive mass beauty international market.
Coty Inc. (NYSE:COTY), together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.
3. Denison Mines Corp. (NYSEAMERICAN:DNN)
Price: $2.69
Market Capitalization: $2.48 B
Volume: 14,395,718
Average Volume: 73,957,000
Number of Hedge Fund Holders: 35
Denison Mines Corp. (NYSEAMERICAN:DNN) is one of the Best High Volume Penny Stocks to Buy. On December 19, National Bank reiterated a Buy rating on the stock and raised the price target from $3.29 to $3.65. The rating follows the company’s earlier news regarding the finalization of its deal with Skyharbour Resources Ltd on December 17.
Management noted that the deal results in four joint ventures from Skyharbour’s former Russell Lake Uranium Project claims. The Russell Lake Uranium Project is located right next to Denison Mines Corp. (NYSEAMERICAN:DNN)’s key Wheeler River Project in Canada’s Athabasca Basin, which is a prime uranium district.
The joint venture is expected to fast-track the exploration of high-potential land near Wheeler River. The ownership split includes 49% stake of Denison Mines Corp. (NYSEAMERICAN:DNN) at Wheeler North, 70% stake at Wheeler River Inliers, 20% stake at Russell Lake, and 30% stake at Getty East.
Management noted that they will operate the Wheeler North and Wheeler River Inliers exploration sites, while Skyharbour will lead the remaining two. Moreover, the company also secured “Earn-In Option Agreements” for Wheeler North and Getty East. These let Denison boost its stakes to 70% by meeting predefined spending or work commitments.
Denison Mines Corp. (NYSEAMERICAN:DNN) focuses on uranium exploration, development, and mining, primarily in Canada’s Athabasca Basin region.
2. UWM Holdings Corporation (NYSE:UWMC)
Price: $4.59
Market Capitalization: $7.41 B
Volume: 8,246,766
Average Volume: 10,315,696
Number of Hedge Fund Holders: 45
UWM Holdings Corporation (NYSE:UWMC) is one of the Best High Volume Penny Stocks to Buy. On December 19, Matthew Hurwitz from Jefferies initiated a Hold rating on UWM Holdings Corporation (NYSE:UWMC) with a $5 price target. Earlier on December 18, Bose George from KBW also reiterated a Hold rating but raised the price target from $6.5 to $6.75.
Analysts at Jefferies noted that their $5 price target reflects roughly 8 times the company’s 2027 forward earnings. The firm noted that the company enjoys a strategic edge due to its structural positioning and higher operating leverage heading into the next mortgage cycle. However, the firm still maintained a Hold rating as it believes that a significant portion of the company’s medium-term recovery has already been priced in at its current share price. Regardless of a Hold rating, the firm believes that UWM Holdings Corporation (NYSE:UWMC) offers a balanced risk/reward profile.
That said, earlier on December 17, UWM Holdings Corporation (NYSE:UWMC) announced the strategic acquisition of Two Harbors in an all‑stock merger. The deal is valued at about $1.3 billion in equity value, using a fixed exchange ratio of 2.3328 UWMC shares for each TWO share. Management noted that the deal has nearly doubled the company’s servicing book, boosts its float and scale, and is pitched as EPS‑accretive due to MSR income and cost synergies.
UWM Holdings Corporation (NYSE:UWMC) engages in the origination, sale, and servicing of residential mortgage lending in the US.
1. Transocean Ltd. (NYSE:RIG)
Price: $4.02
Market Capitalization: $4.43 B
Volume: 18,071,724
Average Volume: 44,563,225
Number of Hedge Fund Holders: 55
Transocean Ltd. (NYSE:RIG) is one of the Best High Volume Penny Stocks to Buy. On December 15, Joe Laetsch from Morgan Stanley initiated a Hold rating on the stock and raised the price target from $4 to $4.5. Earlier on December 12, Scott Gruber from Citi also reiterated a Hold rating on the stock and raised the price target from $4.25 to $4.5.
Analysts at Morgan Stanley noted that the energy services stocks have rallied out of the lows. However, this has pushed valuations higher in a market that is characterized by uncertain oil prices. The firm sees shorter cycle North American onshore spending to remain constrained, and Morgan Stanley thinks it’s too early to step into the sector.
In addition, analysts at Citi noted that the updated price target reflects the firm’s adjusted outlook of the oil and gas equipment sector. The firm noted that the industry is at the bottom of a two-year downcycle. In this backdrop, the firm believes that a lack of further negative revisions is expected to drive share performance higher in 2026. Therefore, the firm raised the price target but maintained a Hold rating.
Transocean Ltd. (NYSE:RIG) provides offshore contract drilling services for oil and gas wells worldwide. It contracts out its mobile drilling rigs, equipment, and crews on a day-rate basis, specializing in deepwater and harsh environment operations.
While we acknowledge the potential of RIG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIG and that has 100x upside potential, check out our report about this cheapest AI stock.
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