In this article, we will discuss: 10 Best Penny Stocks to Buy for 2025.

The US stock market has been on a roll owing to a powerful rally in the technology sector. The S&P 500 has gained more than 23%, driven by gains in mega-cap stocks amid the artificial intelligence frenzy. Likewise, the gains have come amid a resilient US economy that has steered clear of recession. Improving monetary policy outlook on the US Federal Reserve cutting interest rate has also strengthened investor sentiments on equities.

While small-cap stocks have lagged behind the overall market, they are drawing special attention as most appear to be trading at highly discounted valuations. Often considered speculative investments due to their low price point and smaller market presence, penny stocks are turning out to be attractive investment plays heading into 2025.

READ ALSO: 10 Best Stocks to Buy According to Billionaire D.E. Shaw and 10 Best Stocks to Buy According to Billionaire David Einhorn.

According to VettaFi’s Todd Rosenbluth, 2025 could be the year for small-cap stocks that have lagged the overall market but are backed by solid underlying fundamentals.

“Small caps are going to become more in favor in 2025,” Rosenbluth said on CNBC’s “ETF Edge”. “They started to perk up since the election and are heading into the election as interest rates have been coming down.”

There is an increased focus on the best penny stocks to buy for 2025, as most are trading at discounted valuations. The discounted valuations come as the Russell 2000 is only up 11% for the year compared to a 23% gain for the S&P 500. The fact that penny stocks offer the potential for long-term capital appreciations supported by durable profit growth affirms why they are solid long-term plays. Fundstrat Global Advisors’ managing partner, Tom Lee, has already reiterated that small-cap stocks are trading at a discount with a medium price-to-earnings multiple of 10.

“Since 1987, small caps have traded on a medium P/E basis to a premium of the S&P 500. The S&P is at 17 times. I think small caps could in the next couple of years outperform by more than 100%,” Lee said in an interview with CNBC.

New Street Advisors CEO Delano Saporu shares similar sentiments; he believes small-cap stocks are well poised to outperform in 2025, having underperformed over the past year. Ever since Donald Trump won the election, penny stocks have advanced amid growing enthusiasm around the potential easing of regulations on businesses.

Profit taking in the magnificent seven stocks and other large-cap stocks on a roll is expected to benefit penny stocks. In addition, the outlook for penny stocks remains solid as investors rotate out of money market accounts as the Federal Reserve cuts interest rates as part of the easing policy spree.

Amid the profit-taking spree, the best penny stock to buy for 2025 should offer a way of diversifying an investment portfolio. By taking a small portion of an extensive portfolio and focusing on high-risk reward opportunities in penny stocks, investors can position themselves for solid returns in case of a breakout.

Our Methodology

To make our list of Best Penny Stocks to Buy for 2025, we scanned the US markets for stocks trading for less than $5. We settled on stocks with solid underlying fundamentals and tremendous upside potential. Finally we ranked the stocks in ascending order based on their upside potential.

Note: All data is as of December 27, 2024

At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10. Ardagh Metal Packaging SA. (NYSE:AMBP)

Stock Upside Potential: 35.47%

Number of Hedge Fund Holders: 23

Ardagh Metal Packaging SA. (NYSE:AMBP) is a packaging and containers company that supplies consumer metal beverage cans. Its products are used in various end-use categories, including beer, carbonated soft drinks and energy drinks. It operates 23 metal beverage can production facilities in 9 countries. It is also one of the best penny stocks to buy in 2025 as it is well-positioned to benefit from enhanced consumer purchasing due to lower interest rates.

Central banks cutting interest rates have resulted in reduced borrowing costs, prompting consumers to borrow and spend more. Likewise, Ardagh Metal Packaging SA. (NYSE:AMBP) is seeing a significant increase in demand for its beverage cans. Demand for its cans was up by 2% in the third quarter. Consequently, revenues increased 1% year over year to $1.3 billion, with adjusted earnings rising 15% to $196 million.

