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.
8. Medirom Healthcare Technologies Inc. (NASDAQ:MRM)
Share Price: $1.74
Year To Date Gain: 72.77%
Number of Hedge Fund Holders: 1
Medirom Healthcare Technologies Inc. (NASDAQ:MRM) is one of the best performing penny stocks to buy now. On September 18, the Japan Ground Self-Defense Force (JGSDF) announced that it had started using the REMONY system.
REMONY is a remote health monitoring system developed by MEDIROM MOTHER Labs Inc., a wholly owned subsidiary of Medirom Healthcare. The Japan Ground Self-Defense Force is to use the monitoring system to track personnel health conditions in real-time. That’s because it utilizes thermoelectric generation technology, enabling continuous operation during extended missions.
JGSDF settled on the REMONY system owing to its ability to address challenges in monitoring personnel in extreme environments. Consequently, it will find great use in areas with limited access to power. Additionally, the MOTHER bracelet is capable of identifying potential health risks such as heatstroke.
Medirom Healthcare Technologies Inc. (NASDAQ:MRM) is a Japanese company providing both hands-on and digital health services. It offers digital health solutions like the “Lav” on-demand health monitoring smartphone app and the “MOTHER Bracelet,” a battery-free smart tracker used for remote health monitoring in various sectors.
7. ADC Therapeutics S.A. (NYSE:ADCT)
Share Price: $3.50
Year To Date Gain: 75.25%
Number of Hedge Fund Holders: 14
ADC Therapeutics S.A. (NYSE:ADCT) is one of the best performing penny stocks to buy now. On September 3 at the Cantor Global Healthcare Conference 2025, the company reiterated that it remains focused on expanding ZYNLATA’s use in DLBCL, aiming to establish it as a standard of care.
The company is progressing with a Phase 3 study that will evaluate the effectiveness of ZYNLATA plus rituximab as a second-line treatment for Diffuse Large B-Cell Lymphoma (DLBCL). While the study is fully enrolled, data readout and submission to the Food and Drug Administration are anticipated within the next six to twelve months. Additionally, the company is progressing in a Phase II study evaluating ZYNLATA plus Roche’s glafitamab.
The clinical trials are part of an effort that ADC Therapeutics is using to position ZYNLAT as a standard for patients ineligible for CAR-T therapy. The company is staring at tremendous opportunities, given that the market of DLBCL patients not receiving CAR-T is valued at over a billion dollars.
ADC Therapeutics S.A. (NYSE:ADCT) is a Swiss biotechnology company that discovers, develops, and commercializes targeted Antibody Drug Conjugates (ADCs) for cancer treatment. It uses proprietary pyrrolobenzodiazepine (PBD)-based technology to attach highly potent chemotherapy agents to antibodies that specifically target cancer cells.
6. B2Gold Corp. (NYSE:BTG)
Share Price: $4.94
Year To Date Gain: 90.93%
Number of Hedge Fund Holders: 27
B2Gold Corp (NYSE:BTG) is one of the best performing penny stocks to buy now. On September 15, the company announced that its Goose Mine project in Canada achieved its first gold pour on June 30, 2025. Likewise, the mine remains on track for commercial production with estimates of strong gold production in the fourth quarter.
Strong gold production in the fourth quarter will come against the backdrop of consistent performance and daily throughput that has been increasing consistently. The daily throughput at the mines stands at 75% of the 4,000 tons per day.
Additionally, B2Gold continues to achieve strong operational performance at the Fekola Complex in Mali. As of September, gold production at the mine remains ahead of budgeted levels, with the State of Mali granting permission to proceed with underground operations. B2Gold is optimistic of receiving the Fekola Regional exploitation permit by the end of the third quarter.
B2Gold Corp (NYSE:BTG) is a gold mining company that explores, develops, and operates gold mines and projects in various countries, including Mali, Namibia, the Philippines, Canada, Colombia, and Finland. It operates mines such as the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia, while also developing new projects like the Goose Project in Canada.
5. Editas Medicine Inc. (NASDAQ:EDIT)
Share Price: $3.09
Year To Date Gain: 133.97%
Number of Hedge Fund Holders: 11
Editas Medicine Inc. (NASDAQ:EDIT) is one of the best performing penny stocks to buy now. On September 5, HC Wainwright reiterated a “Buy” rating on the stock and a $5 price target. The positive stance follows the nomination of EDIT-401 as the company’s lead Vivo program.
The company is developing EDIT-401 as a one-time therapy for reducing LDL cholesterol levels. The company is developing the program as an experimental, transformative in vivo gene editing medicine based on an upregulation approach.
EDIT-401 is designed to treat hyperlipidemia by directly editing the LDLR gene to increase LDLR protein expression and reduce LDL-C levels. Its nomination as a lead in vivo development candidate marks a significant milestone in Edita’s long-term vision to lead the field of in vivo programmable gene editing.
“At Editas Medicine, we believe in vivo is the future of medicine. With EDIT-401, we’re advancing our differentiated upregulation strategy to develop a next-generation medicine that can deliver lasting impact for patients,” said Gilmore O’Neill, Chief Executive Officer of Editas Medicine.
Editas Medicine Inc. (NASDAQ:EDIT) is a genome-editing company that develops transformative medicines for individuals with severe, genetically defined diseases using CRISPR-based technology. The company focuses on discovering, developing, and commercializing durable, precise, in vivo (within the body) gene-editing therapies that can correct or modify disease-causing genes.
