In this article, we explore the 10 Cheapest Penny Stocks to Buy Now.
In the past week, U.S. markets closed on uneven footing, with stocks climbing on Friday but closing lower overall across the three major indexes. Following fresh inflation data, which largely met expectations, the S&P 500 and Nasdaq both snapped three-week winning streaks. The Fed’s preferred inflation measure, the Commerce Department’s personal consumption expenditures index, experienced a 0.3% monthly increase with a 2.7% annual rise. This confirmed that inflation was contained, while stronger-than-expected gains in personal income and consumer spending underscored ongoing economic resilience. As a result, investors are weighing growth signals against the Federal Reserve’s recent rate cut, the first since December, and the prospect of more easing ahead.
Furthermore, quarter-end positioning, a pending earnings season, and tariff-related developments are adding layers of uncertainty. Richmond Fed President Thomas Barkin highlighted the difficulty of predicting inflation amid trade pressures. Meanwhile, Vice Chair Michelle Bowman emphasized the need for decisive action to support weakening labor dynamics. At the same time, corporate moves further shaped sentiment.
Electronic Arts jumped 15% on privatization reports, truck maker Paccar soared on tariff news, and Eli Lilly closed higher. Still, risks such as a potential government shutdown and closely watched employment data keep market uncertainty intact.
With forward price-to-earnings (P/E) ratios often masking fragility and valuations stretched, investors are increasingly shifting focus toward opportunities in penny stocks. The cheaply priced stocks, which are often trading under $5, provide affordable entry points into emerging businesses.
Thus, in today’s uncertain backdrop, these cheapest penny stocks to buy now offer an opportunity to capture potential upside while balancing risks.
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Methodology:
To curate our list of the 10 Cheapest Penny Stocks to Buy Now, we used the Finviz screener to extract a list of stocks with a forward P/E ratio under 15x and a share price under $5. Next, we ranked these stocks in ascending order based on the number of hedge funds holding stakes in each stock, as of Q2 2025. We assessed the hedge fund sentiment surrounding these stocks using Insider Monkey’s database, which tracks nearly 1,000 hedge funds.
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. Cosan S.A. (NYSE:CSAN)
Number of Hedge Fund Holders: 12
Forward P/E as of September 24: 2.2
With significant hedge fund interest, Cosan S.A. (NYSE:CSAN) secures a spot on our list of the 10 Cheapest Penny Stocks to Buy Now.
On September 23, 2025, HSBC downgraded Cosan S.A. (NYSE:CSAN) from “Hold” to “Reduce”, cutting its price target from $1.5 to $1.13.
This price revision follows steep declines in the Cosan S.A. (NYSE:CSAN)’s key units’ stock prices. Raizen is down 22% and Rumo is down 15% in dollar terms over the past three months. Furthermore, the investment firm widened its conglomerate discount to 35% from 30%, reflecting dilution risks from recent equity offerings.
HSBC also highlighted potential medium- to long-term benefits, including reduced leverage, improved governance, and enhanced infrastructure investment. Still, the investment firm remains cautious about Cosan S.A. (NYSE:CSAN)’s short-term portfolio weakness.
With its Raizen Compass, Moove, Rumo, and Radar businesses, Cosan S.A. (NYSE:CSAN) operates in fuel distribution and energy markets. It is one of the 10 Cheapest Penny Stocks to Buy Now.
9. Taseko Mines Limited (NYSE:TGB)
Number of Hedge Fund Holders: 13
Forward P/E: 12.67
Taseko Mines Limited (NYSE:TGB) is one of the 10 Cheapest Penny Stocks to Buy Now.
On August 21, 2025, Taseko Mines Limited (NYSE:TGB) released its earnings report for the second quarter of 2025.
Taseko Mines Limited (NYSE:TGB) posted $116 million in revenue with an adjusted net loss of $0.04 per share, slightly missing analyst expectations. Despite the revenue shortfall, the company’s stock went up by 0.7% after hours to $4.26, reflecting investor confidence in operational progress.
Taseko Mines Limited (NYSE:TGB) highlighted its key developments, including the restart of the Gibraltar SXEW plant in British Columbia and the significant advancement of the Florence Copper project in Arizona. The company’s copper project in Arizona is expected to produce 40-50 million pounds of copper in its first year. The project boasts a $930 million after-tax NPV at $3.75 per pound of copper.
Looking ahead, Taseko Mines Limited (NYSE:TGB) remains well-positioned for growth with a strong cash balance of $122 million and total liquidity near $200 million, despite short-term revenue challenges.
Taseko Mines Limited (NYSE:TGB) is focused on acquiring, developing, and operating mineral properties, dealing in copper, molybdenum, gold, niobium, and silver. It is one of the 10 Cheapest Penny Stocks to Buy Now.
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