In this piece, we will take a look at the 10 Best Multibagger Penny Stocks to Buy According to Billionaires.
Penny stocks always seem like bargains for gaining exposure to some of the fastest-growing segments or spectacles, especially when popular stocks cost hundreds or thousands of dollars. Given that some cost as little as $2, they can be tempting for growing money quickly without spending much. While it’s possible to achieve significant returns while investing in companies with depressed stock prices, caution is always of utmost importance.
Low-priced stocks come with elevated levels of volatility as reduced liquidity makes them speculative, high-risk investments. Over the years, massive penny-stock scams have cheated thousands of investors out of millions of dollars, even as others have generated a fortune out of them. 2024 was one such year where investors betting on penny stocks generated a fortune as the overall stock market remained bullish. Explosive gains came into play as the equity outlook improved on expectations that the US Federal Reserve would cut interest rates.
Amid the current correction in the equity market after two years of blockbuster gains, penny stocks are increasingly becoming popular owing to their depressed valuations. President Donald Trump’s eldest son, Donald Trump Jr., and Lara Trump have already joined the fray in acquiring significant stakes in a conservative radio network, affirming renewed interest in thinly traded companies.
Nevertheless, in the face of rising trade tensions and the lowest consumer confidence seen in almost three years, US markets have faced significant fluctuations. Yet, despite these obstacles, the idea of penny stocks continues to hold relevance as investors hunt for low-cost options with potential for growth. Often linked with smaller or emerging companies, these stocks can present considerable upside when supported by robust financials and sound fundamentals.
It is possible to realize impressive returns by investing money into young firms with small market valuations or undervalued stock prices. That is especially the case at a time when President Trump is increasingly pushing for lower interest rates in the US. Like large-cap stocks, penny stocks tend to do well in low-interest rates environments as acquiring capital to accelerate operations and generate shareholder value becomes easier and more affordable for new and emerging companies.
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Our Methodology
For this article, we used a stock screener first to identify stocks priced under $5 that have posted huge gains over the past year (at least 100%). From the obtained dataset, we selected penny stocks with the highest percentage gains in stock performance over the past year (as of April 21). The list is ranked based on the number of billionaires that hold stakes in them, the data for which we sourced from Insider Monkey’s proprietary database.
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 Best Multibagger Penny Stocks to Buy According to Billionaires
10. Trilogy Metals Inc (NYSE:TMQ)
Number of Billionaire Holders: 4
1-Year Gain as of April 21: 235.71%
Share Price as of April 21: $1.41
Trilogy Metals Inc (NYSE:TMQ) specializes in exploring and developing high-grade mineral deposits in Alaska’s Ambler Mining District, focusing on copper and polymetallic resources. It stands out for its advanced geological studies, strategic drilling programs, and targeted acquisition of mineral rights in one of North America’s richest mining regions. By adhering to strict NI 43-101 standards and using industry-specific techniques, the company has earned a strong reputation for credibility and expertise. Trilogy Metals Inc (NYSE:TMQ) has rallied 235.71% over the past year.
Trilogy Metals Inc (NYSE:TMQ) delivered first-quarter fiscal 2025 results on April 20, characterized by a net loss of $3.6 million, unchanged from a year ago in the same quarter. Net loss remained unchanged despite total operating expenses surging to $3.2 million from $2.8 million as of the first quarter 2024. Likewise, Trilogy exited the first quarter in a strong financial position with $25.2 million in cash and $24.6 million in working capital. On the other hand, its joint venture Ambler Metal exited Q1 2025 with $6.5 million in cash and $5.8 million in the approved budget for 2025. Similarly, Trilogy expects 1.9 billion pounds of copper production over a 17-year mine life following positive results from the Bornite Preliminary Economic Assessment (PEA).
9. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS)
Number of Billionaire Holders: 4
1-Year Gain as of April 21: 125%
Share Price as of April 21: $3.24
Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) is a clinical-stage biopharmaceutical company that develops and commercializes immune modulator therapies for a range of cancers, immune disorders, and infectious diseases. Its lead product candidate, soquelitinib, is an oral, small-molecule ITK inhibitor currently in clinical trials for T-cell lymphoma and atopic dermatitis. The stock has rallied 125% over the past year on positive clinical trial results over the past year.
