10 Best Value Penny Stocks to Buy According to Hedge Funds

In this article, we will discuss the 10 Best Value Penny Stocks to Buy According to Hedge Funds.

On July 2, Savita Subramanian, Head of US equity & Quantitative Strategy at Bank of America Securities, joined ‘Squawk Box’ to discuss the current state of the markets heading into the July 4th holiday. Subramanian characterized the market outlook as healthy and noted that it is difficult to be bearish on America when the economy is running at such a strong pace. She highlighted that CapEx is increasing, supported by the stability of spending from hyperscalers. While she acknowledged that the index itself may face some challenges regarding supply and demand, she identified the economy as a significant bright spot. Furthermore, she reported that corporate earnings have been gangbusters this year; having started the year with a forecast of 15% growth, they are now tracking toward 20% earnings growth, which she described as a multiple of average earnings growth.

Subramanian explained that the real benefits are found in GDP-sensitive companies within the S&P 500. Given the Fed’s signals (which suggest the economy is doing well enough that the Fed might even need to tighten), she adopted a bullish stance. She recommends focusing on cyclical companies that stand to benefit from GDP growth and noted that this area of the market remains relatively undervalued. Specifically, she identified industrials, energy, and materials as key sectors, likening the necessary components to widgets required for manufacturing and construction. She finds it logical that semiconductors have performed well this year and suggests that the recent sell-off in that sector is less sensible. She anticipates that areas such as machinery, engineering, construction, oil, and metals could perform strongly over the next 12 months and potentially for the next several years.

Against this backdrop, lets look at some value penny stocks to buy according to hedge funds.

Our Methodology

We used screeners to identify stocks that are trading between $1 and $5 per share with a forward P/E under 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on July 3. 

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

10 Best Value Penny Stocks to Buy According to Hedge Funds

10. LG Display Co. Ltd. (NYSE:LPL)

Number of Hedge Fund Holders: 9

LG Display Co. Ltd. (NYSE:LPL) is one of the best value penny stocks to buy according to hedge funds. On June 1, LG Display earned Automotive SPICE/ASPICE Capability Level 2 certification for its automotive instrument clusters and center fascia displays. This recognition from C&BIS highlights the company’s ability to ensure high software quality and reliability.

ASPICE is an international industry standard used to evaluate the development processes and dependability of automotive suppliers. Achieving this level is critical as the automotive sector shifts toward software-defined vehicles, where displays now function as advanced platforms rather than simple output devices.

Following its previous ISO/SAE 21434 cybersecurity certification, LG Display Co. Ltd. (NYSE:LPL) plans to utilize this new milestone to expand its presence in key markets like North America. The company intends to further solidify its strategic partnerships as the automotive industry continues its transition to software-driven systems.

LG Display Co. Ltd. (NYSE:LPL) manufactures and sells thin-film transistor liquid crystal display (TFT-LCD) panels and organic light-emitting diode (OLED) panels used in televisions, laptops, monitors, smartphones, and automotive displays.

9. ​Wipro Limited (NYSE:WIT)

Number of Hedge Fund Holders: 14

​Wipro Limited (NYSE:WIT) is one of the best value penny stocks to buy according to hedge funds. On June 18, Wipro announced the successful completion of a multi-year data center migration for METRO AG. This transition to a scalable, multi-cloud ecosystem serves as the foundation for METRO’s broader cloud-first strategy and its long-term ambition to become an AI-first company.

The project involved migrating legacy IT operations to a more resilient infrastructure, which now supports advanced cybersecurity and improved operational agility. By integrating Wipro Intelligence, the partnership has introduced intelligent automation into user lifecycle management and software development to increase efficiency and decision-making accuracy.

This milestone marks a significant step in the ongoing collaboration between the two companies, which began in 2020 and was extended in 2025. With this modern digital backbone now in place, METRO is positioned to accelerate its innovation and use AI at scale.

​Wipro Limited (NYSE:WIT) is a leading global technology services, consulting, and business process outsourcing/BPO company. It helps enterprises worldwide transform digitally by modernizing IT operations, adopting AI, and streamlining supply chains.

8. Integra Resources Corp. (NYSEAMERICAN:ITRG)

Number of Hedge Fund Holders: 16

Integra Resources Corp. (NYSEAMERICAN:ITRG) is one of the best value penny stocks to buy according to hedge funds. On June 2, Integra Resources appointed Ausenco Engineering USA South as the lead partner for detailed engineering at its DeLamar Project in Idaho. Ausenco has engaged SLR Consulting to provide specialized expertise in heap leach engineering and mine planning as project development moves forward.

This phase of detailed engineering coincides with the launch of the public scoping and stakeholder engagement period under the National Environmental Policy Act/NEPA. Following the Bureau of Land Management’s publication of the Notice of Intent, the company expects to receive a final Environmental Impact Statement and Record of Decision in the second half of 2027.

