In this article, we will look at the 10 Best Strong Buy Penny Stocks to Buy Now.
On July 28, Alan Rechtschaffen, UBS Global Wealth senior portfolio manager, appeared on CNBC’s ‘Money Movers’ to talk about the markets, his Fed outlook, and more. He stated that the market rally represents “the prices catching up with policy,” as people appear to have faith in the tariff negotiation strategy of the present.
He added that the next phase of this rally could be prompted by the Fed lowering interest rates, or generated by attention to the infrastructure changes going on in the United States. According to him, “the market has room to run from here.”
Rechtschaffen acknowledged that the tariffs would have an impact on the economy, as it has seen high tariffs as part of an apparently successful negotiation strategy.
READ ALSO: 14 Best Biotech Penny Stocks to Buy Right Now and 10 Best Strong Buy Stocks to Buy Under $10.
However, he added that we haven’t seen inflation creep into the economy because of the tariffs, as one might have expected to happen. Companies selling the products have absorbed a significant amount of the costs.
As inflation numbers remain tepid, it “behooves” the Federal Reserve to lower interest rates, and Rechtschaffen sees the Fed lowering interest rates by 100 basis points by the middle of next year.
With these market trends in view, let’s look at the best strong buy penny stocks to buy now.
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Our Methodology
We used Finviz and Tipranks to make a list of strong buy stocks with a stock price under $5 and selected the top 10 with consensus Strong Buy ratings and the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database, and also added the analyst upside potential for each stock. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on August 1.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Strong Buy Penny Stocks to Buy Now
10. DeFi Technologies Inc. (NASDAQ:DEFT)
Stock Price: $2.73
Analyst Upside: 113.61%
Number of Hedge Fund Holders: N/A
DeFi Technologies Inc. (NASDAQ:DEFT) is one of the best strong buy penny stocks to buy now. On July 22, DeFi Technologies Inc. (NASDAQ:DEFT) announced that its subsidiary, Valour Inc., and Valour Digital Securities Limited, together known as “Valour”, exceeded $1 billion in assets under management. Valour is a leading issuer of exchange traded products.
The milestone marks a 31% growth since May 30, attributed to increasing prices of digital assets across its globally diversified ETP portfolio and strong investor demand.
Management also stated that Valour is expanding into high-growth markets across the globe, including Africa, Asia, and the Middle East, primarily through strategic partnerships with AsiaNext, SovFi, the Nairobi Securities Exchange, and Misyon Bank.
DeFi Technologies Inc. (NASDAQ:DEFT) provides investment services and plans to acquire debt, equity, or other securities of private or publicly traded companies or other entities. Its offerings include DeFi ETNs, DeFi Governance, DeFi Venture, and DeFi Treasury.
9. Opko Health Inc. (NASDAQ:OPK)
Stock Price: $1.28
Analyst Upside: 134.38%
Number of Hedge Fund Holders: 26
Opko Health Inc. (NASDAQ:OPK) is one of the best strong buy penny stocks to buy now. On July 31, Opko Health Inc. (NASDAQ:OPK) reported its fiscal Q2 2025 results, with consolidated total revenues for the quarter reaching $156.8 million compared to $182.2 million in the same quarter last year.
Operating loss for the quarter was $60.0 million, down from $61.7 million in Q2 2024.
Revenue from products in its Pharmaceuticals segment underwent a slight growth to $40.7 million in Q2 2025 from $40.5 million in Q2 2024, reflecting increased sales volumes in certain international operations. These trends were partially offset by lowered sales in its Chilean subsidiary, primarily due to a mild winter cold and flu season and foreign currency impacts.
Revenue from services in the diagnostics segment dropped to $101.1 million in Q2 2025 compared to $129.4 million in the prior year period. Management attributed the decrease to lower clinical test volume principally as a result of the sale of certain BioReference assets.
Opko Health Inc. (NASDAQ:OPK) is a biopharmaceutical and diagnostics company that provides healthcare services. Its operations are divided into the Diagnostics and Pharmaceuticals segments.
8. Ardelyx Inc. (NASDAQ:ARDX)
Stock Price: $4.24
Analyst Upside: 135.85%
Number of Hedge Fund Holders: 28
Ardelyx Inc. (NASDAQ:ARDX) is one of the best strong buy penny stocks to buy now. On July 28, Piper Sandler analyst Allison Bratzel maintained a Hold rating on Ardelyx Inc. (NASDAQ:ARDX) and set a price target of $8.00.
However, BTIG analyst Julian Harrison maintained a Buy rating on Ardelyx Inc. (NASDAQ:ARDX) on July 29, retaining the price target of $14.00.
