In this article, we will look at the 10 Best Penny Stocks That Could Skyrocket in 2026.
On June 4, Travis Prentice, CIO at The Informed Momentum Co., appeared on a CNBC Television interview to discuss what’s happening outside of the AI trade, particularly the small-cap stocks. He noted that while the AI trade has been good and the overall momentum of the market is strong, there’s a lot happening outside of the mega-cap tech stocks. The Russell 2000 index has been up 2.83% over the past month, while the NASDAQ Index has declined by almost the same percentage over the past 30 days. Travis noted that the market is broadening, which is helping smaller companies go higher.
Travis also highlighted that while the market is broadening out, this does not mean that investors blindly trust a sector. He noted that it is important to look at each stock individually before investing. Travis noted that, being momentum investors, he also looks at fundamental momentum in combination with the market momentum. He noted that the analysis suggests that while the AI trade is strongly placed fundamentally, it is time to start managing risk smartly, and this is where quality small-cap stocks come in.
With that, let’s take a look at the 10 Best Penny Stocks That Could Skyrocket in 2026.
Stocks
Our Methodology
To curate the list of 10 Best Penny Stocks That Could Skyrocket in 2026, we used the Finviz stock screener, CNN, and Insider Monkey’s hedge funds database. Using the screener, we aggregated a list of penny stocks (trading under $5) for which analysts expect more than 40% upside. Next, we checked the upside potential from CNN and ranked the stocks according to this indicator. These stocks are also popular among analysts and elite hedge funds.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best Penny Stocks That Could Skyrocket in 2026
10. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 31
Upside Potential: 40.40%
Plug Power Inc. (NASDAQ:PLUG) is one of the Best Penny Stocks That Could Skyrocket in 2026. Wall Street’s 12-month average price target suggests more than 40% upside from the current levels. On June 2, Plug Power Inc. (NASDAQ:PLUG) announced selling a federal Investment Tax Credit worth roughly $39.2 million.
Management noted that the Investment Tax Credit was linked to its hydrogen liquefaction facility in St. Gabriel, Louisiana, and is a joint venture with Olin Corporation. This move was part of the company’s strategy to improve liquidity and deploy more capital to expand its hydrogen network.
Plug Power Inc. (NASDAQ:PLUG) noted that under the US clean energy law, hydrogen infrastructure assets can qualify for the Investment Tax Credit that companies can transfer to third-party investors for immediate cash benefits. Plug Power had earlier used the same approach in 2025 for a $30 million ITC transfer tied to its Woodbine, Georgia, facility.
That said, Plug Power Inc. (NASDAQ:PLUG) has been in business for more than 25 years, but recorded its first-ever gross profit in Q4 2025. This momentum was carried forward to Q1 2026 earnings, where revenue jumped 22% year over year, driven by strong electrolyzer sales and material handling volumes. The margins improved as well, with gross margins increasing from negative 55% in Q1 2025 to negative 13% in Q1 2026.
Analysts at Craig-Hallum and B. Riley both raised their price targets on Plug stock to $5 per share following the Q1 results.
Plug Power Inc. (NASDAQ:PLUG) is an alternative energy technology firm. It designs, develops, commercializes, and manufactures hydrogen and fuel cell systems for the material handling and stationary power fields.
9. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC)
Number of Hedge Fund Holders: 26
Upside Potential: 70.21%
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) was trading well above the penny stock level (share price of $5) at the start of 2026. The stock has gone on a decline of almost 34% over the past 6 months, despite strong fundamentals. Wall Street expects CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) to fly back to its previous highs with analysts’ 12-month average price target suggesting more than 70% upside. It also ranks among our Best Penny Stocks That Could Skyrocket in 2026.
Much of the decline has been due to the general software sector pullback. The company posted its fiscal Q1 2026 earnings on April 30. During the quarter, the company posted $281.27 million in revenue, up 12% year-over-year and ahead of expectations by 2.49%. The EPS of $0.11 also topped the Street’s estimates by 16.71%. Management noted that growth during the quarter was driven by a multi-year enterprise agreement with a top-five insurer for AI and Auto Physical Damage solutions.
Moreover, the company also raised its full-year guidance to a range of $1.155 billion to $1.163 billion, reflecting roughly 10% annual growth despite expected second-half headwinds. Adjusted EBITDA is expected within the range of $484.0 million to $490.0 million for 2026.
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) serves property and casualty (“P&C”) insurance companies with cloud, mobile, telematics, hyperscale technologies, and applications, including a cloud-based software as a service platform for digitized workflows.
