In this article, we will look at the 10 High-Flying Penny Stocks to Buy.
On March 17, Jim Stoeffel and Andrew Palen, Portfolio Managers at Royce Investment Partners, released a research report discussing how micro-caps can stay on top. The report noted that micro-caps have been on an impressive bull run since the April lows in 2025, continuing through February 2026. Notably, the Russell Microcap index has surged 74.5% from April 8, 2025, to February 28, 2026, compared to the 39.7% gains of the Russell 1000 and 39.6% of the S&P 500.
The portfolio managers noted that the key reason behind sustained market leadership of the micro and small-caps is due to the better relative earnings growth driven by a strong US economy. Moreover, the performance has also been driven by the tougher comparisons for Mag 7 stocks due to inflated earnings expectations on AI capital expenditure. The portfolio managers at Royce Investment expect the performance trend from 2025 to continue in 2026 as well.
With that, let’s take a look at the 10 High-Flying Penny Stocks to Buy.
Our Methodology
We used screeners to identify penny stocks (stock price under $5) trading within 0% to 10% of their 52-week highs. We 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.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 High-Flying Penny Stocks to Buy
10. Acacia Research Corporation (NASDAQ:ACTG)
Number of Hedge Fund Holders: 10
Acacia Research Corporation (NASDAQ:ACTG) is one of the High-Flying Penny Stocks to Buy. On March 12, Craig-Hallum analyst Anthony Stoss raised the firm’s price target on Acacia Research Corporation (NASDAQ:ACTG) from $5 to $6, while keeping a Buy rating on the stock.
The analyst noted that the company trades below its diluted book value per share. This presents an attractive entry point and potential undervaluation despite mixed end-market conditions. Moreover, the analyst also pointed out progress at Benchmark Energy, which is a subsidiary of Acacia Research Corporation (NASDAQ:ACTG). Stoss noted that the subsidiary drilled its first Cherokee oil well and is expected to start production in late March 2026. The analyst believes that this can boost overall production by about 10%, with plans for up to three additional wells in the region this year.
In separate news, Acacia Research Corporation (NASDAQ:ACTG) released its fiscal Q4 2025 results on March 11. The company grew its quarterly revenue by 2.63% year-over-year to $50.13 million and topped expectations by $12.13 million. Moreover, the EPS of $0.03 also topped consensus by $0.17.
Acacia Research Corporation (NASDAQ:ACTG) acquires and operates businesses in industrial, energy, and technology sectors. Its IP Operations segment invests in intellectual property assets for licensing and enforcement of patented technologies.
9. Ocugen, Inc. (NASDAQ:OCGN)
Number of Hedge Fund Holders: 14
Ocugen, Inc. (NASDAQ:OCGN) is one of the High-Flying Penny Stocks to Buy. On March 11, Ocugen, Inc. (NASDAQ:OCGN) was initiated with an Outperform rating and a $10 price target at Oppenheimer.
The firm noted that they find the company to be an upcoming leader in gene therapy for blinding ocular disorders. Oppenheimer highlighted the company’s lead asset OCU400, which is currently in Phase 3 trials for retinitis pigmentosa.
Retinitis pigmentosa is a disease affecting vision. OCU400 targets retinitis pigmentosa with a gene-agnostic approach that could treat multiple genetic mutations, unlike narrower therapies.
The firm noted that a potential approval for OCU400 can offer a near-term opportunity for the company to enter a sizable, underserved rare disease market.
Moreover, the firm also noted that two other programs for progressively degenerative retinal diseases are in development. Therefore, management is expecting three FDA applications over the next 3 years.
Ocugen, Inc. (NASDAQ:OCGN) is a clinical-stage biotechnology company focused on developing novel gene and cell therapies, biologics, and vaccines to treat retinal diseases and support public health.