On March 4, Eddie Ghabour from Key Advisors Wealth Management appeared on a Schwab Network interview to discuss the buying opportunities in the market. Eddie sees the current market selloffs as buying opportunities, as he believes that 2026 is set to be a strong year driven by a strong US economy. He told Schwab Network that his firm is advising clients to be underweight on Technology and invest in other stronger areas of the market.
Eddie noted that one of the sectors Key Advisors Wealth Management has been buying in downturns is industrials, as the firm expects the global economy to accelerate in the coming months. Moreover, the firm also likes small caps and notes the sector to be one of the biggest winners for clients. However, he cautioned that small-caps are not for the “faint of heart” as it can be difficult to buy during price declines..
With that, let’s take a look at the 10 Low Risk Penny Stocks to Buy Now.
Our Methodology
We used screeners to identify stocks that are trading below $5 per share with a beta value below 1.0, and 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Low Risk Penny Stocks to Buy Now
10. Grab Holdings Limited (NASDAQ:GRAB)
Grab Holdings Limited (NASDAQ:GRAB) is one of the Low Risk Penny Stocks to Buy Now. On February 20, Morgan Stanley analyst Divya Gangahar maintained a Buy rating on Grab Holdings Limited (NASDAQ:GRAB) without disclosing any price targets.
The analyst said in a research note that her bullish rating is based on the improved competitive edge and strategic positioning of the company. She highlighted that the exit of DoorDash from Singapore and other markets enhances the company’s market dominance in Singapore’s food delivery, where it leads and continues gaining market share.
The analyst forecasts sustained 20% revenue growth, paired with major gains in EBITDA and free cash flow, signaling Grab’s shift to robust profitability. She also highlighted that new verticals, including grocery delivery and financial services, remain undervalued in the current stock price, offering additional upside for the company.
Grab Holdings Limited (NASDAQ:GRAB) offers a superapp in Southeast Asia, providing services across deliveries, mobility, and digital financial services. The company serves millions of consumers in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
9. Enel Chile S.A. (NYSE:ENIC)
Enel Chile S.A. (NYSE:ENIC) is one of the Low Risk Penny Stocks to Buy Now. On March 5, Enel Chile S.A. (NYSE:ENIC) announced signing a new partnership with Chile’s National Disaster Prevention and Response Service (Senapred) to improve emergency response handling. The main area of focus for this collaboration is on the growing impact of extreme climate events on infrastructure related to power supply.
Management noted that through this public–private partnership, both entities will set up structured models for coordination between Enel and Senapred. This includes an annual work plan, which covers the full emergency cycle from preparation to recovery. Both entities will coordinate within their respective areas of expertise. They will carry out joint planning, run shared training sessions, and improve risk communication so that both institutions and the public are better prepared for contingencies.
Enel Chile S.A. (NYSE:ENIC) also highlighted that the agreement will leverage existing Disaster Risk Management Committees (COGRID), at national and regional levels, allowing the company to stay informed of the state’s emergency management.
Enel Chile S.A. (NYSE:ENIC) is a leading Chilean electricity utility company that operates through three core segments, including generation, distribution, and other energy-related services. Its notable projects include the Los Cóndores Hydroelectric Plant.
8. Ultrapar Participações S.A. (NYSE:UGP)
Ultrapar Participações S.A. (NYSE:UGP) is one of the Low Risk Penny Stocks to Buy Now. On March 4, Ultrapar Participações S.A. (NYSE:UGP) reported its fiscal Q4 2025 earnings.
The company reported quarterly revenue of $6.66 billion, surpassing estimates of $6.51 billion. The EPS of $0.0713 was largely in line with the expectations of $0.071. Management noted achieving a record operational cash flow of BRL 5.5 billion and record quarterly recurring adjusted EBITDA during the quarter. However, the net income for the quarter fell 71% year-over-year to BRL 256 million. This was mainly impacted by BRL 183 million in non-recurring expenses, higher depreciation, and amortization from recent acquisitions. Despite this quarterly decline, full-year 2025 net income grew 1% year-over-year to BRL 2,542 million.