8. B2Gold Corp. (NYSEAMERICAN:BTG)
Number of Hedge Fund Holders: 37
Upside Potential: 73.56%
B2Gold Corp. (NYSEAMERICAN:BTG) has roughly gained 8.5% in mid-June 2026, mainly due to the continued momentum from its significant fiscal Q1 2026 earnings beat. Wall Street expects the company to leverage increased gold prices to offset the elevated expenditure of its production ramp-up.
Analysts’ 12-month average price target suggests more than 70% upside from the current levels. B2Gold Corp. (NYSEAMERICAN:BTG) ranks as one of the Best Penny Stocks That Could Skyrocket in 2026.
Recently, on June 3, RBC Capital analyst Josh Wolfson reiterated a Hold rating on the stock with a price target of $5.75. During the recent fiscal Q1 2026 earnings, B2Gold posted revenue of $1.16 billion that topped the consensus by 37.32% and EPS of $0.19, which exceeded expectations by 67.65%. The company mined 237,763 ounces of gold, with every operation beating its targets. Moreover, the cash operating costs came in at $1,005 per ounce produced, which was better than expected due to the higher output. Notably, all-in sustaining costs were $1,964 per ounce sold, also below forecasts.
B2Gold Corp. (NYSEAMERICAN:BTG) is a low-cost international senior gold producer headquartered in Vancouver. Founded in 2007 by former Bema Gold executives, the company focuses on acquiring, developing, and operating gold mines with producing assets in Mali, Namibia, the Philippines, and Canada.
7. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 50
Upside Potential: 79.13%
Grab Holdings Limited (NASDAQ:GRAB) is one of the Best Penny Stocks That Could Skyrocket in 2026. The stock has declined more than 9% over the past month, mainly due to a softer 2026 revenue outlook.
However, analysts see a potential recovery for the stock as their 12-month average price target suggests more than 79% upside from the current level. This optimism is based on the execution of a $500 million share buyback program, which is expected in the fiscal second quarter of 2026.
The recent decline in share price comes despite strong fiscal Q1 2026 earnings. The company started 2026 strongly despite the first quarter being seasonally softer, mainly due to on-demand gross merchandise value, which grew 24% year-over-year to $6.1 billion. Revenue for the quarter also grew 24% year-over-year to $955 million. Notably, the adjusted EBITDA reached a record of $154 million, reflecting 46% year-over-year growth.
CEO Anthony Tan highlighted AI as a key lever going forward. Management is focused on using AI to deliver hyper-personalized experiences for users. The full-year outlook was somewhat softer as management reaffirmed the revenue target of $4.04 billion to $4.10 billion and adjusted EBITDA target of $700 million to $720 million.
Grab Holdings Ltd. (NASDAQ:GRAB) operates deliveries, mobility, and digital financial services in eight countries in Southeast Asia: Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
6. VinFast Auto Ltd. (NASDAQ:VFS)
Number of Hedge Fund Holders: 4
Upside Potential: 88.52%
VinFast Auto Ltd. (NASDAQ:VFS) is one of the Best Penny Stocks That Could Skyrocket in 2026. The stock recently surged around 3.5% after the company reported fiscal Q1 2026 results. Following the result, on June 10, Wedbush maintained a Buy rating on the stock with a price target of $6. Earlier on June 9, Cantor Fitzgerald analyst Andres Sheppard had also reiterated a Buy rating on VinFast Auto Ltd. (NASDAQ:VFS) but lowered the price target from $6 to $5.
During fiscal Q1, the company delivered 58,577 electric vehicles, reflecting 61% year-over-year increase. Management noted that Vietnam remains its core market and the company is gaining traction in the Philippines, India, and Indonesia. Notably, E-scooter and e-bike deliveries rose in Q1 by 219% YoY to 143,136 units. As a result, the company now holds 17% of Vietnam’s total motorcycle market. Strong deliveries drove revenue for the quarter higher to $921 million, reflecting 42% year-over-year increase.
Cantor Fitzgerald analyst Andres Sheppard noted that the lowered price target reflects only a near-term conservative approach. The firm remains bullish on the stock for the long-term and noted that its investment thesis remains unchanged.
VinFast Auto Ltd. (NASDAQ:VFS) designs and manufactures electric vehicles. It offers electric scooters (e-scooters) and electric buses (e-buses). It provides an e-mobility ecosystem built around customers, community, and connectivity alongside new vehicle roll-out.
While we acknowledge the potential of VFS 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 VFS and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Penny Stocks That Could Skyrocket in 2026
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center