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.
8. Riskified Ltd. (NYSE:RSKD)
Riskified Ltd. (NYSE:RSKD) is one of the best new penny stocks to buy. On March 5, Riskified delivered its 2025 financial report, surpassing earnings expectations with a reported EPS of $0.12 against the anticipated $0.10. The company achieved a milestone by posting its first-ever quarter of GAAP profitability in Q4, supported by quarterly revenues of ~$100 million. Key performance metrics showed marked improvement, with annual dollar retention reaching 100% and net dollar retention climbing to 105%. This momentum was fueled by a record volume of new business wins since the company’s IPO, including partnerships with major global brands like Nintendo, Temu, and Ace Hardware.
A central theme of the report was the escalating complexity of the fraud landscape, particularly the rise of AI-driven ‘agentic commerce.’ The CEO detailed how Riskified is using its decade-old AI ecosystem to protect merchants from sophisticated synthetic identity fraud and automated refund abuse. The company’s data moat, built on over $750 billion in processed GMV and 1 billion unique interactions, allows it to provide real-time risk signals that general-purpose LLMs cannot replicate.
Beyond core fraud protection, the company’s ‘Policy Protect’ and ‘Account Secure’ products generated ~$10 million in 2025 revenue, reflecting a successful transition into a multi-product platform. For 2026, Riskified Ltd. (NYSE:RSKD) issued a revenue guidance of $372 million to $384 million, representing 8% to 11% growth, and expects to generate ~$40 million in free cash flow.
Riskified Ltd. (NYSE:RSKD), together with its subsidiaries, develops and offers an e-commerce risk intelligence platform that allows online merchants to create trusted relationships with consumers in the US, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas.
7. Prime Medicine Inc. (NASDAQ:PRME)
Prime Medicine Inc. (NASDAQ:PRME) is one of the best new penny stocks to buy. On March 3, Prime Medicine reported its full-year 2025 financial results, highlighting a shift toward its in vivo liver franchise. The company ended the year with $191.4 million in cash, cash equivalents, and investments, providing a financial runway into 2027. Despite a net loss of $201.1 million for the year, R&D expenses remained relatively stable at $160.6 million as the company optimized its workforce and deprioritized its Chronic Granulomatous Disease/CGD program to focus on high-priority clinical milestones.
The company is advancing toward key regulatory filings for its lead liver-focused programs in Wilson Disease/WD and Alpha-1 Antitrypsin Deficiency/AATD. Prime Medicine remains on track to submit an IND or CTA for the WD program in H1 2026, followed by a mid-2026 submission for the AATD program. Initial clinical data for both indications are expected in 2027. Additionally, the company is progressing its Cystic Fibrosis program with support from the Cystic Fibrosis Foundation and continues its CAR-T partnership with Bristol Myers Squibb.
Regarding its CGD candidate, PM359, Prime Medicine Inc. (NASDAQ:PRME) is actively engaging with the FDA to pursue an accelerated approval pathway. This follows the publication of positive Phase 1/2 data in the New England Journal of Medicine, which showed durable restoration of enzyme activity and early clinical benefits. The company intends to submit a BLA once final alignment with the FDA is reached, potentially making PM359 the first Prime Edited therapy available to patients.
Prime Medicine Inc. (NASDAQ:PRME) is a biotechnology company that delivers genetic medicines to address the spectrum of diseases by deploying gene editing technology in the US.
6. Lotus Technology Inc. (NASDAQ:LOT)
Lotus Technology Inc. (NASDAQ:LOT) is one of the best new penny stocks to buy. On March 4, Lotus Tech introduced LTS (Lotus Tuned Specification), which is a new proprietary engineering and validation standard derived from the company’s 78-year motorsport heritage. This holistic system moves beyond simple component labeling to ensure full-vehicle integration and calibration across all Lotus models.
By co-developing critical systems like active stabilizer bars and braking modules with strategic suppliers, Lotus Technology Inc. (NASDAQ:LOT) aims to provide a consistent, driver-centric experience regardless of the powertrain format or market conditions. The first vehicle to debut under this new framework is the LOTUS For Me, a hyper-SUV featuring the brand’s innovative X-hybrid architecture. This model is built on a 900V high-voltage platform and dual motors, delivering a flagship output of 952 PS and an acceleration of 0–100 km/h in just 3.3 seconds. Engineered for sustained performance, the vehicle maintains a 3.5-second sprint even when the battery is as low as 10%, while offering a combined range exceeding 1,400 km and a 4-minute cold-start recovery system.
