On October 2, Dan Veru, Palisade Capital Management senior partner and CIO, joined ‘Power Lunch’ on CNBC to discuss the opportunities available in small-cap stocks and talk about the start of the first phase of long-term small-cap outperformance relative to large-cap stocks. Veru believes that small-cap stocks have been ignored for too long and that the combined value of every stock in the entire Russell 2000 index is smaller than that of NVIDIA alone. He described this disparity as an extreme distortion, although he quickly clarified he was not speaking negatively about NVIDIA, which has seen extraordinary growth. He asserted that many other companies are really high quality but are currently being ignored. Veru then declared that the market is at the very first phase of a long cycle of small-cap outperformance relative to large-cap.
Earlier on September 16, Ali Dibadj, Janus Henderson Investors CEO, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends. The main discussion began with fixed income, where Dibadj asserted that the securitized sector of the market continues to trade cheaply. He expects the duration to be extended because the market is at the beginning of a cycle of easing. At the current peak of the cycle, investors are expected to pursue two strategies: seeking longer duration elements and looking for higher quality due to the slowing economy. Dibadj noted that the securitized area is where investors can find both higher quality and a good spread. He concluded his discussion by stressing the firm’s belief that the broad base of small and mid-cap stocks is way undervalued. He acknowledged the need for careful selection given the slowing economy, but maintained that small- and mid-cap stocks have enormous potential to deliver in the near future.
That being said, we’re here with a list of the 10 best long-term penny stocks with huge upside potential.
Our Methodology
We sifted through the Finviz stock screener to compile a list of penny stocks that were trading below $5. Then, for the best long-term stocks, we included stocks with a 5-year revenue compound annual growth rate of at least 20%. We then selected the 10 stocks that had an upside potential of over 30%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q2 2025.
Note: All data was sourced on October 21.
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 Long Term Penny Stocks with Huge Upside Potential
10. Zedge Inc. (NYSE:ZDGE)
Share Price as of October 21: $3.32
5-Year Revenue CAGR: 27.65%
Number of Hedge Fund Holders: 6
Average Upside Potential as of October 21: 49.25%
Zedge Inc. (NYSE:ZDGE) is one of the best long term penny stocks with huge upside potential. On October 6, Zedge launched Tapedeck, which is a new music app and service. The company designed Tapedeck to offer musicians greater control over their work and fairer compensation. The initiative extends Zedge’s successful creator-first model, which began with the Zedge Premium marketplace in 2017 and has since paid out millions of dollars annually to creators globally.
Tapedeck is the concept of Tim Quirk, Zedge’s SVP of Product and a veteran of the music industry. Quirk has a history of involvement in the digital music landscape, including being the lead singer of Too Much Joy, launching Rhapsody in 2001, contributing to the development of Google Play in 2011, and founding Freeform Development, which is a startup that Zedge later acquired.
Quirk noted that fair artist compensation was once the norm, citing Rhapsody’s initial standard of a penny per play and FreeForm’s success in proving superfans would pay extra to support artists.
Zedge Inc. (NYSE:ZDGE) builds digital marketplaces and competitive games around content that people use to express themselves.
9. AmpliTech Group Inc. (NASDAQ:AMPG)
Share Price as of October 21: $4.02
5-Year Revenue CAGR: 43.00%
Number of Hedge Fund Holders: 3
Average Upside Potential as of October 21: 49.25%
AmpliTech Group Inc. (NASDAQ:AMPG) is one of the best long term penny stocks with huge upside potential. On September 30, AmpliTech Group announced that it had joined the ORAN Alliance and the Telecom Infra Project/TIP. Both organizations are key drivers in the global adoption of Open Radio Access Networks/ORAN 5G.
AmpliTech’s engagement in ORAN 5G is translating major Letters of Intent/LOIs into tangible business. A $78 million LOI with a global Open RAN systems integrator has already generated over $2 million in funded orders. A separate $40 million LOI has yielded more than half of its projected value in funded orders, in addition to $3 million in orders that exceeded the original LOI’s expected value.
The company is also integrating AI and ML into its ORAN 5G and Wi-Fi 6/7 solutions to boost network optimization, security, and energy efficiency. AmpliTech is positioned to showcase its ORAN 5G technology, which includes its highest configuration 64T64R MIMO radio designed for densely populated and military applications.
AmpliTech Group Inc. (NASDAQ:AMPG) designs, engineers, and assembles microwave component-based amplifiers. It operates in two segments: Manufacturing & Engineering and Distribution.
8. The Real Brokerage Inc. (NASDAQ:REAX)
Share Price as of October 21: $4.00
5-Year Revenue CAGR: 162.34%
Number of Hedge Fund Holders: 17
Average Upside Potential as of October 21: 50.56%
The Real Brokerage Inc. (NASDAQ:REAX) is one of the best long term penny stocks with huge upside potential. On October 14, Real Brokerage announced the launch of Real Wallet Capital. The embedded lending solution is designed to provide Real agents in the US with fast, flexible access to working capital directly within the Real Wallet interface.