In December of last year, it delivered positive interim results from its Phase 1 trial of sokolitinib for treating moderate to severe atopic dermatitis. The results showed a favorable safety and efficacy profile, affirming the drug’s potential for chronic skin conditions. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) has already started enrolling patients for the Phase 3 drug trial for relapsed peripheral T-cell lymphoma.
While Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) delivered a wider-than-expected loss of $12.1 million in Q4 2024, reflecting increased expenses and strategic investments in the product line. Likewise, Corvus remains in a strong cash position with $52 million in cash and cash equivalent to develop its pipeline. On March 26, Oppenheimer reiterated the Buy rating on the stock and increased the price target to $15, buoyed by the company’s pipeline development and financial stability.
8. New Gold Inc. (NYSE:NGD)
Number of Billionaire Holders: 5
1-Year Gain as of April 21: 111.63%
Share Price as of April 21: $3.64
New Gold Inc. (NYSE:NGD) is an intermediate gold mining company that develops and operates mineral properties. It primarily explores gold, silver, and copper deposits. The company’s principal operating properties include a 111.63% interest in the Rainy River mine located in Northwestern Ontario, Canada. The stock has skyrocketed by 111.63% over the past year as the company increasingly capitalizes on the soaring gold prices above $3,000 an ounce.
On April 8, New Gold Inc. (NYSE:NGD) inked a deal with the Ontario Teachers’ Pension Plan to acquire 19.9% free cash flow interest in the New Afton Mine. With the acquisition, the company enhances its gold asset portfolio by gaining access to an asset with the potential of enhancing production and prolonging the mine lifespan. Scotiabank views the deal as positive for consolidating a key copper-gold asset. Therefore, it raised New Gold’s (NYSE:NGD) price target to $4.25 up from the previous $4.00, maintaining a Sector Outperform rating.
Last year, New Gold Inc. (NYSE:NGD) produced 298,303 ounces of gold and 54 million pounds of copper; therefore, it is well poised to benefit from soaring prices. The company also posted a record fourth-quarter 2024 revenue of $262 million with earnings per share of $0.07. New Gold expects its production to average 265,000 ounces and 295,000 ounces in 2025 as it seeks to take advantage of higher gold prices. Free cash flow is also expected to reach between $1.7 billion and $2 billion over the next three years, driven by higher production and cost efficiencies.
7. Personalis, Inc. (NASDAQ:PSNL)
Number of Billionaire Holders: 5
1-Year Gain as of April 21: 153.17%
Share Price as of April 21: $3.19
Personalis, Inc. (NASDAQ:PSNL) is a diagnostic and research company that develops markets and sells advanced cancer genomic tests and services. It offers NeXT Personal, a tumor-informed liquid biopsy test for the detection of minimal residual disease (MRD), therapy response and recurrence monitoring in solid tumour cancers. While the stock is up by 153.17% over the past year, Craig Hallum initiated coverage of the stock with a Buy recommendation on March 17.
The impressive run stems from a solid 2024 that saw Personalis, Inc. (NASDAQ:PSNL) presenting compelling clinical data at medical conferences, as it also drove testing growth by 52%. In addition, Personalis strengthened its long-term prospects with a $50 million strategic investment from Merck and inked a commercial collaboration with Moderna.
The partnership with Moderna for V940/mRNA-4157 places Personalis, Inc. (NASDAQ:PSNL) in a leading role in the advancement of personalized neoantigen therapy. The ongoing choice of their ImmunoID NeXT Platform highlights its technical excellence in tumor profiling and neoantigen discovery. The platform’s capability to facilitate the development of tailored cancer vaccines provides a significant competitive edge in the swiftly changing precision oncology arena.
