Yahoo Finance Markets Reporter Josh Schafer joined “Asking for a Trend” with Josh Lipton to discuss important points from the trading session on August 21, Thursday. US stocks closed lower, with the S&P 500 declining for a fifth consecutive day.
Schafer noted that there is a “rotation” happening as investors move money from some types of stocks to others.
According to Schafer, tech stocks and utilities were leading previously, but now, these stocks have not been performing well.
Schafer noted that the small caps are performing better. He pointed out that the small-cap Russell 2000 moved a bit higher, even though the S&P 500 went down.
September is expected to be an important month. Investors continue to look for more proof that supports the interest rate cut by the Federal Reserve. Schafer believes that small caps and the Russell 2000 could do well if interest rates come down.
Schafer said that how the market moves next will depend a lot on what happens with interest rates and Federal Reserve Chair Jerome Powell’s speech. He pointed out that, unlike many other indexes, the Russell 2000 has not yet hit a record high in this bull market.
With this background in mind, let’s take a look at the 10 best penny stocks to buy for the next 5 years.
A Traders Desk showing different stocks, with traders hands hovering above the screen.
Our Methodology
To compile our list of the 10 best penny stocks to buy for the next 5 years, we used the Finviz stock screener to find stocks with a share price of under $5 as of August 21, 2025. Then, we sorted our results based on market capitalization and looked for stocks with a year-over-year revenue growth rate exceeding 30% and a compound annual growth rate (CAGR) in revenue exceeding 20% over the past 3 years. To ensure the reliability of our findings, we also consulted Seeking Alpha to confirm the year-over-year revenue growth rate and the 3-year revenue growth rate for each company.
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 Q1 2025 database of 1,000 elite hedge funds. Finally, the 10 best penny stocks to buy for the next 5 years were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Penny Stocks to Buy for the Next 5 Years
10. Ur-Energy Inc. (NYSEAMERICAN:URG)
Year-Over-Year Revenue Growth: 149.20%
3-Year Revenue CAGR: 1,021.42%
Share Price: $1.24
Number of Hedge Fund Holders: 11
Ur-Energy Inc. (NYSEAMERICAN:URG) ranks among the best penny stocks to buy for the next 5 years. On August 6, H.C. Wainwright reiterated a Buy rating on Ur-Energy Inc. (NYSEAMERICAN:URG) with a price target of $2.70.
This decision came after Ur-Energy Inc. (NYSEAMERICAN:URG) shared its financial and operating results for the second quarter of 2025.
In the second quarter, the company dried and packaged 112,033 pounds of triuranium octoxide (U3O8), up 35% compared to the first quarter of 2025. Ur-Energy Inc. (NYSEAMERICAN:URG) sold 165,000 pounds of U3O8 in the second quarter and generated $1.9 million in gross profit.
The company also reported good progress in cost savings, reducing the cost per produced pound sold from $62.06 in Q4 2024 to $50.89 in Q2 2025. Improvements in production costs are expected to continue as Ur-Energy Inc. (NYSEAMERICAN:URG) ramps up operations at key sites like Lost Creek.
Additionally, the company has secured long-term sales agreements, which will provide steady income. Ur-Energy Inc. (NYSEAMERICAN:URG) has significant uncontracted production capacity through 2033. This positions the company well, especially as the US Department of Energy low-enriched uranium and high-assay low-enriched uranium programs present additional opportunities for uranium sales.
Ur-Energy Inc. (NYSEAMERICAN:URG) is a uranium mining company. It focuses on uranium mining, recovery and processing operations, as well as the exploration and development of uranium mineral properties.
9. Gevo, Inc. (NASDAQ:GEVO)
Year-Over-Year Revenue Growth: 341.75%
3-Year Revenue CAGR: 445.13%
Share Price: $1.61
Number of Hedge Fund Holders: 14
Gevo, Inc. (NASDAQ:GEVO) ranks among the best penny stocks to buy for the next 5 years. On August 12, H.C. Wainwright reiterated a Buy rating on Gevo, Inc. (NASDAQ:GEVO) with a price target of $14.
