On December 30, TipRanks reported that the Goldman Sachs portfolio strategy research team is optimistic about small-cap stocks heading into early 2026. The research firm said that its “baseline macro outlook is supportive for small-cap upside in early 2026.”

Goldman Sachs expects US economic growth to accelerate and come in above market expectations. The firm also forecasts “continued Fed easing” and inflation to remain below market expectations.

According to the research team, markets are not fully pricing in the likely strength of the US economy in 2026. Goldman Sachs also noted that small-cap stocks usually “outperform during cyclical rallies.”

The team added that futures positions and short interest also point to potential upside for small-caps. Looking ahead to 2026, Goldman Sachs portfolio strategy research team believes that factors like “changes in fiscal policy, rising corporate AI adoption, and increased M&A activity will create the potential for large idiosyncratic returns and generate opportunities for small-cap stock pickers in 2026.”

In other news, on January 1, Reuters reported that Dennis Follmer, chief investment officer at Montis Financial, sees strong opportunities beyond AI and technology stocks in 2026. Follmer said:

“There’s a high quality (small cap) index called the SP 600, which has a profitability screen, and they’ve underperformed this year. But those much higher quality companies are really going to benefit from lower rates, less regulation, the pro-business aspects of the new tax bill. So I think they could do well.”

With this background in mind, let’s take a look at the 10 best new penny stocks to invest in.

Our Methodology

To compile our list of the 10 best new penny stocks to invest in, we used the Finviz stock screener to look for companies that went public in the last 3 years. We sorted our results based on market capitalization and picked the top 50 stocks with a share price of under $5 as of December 31, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 10 best new penny stocks to invest in were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.

Why do we care about what hedge funds do? 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 Invest In

10. Brazil Potash Corp. (NYSEAMERICAN:GRO)

Share Price: $1.89

Number of Hedge Fund Holders: 4

Brazil Potash Corp. (NYSEAMERICAN:GRO) is one of the best new penny stocks to invest in. On December 16, Cantor Fitzgerald initiated coverage of Brazil Potash Corp. (NYSEAMERICAN:GRO), assigning the stock a Speculative Buy rating and setting the price target at $2.75.

Cantor Fitzgerald’s analyst told investors in a research note that the company is making progress on its 100%-owned Autazes potash mining project. The firm noted that Brazil Potash Corp. (NYSEAMERICAN:GRO) is targeting initial production in 2030 or later. Cantor Fitzgerald pointed out that this project will supply potash to Brazil, which is the biggest importer of the nutrient in the world. Potash is essential for improving agricultural productivity.

Also on December 16, Brazil Potash Corp. (NYSEAMERICAN:GRO) reported that Potássio do Brasil Ltda., its wholly owned Brazilian subsidiary, has received official registration from SUFRAMA, the federal authority that is responsible for managing tax incentive programs under the Manaus Free Trade Zone (ZFM) framework in the Western Amazonas Region. With this registration, Brazil Potash Corp. (NYSEAMERICAN:GRO) becomes eligible to operate under SUFRAMA-administered tax incentive procedures, subject to rules, approvals and project-specific authorizations that apply.

The company believes that access to these federal tax incentive regimes could lead to approximately $94 million in estimated tax savings during the construction phase, assuming all requirements and approvals that apply are met. Brazil Potash Corp. (NYSEAMERICAN:GRO) noted that this milestone supports key financial assumptions in the project’s economic model and reflects continued support from Brazilian federal authorities.

Brazil Potash Corp. (NYSEAMERICAN:GRO) is a fertilizer company focused on developing the Autazes Project to supply sustainable fertilizers to Brazil, one of the world’s largest agricultural exporters.

9. Auna SA (NYSE:AUNA)

Share Price: $4.92

Number of Hedge Fund Holders: 5

Auna SA (NYSE:AUNA) is one of the best new penny stocks to invest in. On December 9, Morgan Stanley lowered its price target on Auna SA (NYSE:AUNA) from $11.50 to $10 while keeping an Overweight rating on the stock.

Morgan Stanley noted that the company has strong growth potential from occupancy of its existing beds, especially in Mexico. The opportunity in Mexico also requires only minimal capital expenditure.

By the end of the third quarter of 2025, Auna SA’s (NYSE:AUNA) network included 31 healthcare network facilities, including hospitals, outpatient, prevention, and wellness facilities. The company had a total of 2,333 beds and around 1.4 million healthcare plans.

The research firm pointed out that Auna SA (NYSE:AUNA) generates strong operating cash flow, which gives the company the capacity to reduce its debt levels over time. In addition, Morgan Stanley highlighted the company’s strategy of expanding into markets with low-priced healthcare policies. This includes countries where private healthcare access is limited, particularly Peru and Mexico.

According to Morgan Stanley, this strategy continues to support a sustainable growth avenue for Auna SA (NYSE:AUNA) in the healthcare industry.

Auna SA (NYSE:AUNA) is a leading healthcare provider in Latin America with operations in Mexico, Peru, and Colombia. It operates hospitals and clinics and also offers health plans with a focus on prioritizing prevention and high-complexity care.