The LOTUS For Me uses a full-time 4WD system with a 0ms response time and intelligent energy management that offers four distinct driving modes, including pure EV and Hybrid. The SUV is the result of a global collaboration between the UK engineering center, which handled chassis tuning, and the China team, which focused on powertrain and advanced driver-assistance systems. The model is scheduled to launch in China in late March, with a European rollout following in mid-2026 before expanding to North America and other global regions.
Lotus Technology Inc. (NASDAQ:LOT) designs, develops, and sells battery electric lifestyle vehicles worldwide. It distributes sports cars and sells its products under the Lotus brand.
5. Frontier Group Holdings Inc. (NASDAQ:ULCC)
Frontier Group Holdings Inc. (NASDAQ:ULCC) is one of the best new penny stocks to buy. On February 11, Frontier Group delivered a significant earnings beat for Q4 2025, reporting an EPS of $0.2305 compared to the anticipated $0.10. New President and CEO Jimmy Dempsey, who took the helm amid a pivotal transition, introduced a mandate to return the airline to sustained profitability. This plan centers on four key pillars: rightsizing the fleet, enforcing strict cost discipline, improving operational reliability, and accelerating the maturity of the company’s customer loyalty program.
A major component of this reset is a comprehensive fleet overhaul, highlighted by a nonbinding agreement with AerCap to terminate 24 aircraft leases in Q2 2026. Additionally, Frontier reached a framework agreement with Airbus to moderate its long-term growth rate to a more sustainable 10%. These moves are expected to drive $200 million in annual cost savings by 2027, with nearly half of those savings coming directly from reduced lease rents and improved fleet productivity.
To enhance the customer experience and drive loyalty, Frontier is modernizing its commercial offerings through 2027. Planned upgrades include the fleet-wide rollout of first-class seating, onboard WiFi, and a revamped mobile app, which is already used by over 85% of its passengers. By pairing its traditional low-fare model with these elevated product features and a simplified elite status structure, management aims to transform Frontier Group Holdings Inc. (NASDAQ:ULCC) into a high-value airline of choice.
Frontier Group Holdings Inc. (NASDAQ:ULCC) provides low-fare passenger airline services to leisure travelers in the US and Latin America. The company sells its products through direct distribution channels, such as websites, mobile apps, and contact centers.
4. Cricut Inc. (NASDAQ:CRCT)
Cricut Inc. (NASDAQ:CRCT) is one of the best new penny stocks to buy. On March 3, Cricut reported Q4 2025 earnings that met analyst expectations with an EPS of $0.04. While the company achieved its ninth consecutive year of profitability, generating $76.7 million in net income for the full year, total revenue for 2025 saw a slight decline of less than 1% to $708.8 million. The CEO expressed disappointment regarding the lack of sales growth but highlighted that the company recently launched next-gen cutting machines (Cricut Joy 2 and Explore 5) and a new Direct-to-Film/DTF service to drive future expansion.
The Platform segment remained a significant highlight, with paid subscribers growing more than 4% year-over-year to 3.09 million. This growth helped drive a 5% increase in annual Platform revenue, supported by a rising ARPU of $55.77. In contrast, Product revenue fell by 5% for the full year due to a 9% drop in accessories and materials sales caused by increased competition from white-label brands and online marketplaces. To counter this, Cricut is shifting to a ‘bundle-first’ strategy, ensuring new machines are sold with integrated materials and simplified, AI-enhanced software workflows.
For 2026, Cricut Inc. (NASDAQ:CRCT) intends to accelerate R&D and marketing investments to reclaim market share in the accessories category. While Management refrained from giving specific margin guidance due to tariff uncertainties following recent court rulings, the company expects to remain profitable in every quarter of the coming year.
Cricut Inc. (NASDAQ:CRCT) designs, markets, and distributes a creativity platform that enables users to turn ideas into professional-looking handmade goods in the US, Canada, the UK, Ireland, Australia, New Zealand, Western Europe, the Middle East, Latin America, South Africa, and Asia.
3. Olaplex Holdings Inc. (NASDAQ:OLPX)
Olaplex Holdings Inc. (NASDAQ:OLPX) is one of the best new penny stocks to buy. On March 5, Olaplex Holdings reported its Q4 2025 financial results, beating earnings expectations with an adjusted EPS of $0.01. The company stabilized its net sales for the full-year 2025 at $423 million, ending a period of declines in previous years. The CEO highlighted a shift toward a ‘Bonds and Beyond’ vision, and noted that Q4 revenue grew 4% year-over-year to $105.1 million due to a brand relaunch and a 14% increase in earned media value.
