In this article, we will look at the 10 Best Value Penny Stocks to Buy According to Analysts.
The overall outlook in the equity markets is positive, going by Citigroup raising its year-end S&P 500 target by 9% to 6,300. According to strategist Scott Chronert, market fundamentals are strong and likely to offset high policy volatility.
“No doubt, policy volatility is likely to persist as are numerous other risks. This keeps us reticent to chase rallies but more inclined to buy pullbacks,” Krinsky said. “What the first half has told us is that fundamental volatility may be more manageable as tariffs, taxes, budget/deficit, rates, currency, geopolitics, etc. will all continue to remain in the financial news headlines.”
The remarks come on the heels of Jonathan Krinsky, chief market technician at BTIG, reiterating the summer might belong to small-cap companies. According to the analyst, the Russell 200 index has developed an accumulation pattern, signaling a potential breakout to the upside. The index is up by more than 3% in June alone.
“We think this could be setting up for ‘smallcap summer.’ Last week, price was finally able to break out. This sort of formation historically has further upside,” Krinsky said.
Smallcap and penny stocks are starting to look attractive as the focus shifts from trade headlines, and investors look forward to more constructive forces such as interest rate cuts.
With that in mind, let’s look at 10 Best Value Penny Stocks to Buy According to Analysts.
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Our Methodology
To make the list of 10 Best Value Penny Stocks to Buy According to Analysts, we scanned the US equity markets, focusing on highly undervalued penny stocks. We focused on stocks with price to earnings multiples of less than 15 but with significant upside potential and popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on the stock’s upside potential.
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).
Best Value Penny Stocks to Buy According to Analysts
10. Ready Capital Corporation (NYSE:RC)
Stock Upside Potential as of June 25: 5.09%
Forward Price to Earnings Ratio as of June 25: 7.05
Share Price as June 25: $4.47
Number of Hedge Fund Holders: 12
Ready Capital Corporation (NYSE:RC) is one of the 10 best-value penny stocks to buy, according to analysts. On June 14, the company’s board of directors approved a cash dividend of $0.125 per share of common stock. The dividend will be paid to shareholders on July 31, 2025, as of the close of business on June 30, 2025.
In addition, the board declared a quarterly cash dividend on its 6.25% Series C Cumulative Convertible Preferred Stock and 6.50% Series E Cumulative Redeemable Preferred Stock. It also declared a dividend of $0.390625 per share of Series C Preferred Stock, payable to Series C Preferred stockholders on July 15, 2025.
The quarterly dividends come on the heels of Ready Capital generating a net income of $81.97 million for its first quarter of 2025. It was a significant turnaround from a net loss of $74.17 million for the same quarter last year.
Ready Capital Corporation (NYSE:RC) is a real estate finance company that originates, acquires, finances, and services commercial real estate loans for small to medium-sized businesses. It also offers small business loans through the SBA 7(a) program and provides financing for commercial real estate, including agency multifamily, investor, and bridge loans.
9. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Stock Upside Potential as of June 25: 14.20%
Forward Price to Earnings Ratio as of June 25: 13.16
Share Price as June 25: $4.87
Number of Hedge Fund Holders: 30
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is one of the 10 best-value penny stocks to buy, according to analysts. On June 24, the company highlighted strong demand for solar solutions at the J.P. Morgan 2025 Energy, Power, and Renewables & Mining Conference.
Despite facing regulatory challenges and supply chain constraints, Shoals Technologies remains optimistic about future growth driven by strong demand for solar projects. Consequently, the company seeks to capitalize on opportunities in the data center and battery energy storage systems. Therefore, it has embarked on strategic capital allocation focusing on organic growth and potential acquisitions.
The company is targeting growth in data centers and community commercial industrial projects. It has established a Master Supply Agreement with Blattner and UGT, providing predictability in project wins and better supply chain management. It’s also exploring international markets with a presence in Australia, Saudi Arabia, and Spain.
Shoals Technologies is a technology company that designs, manufactures, and sells electrical balance of system (EBOS) solutions and components for the solar and battery storage industries. It provides a range of products, including solar big lead assembly (BLA) solutions, battery energy storage solutions (BESS), and original equipment manufacturer (OEM) components.
8. Gray Media, Inc. (NYSE:GTN)
Stock Upside Potential as of June 25: 23.38%
Forward Price to Earnings Ratio as of June 25: 1.13
Share Price as June 25: $4.52
Number of Hedge Fund Holders: 28
Gray Media, Inc. (NYSE:GTN) is one of the 10 best-value penny stocks to buy, according to analysts. On June 16, Gray Media announced David Hughes as the new General Manager of WFSB, the CBS affiliate in Hartford, Connecticut, effective July 9. He replaces Dana Neves, who was recently promoted to Senior Managing Vice President at Gray.
