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. 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. 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. 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. 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. 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. 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. 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. 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.
5. UWM Holdings Corporation (NYSE:UWMC)
Number of Hedge Fund Holders: 40
Upside Potential: 95.31%
UWM Holdings Corporation (NYSE:UWMC) is one of the Best Penny Stocks That Could Skyrocket in 2026. The stock has recently declined to hit an all-time low of $2.38 after declining 23% over the past month. Despite the decline, the analysts’ 12-month average price target suggests more than 95% upside from the current level.
Stocks
Recently, on June 5, Keefe, Bruyette & Woods kept its Market Perform rating on UWM Holdings Corporation with a price target of $4.5. The firm noted that the main concern for the company is leverage. The firm explained that in a “higher-for-longer” interest rate environment, the company’s balance sheet looks stretched compared to mortgage banking peers.
Moreover, the firm believes that a dividend reduction is likely once the pending TWO acquisition is resolved, and also noted the deal to be less attractive, particularly if it’s structured primarily as a cash transaction. KBW thinks a dividend cut, while painful for the short-term, would ultimately be a positive for the company.
UWM Holdings Corporation is a wholesale residential mortgage lender. The company is based in Pontiac, Michigan and was founded in 1986.
4. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Number of Hedge Fund Holders: 33
Upside Potential: 137.50%
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the Best Penny Stocks That Could Skyrocket in 2026. On June 4, Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) with a price target of $9. The analyst noted two key positive developments for AMTAGVI, which is Iovance’s lead therapy.
Firstly, AMTAGVI received conditional approval in Australia. The analyst noted that the Australian market is prominent due to a high burden of advanced melanoma. Pantginis sees this as a meaningful regulatory validation and a new revenue opportunity that diversifies Iovance beyond the US market.
The analyst noted that the Australian rollout is expected to be slow initially as treatment centers need time to onboard for a complex cell therapy. However, he believes the commercial contribution will build progressively over time.
Secondly, the long-term data presented by management at ASCO 2026 reinforced AMTAGVI’s durability of benefit in heavily pretreated melanoma patients. As a result, Pantginis sees a compelling risk-reward setup, with international expansion and supportive clinical data combining to justify his bullish stance on the stock.
Iovance Biotherapeutics Inc. is a biopharmaceutical company that develops and commercializes cell therapies as novel cancer immunotherapy products.
3. Nuvation Bio Inc. (NYSE:NUVB)
Number of Hedge Fund Holders: 41
Upside Potential: 150.00%
Nuvation Bio Inc. (NYSE:NUVB) is one of the Best Penny Stocks That Could Skyrocket in 2026. On June 9, Reuters reported that GSK agreed to acquire cancer drug developer Nuvalent for a deal worth $10.6 billion. On the same day, RBC Capital reiterated a Buy rating on Nuvation Bio Inc. (NYSE:NUVB) with a price target of $20.
The firm sees the acquisition of Nuvalent as a positive sign for Nuvation Bio, as Nuvalent competes directly with the company in the ROS1 non-small cell lung cancer space. The firm noted that GSK attributed up to $3.5 billion, almost 25% to 33% of the deal value, to Nuvalent’s ROS1 asset. RBC sees meaningful upside potential based on the ROS1 drug, Ibtrozi, alone. Moreover, GSK management explicitly said it would consider acquiring a separate ROS1 inhibitor. RBC noted that this comment puts Nuvation Bio in the spotlight as a potential target.
That said, Nuvation Bio Inc. reported its fiscal Q1 2026 results. During the quarter, the company delivered $83.2 million in revenue, exceeding the estimation of $62.7 million. The net product revenue from IBTROZI reached $18.5 million during the quarter, reflecting 18% year-over-year increase.
Analysts remain bullish on the stock, with the 12-month average price target suggesting roughly 150% upside from the current level.
Nuvation Bio Inc. is an oncology company focused on developing therapies for cancer treatment.
2. Precigen, Inc. (NASDAQ:PGEN)
Number of Hedge Fund Holders: 29
Upside Potential: 180.90%
Precigen, Inc. (NASDAQ:PGEN) is one of the Best Penny Stocks That Could Skyrocket in 2026. On June 2, H.C. Wainwright reiterated a Buy rating on Precigen, Inc. (NASDAQ:PGEN) with a price target of $14. The reiterated bullish sentiment comes after the company presented data for PAPZIMEOS at a major oncology conference on May 30.
PAPZIMEOS is the company’s treatment for recurrent respiratory papillomatosis, which is a condition where tumors grow in the airways. The long-term follow-up data from the pivotal study of PAPZIMEOS were presented at the American Society of Clinical Oncology’s annual meeting. Results showed that 15 out of 18 responders, around 83%, demonstrated ongoing complete response for at least 36 months, without requiring any additional treatment for RRP. Notably, 5 complete responders have ongoing responses beyond 4 years.
The firm noted that durability was a key highlight of the presentation, as every complete responder had at least three years of follow-up, with some tracked for up to 51 months. Notably, the median duration of complete response has not yet been reached. H.C. Wainwright sees this data as further validation of PAPZIMEOS and maintains its positive outlook on the stock.
Precigen, Inc. is a clinical-stage biopharmaceutical company developing gene and cell therapies.
1. AtaiBeckley Inc. (NASDAQ:ATAI)
Number of Hedge Fund Holders: 35
Upside Potential: 280.58%
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the Best Penny Stocks That Could Skyrocket in 2026. Wall Street is bullish on the stock as all 14 analysts covering the stock maintain a Buy rating, and their 12-month average price target suggests more than 280% upside from the current level.
Recently, on June 8, H.C. Wainwright reiterated its Buy rating and $25 price target on AtaiBeckley Inc.. The rating comes after the firm met the company’s management on June 2. The discussion reinforced the firm’s conviction that BPL-003, which is an intranasal formulation of 5-MeO-DMT, remains the primary driver for the company. Moreover, management told the firm that they are preparing to launch their Phase 3 program, called ReConnection, targeting treatment-resistant depression.
H.C. Wainwright highlighted several practical advantages of BPL-003’s profile, including an 8 mg dose that balances efficacy and tolerability, a short in-clinic session duration, flexible retreatment options, and clinic economics that fit neatly into a two-hour interventional psychiatry model. The firm believes that these positive points make it operationally attractive for treatment centers.
AtaiBeckley Inc. is a clinical-stage biopharmaceutical company focused on developing treatments for mental health disorders.
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