The analyst based the rating on Ardelyx Inc.’s (NASDAQ:ARDX) market positioning and growth potential, citing the expected growth in Ibsrela’s revenue as a significant factor. Revenue for the product is expected to grow 21% from the previous quarter, and strong growth is expected for the rest of the year.
Harrison further reasoned that the fact that up to 50% of IBS-C patients do not respond adequately to existing treatments leaves a gap that can be filled by Ibsrela, further bolstering its market opportunity.
Ardelyx Inc. (NASDAQ:ARDX) develops and commercializes biopharmaceutical products. It is also involved in the development of an innovative platform that discovers new biological mechanisms and pathways to develop efficacious therapies, reducing the drug-drug interactions and side effects of traditional medicines.
7. Bitfarms Ltd. (NASDAQ:BITF)
Stock Price: $1.26
Analyst Upside: 138.10%
Number of Hedge Fund Holders: 11
Bitfarms Ltd. (NASDAQ:BITF) is one of the best strong buy penny stocks to buy now. On July 28, Bitfarms Ltd. (NASDAQ:BITF) announced that its New York City office would be identified as its second Principal Executive Office in filings with the United States Securities and Exchange Commission and with the securities commissions in Canada.
Bitfarms Ltd. (NASDAQ:BITF) acquired this NYC office as part of its acquisition of Stronghold Digital Mining, Inc. Management also reported that the company has plans to prepare its financial statements under US Generally Accepted Accounting Principles (US GAAP) to more suitably align with the other companies in the industry.
The transition from IFRS Accounting Standards to US GAAP is anticipated to commence with the annual consolidated financial statements for the fiscal year ending December 31, 2025.
Bitfarms Ltd. (NASDAQ:BITF) CEO Ben Gagnon stated that these initiatives, along with the successful rebalancing of its energy portfolio to ~70% North American MWs in Q1, further advance the company’s US pivot, aligning with its HPC/AI growth strategy.
Bitfarms Ltd. (NASDAQ:BITF) is a vertically integrated Bitcoin mining company based in Canada. It currently has 15 Bitcoin data centers operating in the US, Canada, Argentina, and Paraguay. The company operates server farms that comprise computers (Miners) specifically designed to validate transactions on the Bitcoin Blockchain.
6. MannKind Corporation (NASDAQ:MNKD)
Stock Price: $3.78
Analyst Upside: 138.10%
Number of Hedge Fund Holders: 29
MannKind Corporation (NASDAQ:MNKD) is one of the best strong buy penny stocks to buy now. In a report released on July 29, Yun Zhong from Wedbush maintained a Buy rating on MannKind Corporation (NASDAQ:MNKD) with a price target of $11.00.
The analyst told investors that MannKind Corporation’s (NASDAQ:MNKD) partner, United Therapeutics, has exhibited solid performance with its product Tyvaso DPI, supported by a competitive market edge and notable revenue growth.
Zhong attributed this growth to strategic pricing and a rise in patient numbers, factors that point to a strong demand for the product.
The analyst added that MannKind Corporation’s (NASDAQ:MNKD) own pipeline also presents significant expansion opportunities, especially the MNKD-201 program for idiopathic pulmonary fibrosis (IPF).
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes innovative therapeutic devices and products that address serious unmet medical needs for endocrine and orphan lung diseases. The company’s pipeline and products include Afrezza, Pediatric Afrezza, V-Go, Tyvaso DPI, MNKD-101, MNKD-201, MNKD-301, and MNKD-501.
5. Atai Life Sciences (NASDAQ:ATAI)
Stock Price: $4.10
Analyst Upside: 168.29%
Number of Hedge Fund Holders: 14
Atai Life Sciences (NASDAQ:ATAI) is one of the best strong buy penny stocks to buy now. On July 30, Maxim Group analyst Michael Okunewitch maintained a Buy rating on Atai Life Sciences (NASDAQ:ATAI), retaining the price target of $10.00.
The analyst supported the rating with Atai Life Sciences’ (NASDAQ:ATAI) solid potential and strategic positioning in the biopharmaceutical sector. He stated that although a recent study failed to meet its primary endpoint, it exhibited consistent numerical improvements in cognitive measures, which shows potential value in the program.
Okunewitch added that Atai Life Sciences (NASDAQ:ATAI) has a diversified portfolio strategy that mitigates risks associated with single assets, a beneficial factor in the volatile biotech industry.
He added that a core value driver for the company is its focus on its short-acting psychedelic pipeline, particularly in affective disorders. The promising data from these programs and supportive regulatory signals are significant factors bolstering investor confidence.
