10 Must-Buy Penny Stocks to Invest In

7. Gaotu Techedu Inc. (NYSE:GOTU)

Year-To-Date Returns: 79.72%

Share Price: $3.90

Number of Hedge Fund Holders: 12

Gaotu Techedu Inc. (NYSE:GOTU) is one of the must-buy penny stocks to invest in. On August 26, the company reported second-quarter revenue of RMB1.39 billion ($215.5 million), beating analyst expectations of RMB1.24 billion and marking a 37.6% year-over-year increase. Gross billings rose 36.2% to RMB2.25 billion, driving the revenue surge. Despite the strong top-line performance, the company posted a loss of RMB0.88 per share, slightly below forecasts.

CEO Larry Xiangdong Chen attributed the company’s growth to innovation and AI, noting strong momentum in core operations. Non-GAAP net loss dropped 50.5% to RMB206.8 million, while operating cash inflow rose 52.5% to RMB588.8 million, signaling healthier finances.

Looking ahead, Gaotu expects Q3 revenue between RMB1.558 billion and RMB1.578 billion, representing up to 30.6% growth year-over-year. The company ended the quarter with a strong cash position of RMB3.82 billion, supporting its expansion and product development goals.

Gaotu Techedu Inc. (NYSE:GOTU) is a leading Chinese education technology firm offering academic and non-academic tutoring, college and adult education, and AI-powered learning tools. Its services span from primary school to adult learners, delivered through online platforms, mobile apps, and smart devices. The company is recognized for its data-driven approach and comprehensive curriculum encompassing traditional subjects and professional certifications.