On March 5, Brian Mulberry, Chief Market Strategist at Zacks Investment Management, appeared on BNN Bloomberg to assess the markets amid global tensions. He provided perspective on a roller-coaster day where the Dow skidded down more than 800 points amid rising oil prices and geopolitical tensions involving Iran. Mulberry identified $80 per barrel as a critical psychological barrier for oil. He explained that if prices are sustained at or above this level for months, it will reignite inflation fears and potentially prevent interest rates from lowering as the market had previously priced in.
As for broader market movements, gold, silver, and copper are also down. Mulberry described this as a flight-to-cash, a stressful period where all assets move in the same direction as investors look to exit the market. However, he believes a floor may be easier to find because a washout had already begun earlier in the day. He pointed out that the Nasdaq has seen some domestic investors taking advantage of mispriced stocks and anomalies. He highlights that the VIX index is the best-performing asset, up nearly 54% year-to-date, signaling high uncertainty and a general risk-off mood.
Mulberry also addressed sectors to avoid, specifically the volatility within tech and AI. He dismissed the idea that software is dead, observing that investors are returning to large software names as they realize GenAI will not take over everything immediately. However, he emphasized that the market will eventually distinguish between winners and losers based on cash flow and profitability. He specifically questioned the return on investment for companies like Microsoft, which is spending $200 billion on data centers this year. He concluded that investors are right to question when these massive infrastructure investments will translate into profitable sales and revenue growth.
That being said, we’re here with a list of the 10 best new penny stocks to buy.
Our Methodology
We used screeners to identify promising stocks that have gone public in the last 5 years and are trading below $5 per share. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on March 6.
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 New Penny Stocks to Buy
10. Vtex (NYSE:VTEX)
Vtex (NYSE:VTEX) is one of the best new penny stocks to buy. On February 27, Vtex reported its Q4 2025 financial results, achieving a record gross margin of 79.6% and a non-GAAP operating margin of 23.8%. While the company acknowledged that recent growth has been impacted by cyclical macro headwinds in Brazil and Argentina, it delivered $66.7 million in subscription revenue for the quarter.
To streamline operations and better utilize AI, Vtex implemented a late-year reorganization of its sales and marketing teams, which included a headcount reduction of approximately 100 positions and centralized global operations for greater agility. The company is anchoring its future growth in four strategic levers: global expansion, B2B commerce, retail media, and AI-first product development.
In 2025, global markets outside of Latin America grew by 22%, and the company successfully scaled high-profile partnerships, such as its stadium tour store project with Manchester City. Furthermore, the ‘Vtex Ads’ retail media engine has transitioned from a pilot phase to a core growth driver, enabling enterprise retailers to monetize traffic and provide brands with performance-based, first-party data attribution. Vtex (NYSE:VTEX) remains focused on high-value clients, with the number of customers generating over $250,000 in annual recurring revenue reaching 158.
Vtex (NYSE:VTEX), together with its subsidiaries, provides a software-as-a-service digital commerce platform for enterprise brands and retailers.
9. ECARX Holdings Inc. (NASDAQ:ECX)
ECARX Holdings Inc. (NASDAQ:ECX) is one of the best new penny stocks to buy. On February 12, ECARX Holdings reported Q4 2025 results, posting a GAAP EPS of $0.01 and a record revenue of ~$305 million. This marked its second consecutive quarter of GAAP profitability and positive adjusted EBITDA. Cumulative vehicle shipments reached 11 million units, fueled by the Antora computing platform, which surpassed the 1-million-unit milestone in 2025.
The company is pursuing a globalization strategy, aiming to generate 50% of its revenue from international markets by 2030. Key milestones include a deepened partnership with Volkswagen Group in Latin America and the European launch of the Geely EX5, which uses ECARX’s AI-enhanced Antora 1000 and Cloudpeak software. To support this expansion, ECARX recently secured ~$200 million in funding from partners including Geely and ATW Partners to build out its R&D hub in Germany and infrastructure across Southeast Asia and South America.
For 2026, ECARX Holdings Inc. (NASDAQ:ECX) projects full-year revenue between $1 billion and $1.1 billion, representing 20% to 30% growth. The company expects to remain operating income positive throughout the year by continuing its ‘lean operating strategy’ and expanding into high-value AI services for both automotive and robotics sectors.
ECARX Holdings Inc. (NASDAQ:ECX) develops a full-stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology of smart mobility in China and internationally.
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