The launch marks the first time that embedded lending has been introduced to the residential brokerage industry. Real Wallet Capital is built into reZEN, Real’s proprietary software platform, specifically addressing the financial challenges faced by independent real estate professionals, such as irregular cash flow and the need for business investment.
The initiative represents a step towards creating a leading financial platform focused on agent success. The credit is continuously underwritten using a dynamic blend of the agent’s historical earnings, pending transactions, and projected future income.
The Real Brokerage Inc. (NASDAQ:REAX), together with its subsidiaries, operates as a real estate technology company in the US and Canada.
7. Fathom Holdings Inc. (NASDAQ:FTHM)
Share Price as of October 21: $1.65
5-Year Revenue CAGR: 24.04%
Number of Hedge Fund Holders: 2
Average Upside Potential as of October 21: 50.60%
Fathom Holdings Inc. (NASDAQ:FTHM) is one of the best long term penny stocks with huge upside potential. On October 16, Fathom Holdings announced the acquisition of START Real Estate, which is a residential brokerage focused exclusively on serving first-time homebuyers, a large and rapidly growing segment of the US housing market.
START Real Estate has developed a successful model for guiding first-time buyers through the homeownership process. The brokerage is headquartered in Colorado with a recent expansion into Utah. It has 70 agents who are projected to close ~400 transactions this year with a notable mortgage attach rate exceeding 70%.
Fathom plans to use its national footprint, which covers 43 states and DC with ~15,000 agents, to scale START’s first-time buyer program into new markets nationwide. The acquisition is designed to expand Fathom’s transaction volume and agent count while boosting higher-margin recurring revenue from ancillary services. START Real Estate’s proven model will be integrated with Fathom’s proprietary cloud-based software, the intelliAgent platform, and its integrated mortgage and title businesses.
Fathom Holdings Inc. (NASDAQ:FTHM) provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the US. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology.
6. ADC Therapeutics (NYSE:ADCT)
Share Price as of October 21: $4.12
5-Year Revenue CAGR: 130.31%
Number of Hedge Fund Holders: 14
Average Upside Potential as of October 21: 94.17%
ADC Therapeutics (NYSE:ADCT) is one of the best long term penny stocks with huge upside potential. On October 16, H.C. Wainwright analyst Robert Burns lowered the price target on ADC Therapeutics to $7 from $8 and maintained a Buy rating on the shares. The firm reduced the price target after factoring in the private placement financing.
In other news, earlier on October 12, DC Therapeutics announced a $60 million private placement with institutional investors, which is expected to close on October 27. The proceeds from this will support the commercial expansion of ZYNLONTA, which is used to treat adults with B-cell lymphoma that has relapsed after two or more treatments or that did not respond to previous treatment. The proceeds will also strengthen the company’s balance sheet, position it for long-term growth, and potentially support a relaunch of ZYNLONTA in 2027.
ADC Therapeutics (NYSE:ADCT) provides antibody drug conjugate/ADC technology platform to transform the treatment paradigm for patients with hematologic malignancies and solid tumors.
5. Bragg Gaming Group Inc. (NASDAQ:BRAG)
Share Price as of October 21: $2.69
5-Year Revenue CAGR: 24.19%
Number of Hedge Fund Holders: 2
Average Upside Potential as of October 21: 95.41%
Bragg Gaming Group Inc. (NASDAQ:BRAG) is one of the best long term penny stocks with huge upside potential. On October 17, Citizens JMP downgraded Bragg Gaming to Market Perform from Outperform without a price target. This sentiment was announced as the firm noted that the company’s shares currently trade at a 0.5x discount to peers, given the uncertain outcome and EBITDA impact tied to the loss of a high-value customer (BetCity) and tax changes.
BetCity will have a material impact on the company’s revenue and a minor hit to EBITDA, but the timing is unknown. The firm sees risk to Bragg’s forward estimates and says the company should trade at a discount to the group. Citizens JMP views Bragg Gaming as fairly valued at current levels. Earlier on September 19, Citizens JMP analyst Jordan Bender reiterated a Buy rating on the company with a price target of $4.00.
Bragg Gaming Group Inc. (NASDAQ:BRAG) operates as an iGaming content and technology solutions provider serving online and land-based gaming operators with its proprietary and exclusive content.
4. KULR Technology Group Inc. (NYSE:KULR)
Share Price as of October 21: $4.15
5-Year Revenue CAGR: 72.17%
Number of Hedge Fund Holders: 2
Average Upside Potential as of October 21: 141.55%
KULR Technology Group Inc. (NYSE:KULR) is one of the best long term penny stocks with huge upside potential. On October 9, KULR Technology Group and Soluna Holdings Inc. (NASDAQ:SLNH) announced a new 3.3 MW hosting partnership for Bitcoin mining operations. Under this agreement, Soluna will operate ~3.3 MW of KULR’s Bitcoin mining capacity at its Project Sophie facility located in Kentucky.
