In this piece, we will discuss the 10 Overlooked Penny Stocks to Buy Right Now.
Broader market forces are shaping the backdrop for smaller, overlooked names as investors weigh what comes next for stocks in the second half of 2026.
Reuters reported on June 30, 2026, that the U.S. stock market faces several tests to sustain its rally into the second half of 2026, including the durability of AI spending, a high bar for corporate earnings, and interest rate policy under a new Federal Reserve chairman. The S&P 500 has gained more than 8% this year, extending a bull run past three years, while the Nasdaq Composite has risen 11%, though both indexes pulled back in June.
AI infrastructure spending remains central to the rally, with five companies including Microsoft, Alphabet and Amazon projected to spend a combined $730 billion in capital expenditures this year, according to JPMorgan. Columbia Threadneedle’s Nicolas Janvier, head of North American equities, said the market has already priced in continued heavy spending, while Natixis portfolio strategist Garrett Melson warned that crowded positioning in AI-related trades leaves the market vulnerable to any shift in the narrative.
S&P 500 earnings are projected to climb more than 26% in 2026, according to LSEG IBES, with DWS’s David Bianco noting there is little room for disappointment. Meanwhile, mega IPOs from SpaceX, and expected listings from Anthropic and OpenAI, could test investor appetite to absorb new equity issuance. Newly installed Fed Chairman Kevin Warsh’s hawkish first meeting has also raised the prospect of near-term rate hikes, adding another variable for markets to navigate.
With that background in mind, we will not move to our list of the overlooked penny stocks to buy right now.
Our Methodology
To compile our list of overlooked penny stocks to buy, we screened for companies trading below $5 per share with analyst-implied upside potential of at least 20%. We then evaluated hedge fund ownership and selected stocks with relatively lower hedge fund participation than their industry peers, suggesting they remain underfollowed by institutional investors. Hedge fund data was sourced from Insider Monkey’s database of more than 1,000 hedge funds as of Q1 2026. The stocks are ranked in ascending order based on their upside potential.
Note: All data sourced on July 2, 2026.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF)
Number of Hedge Fund Holders: 22
Upside Potential: 24.08%
Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) ranks among the overlooked penny stocks to buy right now, supported by strong upside potential. A return to positive comparable sales is drawing a mixed but improving set of price target adjustments from Wall Street.
On June 3, 2026, Petco Health and Wellness Company, Inc. reported first-quarter 2026 results. Net sales rose 0.2% to $1.5 billion, with comparable sales up 0.7%, marking the company’s first positive comp in five quarters. Gross margin expanded 21 basis points to 38.4%, operating income rose 50.5% to $24.6 million, and adjusted EBITDA came in at $97.3 million versus $89.4 million a year earlier. Net loss widened to $15.1 million from $11.7 million.
Petco Health and Wellness Company, Inc.’s CEO Joel Anderson said the results validate the company’s “Reach for the Sky” strategy, citing improvement in consumables and continued strength in services. Petco reaffirmed its full-year 2026 outlook, guiding for adjusted EBITDA of $415 million to $430 million.
The earnings prompted several analyst responses.
On June 5, 2026, Goldman Sachs raised its price target on Petco Health and Wellness Company, Inc. to $4.14 from $3.83 while keeping a “Neutral” rating, calling the quarter an inflection point. On June 4, 2026, Evercore ISI’s Oliver Wintermantel raised the firm’s target to $3.50 from $3, keeping an “In Line” rating, saying more proof is still needed. That same day, Citi’s Steven Zaccone lowered the firm’s target to $3.25 from $4, maintaining “Neutral” and citing reduced EBITDA estimates against a weaker consumer backdrop.
The stock is down over 5% over the past year.
Petco Health and Wellness Company, Inc. is a comprehensive pet care retailer and services provider that focuses on improving the health and wellness of pets through products, services, and veterinary care. It operates pet care centers, offers online shopping with delivery options, and provides services such as grooming, training, and veterinary care, including vaccinations and surgery.
9. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 18
Upside Potential: 33.11%
Lithium Americas Corp. (NYSE:LAC), backed by significant analyst-implied upside, ranks among the overlooked penny stocks to buy right now. The company’s Thacker Pass project has drawn fresh Wall Street attention just as construction accelerates toward a 2027 startup, giving investors a new data point on how the market views the risk-reward setup.
On July 1, 2026, Goldman Sachs analyst Duffy Fischer initiated coverage of Lithium Americas Corp. with a “Neutral” rating and a $4.50 price target. Fischer’s note pointed to Thacker Pass as poised to become the first significant lithium capacity built in the United States, while also flagging ongoing risk tied to construction execution and operating efficiency.
That initiation followed an operational update Lithium Americas Corp. gave alongside its first-quarter 2026 results.
CEO Jonathan Evans said construction work is moving toward mechanical completion in late 2027, with more than 1,300 workers on site as of mid-May and headcount expected to top 2,000 at peak. As of March 31, 2026, Lithium Americas Corp. held roughly $1.2 billion in total cash and restricted cash, including $529 million at the Thacker Pass joint venture level. Detailed engineering had surpassed 95% complete, and procurement was more than 70% finished.
The company continues targeting total 2026 capital expenditures of $1.3 billion to $1.6 billion for Thacker Pass Phase 1. Shares of Lithium Americas Corp. are down more than 13% so far in 2026.
Lithium Americas Corp. is a lithium development company.
8. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 31
Upside Potential: 41.10%
NIO Inc. (NYSE:NIO) ranks among the overlooked penny stocks to buy right now, supported by strong upside potential. Record deliveries across its three brands are keeping the stock in focus heading into the second half of 2026.
On July 1, 2026, NIO Inc. reported its June and second-quarter delivery results.
The company delivered 40,597 vehicles in June, up 62.9% year-over-year, split between 21,908 NIO-brand vehicles, 11,743 ONVO vehicles and 6,946 FIREFLY vehicles. For the second quarter, NIO Inc. delivered 107,658 vehicles, a 49.4% year-over-year increase, pushing cumulative deliveries to 1,188,715 as of June 30, 2026.
That delivery strength followed a series of product milestones.
On June 18, 2026, NIO Inc. rolled out an upgraded version of its WorldModel intelligent driving system to more than 700,000 users, adding a three-layer training framework the company said improves handling of complex driving scenarios. On June 22, 2026, the All-New ES8 passed 120,000 cumulative deliveries, and its five-seat version began presales on June 28, 2026. Days later, on June 26, 2026, the ES9 reached 10,000 deliveries within 30 days of its May 28 launch, a record for premium battery electric vehicles priced above RMB500,000 in China.
Despite that operational momentum, shares of NIO Inc. are down nearly 10% year-to-date, even as more than 70% of covering analysts remain bullish on the stock.
NIO Inc. designs, manufactures, and sells electric vehicles. It provides users with power express valet services, home charging, and other power solutions, such as battery swapping, public charging, and access to power mobile charging trucks. The company offers its products under the brands NIO, ONVO, and FIREFLY.
7. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 10
Upside Potential: 58.01%
Tilray Brands, Inc. (NASDAQ:TLRY), backed by significant analyst-implied upside, ranks among the overlooked penny stocks to buy right now. A fresh acquisition aimed at deepening its medical cannabis footprint in Canada is giving investors a new angle on the stock despite a steep year-to-date selloff.
On June 29, 2026, Tilray Brands, Inc. announced the acquisition of HelloMD Corporation, a digital healthcare and patient engagement platform. Following court approval granted the same day, the company plans to acquire HelloMD’s Canadian medical cannabis assets after emerging as the successful bidder in its formal sale process. Tilray said the deal creates a fully vertically integrated medical cannabis framework in Canada, linking cultivation, clinical expertise, practitioner support, product access, and fulfillment.
Blair MacNeil, President of Tilray Brands, Inc. Canada, said the combination of HelloMD’s digital healthcare platform with Tilray’s medical cannabis portfolio and national fulfillment capabilities builds a more connected pathway for patients and healthcare practitioners. HelloMD CEO Larry Lisser said the platform has supported hundreds of thousands of patients through telehealth consultations and personalized guidance since its founding.