6. Butterfly Network, Inc. (NYSE:BFLY)
Number of Billionaire Holders: 7
1-Year Gain as of April 21: 225%
Share Price as of April 21: $2.34
Butterfly Network, Inc. (NYSE:BFLY) is a healthcare company that develops and markets affordable, accessible medical imaging tools. Its core technology is the “Ultrasound-on-Chip™” enabling the creation of a single-probe, whole-body ultrasound system. The stock has rallied by 225% over the past year amid growing expectations that robust revenue growth will propel it to profitability. On March 17, William Blair initiated coverage of the stock with an Outperform recommendation.
Butterfly Network, Inc. (NYSE:BFLY) delivered record revenue of $22.4 million in Q4 2024, representing 35% year-over-year growth. Butterfly Network’s transition to the more profitable iQ3 device was the catalyst behind product revenue increasing 45% year-over-year. It also successfully reduced its net loss by 59% to $18.1 million. Butterfly Network has laid up strategic plans to meet long-term financial goals. These include achieving a $500 million revenue goal in five years and cash flow breakeven by 2027.
One of these strategic moves is establishing a new company, Octiv, to market ultrasound technology in new industries. With $92.8 million in cash, the company remains in a strong financial position to invest in key growth strategies.
5. Clover Health Investments, Corp. (NASDAQ:CLOV)
Number of Billionaire Holders: 7
1-Year Gain as of April 21: 480.65%
Share Price as of April 21: $3.60
Clover Health Investments, Corp. (NASDAQ:CLOV) is a healthcare company that provides Medicare Advantage plans. Using a data-driven approach, it offers preferred provider organization and health maintenance organization plans to Medicare-eligible individuals. The stock has rallied by about 480.65% over the past year as investors react to a significant growth in its Medicare Advantage membership.
While membership has surpassed the 100,000 level, Clover Health Investments, Corp. (NASDAQ:CLOV) has also seen its flagship PPO plan upgraded with a 4-star rating by the Centers for Medicare and Medicaid Services. The robust membership growth was the catalyst behind the company delivering a 9% increase in insurance revenue to $1.3 billion. Clover Health achieved profitability in full-year 2024, with EBITDA rising by $112 million to reach $70 million.
Clover Health Investments, Corp. (NASDAQ:CLOV) expects the underlying growth to continue in 2025 as it projects a 30% year-over-year increase in Average Medicare Advantage membership. It also expects insurance revenue to be between $1.8 and $1.875 billion. On April 8, Canaccord Genuity reaffirmed a Buy rating and a $4.50 price target for Clover Health (NASDAQ:CLOV), citing strong growth prospects and sector sentiment improvement. Clover Health’s robust performance, boosted by 4-Star rating reimbursements and revenue growth, positions it well for future expansion in 2026.
4. Xeris Biopharma Holdings Inc. (NASDAQ:XERS)
Number of Billionaire Holders: 7
1-Year Gain as of April 21: 130.90%
Share Price as of April 21: $4.11
Xeris Biopharma Holdings Inc. (NASDAQ:XERS) is a biopharmaceutical company that develops and commercializes innovative therapies across endocrinology, neurology, and gastroenterology segments. The company focuses on developing products using its proprietary XeriSol and XeriJect technology platforms. The stock is up by 130.90% over the past year thanks to continued momentum in its commercial business.
Recorlev is driving growth in the commercial business for the treatment of Cushing’s syndrome, which has shown 118% growth; Gvoke for the treatment of severe hypoglycemia; and Keveyis for the treatment of Primary Periodic Paralysis. The three products were the catalyst behind Xeris Biopharma’s delivery of strong full-year 2024 results, characterized by a record revenue of $203 million, an improvement from $163.9 million in 2023.
In addition, Xeris Biopharma Holdings Inc. (NASDAQ:XERS) sentiments significantly increased the company’s net loss, narrowing to $54.8 million in FY2024 from $62.3 million in 2023. The company boasts of an impressive revenue growth trajectory that has reached 22.7% over the past 12 months. It’s already projecting a 30% revenue growth in 2025 of between $255 and $275 million, driven by the substantial upside potential of XP8121, a treatment for hypothyroidism.
