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.
Image: Depositphotos
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.
8. TELUS International (Cda) Inc. (NYSE:TIXT)
Number of Hedge Fund Holders: 24
Forward P/E: 12.56
With significant hedge fund interest, TELUS International (Cda) Inc. (NYSE:TIXT) secures a spot on our list of the 10 Cheapest Penny Stocks to Buy Now.
On September 25, 2025, Scotiabank raised its price target on TELUS International (Cda) Inc. (NYSE:TIXT) from $3.40 to $4.50.
The price revision follows TELUS Corporation’s agreement on September 2 to fully acquire TELUS International (Cda) Inc. (NYSE:TIXT). The revised target reflects the proposed acquisition price, which is roughly 32% higher than the initial offer price from the acquirer. Amid optimism about the deal, the company’s stock price has shown significant gains prior to Scotiabank’s price revision.
The investment firm believes the deal closure is the best possible outcome for TELUS International (Cda) Inc. (NYSE:TIXT)’s shareholders in the short term, especially given current macroeconomic conditions and the company’s client relations with TELUS Corporation.
TELUS International (Cda) Inc. (NYSE:TIXT) delivers digital customer and AI-driven solutions globally, including cloud and automation services, trust and safety, and AI data solutions. It is one of the 10 Cheapest Penny Stocks to Buy Now.
7. Companhia Energetica De Minas Gerais (NYSE:CIG)
Number of Hedge Fund Holders: 12
Forward P/E: 8.99
Companhia Energetica De Minas Gerais (CIG) is one of the 10 Cheapest Penny Stocks to Buy Now.
On September 3, 2025, Companhia Energetica De Minas Gerais (NYSE:CIG) released its earnings report for the second quarter of 2025.
Companhia Energetica De Minas Gerais (NYSE:CIG) reported a 15% increase in adjusted EBITDA, taking it to $430 million, while sustaining a healthy net cash position of $585 million. Furthermore, distributed generation grew 20% year-over-year (YoY), which offset the 3.3% drop in energy distribution. Meanwhile, strategic investments energized nine substations and added 2,600 kilometers of new networks.
Having grown its revenue by 10.8% over the past year, Companhia Energetica De Minas Gerais (NYSE:CIG) remains focused on regional infrastructure expansion within Minas Gerais, enhancing efficiency and grid resilience. Moreover, the company outlined a $10.7 billion investment plan through 2029, which is expected to expand distribution infrastructure and automation, while exploring concession renewals for its power plants.
Companhia Energetica De Minas Gerais (NYSE:CIG), a Brazilian energy company, is focused on the generation, transmission, distribution, and sale of electricity, as well as gas and related derivatives. It is one of the 10 Cheapest Penny Stocks to Buy Now.
6. Playtika Holding Corp. (NASDAQ:PLTK)
Number of Hedge Fund Holders: 25
Forward P/E: 6.58
Playtika Holding Corp. (NASDAQ:PLTK) is one of the 10 Cheapest Penny Stocks to Buy Now.
On September 17, 2025, Playtika Holding Corp. (NASDAQ:PLTK) reached its new 52-week low of $3.51, continuing on its downward trajectory.
This follows the weaker-than-expected second-quarter results and price target cut by UBS earlier in the month. UBS reduced its price target on Playtika Holding Corp. (NASDAQ:PLTK) from $5.50 to $4.00, maintaining a ‘Neutral’ rating. The investment firm cited slower growth in key social casino titles like Slotomania and a reduced 2025 revenue outlook of roughly 3.5% below prior guidance.
Despite these challenges, UBS noted Playtika Holding Corp. (NASDAQ:PLTK) remains focused on its EBITDA targets while shifting more sales to direct-to-consumer channels, expected to reach 40% in the long term, up from 25% today.
Playtika Holding Corp. (NASDAQ:PLTK) is engaged in the development and distribution of mobile games globally. It is one of the 10 Cheapest Penny Stocks to Buy Now.
5. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 27
Forward P/E: 7.59
B2Gold Corp. (NYSE:BTG) is one of the 10 Cheapest Penny Stocks to Buy Now.
On September 22, 2025, B2Gold Corp. (NYSE:BTG) reached its new 52-week high of $4.60.
This rally is attributed to strong investor confidence amid favorable gold prices, 11.8% revenue growth, and a 59% gross profit margin. Furthermore, B2Gold Corp. (NYSE:BTG) reaffirmed its 2025 consolidated production guidance of 970,000-1,075,000 ounces across its operations.
At the same time, commissioning at B2Gold Corp. (NYSE:BTG)’s new Goose Mine is progressing, with throughput reaching about 75% of its 4,000-ton-per-day target. Meanwhile, the Fekola, Masbate, and Otjikoto mines continue to meet operational expectations. The company also reaffirmed its 2025 gold production for the Fekola mine, and the Otjikoto Mine continued to exceed expectations into the third quarter.
B2Gold Corp. (NYSE:BTG), a Canadian gold producer, operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, the Otjikoto Mine in Namibia, and the newly commissioned Goose Mine in Canada. It is one of the 10 Cheapest Penny Stocks to Buy Now.
4. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 29
Forward P/E: 13.25
With significant hedge fund interest, Nokia Oyj (NYSE:NOK) secures a spot on our list of the 10 Cheapest Penny Stocks to Buy Now.
On September 25, 2025, Nokia Oyj (NYSE:NOK) announced that it has entered into a strategic partnership with Nscale to accelerate the build-out of AI infrastructure.
With this deal, Nokia Oyj (NYSE:NOK) becomes Nscale’s preferred partner for AI-ready data center deployments globally. Furthermore, Nokia joins other investors in Nscale’s Series B round to support global expansion. Both companies will co-develop innovations in networking stacks for AI clusters and collaborate on joint deployment initiatives.
Meanwhile, on September 22, 2025, VodafoneThree awarded Nokia Oyj (NYSE:NOK) and Ericsson a $2.7 billion 5G equipment contract. This marks Nokia’s return as a supplier in the U.K. market.
Under the deal, Nokia Oyj (NYSE:NOK) will provide radio access network and core network equipment to about 7,000 sites as Vodafone Three plans to invest $14.74 billion over the next decade to build one of Europe’s most advanced 5G networks.
Nokia Oyj (NYSE:NOK), a Finland-based technology company, delivers mobile, fixed, and cloud network solutions globally. It is one of the 10 Cheapest Penny Stocks to Buy Now.
3. Alight Inc. (NYSE:ALIT)
Number of Hedge Fund Holders: 30
Forward P/E: 5.03
With significant hedge fund interest, Alight Inc. (NYSE:ALIT) secures a spot on our list of the 10 Cheapest Penny Stocks to Buy Now.
On September 17, 2025, Alight Inc. (NYSE:ALIT) announced that it had added Sword Health to its Alight Partner Network. With this addition, the company brings the musculoskeletal (MSK) and mental health AI care platform into the Alight Worklife ecosystem.
According to Alight Inc. (NYSE:ALIT), the partnership is expected to help employers cut costs while giving employees personalized tools for chronic pain care, prevention, pelvic health, and mental health support. Real-time biofeedback powered by computer vision is delivered by Sword Health’s FDA-listed devices, with programs adjusted after each session according to user progress.
Alight Inc. (NYSE:ALIT), a technology-enabled services company, provides Alight Worklife, which is a cloud-based employee engagement platform. It is one of the 10 Cheapest Penny Stocks to Buy Now.
2. Clarivate PLC (NYSE:CLVT)
Number of Hedge Fund Holders: 33
Forward P/E: 5.74
Clarivate PLC (NYSE:CLVT) is one of the 10 Cheapest Penny Stocks to Buy Now.
On September 25, 2025, Clarivate PLC (NYSE:CLVT) announced its 2025 Citation Laureates, unveiling 22 researchers globally whose pioneering work spans leukemia research, appetite regulation, quantum computing, green chemistry, and the economics of inequality. Since its inception, 83 Citation Laureates have won Nobel Prizes, reflecting the program’s predictive power and Clarivate PLC (NYSE:CLVT)’s influence in global research metrics.
Meanwhile, on September 3, 2025, Wolfe Research initiated coverage on Clarivate PLC (NYSE:CLVT) with a “Peer Perform” rating and a year-end fair value range of $4-$5.
The investment firm cited Clarivate PLC (NYSE:CLVT)’s strong market position despite slower stock performance. Furthermore, Wolfe Research highlighted risks such as tighter academic budgets and AI disintermediation.
Clarivate PLC (NYSE:CLVT), a global information services provider, operates and delivers data-driven intelligence and analytics across the Americas, EMEA, and Asia Pacific. It is one of the 10 Cheapest Penny Stocks to Buy Now.
1. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 33
Forward P/E: 9.12
Coty Inc. (NYSE:COTY) is one of the 10 Cheapest Penny Stocks to Buy Now.
On September 22, 2025, Hagens Berman, which is a shareholder-rights law firm, launched an investigation into Coty Inc. (NYSE:COTY).
This follows a 21% stock drop on August 21 when Coty Inc. (NYSE:COTY) cited “retailer inventory destocking issues” in its weak Q4 and full-year results. The investigation aims to determine whether the company misled investors about its growth trajectory and the effectiveness of its SAP S/4HANA digital inventory strategy.
Meanwhile, on September 10, 2025, Berenberg reduced the price target on Coty Inc. (NYSE:COTY) from $6.50 to $5.05. The price revision reflects weaker sales growth expectations, reduced FY2026 EPS forecasts, and pressure on margins from tariff headwinds and the restoration of variable compensation.
Coty Inc. (NYSE:COTY), one of the world’s largest beauty companies, manufactures and markets fragrances, color cosmetics, and skin and body care products across the globe. It is one of the 10 Cheapest Penny Stocks to Buy Now.
While we acknowledge the potential of COTY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COTY and that has 100x upside potential, check out our report about this cheapest AI stock.
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