Tilray Brands, Inc. also pointed to potential opportunities in adjacent wellness categories such as sleep support and pain management, areas where over-the-counter products represent a large market the company is not yet meaningfully part of. The press release did not disclose the financial terms of the transaction.
Shares of Tilray Brands, Inc. are down more than 50% in 2026 so far.
Tilray Brands Inc. is a leading global lifestyle and consumer packaged goods (CPG) company that operates at the intersection of the cannabis, beverage alcohol, wellness, and medical industries. Operating in over 20 countries, they focus on diversified revenue across four main business segments.
6. Prime Medicine, Inc. (NASDAQ:PRME)
Number of Hedge Fund Holders: 23
Upside Potential: 79.95%
Prime Medicine, Inc. (NASDAQ:PRME) ranks among the overlooked penny stocks to buy right now, supported by strong upside potential. Multiple regulatory clearances across its gene-editing pipeline are prompting analysts to turn more constructive on the stock.
On June 29, 2026, H.C. Wainwright upgraded Prime Medicine, Inc. to “Buy” from “Neutral” with a price target of $8. The upgrade came after New Zealand’s Medicines and Medical Devices Safety Authority accepted the clinical trial application for PM577a, the company’s investigational therapy for Wilson’s disease. The firm called the clearance a meaningful de-risking event, noting it marks the first clinical authorization for an in vivo prime editing therapy from Prime Medicine.
That clearance, announced by the company on June 18, 2026, enables Prime Medicine, Inc. to begin a global Phase 1/2 study evaluating PM577a in adults and adolescents with Wilson Disease. CEO Allan Reine called the milestone a defining moment, pointing to PM577a’s potential to correct the disease at the genomic level with a one-time therapy. Chief Medical Officer Mohammed Asmal said the trial design draws on the company’s preclinical work, with proof-of-concept data expected in 2027.
Meanwhile, on June 22, 2026, the FDA granted Regenerative Medicine Advanced Therapy designation to PM359, Prime Medicine, Inc.’s stem cell therapy for p47phox-deficient chronic granulomatous disease (CGD), based on Phase 1/2 clinical data published in The New England Journal of Medicine. Reine said the designation supports engagement with the FDA toward a future Biologics License Application.
Prime Medicine, Inc. is a biotechnology company that delivers genetic medicines to address the spectrum of diseases by deploying gene editing technology.
5. Opus Genetics, Inc. (NASDAQ:IRD)
Number of Hedge Fund Holders: 23
Upside Potential: 139.23%
Opus Genetics, Inc. (NASDAQ:IRD), backed by significant analyst-implied upside, ranks among the overlooked penny stocks to buy right now. A bullish new analyst call and a broadening gene therapy pipeline are boosting confidence in the stock’s outlook.
On June 23, 2026, RBC Capital initiated coverage of Opus Genetics, Inc. with an “Outperform” rating and a $10 price target. The analyst called the setup favorable amid limited competition, de-risked science, and what the firm described as recent FDA leniency. The note projected upside tied to the upcoming BEST1 data readout in September and four more clinical pipeline readouts expected in 2027.
That upside case follows a Research and Development Science Forum Opus Genetics, Inc. hosted on June 16, 2026, where management detailed three new programs entering clinical testing alongside recent LCA5 and BEST1 clinical data. Management also discussed the global IRD market opportunity, as well as its clinical development and execution strategies.
CEO George Magrath said Opus Genetics, Inc. holds first-mover advantage across multiple indications, backed by broad intellectual property protection and rare-disease regulatory pathways that may allow for accelerated approval. In the ongoing Phase 1/2 trial for LCA5, visual acuity improved and was maintained in the adult cohort over 24 months, with dosing for the pivotal Phase 3 trial expected to start in the fourth quarter of 2026.
For BEST1, dosing in the first cohort was completed in May 2026, with three-month topline data expected in September 2026. Two additional programs, OPGx-RDH12 and OPGx-MERTK, are scheduled to begin clinical testing in late 2026 and early 2027, respectively.