3. Fubotv Inc. (NYSE:FUBO)
Number of Billionaire Holders: 8
1-Year Gain as of April 21: 123.13%
Share Price as of April 21: $2.99
Fubotv Inc. (NYSE:FUBO) is a commercial services company providing live TV streaming services. It aggregates a wide range of premium sports, news, and entertainment content into a user-friendly app, aiming to revolutionize the current television model. The stock has exploded over the past year, rallying by 123.13% on striking a strategic partnership with theme park giant Disney.
The deal paves the way for the iconic media juggernaut to own at least a 70% stake in Fubotv. The deal should add a layer of credibility, scalability, and liquidity, strengthening Fubotv Inc.’s (NYSE:FUBO) prospects in the live streaming business. Additionally, it should strengthen the company’s competitive edge as it seeks to target more than 20 million US homes that subscribe to live TV streaming.
In addition, increased focus on innovation and subscriber monetization has also bolstered Fubotv Inc.’s (NYSE:FUBO) growth avenues. Its average revenue per user surged to a record high of $87.90 in North America in the fourth quarter of 2024. The company also achieved free cash flow for the first time, affirming improved operational efficiency and why it is one of the best multi-bagger penny stocks to buy, according to billionaires.
2. CommScope Holding Company, Inc. (NASDAQ:COMM)
Number of Billionaire Holders: 8
1-Year Gain as of April 21: 226.47%
Share Price as of April 21: $3.33
CommScope Holding Company, Inc. (NASDAQ:COMM) is a communication equipment company providing infrastructure solutions for communications, data centers, and entertainment networks worldwide. It offers fiber optic and copper connectivity and cable solutions for telecommunications. The stock has been on a roll, rallying 226.47% over the past year.
The impressive run in the market comes from being the global leader in network connectivity solutions, delivering strong financial results that underscore underlying growth. Net sales in its fourth quarter of 2024 were up 26.6% to $1.17 billion, which is attributed to higher net sales in all segments. CommScope Holding Company, Inc. (NASDAQ:COMM) also posted a loss from continuing operations of $65.2 million, an improvement from a loss of $414 million for the same quarter the prior year. CommScope Holdings generated cash flow from operations of $273.1 million with free cash flow of $247.8 million.
Likewise, Moody’s Ratings upgraded the company to Caa1 from Caa2, assigning a B3 rating to its newly backed senior secured term loan. The upgrade reflects CommScope Holding Company, Inc.’s (NASDAQ:COMM) successful refinancing of debt due 2025 and 2026 through asset sales and new secured debt.
1. Lumen Technologies, Inc. (NYSE:LUMN)
Number of Billionaire Holders: 9
1-Year Gain as of April 21: 141.91%
Share Price as of April 21: $3.29
Lumen Technologies, Inc. (NYSE:LUMN) is a telecommunications company that offers communications, network services, security, cloud solutions, voice, and managed services through its fiber optic and copper networks. Up by 141.91% over the past year, it is turning out to be one of the best multi-bagger penny stocks to buy, according to billionaires.
That’s partly because Lumen Technologies, Inc. (NYSE:LUMN) increasingly benefits from the artificial intelligence spectacle. It has already initiated strategic partnerships with Microsoft, Meta Platforms, and other leading tech companies that require increased connectivity between their data centres. In addition, Lumen Technologies has partnered with Google Cloud to provide advanced cloud and network solutions to meet growing needs for AI workloads.
As more businesses adopt AI technologies, the need for Lumen Technologies, Inc.’s (NYSE:LUMN) reliable and efficient networking solutions should soar. By teaming up with tech giants amid the AI push, Lumen has essentially strengthened and diversified its revenue streams. The partnerships should enhance its top line and competitive edge in the industry. On February 21, Wells Fargo’s Erick Luebchow upgraded the stock rating from Underweight to Equal Weight, setting a $5 price target.
While we acknowledge the potential of Lumen Technologies, Inc. (NYSE:LUMN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LUMN but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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