While anticipating solid macroeconomics, Ardagh Metal Packaging SA. (NYSE:AMBP) has already raised its full-year earnings guidance to between $650 million and $660 million. The hike comes as management expects a solid volume/mix of its cans as they also strive to lower operating costs. Resilient beverage consumption trends and strong input cost management should allow the company to continue generating free cash flow and return value to shareholders in 2025. The stock currently yields 13.42%, which is ideal for income-focused investors.

9. Globalstar, Inc. (NYSE:GSAT)

Stock Upside Potential: 38.25%

Number of Hedge Fund Holders: 17

Globalstar, Inc. (NYSE:GSAT) is a communication services company that provides mobile satellite services. It offers duplex two-way voice and data products, including mobile voice and data satellite communications services. While the stock is up by about 10% in 2024, it is one of the best penny stocks to buy in 2025 as it moves to unlock new opportunities.

Globalstar, Inc. (NYSE:GSAT) has already inked a strategic partnership with Liquid Intelligent to enhance 5G connectivity in Africa, the Middle East and the Gulf regions. Growing demand for 5G connectivity amid the artificial intelligence revolution provides tremendous growth opportunities for Globalstar with its data satellite communication services.

In addition, the mobile satellite services company has already inked a strategic partnership with tech giant Apple. The partnership paves the way for the company to access $1.5 billion in funding for enhancing iPhone services. Globalstar, Inc. (NYSE:GSAT) will be able to expand its ground infrastructure and buy new satellites with the new funding. To develop and improve its constellation in low Earth orbit, Globalstar has already ordered up to 26 satellites in addition to the 31 satellites it currently operates.

8. Taboola.com Ltd. (NASDAQ:TBLA)

Stock Upside Potential: 49.05%

Number of Hedge Fund Holders: 27

Taboola.com Ltd. (NASDAQ:TBLA) is a communication services company that operates an artificial intelligence-based algorithmic engine platform. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. It is one of the best penny stocks to buy for 2025 amid the artificial intelligence race.

Taboola.com Ltd. (NASDAQ:TBLA) is already positioned for opportunities in the multi-billion digital advertising landscape. It has already launched AI-powered advertising-focused bidding technology. Maximize Conversions is the new technology that Taboola is using to target advertisers, allowing them to drive more conversions and lower campaign costs. To help publishers increase traffic, TBLA unveiled Taboola for Audience, a new AI-powered technology.

In addition to targeting digital advertising opportunities, Taboola.com Ltd. (NASDAQ:TBLA) has inked a strategic partnership with DoubleVerify, a leading software platform for digital media measurement and data analytics. The two are joining forces to offer brands a more effective way of customizing brand safety. The integration should also give brands confidence in their advertising investments.

Taboola.com Ltd. (NASDAQ:TBLA) delivered solid Q3 results as Ex-TAC gross profits increased by 30% to $166.4 million. Revenue was up by 20% to $433 million.

7. Denison Mines Corp. (NYSE:DNN)

Stock Upside Potential: 54.35%

Number of Hedge Fund Holders: 23

Denison Mines Corp. (NYSE:DNN) is an energy company that acquires, explores, and develops uranium-bearing properties. Its flagship project is the Wheeler River uranium project in the Athabasca Basin region in northern Saskatchewan. While the stock is up by about 9% in 2024, it is one of the best penny stocks to buy for 2025 owing to growing demand for Lithium.

As one of the largest Uranium mining companies, it is well positioned to benefit from the US banning Uranium imports from Russia. With the US looking for an alternate route for Uranium supply, Denison Mines Corp. (NYSE:DNN) should be the biggest beneficiary. The resurgence in demand for nuclear energy is another potential catalyst that strengthens the company’s growth metrics.

Tech giants led by Alphabet, Amazon and Microsoft are racing against time to secure reliable energy supply to power their data centers. Likewise, increased focus on clean energy away from fossil fuels has triggered demand and debate for nuclear energy. Consequently, demand for uranium is expected to skyrocket, a development that should benefit Denison Mines Corp. (NYSE:DNN) in 2025.

Analysts on Wall Street are bullish about Denison Mines long-term prospects, going by the average price target of $2.84, which implies a 54.35% upside potential.

