In this article, we will be taking a look at the 10 Best Performing Penny Stocks to Buy Now.
Long-lagging small-cap and penny stocks are increasingly capturing the attention of value investors. That’s in part because the overall equity markets have rallied to all-time highs, driven by significant gains in large-cap stocks. With calls for a temporary breather following a $15 trillion rally in the S&P 500 from April lows, the focus is slowly shifting to cheap stocks trading at highly discounted valuations.
The Russell 2000 rallying to all-time highs in a market dominated by tech behemoths is the clearest indication that focus is slowly turning away from large or mid-cap stocks. Penny stocks and small caps taking out a high from 2021 is another sign that the rally among small-cap stocks is slowly broadening.
The US Federal Reserve’s decision to embark on an interest rate cut spree at a time when the US economy remains resilient is proving to be the final catalyst for penny stocks, which are always rate-sensitive. Likewise, small-cap businesses burdened by funding costs may prove to be the biggest beneficiaries of Fed rate cuts.
The prospects of more monetary policy than priced in, “that can be enough to unleash those discounted valuations and that pent-up demand for the small cap asset class,” said Angelo Kourkafas, senior global investment strategist at Edward Jones.
On the other hand, companies in the Russell 2000 generating profits on average are trading at a 26 percent discount to the S&P 500, according to Glenmede’s Irving.
“We’re now going to see growth rates next year faster for small caps than large caps,” said Mark Hackett, chief market strategist at Nationwide.
With that in mind, let’s look at the fastest-growing penny stocks to buy now, well-poised to benefit from an accommodative interest rate environment and a robust economy.
Our Methodology
To compile our list of the best performing penny stocks to buy now, we used Finviz screener. We focused on stocks trading for less than $5 per share (as of September 24) that have gained more than 40% year-to-date. We’ve also included hedge fund sentiment for each stock as of Q2 2025. Finally, we ranked the stocks in ascending order based on their year-to-date gain.
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. 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).
Best Performing Penny Stocks to Buy Now
10. Reborn Coffee Inc. (NASDAQ:REBN)
Share Price: $2.44
Year To Date Gain: 43.53%
Number of Hedge Fund Holders: N/A
Reborn Coffee Inc. (NASDAQ:REBN) is one of the best performing penny stocks to buy now. On September 16, the leader in the specialty coffee segment established a new subsidiary dubbed Reborn Logistics.
The new subsidiary will focus on expanding the company’s domestic and international operations by facilitating supply chain and logistics infrastructure. The subsidiary will also focus on ensuring the efficiency and scalability of Reborn Coffee as part of its global growth strategy.
“Reborn Logistics represents an important step in strengthening the backbone of our growth,” said Jay Kim, CEO of Reborn Coffee. “With Mr. Lim’s leadership and the early success of securing high-volume contracts, we are confident this subsidiary will enhance operational efficiency, reduce costs, and open new revenue opportunities as Reborn Coffee continues to expand globally.”
The subsidiary has already secured partnerships with Korean companies, including Nexen Tire and Han Press. The partnership also has the potential to result in monthly volumes exceeding 1,550 units and revenue of approximately $20 million.
Reborn Coffee Inc. (NASDAQ:REBN) is a specialty coffee company that roasts, distributes, and sells coffee through retail cafes, kiosks, and packaged goods for consumers and businesses. The company is known for its “Reborn Wash Process,” which involves washing beans with magnetically treated water and undergoing an accelerated germination process to enhance their flavor and nutrient complexity before being roasted in small batches.
9. Barfresh Food Group, Inc. (NASDAQ:BRFH)
Share Price: $3.88
Year To Date Gain: 56.45%
Number of Hedge Fund Holders: N/A
Barfresh Food Group Inc. (NASDAQ:BRFH) is one of the best performing penny stocks to buy now. On September 18, the company confirmed it has reached an agreement to acquire all outstanding capital stock of Arps Dairy.
The deal is valued at approximately $1.6 million in debt repayment and will enable the company to gain access to Arps Dairy’s manufacturing capabilities and existing processing facility in Defiance, Ohio. The acquisition is also expected to reduce operational costs and improve Barfresh Food Group’s margins.
This will also result in new production opportunities and position the company to capture significant value creation through 2026 and beyond.
Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “This manufacturing transaction represents a transformational step in our operational evolution and growth trajectory. By bringing the majority of our manufacturing in-house, we’re eliminating third-party manufacturing fees, reducing freight costs, and gaining greater control over our supply chain while positioning ourselves for accelerated growth and expanded market opportunities.”
Barfresh Food Group Inc. (NASDAQ:BRFH) manufactures and distributes frozen beverages, including smoothies, shakes, and frappes, using fresh fruit and natural ingredients. Their products are offered in single-serve packs and easy-pour bulk concentrates, designed for minimal labor, zero waste, and quick preparation, catering to the growing demand for healthy, on-the-go options.