Opus Genetics, Inc. shares are up nearly 110% year-to-date as of July 2, 2026.
Opus Genetics, Inc. is engaged in the research and development of ophthalmic biopharmaceutical products, with a focus on developing and commercializing therapies for several eye disorders.
4. SAB Biotherapeutics, Inc. (NASDAQ:SABS)
Number of Hedge Fund Holders: 27
Upside Potential: 222.16%
SAB Biotherapeutics, Inc. (NASDAQ:SABS) ranks among the overlooked penny stocks to buy right now, supported by strong upside potential. Back-to-back bullish analyst calls are pointing to a wide gap between the company’s market value and the opportunity Wall Street sees in its lead diabetes program.
On June 24, 2026, Barclays analyst Eliana Merle initiated coverage of SAB Biotherapeutics, Inc. with an “Overweight” rating and a $13 price target.
Merle told investors the type 1 diabetes market is large and that SAB-142 could represent a significant opportunity as a potential disease modifying therapy. According to the firm, the next major catalyst for the stock is SAB’s Phase 2b data expected in the second half of 2027, while Tzield’s recent approval has reduced regulatory uncertainty surrounding SAB-142. Barclays argued that SAB Biotherapeutics, Inc.’s $300 million market capitalization fails to reflect the potential $4 billion market opportunity for SAB-142 in type 1 diabetes therapy.
That view followed a June 15, 2026 note from H.C. Wainwright analyst Emily Bodnar, who maintained a “Buy” rating on SAB Biotherapeutics, Inc. with a $10 price target.
Bodnar said Sanofi’s accelerated approval of Tzield in Stage 3 type 1 diabetes validates the use of C-peptide as a surrogate endpoint, reducing development risk for SAB-142’s ongoing SAFEGUARD trial. She also cited differentiation from Tzield and rabbit ATG on safety and immunogenicity, minimal immune-related toxicities in early data, and support for a twice-yearly maintenance regimen as reasons behind the firm’s positive risk-reward view on SAB Biotherapeutics, Inc..
SAB Biotherapeutics, Inc. is a clinical-stage biopharmaceutical company that focuses on the development of human polyclonal immunotherapeutic antibodies. Its main product candidate is SAB-142 for the treatment of autoimmune type 1 diabetes in Phase 2b clinical trials.
3. Perspective Therapeutics, Inc. (NYSEAMERICAN:CATX)
Number of Hedge Fund Holders: 20
Upside Potential: 275.72%
Perspective Therapeutics, Inc. (NYSEAMERICAN:CATX), backed by significant analyst-implied upside, ranks among the overlooked penny stocks to buy right now. An expanding radiopharmaceutical pipeline, now stretching into a new brain tumor indication, is strengthening the company’s long-term growth narrative.
On July 1, 2026, Perspective Therapeutics, Inc. updated its corporate presentation to highlight progress across its 212Pb-based radiopharmaceutical pipeline and its integrated manufacturing strategy. The update emphasized the company’s theranostic approach targeting solid tumors with next-generation alpha therapies, along with plans to expand its addressable market through regional daily production and direct-to-hospital delivery. The presentation provided material related to multiple ongoing Phase 1/2a trials, including VMT-α-NET for SSTR2-positive neuroendocrine tumors, VMT01 for melanoma, and PSV359 for FAP-α-expressing solid tumors, with early data pointing to deepening and durable responses, favorable safety and tolerability, and improved tumor retention.
That update followed news on June 3, 2026, that Perspective Therapeutics, Inc. dosed the first meningioma patient with [212Pb]VMT-α-NET in its ongoing Phase 1/2a study. The new cohort is designed to evaluate safety, dosimetry and preliminary anti-tumor activity in meningioma, expanding the company’s strategy of testing VMT-α-NET across somatostatin receptor subtype 2 (SSTR2)-expressing tumor types beyond neuroendocrine tumors. Meningiomas represent roughly 40% of primary central nervous system tumors diagnosed annually in the United States, and consistently express SSTR2, supporting their role as a target for this class of therapy.
