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.