Hughes brings extensive experience, having led Gray’s WOIO and WUAB stations in Cleveland since June 2023, where he launched the Rock Entertainment Sports Network and secured major sports broadcast rights. His earlier roles span multiple Gray stations, including leadership and editorial positions across Virginia, West Virginia, Florida, North Carolina, and Georgia.
Gray Media, Inc. (NYSE:GTN), based in Atlanta, Georgia, is the largest operator of top-rated local television stations in the U.S., reaching about 37% of TV households across 113 markets. In 2024, 78 of its stations were market leaders, while 99 ranked first or second in viewership. It also owns the largest group of Telemundo affiliates, covering 44 markets. Beyond broadcasting, Gray operates Gray Digital Media—a full-service digital agency—and owns production firms like Raycom Sports, Tupelo Media Group, and PowerNation Studios, along with studio facilities Assembly Atlanta and Third Rail Studios.
7. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)
Stock Upside Potential as of June 25: 23.90%
Forward Price to Earnings Ratio as of June 25: 11.61
Share Price as June 25: $4.12
Number of Hedge Fund Holders: 28
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is one of the 10 best-value penny stocks to buy, according to analysts. On June 11, the company confirmed it had secured an agreement to supply front electric drive units and rear e-Beam axles for an all-new electric Traveler SUV and Terra Pickup truck.
The supply agreement is to Scout Motors, which is working on Scout Traveler SUV and Scout Terra pickup trucks. The two cars will be built on a body-on-frame chassis and configurable with 100 percent battery electric or gasoline.
“We are honored to support the rebirth of the iconic Scout brand and play a significant role in these important vehicle launches with AAM’s award-winning electric drive technology,” said AAM Chairman and Chief Executive Officer David C. Dauch. “Additionally, Scout and AAM are committed to American design, engineering and innovation with both companies having a strong presence in the U.S.”
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is an automotive and mobility supplier. It designs, engineers, and manufactures driveline and metal-forming technologies for electric, hybrid, and internal combustion vehicles.
6. Ambev S.A. (NYSE:ABEV)
Stock Upside Potential as of June 25: 25.43%
Forward Price to Earnings Ratio: 13.12
Share Price as June 25: $2.32
Number of Hedge Fund Holders: 22
Ambev S.A. (NYSE:ABEV) is one of the 10 best-value penny stocks to buy, according to analysts. On June 4, UBS analyst Rodrigo Alcantara reiterated a ‘Neutral’ rating on the stock and raised the price target to $2.70 from $2.60.
The price adjustment follows an ongoing evaluation of the company’s performance and market conditions. The analyst remains confident about Ambev‘s growth potential, thus increasing the price target. However, the analyst remains cautious about current market dynamics that could affect the company’s performance, hence the ‘Neutral’ stance.
Ambev delivered solid first-quarter results characterized by a high single-digit increase in top-line revenue as volume growth increased by 0.7%. The company also saw growth in digital transactions as gross merchandise volume increased by 60% and DTC orders rose by 5%.
Ambev S.A. (NYSE:ABEV) is a beverage company that produces, distributes, and sells beer, carbonated soft drinks, and other non-alcoholic beverages across the Americas. It operates in the soft drinks and non-alcoholic beverage sectors.
5. Coty Inc. (NYSE:COTY)
Stock Upside Potential as of June 25: 32.27%
Forward Price to Earnings Ratio as of June 25: 9.42
Share Price as June 25: $4.64
Number of Hedge Fund Holders: 29
Coty Inc. (NYSE:COTY) is one of the 10 best-value penny stocks to buy, according to analysts. On June 16, WWD (Women’s Wear Daily) reported that Coty (NYSE:COTY) is exploring a potential sale, possibly splitting its business into two parts—luxury and consumer. Sources suggest the move is in early discussion stages, with no formal statement from the company yet.
Coty, known for brands like CoverGirl, Rimmel, and Kylie Cosmetics, has been undergoing a transformation under CEO Sue Nabi, emphasizing premiumization and skincare expansion. If pursued, this strategic split could mark one of the beauty sector’s most significant deals in recent years.
Coty Inc. (NYSE:COTY) is a global beauty company known for its fragrance, color cosmetics, and skin and body care products portfolio. It operates in luxury and mass market segments, selling products in over 130 countries and territories.
4. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Stock Upside Potential as of June 25: 35.18%
Forward Price to Earnings Ratio as of June 25: 13.04
Share Price as June 25: $4.91
Number of Hedge Fund Holders: 30
GoodRx Holdings, Inc. (NASDAQ:GDRX) is one of the 10 best-value penny stocks to buy, according to analysts. On June 6, the company launched Lifecycle, a development tool designed to improve team velocity, streamline review workflows, and reduce infrastructure overhead.