This marks the first time Soluna has partnered with a company primarily focused on a Bitcoin+ treasury strategy, which expands Soluna’s customer base beyond traditional Bitcoin miners and hyperscalers. The partnership supports KULR’s Bitcoin Treasury Accumulation Strategy, announced earlier this year, where KULR committed up to 90% of its surplus cash reserves to Bitcoin.
The hosting is structured as a Bitcoin Mining Lease, where KULR uses Soluna’s operational and market expertise. Soluna will be responsible for purchasing, servicing, and managing KULR’s entire fleet of mining hardware for the duration of the contract. Crucially, Soluna will deliver guaranteed hashrate and uptime targets to KULR on both a daily and monthly basis.
KULR Technology Group Inc. (NYSE:KULR), through its subsidiary, KULR Technology Corporation, develops & commercializes thermal management technologies for electronics, batteries, and other component applications in the US.
Soluna Holdings Inc. (NASDAQ:SLNH), together with its subsidiaries, mines cryptocurrency through data centres. It has 3 segments: Cryptocurrency Mining, Data Center Hosting, and HPC Services.
3. Pluri Inc. (NASDAQ:PLUR)
Share Price as of October 21: $4.05
5-Year Revenue CAGR: 125.33%
Number of Hedge Fund Holders: 2
Average Upside Potential as of October 21: 193.40%
Pluri Inc. (NASDAQ:PLUR) is one of the best long term penny stocks with huge upside potential. On October 8, Pluri announced that its wholly-owned subsidiary, Coffeesai Ltd., had signed a collaboration agreement with the Instituto del Café de Chiapas/INCAFECH, a public body of the State of Chiapas, Mexico. The purpose of this state-backed collaboration is to advance cell-based coffee manufacturing in Mexico, positioning Chiapas, the country’s leading coffee-growing region, as a hub for innovation.
Coffeesai develops sustainable cell-based coffee products, using Pluri’s proprietary 3D cell expansion platform and two decades of expertise to create solutions. The partnership outlines a multi-phase, capital-light roadmap to de-risk commercialization.
This effort is designed to create shareholder value for Plurithrough potential non-dilutive revenues from License and Technology Transfer, as well as recurring revenue streams via Royalty-bearing models, joint ventures, and potential sales tied to large-scale production.
Pluri Inc. (NASDAQ:PLUR) is a biotechnology company that researches, develops, and manufactures cell-based products, cell therapeutics, and related technologies for various industries.
2. LiveOne Inc. (NASDAQ:LVO)
Share Price as of October 21: $4.89
5-Year Revenue CAGR: 20.44%
Number of Hedge Fund Holders: 8
Average Upside Potential as of October 21: 240.21%
LiveOne Inc. (NASDAQ:LVO) is one of the best long term penny stocks with huge upside potential. On October 20, LiveOne announced that it had signed a Letter of Intent/LOI to launch a new subsidiary, called LiveOneAfrica. The new venture is a collaboration with Virtuosity Music Group, which is an international music and entertainment company with deep ties to African and global artists.
The primary goal is to expand LiveOne’s footprint into the rapidly growing African music and entertainment market. To support the expansion into Africa and Europe, the partnership involves UK Structured Finance Ltd. The funding is outlined to support LiveOne’s initiatives for the buildout of digital infrastructure, establishing artist partnerships, and creating localized live and on-demand streaming content.
UK Structured Finance Ltd. is recognized for providing innovative financial solutions and has successfully structured and raised hundreds of millions of dollars across multiple sectors. It lends institutional confidence to the potential of LiveOneAfrica.
LiveOne Inc. (NASDAQ:LVO) is a digital media company that acquires, distributes, and monetizes live music events, Internet radio, podcasting/vodcasting, music-related membership, and streaming & video content. The company has three segments: PodcastOne, Slacker, and Media Group.
1. SCYNEXIS Inc. (NASDAQ:SCYX)
Share Price as of October 21: $1.77
5-Year Revenue CAGR: 115.19%
Number of Hedge Fund Holders: 5
Average Upside Potential as of October 21: 404.03%
SCYNEXIS Inc. (NASDAQ:SCYX) is one of the best long term penny stocks with huge upside potential. On September 30, SCYNEXIS announced positive results from a Phase 1 clinical study evaluating SCY-247, its second-generation triterpenoid antifungal compound. The candidate is being developed for the treatment and prevention of invasive fungal infections to provide the therapeutic advantages of both an oral and an intravenous/IV formulation.
The favorable results show orally administered SCY-247 can achieve target exposures for efficacy with favorable tolerability, and at doses lower than their first-generation fungerp, which may offer a tolerability advantage. The Phase 1 study was conducted in healthy participants to assess the safety, tolerability, and pharmacokinetics of orally administered SCY-247. SCY-247 was well tolerated across all SAD and MAD cohort
The positive safety, tolerability, and pharmacokinetic profile supports the continued clinical development of SCY-247. Further details from this study are expected to be presented at an upcoming scientific meeting.
SCYNEXIS Inc. (NASDAQ:SCYX) is a biotechnology company that develops medicines to overcome and prevent difficult-to-treat and drug-resistant infections in the US.
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