4. Lineage Cell Therapeutics Inc. (NYSE:LCTX)
Share Price: $1.58
Year To Date Gain: 204.81%
Number of Hedge Fund Holders: 18
Lineage Cell Therapeutics Inc. (NYSE:LCTX) is one of the best performing penny stocks to buy now. On September 9, HC Wainwright reiterated a ‘Buy’ rating on the stock and a $9 price target, buoyed by the stock’s impressive run year to date.
In addition, the buy rating affirms the research firm’s confidence in the company’s long-term prospects as it pursues a new initiative in treating Type 1 diabetes. Lineage Cell Therapeutics has already announced plans to develop a new islet cell transplant program for Type 1 Diabetes.
The program is to leverage the company’s extensive experience in embryonic and cell line manipulation. According to HC Wainwright, the proposed Type 1 initiative could ultimately impact hypofunctional cell development, leading to functional cures based on early data from islets.
Lineage Cell Therapeutics Inc. (NYSE:LCTX) is a clinical-stage biotechnology company that develops and manufactures specialized, “off-the-shelf” cell therapies to treat serious neurological and ophthalmic (eye) conditions, as well as Type 1 Diabetes.
3. Rapid Micro Biosystems Inc. (NASDAQ:RPID)
Share Price: $3.27
Year To Date Gain: 233.67%
Number of Hedge Fund Holders: 4
Rapid Micro Biosystems (NASDAQ:RPID) is one of the best performing penny stocks to buy now. On September 9, at the HC Wainwright 27th Annual Global Investment Conference, the company reaffirmed its commitment to innovation and automation as it seeks to replace traditional testing methods.
Its GrowthDirect platform already offers automated, compliant testing solutions, expected to strengthen prospects in pharmaceutical manufacturing. The Rapid Sterility Platform is designed to accelerate the process of digital imaging technology and detection of microbial growth in as little as 12 hours.
While the company achieved $28 million in revenue in 2024, with more than half coming from recurring sources, it is targeting a 25% to 30% annual revenue growth rate. Part of the plan involves leveraging its partnership with Merck to enhance sales and innovation opportunities. The company also plans to expand its customer base, with a focus on Asia, as it seeks to enhance its revenue base.
Rapid Micro Biosystems (NASDAQ:RPID) develops and provides innovative, automated microbial quality control (MQC) testing solutions for the pharmaceutical and biologics industries, using their Growth Direct platform. Its technology brings quality control to the manufacturing floor, automating manual testing to deliver faster, more accurate results and improve operational efficiency for companies producing healthcare products, such as vaccines and sterile injectables.
2. Avino Silver & Gold Mines Ltd (NYSE:ASM)
Share Price: $4.70
Year To Date Gain: 384.54%
Number of Hedge Fund Holders: 6
Avino Silver & Gold Mines Ltd. (NYSE:ASM) is one of the best performing penny stocks to buy now. On September 16, the company confirmed its inclusion in the Global Junior Gold Miners Index. The inclusion marks a significant milestone that affirms the stock’s investment case in the mining sector.
The well-known GDXJ exchange-traded fund tracks small-cap firms primarily engaged in the mining and development of gold and silver. Consequently, Avino’s common share liquidity could increase significantly given the exposure it is likely to receive from its inclusion in the ETF.
The inclusion further solidifies the company’s long-standing position as a desirable investment option for those seeking exposure to top-tier silver and gold projects.
“This inclusion reflects the hard work and dedication of our entire team and positions Avino to attract a broader base of institutional and retail investors. With La Preciosa advancing on plan, we are poised to execute on our clear path to transformational growth and becoming Mexico’s next intermediate primary silver producer,” said David Wolfin, President and CEO.
Avino Silver & Gold Mines Ltd. (NYSE:ASM) is a natural resource company engaged in the acquisition, exploration, and development of mineral properties. The company produces copper, silver, and gold from its wholly owned Avino Mine in Durango, Mexico. It has plans to significantly increase production by developing the nearby La Preciosa project and re-processing its oxide tailings.
1. Strive Inc. (NASDAQ:ASST)
Share Price: $3.46
Year To Date Gain: 559.4%
Number of Hedge Fund Holders: 4
Strive Inc. (NASDAQ:ASST) is one of the best performing penny stocks to buy now. On September 22, the company agreed to acquire Semler Scientific in an all-stock transaction. Following the transaction, the company also acquired 5,816 Bitcoin at an average price of $116,047 per Bitcoin, for a total of $675 million further strengthening its treasury.
The acquisition is poised to strengthen Strive’s position as a top Bitcoin treasury company. It also showcases how the company can grow its Bitcoin holdings and Bitcoin per share at an unmatched pace, driving equity value accretion. The merger is also expected to create significant shareholder value by delivering a substantial premium.
“Just as importantly, this merger can drive shareholder value by expanding our medical diagnostics business into a robust preventative care and wellness platform focused on early detection of chronic disease. This dual-pronged strategy fuels both financial strength and mission-driven growth opportunities for our stakeholders,” said Eric Semler, Executive Chairman of Semler Scientific.
Strive Inc. (NASDAQ:ASST) is an asset management Bitcoin treasury company that focuses on increasing Bitcoin’s value per share to outperform Bitcoin over the long term. It currently holds 5,886 Bitcoin.
While we acknowledge the potential of Strive Inc. (NASDAQ:ASST) 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 ASST and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 11 Best Healthcare Penny Stocks to Buy Now and 11 Best AI Stocks to Buy Under $5.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