The tool enables engineering, quality control, and platform teams to automatically create temporary, isolated environments for testing and assessing code modifications under actual conditions. Lifecycle has also helped GoodRx minimize deployment challenges, enhance teamwork across different functions during code assessments, and decrease expenses related to prolonged staging infrastructure.
The new tool underscores GoodRx’s commitment to contemporary engineering methodologies and transparent collaboration. Lifecycle has been released to the public under the Apache 2.0 license, encouraging developers and organizations to adopt, enhance, and contribute to the platform’s growth.
“Open sourcing Lifecycle reflects our commitment to transparency and to empowering developers. It’s not just about sharing code, it’s about sharing the ideas and practices that can help teams everywhere move faster and work smarter,” said Nitin Shingate, Chief Technology Officer at GoodRx.
GoodRx Holdings, Inc. (NASDAQ:GDRX) is a digital healthcare platform that helps people find affordable prescription medications and other healthcare services. It primarily works by comparing drug prices at different pharmacies, offering discounts, and providing access to telemedicine services.
3. Uniti Group Inc. (NASDAQ:UNIT)
Stock Upside Potential as of June 25: 52.84%
Forward Price to Earnings Ratio as of June 25: 11.86
Share Price as June 25: $4.17
Number of Hedge Fund Holders: 31
Uniti Group Inc. (NASDAQ:UNIT) is one of the 10 best-value penny stocks to buy, according to analysts. On June 9, the company confirmed the pricing of $600 million principal amount of 8.625% senior unsecured notes due 2032.
Uniti Group and its subsidiaries have guaranteed the notes on a senior unsecured basis, which guarantees indebtedness under the senior secured credit facility. Similarly, the company plans to use net proceeds from the offering to partially redeem its $500 million 10.50% notes due in 2028. The remaining funds are to be used for general corporate purposes.
Uniti Group Inc. (NASDAQ:UNIT) is a real estate investment trust that acquires and constructs mission-critical communications infrastructure. It is a leading provider of fiber and other wireless solutions for the communications industry.
2. Kosmos Energy Ltd. (NYSE:KOS)
Stock Upside Potential as of June 25: 84.54%
Forward Price to Earnings Ratio as of June 25: 11.10
Share Price as June 25: $1.86
Number of Hedge Fund Holders: 24
Kosmos Energy Ltd. (NYSE:KOS) is one of the 10 best-value penny stocks to buy, according to analysts. On June 23, the company announced that its innovative liquefied natural gas project, Greater Tortue Ahmeyim, has reached the Commercial Operations Date (COD). The company is developing the project in partnership with BP.
Commercial Operations Data as part of a 20-year lease and operation agreement marks a significant milestone for the project’s partners. The milestone comes on LNG production volumes increasing significantly to levels equivalent to annual contracted volumes of about 2.4 million tons per annum.
Achieving COD status and the recent build-up in cargo lifting activity reflect the sustained cooperation between the project partners and Golar LNG Limited.
Kosmos Energy Ltd. (NYSE:KOS) is a Deepwater oil and gas exploration and production company focused on finding and developing resources in proven basins offshore Ghana, Equatorial Guinea, Mauritania, Senegal, and the U.S. Gulf of Mexico.
1. DeFi Technologies Inc. (NASDAQ:DEFT)
Stock Upside Potential as of June 25: 121.33%
Forward Price to Earnings Ratio as of June 25: 7.52
Share Price as June 25: $2.88
Number of Hedge Fund Holders: N/A
DeFi Technologies Inc. (NASDAQ:DEFT) is one of the 10 best-value penny stocks to buy, according to analysts. On June 20, the company confirmed a strategic partnership with ShareIntel and Urvin Consulting LLC to enhance market transparency and shareholder intelligence. The companies are joining forces to deepen market intelligence and strengthen transparency.
Following the strategic partnership, DeFi Technologies will utilize ShareIntel’s DRIL-Down technology to analyze stock trading patterns across broker-dealers and clearing firms. On the other hand, Urvin is to focus on cross-border trading behavior analysis.
In addition to using these alliances to understand trade patterns better, DeFi Technologies is dedicated to using them to further its overarching objective of building investor confidence and long-term value generation.
“Engaging ShareIntel and Urvin is about strengthening our foundation of transparency, accountability, and informed decision-making. This is part of a long-term effort to enhance our understanding of the shareholder base and support the integrity of our market presence,” said Olivier Roussy Newton, CEO of DeFi Technologies.
DeFi Technologies Inc. (NASDAQ:DEFT) is a financial technology company focused on bridging the gap between traditional capital markets and decentralized finance (DeFi). It offers regulated access to digital assets and DeFi protocols, aiming to provide a gateway for investors into the evolving world of decentralized finance.
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