Looking ahead, Ultrapar Participações S.A. (NYSE:UGP) expects EPS of $0.46 for fiscal 2026 and $0.42 for fiscal 2027, while the revenue is forecasted to reach $26.52 billion and $26.72 billion, respectively.
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian conglomerate primarily engaged in the distribution and retail of automotive fuels and related products.
7. Cosan S.A. (NYSE:CSAN)
Cosan S.A. (NYSE:CSAN) is one of the Low Risk Penny Stocks to Buy Now. On March 4, Reuters reported that Cosan S.A. (NYSE:CSAN)’s joint venture with Shell Plc, Raizen, is reviewing a 4 billion real ($765 million) capital injection by Shell Plc and 500 million from an investment vehicle tied to Cosan’s controlling shareholder, Rubens Ometto.
The report noted that Shell has confirmed its proposal, while Cosan has offered 1.5 billion reais, including the 500 million reais from Ometto, but couldn’t match Shell’s injection, leaving its stake vulnerable to dilution. The report noted that this could potentially give control to Shell. Moreover, Raízen has also pointed towards an out-of-court restructuring for a protected creditor dialogue, which can include incorporating debt-to-equity swaps and asset sales.
Raízen’s net debt increased to 55.3 billion reais ($10.5 billion) by the end of December 2025, due to heavy investments, erratic weather, wildfires, and reduced sugarcane crushing that triggered recent losses. The company warned of significant uncertainty in February 2026 as well.
Cosan S.A. (NYSE:CSAN) is engaged in the fuel distribution business and in the production of bioethanol, sugar, and energy. The company operates through five segments: Raízen, Compass, Moove, Rumo, and Radar.
6. Baytex Energy Corp. (NYSE:BTE)
Baytex Energy Corp. (NYSE:BTE) is one of the Low Risk Penny Stocks to Buy Now. On March 4, Baytex Energy Corp. (NYSE:BTE) announced its fiscal Q4 2025 results along with the strategic transformation into a pure-play Canadian operator.
The company reported quarterly revenue of $534.08 million, reflecting 24% year-over-year decline and missing estimates by $9.36 million. The EPS came in at negative $0.82 and missed estimates by $0.73. Management noted the successful divestiture of the Eagle Ford, making it a Canadian oil producer. The company enters fiscal 2026 with $857 million in cash, less bonds, and a fully undrawn $750 million credit facility.
Operationally, the company delivered an annual production of 65,500 BOE per day, representing 6% organic growth. Moreover, the fourth quarter from Duvernay assets came in at 10,600 BOE per day, reflecting a 46% year-over-year increase. Looking ahead, management maintained its annual guidance of 67,000 BOE per day to 69,000 BOE per day, indicating 3% to 5% organic growth.
Baytex Energy Corp. (NYSE:BTE) is a Calgary-based upstream oil and gas company focused on the acquisition, development, and production of crude oil and natural gas, primarily operating in the Western Canadian Sedimentary Basin.
5. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Low Risk Penny Stocks to Buy Now. On February 27, Bank of America Securities reiterated a Hold rating on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) but lowered the price target from $7 to $6.
The firm said in a research note that the company has yet to prove that its AI‑driven operating system can reliably generate differentiated drug candidates and meaningful patient outcomes. BofA noted that Recursion can do this through repeated wins in clinical trials. The firm highlighted that FAP data readout for REC‑4881 is a solid start; however, the clinical data from the program is expected to materialize in 2027.
BofA noted that the company’s cash burn discipline and partnership remain positive components, but upcoming pipeline readouts are considered the main catalysts for building more confidence in the market.
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) operates as a clinical-stage biotechnology company that decodes biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the US.
4. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the Low Risk Penny Stocks to Buy Now. On March 5, UBS analyst David Dai raised the firm’s price target on Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) from $2 to $4, while maintaining a Neutral rating on the stock.
The improved price target is based on fundamental improvements in fiscal Q4 2025; however, Amtagvi acceleration remains uncertain, said the analyst in his research note. The company reported fiscal Q4 2025 earnings on February 24. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) grew its quarterly revenue by 17.74% year-over-year to $86.77 million and topped estimates by $5.76 million. The EPS for the quarter came in at negative $0.18 but stayed in line with the consensus.