This decision came after the company reported its second-quarter results for 2025. Gevo, Inc. (NASDAQ:GEVO) reached a landmark milestone by reporting positive net income for the second quarter of 2025. The company also achieved its goal of positive Adjusted EBITDA for the second quarter and the first half of 2025.
Gevo, Inc. (NASDAQ:GEVO) increased its revenue by $14 million compared to Q1 2025. This growth was driven in part by the start of the company’s Carbon Dioxide Removal credit sales, which added a new stream of revenue for the company.
The company also started to monetize Clean Fuel Production Credits (CFPC), which include sales from low-carbon ethanol with carbon capture and storage (CCS) and renewable natural gas (RNG). These sales contributed about $21 million combined to Gevo, Inc.’s (NASDAQ:GEVO) net income and Adjusted EBITDA in the first six months of 2025.
Overall, low-carbon fuels, including low-carbon ethanol, carbon capture, and co-products, and RNG all helped increase the company’s income from operations and Adjusted EBITDA.
Gevo, Inc. (NASDAQ:GEVO) is an American company that develops, manufactures, and markets sustainable, low-carbon biofuel and chemical products.
8. Cadiz Inc. (NASDAQ:CDZI)
Year-Over-Year Revenue Growth: 460.46%
3-Year Revenue CAGR: 190.83%
Share Price: $3.45
Number of Hedge Fund Holders: 15
Cadiz Inc. (NASDAQ:CDZI) ranks among the best penny stocks to buy for the next 5 years. On May 5, Cadiz Inc. (NASDAQ:CDZI) shared updates on key catalysts and highlights from the first quarter.
The company is prioritising its goal to build pipelines so it can start generating revenues from its water supply and storage projects.
Cadiz Inc. (NASDAQ:CDZI) has set an aggressive schedule as it plans to finish building the Northern Pipeline by the end of 2026. The company aims to complete the Southern Pipeline, which will be used for water storage, by the end of 2027. So far this year, Cadiz Inc. (NASDAQ:CDZI) has taken steps to stay on track with this plan.
In the first quarter, the company completed a $20 million equity raise. Cadiz Inc. (NASDAQ:CDZI) aims to use the funds to cover capital costs and development expenses in 2025.
The company is also making good progress in arranging project financing. Cadiz Inc. (NASDAQ:CDZI) is finalizing deals with both public and private partners. These deals will help fund the projects and support reaching key milestones.
Since the company shared these updates on May 5, Cadiz Inc. (NASDAQ:CDZI) has gone up by 19.38% as of August 21.
Cadiz Inc. (NASDAQ:CDZI) is a leading water solutions company. It provides expertise and a range of water solutions, including supply, storage, conveyance, and treatment.
7. Autolus Therapeutics plc (NASDAQ:AUTL)
Year-Over-Year Revenue Growth: 185.17%
3-Year Revenue CAGR: 271.89%
Share Price: $1.75
Number of Hedge Fund Holders: 17
Autolus Therapeutics plc (NASDAQ:AUTL) ranks among the best penny stocks to buy for the next 5 years. On August 12, Needham reiterated a Buy rating on Autolus Therapeutics plc (NASDAQ:AUTL) with a $10 price target.
This decision came after Autolus Therapeutics plc (NASDAQ:AUTL) shared results for the second quarter of 2025.
The company had a strong second quarter, with $20.9 million in net product revenue from its product AUCATZYL, beating both Needham’s and market estimates. As a result, the firm raised its revenue estimates for Autolus Therapeutics plc (NASDAQ:AUTL) for 2025 and 2026.
Additionally, Autolus Therapeutics plc (NASDAQ:AUTL) is growing its Activated Treatment Centers (ATCs), increasing the number of centers to 46 as of August 12, 2025. The company aims to have over 50 centers by the end of the year.
