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.
8. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Number of Hedge Fund Holders: 14
Olaplex Holdings, Inc. (NASDAQ:OLPX) is one of the High-Flying Penny Stocks to Buy. On March 10, Morgan Stanley reiterated an Equalweight rating on the stock with a price target of $1.40. The rating follows the company’s fiscal Q4 2025 earnings, which were reported on March 5, 2025.
Olaplex Holdings, Inc. (NASDAQ:OLPX) grew its quarterly revenue by 4.35% year-over-year to $105.12 million and topped expectations by $764,140. The EPS of $0.01 stayed in-line with the consensus. The quarterly performance was led by holiday demand in professional and direct-to-consumer channels. The adjusted EBITDA margins were also down to 12.2% in Q4 2025 compared to 17.4% in the previous year.
The 2026 guidance was also softer as management expects negative 2% to positive 3% net sales growth with adjusted gross margins in the range of 71% to 72%. Morgan Stanley highlighted lowering its fiscal 2026 and 2027 adjusted EBITDA estimates by 2% each as it sees low visibility into sustained topline growth.
Olaplex Holdings, Inc. (NASDAQ:OLPX) develops and sells patented bond-building haircare products that repair disulfide bonds damaged by chemical services like coloring and bleaching.
7. OPKO Health, Inc. (NASDAQ:OPK)
Number of Hedge Fund Holders: 16
OPKO Health, Inc. (NASDAQ:OPK) is one of the High-Flying Penny Stocks to Buy. On March 12, Barrington lowered the firm’s price target on OPKO Health, Inc. (NASDAQ:OPK) from $2.25 to $1.50 and maintained a Buy rating on the stock.
The firm noted that although the company topped Street estimates for fiscal Q4 2025, the way it achieved the results is concerning. The firm highlighted that “other revenue largely saved the quarter, but this level of performance is not sustainable.”
The company reported fiscal Q4 2025 earnings on February 26. The revenue for the quarter declined 19.12% year-over-year to $148.5 million but topped consensus by $8.74 million. The EPS came in at negative $0.04 but exceeded expectations by $0.03.
Management noted that the diagnostic revenue for the quarter was $71.1 million, down from $103.1 million a year ago. The decrease was mainly due to the sale of some BioReference assets in 2025 and the resulting decline in clinical test volumes. This was slightly offset by the increased demand and higher average reimbursement for the 4Kscore test.
Looking ahead, OPKO Health, Inc. (NASDAQ:OPK) expects fiscal first quarter 2026 revenue in the range of $125 million to $140 million, while the full-year revenue is expected in the range of $530 million to $560 million.
OPKO Health, Inc. (NASDAQ:OPK) is a multinational biopharmaceutical and diagnostics company operating in pharmaceuticals and clinical lab services. Its pharmaceutical segment develops treatments like NGENLA (once-weekly growth hormone) and Rayaldee for kidney disease-related hyperparathyroidism, across global markets including the US and Latin America.
6. Ring Energy, Inc. (NYSEAMERICAN:REI)
Number of Hedge Fund Holders: 16
Ring Energy, Inc. (NYSEAMERICAN:REI) is one of the High-Flying Penny Stocks to Buy. On March 4, Ring Energy, Inc. (NYSEAMERICAN:REI) released its fiscal Q4 2025 earnings. The company posted a 19.84% year-over-year decline in revenue to $66.88 million. The quarterly revenue fell short of expectations by $4.47 million. The EPS of $0.02 stayed in-line with the consensus.
The company sold 13,124 barrels of oil per day in Q4, close to the mid-point of management’s guidance, and 20,508 barrels of oil equivalent per day, above the mid-point of guidance. Management noted that the fourth quarter production was impacted by a shutdown in a third-party gas plant, which impacted sales volumes as well. However, despite the headwind, management noted that the sale volumes were above the midpoint of its guidance range and contributed to full-year sales volume of 20,253 BOE per day.
Looking ahead at 2026, management expects flat sales with a production midpoint of 20,150 Boe/d and 12,950 Bo/d. Management noted that they plan to execute the disciplined capital spending program and expect full-year capital spending at the midpoint of $115 million.
Ring Energy, Inc. (NYSEAMERICAN:REI) is an independent oil and gas company focused on exploration, development, and production in the Permian Basin of Texas.
While we acknowledge the potential of REI 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 REI and that has 100x upside potential, check out our report about the cheapest AI stock.
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