10 Best Penny Stocks with Huge Upside Potential

​9. RLX Technology Inc. (NYSE:RLX)

Number of Hedge Fund Holders: 17

Analyst Upside Potential: 55.07%

RLX Technology Inc. (NYSE:RLX) is one of the Best Penny Stocks with Huge Upside Potential. RLX Technology Inc. (NYSE:RLX) reported its fiscal Q1 2026 earnings on May 20. Wall Street has a bullish sentiment on the stock as 80% of the 5 analysts covering the stock maintain a Buy rating. The 12-month average price target suggests more than 55% upside from current levels.

​During the fiscal first quarter, the company nearly doubled its revenue with 96.2% year-over-year growth to RMB1,585.8 million ($229.9 million). Management attributed this growth to faster international expansion, the acquisition of a European business, and a one-time export-policy benefit.

​In addition to revenue, the profitability also increased with gross margins improving to 31.8% from 28.6%. The US GAAP net income grew 32.1% to RMB294.2 million ($42.6 million), while non‑GAAP net income rose 41.4% to RMB357.3 million ($51.8 million).

​Management also highlighted key strategic growth drivers, including continued international rollout with localized market approaches and regional partners, integration of R&D, and a nexus between manufacturing and commercial functions to boost efficiency. Looking ahead, management is now focused on product innovation, distribution, and retail expansion.

​​​RLX Technology Inc. (NYSE:RLX) is a leading branded e-vapor company based in China, specializing in the design, manufacture, and distribution of electronic vapor products. The company’s advantage consists of a strong R&D base and market research that makes it possible to create e-vapor products tailored to adult smokers’ needs.