Perspective Therapeutics, Inc. is a clinical-stage radiopharmaceutical company developing targeted alpha-particle therapies (TATs) for cancer using the isotope Pb-212. Its theranostic approach combines imaging (Pb-203) with therapy (Pb-212) to deliver targeted radiation directly to tumors, minimizing damage to healthy tissue, with active trials for neuroendocrine tumors and melanoma.
2. Altimmune, Inc. (NASDAQ:ALT)
Number of Hedge Fund Holders: 23
Upside Potential: 392.06%
Altimmune, Inc. (NASDAQ:ALT), backed by significant analyst-implied upside, ranks among the overlooked penny stocks to buy right now. Fresh analyst confidence in the company’s MASH drug candidate follows strong data that continues to build the case for pemvidutide.
On June 22, 2026, Leerink analyst Thomas Smith initiated coverage of Altimmune, Inc. with an “Outperform” rating and a $10 price target. Smith called Altimmune an attractive play in a market for MASH therapeutics that is increasingly supported by clinical data, pointing to pemvidutide’s differentiated dual-agonist profile and its potential to expand into adjacent liver and alcohol-related indications.
That call followed 48-week results from the company’s IMPACT Phase 2b trial, announced in May, evaluating pemvidutide in patients with metabolic dysfunction-associated steatohepatitis (MASH). Altimmune, Inc. said the dual glucagon/GLP-1 receptor agonist significantly enhanced several cardiometabolic measures in comparison to placebo. Patients on the 1.8 mg dose saw notable improvements in triglycerides and total cholesterol, along with continued weight loss, lower body mass index, reduced waist circumference, and improvements in both systolic and diastolic blood pressure.
Presented at the European Association for the Study of the Liver Congress 2026 in Barcelona, the findings also suggested that pemvidutide was generally well tolerated over 48 weeks, with only a small proportion of patients not continuing treatment due to adverse events. Earlier data had already demonstrated notable improvements in liver fibrosis and liver stiffness in patients receiving pemvidutide compared with placebo.
Altimmune, Inc. is a clinical-stage biopharmaceutical company developing pemvidutide, a dual GLP-1/glucagon receptor agonist for metabolic and liver diseases.
1. Context Therapeutics Inc. (NASDAQ:CNTX)
Number of Hedge Fund Holders: 19
Upside Potential: 721.96%
Context Therapeutics Inc. (NASDAQ:CNTX) ranks among the overlooked penny stocks to buy right now, supported by strong upside potential. A sharp stock selloff tied to early clinical data has drawn a series of analysts defending the shares as oversold. The stock is down nearly 60% year-to-date.
On June 16, 2026, Maxim analyst Jason McCarthy lowered the firm’s price target on Context Therapeutics Inc. to $4 from $8 while maintaining a “Buy” rating. The cut followed the company’s interim Phase 1a data for CTIM-76 in platinum-resistant ovarian cancer, but McCarthy called the sharp negative stock reaction an overreaction, noting the study remains exploratory and focused on learning about the drug’s pharmacokinetic (PK) profile, dosing, safety, and initial efficacy.
That view echoed commentary from a day earlier. On June 15, 2026, Jones Research called the selloff in Context Therapeutics Inc. a buying opportunity, describing the Phase I update of CTIM-76 in CLDN6-positive solid tumors as encouraging. The firm pointed to a 29% overall response rate in platinum-resistant ovarian cancer patients who had a median of seven prior therapies, contrasting that with Zymeworks’ ZW191, tested in patients with a median of three prior therapies. Jones kept a “Buy” rating and $7 price target. Shares fell 47%, or 65 cents, to 74 cents that afternoon, TheFly reported.
On June 15, 2026, H.C. Wainwright analyst Emily Bodnar noted that CTIM-76 data indicated competitive activity versus peers despite a challenging patient population, while reiterating a “Buy” rating and $5 price target on Context Therapeutics Inc..
Context Therapeutics Inc. is a clinical-stage biopharmaceutical company developing T cell engaging bispecific antibodies for solid tumors, including CTIM-76, CT-95, and CT-202, targeting CLDN6, MSLN, and Nectin-4 respectively.
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