Headquartered in Germany, Atai Life Sciences (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
4. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Price: $2.73
Analyst Upside: 193.04%
Number of Hedge Fund Holders: 20
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the best strong buy penny stocks to buy now. In a report released on July 1, Yanan Zhu from Wells Fargo maintained a Buy rating on Taysha Gene Therapies, Inc. (NASDAQ:TSHA) with a price target of $7.50.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) reported that it has $116.6 million in cash and cash equivalents as of March 31, with management continuing to expect the current cash resources to support capital requirements and planned operating expenses till Q4 2026.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) reported $15.6 million in research and development expenses for the three months ended March 31, down from $20.7 million for the three months ended March 31, 2024.
Management attributed the $5.1 million drop to “Good Manufacturing Practices batch activities with the intended commercial manufacturing process for TSHA-102 performed during the three months ended March 31, 2024.”
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus (AAV) based gene therapies to treat monogenic diseases of the central nervous system.
The company is also involved in the development of multiple gene therapy platforms, including AAV9 Discovery, Novel Capsid, and AAV Redosing.
3. ImmunityBio, Inc. (NASDAQ:IBRX)
Stock Price: $2.46
Analyst Upside: 225.20%
Number of Hedge Fund Holders: 10
ImmunityBio, Inc. (NASDAQ:IBRX) is one of the best strong buy penny stocks to buy now. On July 25, ImmunityBio, Inc. (NASDAQ:IBRX) announced the preliminary financial results for the fiscal quarter ended June 30.
The company reported a notable 60% revenue growth to $26.4 million from Q1 2025, with year-to-date sales of ~$43 million. ANKTIVA underwent a 246% unit sales volume growth in H1 2025 compared to H2 2024.
ImmunityBio, Inc. (NASDAQ:IBRX) also reported $153.7 million in cash, cash equivalents, and marketable securities as of June 30.
ImmunityBio, Inc. (NASDAQ:IBRX) is a clinical-stage immunotherapy company that develops next-generation therapies to treat cancer and infectious diseases. Its immunotherapy platform activates the adaptive and innate immune systems to create long-term immunological memory.
2. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Stock Price: $3.52
Analyst Upside: 297.73%
Number of Hedge Fund Holders: 35
Relay Therapeutics, Inc. (NASDAQ:RLAY) is one of the best strong buy penny stocks to buy now. In a report released on July 29, Peter Lawson from Barclays maintained a Buy rating on Relay Therapeutics, Inc. (NASDAQ:RLAY) with a price target of $17.00.
In other news, Relay Therapeutics, Inc. (NASDAQ:RLAY) reported in its fiscal Q1 2025 earnings that it implemented strategic cost reductions to extend its operating runway into 2029. Management stated that the reductions were also intended to fund key company objectives.
The objectives included the “execution of RLY-2608 Phase 1 vascular malformations trial through clinical proof-of-concept data”, advancement of one research-stage program, advancement of Fabry and NRAS programs to Investigational New Drug application (IND) readiness, and more.
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage precision medicine company that uses advanced computational and experimental technologies to innovate drug discovery.
Its primary focus is on genetic disease indications and targeted oncology. The company’s Dynamo platform integrates a range of cutting-edge experimental and computational approaches to understand protein structure and motion in drug discovery.
1. Autolus Therapeutics plc (NASDAQ:AUTL)
Stock Price: $2.40
Analyst Upside: 316.67%
Number of Hedge Fund Holders: 17
Autolus Therapeutics plc (NASDAQ:AUTL) is one of the best strong buy penny stocks to buy now. On June 17, Truist Financial analyst Asthika Goonewardene maintained a Buy rating on Autolus Therapeutics plc (NASDAQ:AUTL) without a price target.
In other news, Autolus Therapeutics plc (NASDAQ:AUTL) announced on July 21 that the European Commission (EC) granted marketing authorization for AUCATZYL for the treatment of adult patients with relapsed or refractory B-cell precursor acute lymphoblastic leukemia.
Management reported that the EC approval was based on the results of the FELIX study, which is “an open-label, multi-centre, single arm study in adult patients with relapsed or refractory B-cell acute lymphoblastic leukaemia”.
Autolus Therapeutics (NASDAQ:AUTL) is a clinical-stage biopharmaceutical company based in the United Kingdom. It develops programmed T cell therapies for treating autoimmune diseases and cancer and focuses on chimeric antigen receptor (CAR) T cell therapy.
The company engineers controlled, targeted, and highly active T cell therapy product candidates designed to recognize target cells, break their defense mechanisms down, and eliminate them. It is doing so using a portfolio of proprietary and modular T-cell programming technologies.
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