The company’s 2025 achievements included the acquisition of Pervala Bioscience and the launch of four of the industry’s top five prestige hair care products. Olaplex also reengaged the professional stylist community through a ‘market blitz’ program in high-density areas, which saw sell-through rates outperform baselines by mid-teen percentages. While full-year sell-through remained down, management noted a positive trend exiting December, particularly in key accounts and digital channels like TikTok Shop.
The strategy for the coming year centers on ‘energizing hero products,’ specifically through the launch of No. 3+, an evolution of their flagship bond repair treatment. While the company anticipates a weighted demand in H2 2026 and expects Q1 EBITDA to be pressured by front-loaded marketing costs, Olaplex Holdings Inc. (NASDAQ:OLPX) remains confident that the stabilized infrastructure and refreshed product pipeline have established a sustainable base for long-term growth.
Olaplex Holdings Inc. (NASDAQ:OLPX), through its subsidiaries, develops, manufactures, and sells haircare products in the US and internationally.
2. AtaiBeckley Inc. (NASDAQ:ATAI)
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the best new penny stocks to buy. On March 6, AtaiBeckley reported full-year 2025 earnings, which were highlighted by the pivotal execution phase following the strategic combination of Atai Life Sciences and Beckley Psytech and its subsequent US redomiciliation. A primary focus is the BPL-003 nasal spray for treatment-resistant depression/TR, which is on track to initiate a Phase 3 pivotal program in Q2 2026. This program, supported by the FDA, will include two major studies, ReConnection-1 and ReConnection-2, with topline results anticipated by early 2029.
The company also reported positive clinical progress across its broader pipeline, including the VLS-01 buccal film and EMP-01 for Social Anxiety Disorder/SAD. VLS-01 is expected to yield Phase 2 topline data in H2 2026. Meanwhile, an exploratory Phase 2a trial of EMP-01 successfully met its primary safety objectives and showed clinically meaningful improvements in efficacy measures. To protect these innovations, AtaiBeckley secured a new US patent for EMP-01, extending its expected exclusivity through 2043.
AtaiBeckley Inc. (NASDAQ:ATAI) ended 2025 with $220.7 million in cash, cash equivalents, and short-term securities driven by equity-related issuances. While the company reported a net loss of $660 million for the full year, largely due to a $530 million non-cash charge related to the Beckley Psytech acquisition, it maintains a strong capital position. Management expects current liquidity to fund operations into early 2029, covering the timeline for its major Phase 3 readouts.
AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company that researches, develops, and commercializes mental health treatments in the US, Germany, and Canada.
1. Rumble Inc. (NASDAQ:RUM)
Rumble Inc. (NASDAQ:RUM) is one of the best new penny stocks to buy. On March 5, Rumble reported its Q4 and full-year 2025 results, highlighting a transition toward aggressive growth in 2026. The CEO noted the completion of key video product initiatives, including platform resiliency improvements and the launch of the Rumble Wallet with Tether, which enables tipping in Bitcoin and USD Tether. The introduction of Rumble Shorts has seen significant early success, reaching 1 million unique daily views shortly after launch. Additionally, user engagement is rising, with Q4 MAUs increasing 11% sequentially to 52 million, driven largely by international expansion.
The company is professionalizing its sales and advertising operations under the leadership of Greg Sherrill. After facing previous headwinds, Rumble secured partnerships with major brands such as Netflix, Amazon Prime, and Paramount. A significant $100 million, two-year advertising deal with Tether is expected to ramp up in mid-2026, serving as an anchor to attract further high-profile influencers and podcasters.
Management expects these structural changes and the upcoming midterm election cycle to drive material revenue returns in the latter half of 2026 and into 2027. Rumble Inc. (NASDAQ:RUM) also achieved a milestone of $100.6 million in revenue for the full year 2025, which is a 5% increase over 2024. In the cloud sector, Rumble expects to close its acquisition of Northern Data in Q2 2026, targeting the high demand for GPU-as-a-Service.
Rumble Inc. (NASDAQ:RUM) operates video-sharing platforms and cloud services in the US, Canada, and internationally. The company operates rumble.com and locals.com, and also offers Rumble Cloud.
While we acknowledge the potential of RUM 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 RUM and that has 100x upside potential, check out our report about this cheapest AI stock.
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