Autolus Therapeutics plc (NASDAQ:AUTL) is an early commercial-stage biopharmaceutical company focused on developing and delivering next-generation T cell therapies for cancer and autoimmune diseases.
6. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Year-Over-Year Revenue Growth: 30.14%
3-Year Revenue CAGR: 52.89%
Share Price: $4.78
Number of Hedge Fund Holders: 19
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) ranks among the best penny stocks to buy for the next 5 years. On August 5, Needham reiterated its Buy rating on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) with a price target of $8.
This decision came after Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported business updates and financial results for its second quarter of 2025.
The company showed strong financial health and strategic focus on cash preservation. In Q2 2025, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported total revenue reached $19.2 million, up from $14.4 in the same period last year. This primarily consisted of revenue from collaboration agreements.
Additionally, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has cash reserves of $534 million. The company believes that its expected cash runway will extend into the fourth quarter of 2027.
The company is actively working to advance its clinical development plans, which include the evaluation of REC-617 with standard care for certain cancer treatments.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company focused on combining technology, biology, and chemistry to advance the future of medicine.
5. Lucid Group, Inc. (NASDAQ:LCID)
Year-Over-Year Revenue Growth: 39.01%
3-Year Revenue CAGR: 72.29%
Share Price: $2.09
Number of Hedge Fund Holders: 19
Lucid Group, Inc. (NASDAQ:LCID) ranks among the best penny stocks to buy for the next 5 years. On August 14, Lucid Group, Inc. (NASDAQ:LCID) introduced the Lucid Gravity X (Gravity Cross) concept, an SUV designed for both on-road and off-road driving.
The concept car was first shown at a private event on the 18th fairway of the Pebble Beach Golf Links and then it was shown to the public for the first time on August 17 at the 74th Pebble Beach Concours d’Elegance.
The Lucid Gravity X concept uses the Lucid Gravity Grand Touring as its foundation. It combines strong off-road abilities with the range and power that Lucid Group, Inc.’s (NASDAQ:LCID) vehicles are known for. This makes it an ideal vehicle for people who want to explore rough trails far from the road.
The Lucid Gravity X offers toughness and quiet performance. The front and rear have been redesigned to improve approach and departure angles. It also has a wider track, higher ride height, and custom wheels with all-terrain tires for off-road driving.
Lucid Group, Inc. (NASDAQ:LCID) is an American technology and automotive company that designs, engineers, manufactures, and sells luxury electric vehicles (EVs).
4. United States Antimony Corporation (NYSEAMERICAN:UAMY)
Year-Over-Year Revenue Growth: 134.91%
3-Year Revenue CAGR: 31.22%
Share Price: $4.54
Number of Hedge Fund Holders: 20
United States Antimony Corporation (NYSEAMERICAN:UAMY) ranks among the best penny stocks to buy for the next 5 years. On August 13, H.C. Wainwright reiterated a Buy rating on United States Antimony Corporation (NYSEAMERICAN:UAMY) with a price target of $4.50.
This decision came after United States Antimony Corporation (NYSEAMERICAN:UAMY) reported results for the second quarter of 2025.
The company showed strong revenue growth in the second quarter of 2025, with revenues increasing by 160% year-over-year. This performance was supported by higher antimony prices.
United States Antimony Corporation (NYSEAMERICAN:UAMY) saw its gross profit rise by 183% compared to the same period last year. Net income saw an even bigger jump, rising 707% year-over-year.
The Buy rating is also supported by the company’s inventory performance. United States Antimony Corporation’s (NYSEAMERICAN:UAMY) antimony inventory, which had been acquired from international third-party suppliers at record levels, totaled 201 tons as of June 30, 2025. This includes both processed and unprocessed antimony.
United States Antimony Corporation (NYSEAMERICAN:UAMY) and its subsidiaries in the US, Mexico, and Canada produce and sell antimony, zeolite, and precious metals. The company operates the only major antimony smelter in the US.