6. Clover Health Investments, Corp. (NASDAQ:CLOV)

Stock Upside Potential: 46.71%

Number of Hedge Fund Holders: 12

Clover Health Investments, Corp. (NASDAQ:CLOV) is a healthcare company that provides Medicare Advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. The stock is up by more than 232% amid renewed optimism about the company’s growth prospects and the health technology sector at large.

The rally comes as investors react to the company’s impressive strides to becoming profitable. Its net loss narrowed to $0.02 a share in the third quarter from a loss of $0.09 a share a year ago. The narrower-than-expected net loss came as Clover Health Investments, Corp.’s (NASDAQ:CLOV) insurance revenue increased 9% to $322.6 million. Revenue growth was driven by strong member retention and continued intra-year growth.

It is one of the best penny stocks to buy for 2025, as management remains optimistic about future growth. Consequently, they have raised the full-year adjusted EBITDA to between $55 million and $65 million. Clover Health Investments, Corp. (NASDAQ:CLOV) is also positioned to benefit from a strategic focus on leveraging its technology platform, the Clover Assistant, offering affordable healthcare plans to America’s seniors, which should drive membership growth.

Additionally, the Centers for Medicare and Medicaid Services (CMS) has upgraded the Star ratings of its Medicare Advantage (MA) plans for 2025, which is a significant factor influencing CMS payments for 2026. Clover Health’s emphasis on enhancing healthcare outcomes and its impressive performance in a number of crucial areas are the reasons for this upgrade.

A multi-year contract with The Iowa Clinic, P.C. signals a major Midwest expansion for its subsidiary, Counterpart Health. Clover Health Investments, Corp.’s (NASDAQ:CLOV) AI-powered software platform, Counterpart Assistant, will be made available to the clinic’s healthcare providers through this partnership.

5. NovaGold Resources Inc. (NYSE:NG)

Stock Upside Potential: 52.91%

Number of Hedge Fund Holders: 13

NovaGold Resources Inc. (NYSE:NG) is a basic materials company that explores and develops gold mineral properties. Its principal asset is the Donlin Gold project in Alaska, which it has partnered with Barrick Gold to grow responsibly and sustainably. The flagship project holds about 39 million ounces of gold, from which the company is well-positioned to generate significant value as gold prices increase.

NovaGold Resources Inc. (NYSE:NG) is one of the best penny stocks to buy for 2025 as it is well-positioned to benefit from gold prices, finding support above the $2600 an ounce level. As the US Federal Reserve cuts interest rates and geopolitical tensions and uncertainty remain high, gold should elicit strong demand as a safe haven, resulting in higher prices.

In the third quarter, NovaGold Resources Inc. (NYSE:NG) net loss narrowed to $10.7 million from $11.1 million a year ago. The company’s net loss is expected to reduce as it ramps up operations for its flagship project and takes advantage of the high gold prices. Similarly, NovaGold is one of the gold stocks well poised to explode in 2025 as the macro picture in the precious metal sector aligns.

Analysts on Wall Street are bullish about the stock’s long-term prospects, going by the average price target of $5, which implies 52.91% upside potential.

4. Inter & Co, Inc. (NASDAQ:INTR)

Stock Upside Potential: 52.74%

Number of Hedge Fund Holders: 6

Inter & Co, Inc. (NASDAQ:INTR) is a financial services company that engages in banking, spending, investments, and insurance brokerage businesses. It offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services. It is one of the best penny stocks to buy for 2025 for exposure in Brazil’s burgeoning financial services sector.

Inter & Co, Inc. (NASDAQ:INTR) is already seeing a significant increase in demand for its financial services. Its innovative super app attracts a growing client base of 35 million users. Increased usage comes from integrating advanced features in the app, including digital payroll loans and personalized services.

The increase in total payment volume of 46% YoY and the growth in active clients to 19.5M demonstrate successful market penetration and user engagement. The super app strategy is generating both fee and interest income. Robust deposit growth and margin expansion indicate effective capital management and pricing power.

Consequently, Inter & Co, Inc. (NASDAQ:INTR) delivered impressive third-quarter results, with net income skyrocketing to record highs of R$260 million. The company’s net revenue was also up 32% to $1.7 billion. Their remarkable run-rate total payment volume of R$1.2 trillion reflects a strategic focus on ecosystem monetization and client engagement expected to strengthen the revenue base.