Work is already underway and is expected to continue through Q1 2027, with long-lead procurement activities scheduled to begin later this year. These technical milestones, alongside the ongoing NEPA process, are designed to support a final construction decision for the DeLamar site.

Integra Resources Corp. (NYSEAMERICAN:ITRG) is a precious metals mining and exploration company. Headquartered in Canada, the company acquires, explores, and develops gold and silver deposits primarily located in the Western United States.

7. Repay Holdings Corporation (NASDAQ:RPAY)

Number of Hedge Fund Holders: 16

Repay Holdings Corporation (NASDAQ:RPAY) is one of the best value penny stocks to buy according to hedge funds. On June 29, Repay Holdings confirmed that it had received a revised, non-binding proposal from Forager Capital Management, LLC to acquire all outstanding shares of the company for $5.25 per share in cash. This unsolicited offer is currently under review by Repay’s Board of Directors, which is consulting with its legal and financial advisors to ensure the proposal is evaluated in accordance with its fiduciary duties.

The company has explicitly stated that its stockholders do not need to take any action regarding this proposal at this time. As the process moves forward, Repay Holdings Corporation (NASDAQ:RPAY) is being advised by JPMorgan Securities LLC on the financial front, with legal counsel provided by Troutman Pepper Locke LLP and Sullivan & Cromwell LLP.

Forager Capital Management is an existing stockholder of the payment processing firm. The board’s review process will determine the next steps for the company in response to this offer, maintaining a focus on corporate strategy and shareholder interests throughout the evaluation.

Repay Holdings Corporation (NASDAQ:RPAY) is a payment technology company offering integrated solutions that enable businesses to accept and send electronic payments, serving sectors such as personal loans, auto finance, and B2B through its Consumer and Business Payments segments.

6. Petco Health and Wellness Company Inc. (NASDAQ:WOOF)

Number of Hedge Fund Holders: 22

Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is one of the best value penny stocks to buy according to hedge funds. On June 3, Petco announced its FQ1 2026 financial results, reporting net sales of $1.5 billion and a return to positive comparable sales growth of 0.7%. CEO Joel Anderson noted that these results validate the company’s “Reach for the Sky” strategy, highlighting strong performance in its consumables and services businesses as key drivers of growth.

The company saw an increase in gross profit to $574.4 million and a significant rise in operating income, despite reporting a net loss of $15.1 million for the period. Additionally, Petco successfully reduced its total debt to $1.482 billion compared to the previous year and finished the quarter with $166.8 million in cash.

Following this strong start, Petco Health and Wellness Company Inc. (NASDAQ:WOOF) reaffirmed its full-year 2026 outlook while guiding for the second quarter. Management remains focused on strengthening retail fundamentals and improving profitability, noting that its current projections account for stable economic conditions, ongoing tariff impacts, and elevated fuel costs.

Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is a retailer of pet-oriented products and services, operating more than 1,500 stores across the US, Mexico, and Puerto Rico. The company provides services such as veterinary care, grooming, training, tele-health, and pet health insurance services, while its products include pet consumables and supplies.

5. Galiano Gold Inc. (NYSEAMERICAN:GAU)

Number of Hedge Fund Holders: 22

Galiano Gold Inc. (NYSEAMERICAN:GAU) is one of the best value penny stocks to buy according to hedge funds. On May 22, Galiano Gold announced that its Board of Directors approved amendments to the company’s proposed Omnibus Equity Incentive Plan. These changes, which reflect suggestions from Institutional Shareholder Services, ensure the plan aligns with Galiano’s current corporate policies and practices.

The revisions specifically mandate that certain actions, such as extending stock option terms, reducing exercise prices, or permitting the transfer of options, now require formal shareholder approval. These updates also place tighter restrictions on amendments related to non-employee director participation and the Board’s discretionary power to modify the plan without investor input.

Galiano Gold Inc. (NYSEAMERICAN:GAU) filed the amended plan with both SEDAR+ and the US Securities and Exchange Commission, replacing the previous version issued in April. Shareholders will be asked to vote on the revised plan at the Annual General & Special Meeting scheduled for June 11, with the Board recommending a vote in favor.

Galiano Gold Inc. (NYSEAMERICAN:GAU), headquartered in Vancouver, Canada, was established in 1999. The company is engaged in the acquisition and exploration of mineral resources, with a primary focus on the Asanko Gold Mine in West Africa.

4. Yext Inc. (NYSE:YEXT)

Number of Hedge Fund Holders: 24

Yext Inc. (NYSE:YEXT) is one of the best value penny stocks to buy according to hedge funds. On June 2, Yext reported its financial results for FQ1 2027, which ended April 30. The company achieved $107.9 million in revenue and an Adjusted EBITDA of $26.9 million, representing a 25% margin. Additionally, Yext reported an ARR of $440.8 million and a basic net income per share of $0.02.