3. The Real Brokerage Inc. (NASDAQ:REAX)
Year-Over-Year Revenue Growth: 72.57%
3-Year Revenue CAGR: 83.16%
Share Price: $4.46
Number of Hedge Fund Holders: 20
The Real Brokerage Inc. (NASDAQ:REAX) ranks among the best penny stocks to buy for the next 5 years. On August 6, The Real Brokerage Inc. (NASDAQ:REAX) reported that Showcase Real Estate is joining the company through its Private Label program.
Showcase Real Estate is an independent brokerage that serves Northern California’s agricultural heartland and it is led by Donna Phelan, an experienced professional in the field.
Showcase Real Estate brings 45 agents to The Real Brokerage Inc. (NASDAQ:REAX), helping the company grow its presence in Northern California.
The Real Brokerage Inc.’s (NASDAQ:REAX) Private Label program allows boutique and independent brokerages to maintain and grow their established local brand while using the company’s advanced AI-driven technology and national platform.
Since 2018, Showcase Real Estate has sold over 2,170 homes worth $826 million. Over the past 12 months, Showcase has completed 267 transactions for $115 million.
The Real Brokerage Inc. (NASDAQ:REAX) is a real estate technology company that provides a digital brokerage platform for agents.
2. EVgo, Inc. (NASDAQ:EVGO)
Year-Over-Year Revenue Growth: 49.06%
3-Year Revenue CAGR: 117.24%
Share Price: $3.84
Number of Hedge Fund Holders: 26
EVgo, Inc. (NASDAQ:EVGO) ranks among the best penny stocks to buy for the next 5 years. On August 13, Stifel reiterated its Buy rating for EVgo, Inc. (NASDAQ:EVGO) with a price target of $8.
The firm pointed out that EVgo, Inc. (NASDAQ:EVGO) is continuing to follow its business plan even when the electric vehicle (EV) charging industry is facing challenges. Stifel specifically mentioned the expected end of the $7,500 tax credit for EV buyers.
Despite these headwinds, Stifel believes that EVgo, Inc. (NASDAQ:EVGO) is still on track to achieve positive EBITDA by the fourth quarter of 2025.
The firm thinks that the company has secured enough funding to support its growth and is well-positioned for multi-year growth in the EV charging industry.
EVgo, Inc. (NASDAQ:EVGO) is an electric vehicle (EV) charging company focused on providing EV charging solutions. With over 1,100 fast charging stations across more than 40 states, it is one of the leading fast charging providers in the US.
1. Geron Corporation (NASDAQ:GERN)
Year-Over-Year Revenue Growth: 11,877.20%
3-Year Revenue CAGR: 396.33%
Share Price: $1.43
Number of Hedge Fund Holders: 41
Geron Corporation (NASDAQ:GERN) ranks among the best penny stocks to buy for the next 5 years. On August 6, Needham reiterated its Buy rating for Geron Corporation (NASDAQ:GERN) with a price target of $5. This decision came after the company reported results for the second quarter of 2025.
The firm highlighted the strong performance of Geron Corporation’s (NASDAQ:GERN) RYTELO in the second quarter, which surpassed expectations in sales with a notable quarter-over-quarter growth.
In the second quarter of 2025, RYTELO net product revenue reached $49 million, rising by 24% compared to the first quarter. The demand for RYTELO also increased by 17% in the second quarter. This compares to just 1% increase in demand in the first quarter. This growth was fueled by new patient starts.
Another positive development was the recent appointment of Harout Semerjian, an experienced commercial hematology and oncology leader, as the new CEO of Geron Corporation (NASDAQ:GERN).
Geron Corporation (NASDAQ:GERN) is a commercial-stage biopharmaceutical company focused on developing therapies for patients with blood cancers.
While we acknowledge the potential of GERN as an investment, 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 GERN and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