3. B2Gold Corp. (NYSE:BTG)

Stock Upside Potential: 69.83%

Number of Hedge Fund Holders: 15

B2Gold Corp. (NYSE:BTG) is a basic materials company that engages in gold production. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. While the company shed about 20% in market value in 2024, renewed investor interest in the gold mining sector underscores why it is one of the best penny stocks to buy for 2025.

B2Gold Corp. (NYSE:BTG) delivered solid third-quarter results on November 8, 2024, with adjusted earnings per share coming in at $0.02. During the quarter, it produced 180,553 ounces of gold despite slowing operations at the Fekola mine in Mali due to lower-than-anticipated equipment productivity and inclement weather. Likewise, it ended the quarter with cash and cash equivalent of $431 million and an operating cash flow of $118 million.

B2Gold Corp. (NYSE:BTG) has declared a $0.04 a-share dividend in response to its strong financial position. It is one of the best penny stocks for income-focused investors, yielding 6.48% on dividends. Likewise, the stock commands a $4.11 average price target with a 69.83% upside potential.

2. EVgo, Inc. (NASDAQ:EVGO)

Stock Upside Potential: 90.98%

Number of Hedge Fund Holders: 17

EVgo, Inc. (NASDAQ:EVGO) is a unique retail company that owns and operates a direct current fast charging network for electric vehicles (EVs). It offers electricity directly to drivers, who access its publicly available networked chargers, original equipment manufacturer charging and related services. It is one of the best penny stocks to buy for 2025 amid the electric vehicle revolution in the auto industry.

As more electric cars hit the road, EVgo stands to be one of the biggest beneficiaries owing to its robust charging station network. The stock is up by over 24% in 2024, affirming strengthened investors’ confidence about its long-term prospects. The rally comes on the company securing a conditional commitment of a $1.05 billion loan guarantee from the Department of Energy.

The $1.05 billion paves the way for EVgo, Inc. (NASDAQ:EVGO) to accelerate the expansion of its EV charging network. While the company already has over 1,000 fast-charging locations across 40 states, it is well poised to strengthen its revenue base with the expansion drive. EVgo’s long-term prospects have also been boosted by signing a strategic partnership with grocery retailer Meijer. The deal paves the way for the deployment of 480 new public fast-charging stalls at Meijer properties.

In the third quarter, the company opened 270 new stalls, and the amount of work they handled more than doubled. EVgo, Inc. (NASDAQ:EVGO) also reported a 92% year-over-year revenue increase as it raised its full-year revenue guidance to between $250 million and $265 million, affirming underlying growth.

1. Geron Corporation (NASDAQ:GERN)

Stock Upside Potential: 124.41%

Number of Hedge Fund Holders: 29

Geron Corporation (NASDAQ:GERN) is a late-stage clinical biopharmaceutical company that focuses on developing and commercializing therapeutics for myeloid hematologic malignancies. The company’s lead product, Imetelstat, effectively treats myelodysplastic syndromes (MDS) and myelofibrosis (MF). Consequently, the company remains well-positioned to be a key player in the oncology market.

Geron Corporation (NASDAQ:GERN) has already achieved a significant milestone for the US Food and Drug Administration, approving the drug for blood disorders. The approval paves the way for the injectable drug branded as Rytelo to treat transfusion-dependent anaemia in patients with lower-risk myelodysplastic syndromes (MDS).

Geron Corporation (NASDAQ:GERN) also focuses on expanding its flagship product’s commercial reach as it looks to strengthen its revenue streams. In order to support its commercialization efforts, the company has negotiated favorable funding agreements with Royalty Pharma and Pharmakon Advisors, which have contributed $375 million in non-dilutive financing.

The business intends to use this money to develop its distribution network, grow its commercial staff, and invest in sales and marketing campaigns. A marketing authorization application (MAA) review for lower-risk MDS is one of the additional indications for Imetelstat that Geron Corporation (NASDAQ:GERN) is pursuing. This review could result in approval in early 2025.

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