In this article, we will look at the 10 Hot Penny Stocks to Invest in Now.
CNBC reported that consumer prices rose 2.7% year-over-year in June, suggesting that President Trump’s tariffs are starting to be felt across the economy. While the numbers were largely in line with expectations, June’s reading was well above the Federal Reserve’s 2% target.
On July 17, Andy Constan, CEO of Damped Spring Advisors, appeared on CNBC’s ‘Fast Money’ to discuss the effects of the Federal Reserve setting policies based on President Trump’s will.
Constan stated that President Trump wants the rates to be much lower, which is why he wants the Fed to do something that they don’t consider good policy. According to him, Trump “wants the Fed to bend to his will,” which is to “cut short rates a lot.”
READ ALSO: 13 Cheap Stocks Under $50 to Buy Now and 12 Oversold NASDAQ Stocks to Buy Now.
He added that while he understands the math behind cutting 150 basis points, which would save the government $100 billion and reduce the deficit, doing so would make the Fed a non-independent entity.
Constan says that if this materializes, it would badly hurt the US dollar, as investors here and abroad would not expect the Fed to conduct policies even-handedly, expecting more debasement of the currency. He further stated:
“Inflation expectations would rise as a weak dollar and easy monetary policy would stimulate asset speculation and perhaps turbocharge real economic growth. That would cause the long end, treasury yields, and mortgages to rise, perhaps a lot, and that wouldn’t be what Trump wants.”
With these trends in view, let’s look at the top hot penny stocks to invest in now.
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Our Methodology
We used Finviz to compile a list of the best-performing penny stocks (stocks priced below $5) and selected the top 10 with the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on July 18.
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 Hot Penny Stocks to Invest in Now
10. MEI Pharma, Inc. (NASDAQ:MEIP)
Stock Price: $4.50
Performance Last Month: 101.79%
Number of Hedge Fund Holders: 3
MEI Pharma, Inc. (NASDAQ:MEIP) is one of the hot penny stocks to invest in now. On July 18, MEI Pharma, Inc. (NASDAQ:MEIP) announced securities purchase agreements for a private investment in public equity (PIPE) for the sale and purchase of 29,239,767 shares of common stock at a price of $3.42 per share.
The expected aggregate gross proceeds for the transaction come up to approximately $100 million before the exclusion of placement agent fees and other estimated offering expenses.
MEI Pharma, Inc. (NASDAQ:MEIP) has plans to use all of the net proceeds for the launch of its treasury strategy focused on Litecoin. The transaction is thus a notable milestone for the company’s long-term strategic plan, establishing MEI Pharma, Inc. (NASDAQ:MEIP) as the first and only publicly traded company to adopt Litecoin as a treasury reserve asset.
Often referred to as “silver to Bitcoin’s gold,” Litecoin is a peer-to-peer cryptocurrency that Charlie Lee created in October 2011. The integration of Litecoin into its treasury operations has allowed MEI Pharma, Inc. (NASDAQ:MEIP) access to a decentralized monetary asset that complements its cash management framework.
MEI Pharma, Inc. (NASDAQ:MEIP) is a pharmaceutical company that develops pharmaceutical compounds. Its programs include Voruciclib and ME-344.
9. Offerpad Solutions Inc. (NYSE:OPAD)
Stock Price: $2.23
Performance Last Month: 127.11%
Number of Hedge Fund Holders: 3
Offerpad Solutions Inc. (NYSE:OPAD) is one of the hot penny stocks to invest in now. On May 6, Offerpad Solutions Inc. (NYSE:OPAD) announced a strategic partnership with Auction.com, a leading online marketplace, to transform the process of buying and selling homes.
The two companies have joined hands to align their capabilities and strengths to deliver improved value, care, and speed to buyers and sellers.
As part of the partnership, Offerpad Solutions Inc.’s (NYSE:OPAD) Renovate division would become the preferred partner of renovation services for buyers, ranging from institutions acquiring properties to local community developers.
This complements Offerpad Solutions Inc.’s (NYSE:OPAD) renovation experience with Auction.com’s marketplace scale, allowing buyers to transform their acquired properties more easily and quickly.
In addition, Auction.com’s SmartSale platform would also expand Offerpad Solutions Inc.’s (NYSE:OPAD) ability to offer competitive offers through increased buyer reach.
Offerpad Solutions Inc. (NYSE:OPAD) operates a real estate platform that enables customers to easily buy and sell properties using a mobile device.
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