Management attributed growth to be driven by the commercialization of AMTAGVI in advanced melanoma. The drug witnessed accelerated uptake across both academic and community treatment centers. Full-year product revenue reached $264 million, driven by a 112% year-over-year increase in AMTAGVI revenue.
Management noted that the fiscal 2026 revenue guidance will be provided in the near future.
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is a commercial-stage biopharmaceutical company that develops and commercializes cell therapies using autologous tumor-infiltrating lymphocytes for the treatment of metastatic melanoma and other solid tumor cancers in the US and internationally.
3. Playtika Holding Corp. (NASDAQ:PLTK)
Playtika Holding Corp. (NASDAQ:PLTK) is one of the Low Risk Penny Stocks to Buy Now. On March 5, Roth Capital lowered the firm’s price target on Playtika Holding Corp. (NASDAQ:PLTK) from $4 to $3, while maintaining a Hold rating on the stock.
The rating is based on the company’s fiscal Q4 2025 earnings reported on February 26. The analyst said in a research note that he anticipates 2026 to be another year of no growth for the company. However, he still views the margin expansion positively, driven by contributions from the SuperPlay acquisition and rising direct-to-consumer revenues.
The company topped revenue estimates in fiscal Q4, driven by strong performance by SuperPlay and record DTC contribution from casual portfolio. The revenue grew 4.44% year-over-year to $678.8 million and topped estimates by $16.9 million.
Management has forecasted fiscal 2026 revenue to be around $2.75 billion at mid-point and expects adjusted EBITDA in the range of $730 million – $770 million.
Playtika Holding Corp. (NASDAQ:PLTK) is a developer and publisher of free-to-play mobile games, known for titles such as Slotomania, Bingo Blitz, and June’s Journey. The company primarily generates revenue through in-app purchases of virtual items and digital currency within its games.
2. Osisko Development Corp. (NYSE:ODV)
Osisko Development Corp. (NYSE:ODV) is one of the Low Risk Penny Stocks to Buy Now. On March 2, Osisko Development Corp. (NYSE:ODV) announced resuming activities at its Cariboo Gold Project in British Columbia.
The Cariboo Gold Project was temporarily suspended in January 2026 after an isolated, tragic incident at the surface. Management noted that they have worked with regulators to ensure employee and contractor safety. The company has resumed surface and underground activity in phases. More than 250 personnel are working at the site, which reflects the normal operating level at the current stage.
Management also updated regarding the current developmental progress, noting that the Bonanza Ledge water treatment plant is close to full operation, while the underground development has reached 2.1 kilometers from the Cow Portal. The Cariboo Gold Project is the company’s 100% owned flagship project that covers roughly 192,000 hectares.
Osisko Development Corp. (NYSE:ODV), founded in 2006 and headquartered in Montreal, acquires, explores, and develops precious metals properties across North America. Its portfolio provides exposure to gold and other key metals, positioning the company to benefit from a supportive commodity price environment as it advances toward production.
1. Cronos Group Inc. (NASDAQ:CRON)
Cronos Group Inc. (NASDAQ:CRON) is one of the Low Risk Penny Stocks to Buy Now. On February 26, Cronos Group Inc. (NASDAQ:CRON) reported its fiscal Q4 2025 earnings. The company posted $44.53 million in quarterly revenue, up 47.1% year-over-year and ahead of expectations by $5.78 million.
Management attributed revenue growth to be driven by strong demand for its leading brands, the completion of Cronos GrowCo expansion, and increased contribution from international markets. Notably, gross profit for the quarter came in at $16.2 million, reflecting an increase of $5.4 million year-over-year. Management noted the increased profitability to be led by a higher average selling price due to a better sales mix from Israel and other international countries.
Looking ahead, Cronos Group Inc. (NASDAQ:CRON) is positive about its acquisition of CanAdelaar, which will mark its entry into the European market.
Founded in 2012 and headquartered in Toronto, Cronos Group Inc. (NASDAQ:CRON) is a cannabinoid company that cultivates, produces, and markets cannabis products globally. It sells a range of products such as dried flowers, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under its brands such as Spinach, Lord Jones, and PEACE NATURALS.
While we acknowledge the potential of CRON 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 CRON and that has 100x upside potential, check out our report about this cheapest AI stock.
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