During the quarter, Yext Inc. (NYSE:YEXT) completed a tender offer that resulted in the repurchase of 24.3 million shares for $140 million and increased its separate open-market share repurchase authorization by $100 million. CEO Michael Walrath emphasized that the company’s structural efficiency and strong cash generation support its evolution as an infrastructure layer for brands deploying autonomous AI agents.

Looking ahead, management plans to leverage its cash position to fund internal research and development, pursue strategic acquisitions, and continue returning capital to shareholders. The company noted growth in its higher-value customer segment (those with ARR of $50,000 or more) as a key indicator of its long-term market potential.

Yext Inc. (NYSE:YEXT) offers a platform that responds to consumer inquiries around the globe. The cloud-based platform provides businesses with a centralized solution that includes controlling the content landing pages, managing customer reviews, and updating their content, among other things. It also offers professional customization of the platform.

3. N-Able Inc. (NYSE:NABL)

Number of Hedge Fund Holders: 25

N-Able Inc. (NYSE:NABL) is one of the best value penny stocks to buy according to hedge funds. On June 23, N-able launched Shadow AI Visibility across its N-central, N-sight, and Adlumin platforms to help organizations track and manage unauthorized AI tool usage. This tool provides identity-attributed insights into how AI applications and services are being used across endpoints without needing extra infrastructure. By closing this security blind spot, it enables IT and security teams to improve governance, compliance, and responsible AI adoption.

Furthermore, on June 2, N-able announced its flagship customer conference, Empower 2027, scheduled for September 20–22, 2027, in Scottsdale, Arizona. The event will gather IT professionals and managed service providers from around the world to focus on critical industry themes, including cybersecurity, automation, and AI. To make this experience more accessible, the company is simultaneously launching a global regional series titled “Empower on the Move.”

These events will take place in major cities, including Manchester, Frankfurt, Johannesburg, and Melbourne, beginning in June 2026. Unlike traditional roadshows, these regional gatherings will feature hands-on technical training, executive participation, and localized programming. By expanding the Empower experience, N-Able Inc. (NYSE:NABL) aims to foster stronger peer collaboration and provide actionable business strategies that customers can implement immediately within their own organizations.

N-Able Inc. (NYSE:NABL) is a Massachusetts-based global software company that offers enterprise-oriented services, including backup and data protection, remote monitoring and management, threat hunting, and others to small- and medium-sized businesses.

2. Clarivate (NYSE:CLVT)

Number of Hedge Fund Holders: 30

Clarivate (NYSE:CLVT) is one of the best value penny stocks to buy according to hedge funds. On May 29, Clarivate Plc introduced IPOne, a unified intelligence platform designed to integrate purpose-built AI agents with proprietary data to streamline intellectual property research and workflows. Developed in partnership with corporate IP teams and law firms, the platform supports complex processes such as patent discovery, trademark clearance, and litigation analysis.

The system allows users to use Clarivate’s (NYSE:CLVT) trusted data sets (including Derwent, Darts-ip, and CompuMark) directly within their existing workflows. By combining this curated intelligence with AI, the platform aims to enhance decision-making and help organizations maximize the value of their IP assets.

IPOne also uses Model Context Protocols/MCPs to securely connect with enterprise AI tools and LLMs. This integration allows organizations to embed authoritative data into their own systems, ensuring that AI-driven decisions remain transparent and under internal control.

Clarivate (NYSE:CLVT) is a technology company with services covering global information, analytics, and workflow solutions. The company has 3 segments: academia and government, oriented towards research & analytics, content aggregation, and AI-powered workflow software solutions; IP, which handles IP management software; and life sciences & healthcare, which focuses on R&D tools.

1. Kosmos Energy Ltd. (NYSE:KOS)

Number of Hedge Fund Holders: 43

Kosmos Energy Ltd. (NYSE:KOS) is one of the best value penny stocks to buy according to hedge funds. On June 17, Kosmos Energy announced the completed sale of its interests in the Ceiba Field and Okume Complex in Equatorial Guinea to Panoro Energy. The transaction resulted in a final cash payment of approximately $127 million, with the potential for an additional $40 million in contingent payments based on future oil prices and production levels.

The proceeds from this sale will be utilized to pay down debt under the company’s reserves-based lending facility. Furthermore, the divestment allows Kosmos to remove a $140 million asset retirement obligation from its balance sheet, enhancing the company’s overall financial resilience and liquidity.

By exiting these high-cost production assets, Kosmos Energy Ltd. (NYSE:KOS) aims to focus its capital and resources on higher-value projects. The company plans to release updated full-year 2026 guidance during its Q2 earnings announcement in August to reflect the impact of this completed transaction.

Kosmos Energy Ltd. (NYSE:KOS), an independent oil and gas company, focuses on offshore exploration, development, and production.

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