In this article, we will look at the 10 Penny Stocks That Will Skyrocket.

Valuations in the equity markets sit at historical highs, raising questions about future market performance. Likewise, mega-cap stocks are trading above their historical norms, on shrugging off a ferocious trade and tariff war instigated by US President Donald Trump. The S&P 500 is trading at 22.5 times its expected earnings over the next 12 months, compared to 10-year average of 18.8, affirming the premium valuations.

According to Michael Kantrowitz, chief investment strategist at Piper Sandler, the recent market gains have nothing to do with company management, earnings, or sales.

“Stocks are not showing any fear about tariffs, they’re not showing any fear about policy uncertainty related to stability or instability in Washington, they’re not showing fear any longer about inflation. This is a market that’s pricing [in] Goldilocks,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

With markets trading at sky-high valuations, investors are turning to penny stocks, lower-priced shares of smaller or emerging companies, with strong fundamentals and long-term potential. These affordable alternatives can offer compelling value and promising growth for those seeking overlooked investment opportunities.

With that in mind, let’s look at the 10 penny stocks that will skyrocket.

Our Methodology

To compile the list of the top 10 penny stocks that will skyrocket, we used the Finviz stock screener. Using the screener we aggregated a list of penny stocks (trading between $1 and $5). After sorting the list by market capitalization, we cross-checked each stock and settled on stocks with more than 100% upside potential according to analysts’ forecasts. Finally, we ranked the stocks in ascending order based on the number of elite hedge funds holding stakes in them. The hedge fund data is as of Q1 2025.

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).

Penny Stocks That Will Skyrocket

10. Getty Images Holdings, Inc. (NYSE:GETY)

Stock Upside Potential as of July 30: 140.23%

Share Price as of July 30: $1.79

Number of Hedge Fund Holders: 8

Getty Images Holdings, Inc. (NYSE:GETY) is one of the penny stocks that will skyrocket. On June 10, the company received a significant boost on its proposed merger with Shutterstock, a leading provider of high-quality creative content for transformative brands.

Shutterstock’s stockholders approved the adoption of the proposed merger, with approximately 82% of the issued and outstanding shares voting in favor. The approval paves the way for the merger of the two companies, which is expected to result in a combined company capable of meeting the ever-changing needs of customers through investments in content creation, event coverage, and technological innovation.

“Our complementary strengths will allow us to better serve customers while also delivering exceptional value to our partners, contributors and stockholders in a fast evolving and competitive environment,” said Paul Hennessy, Shutterstock’s Chief Executive Officer.

The merger between Getty Images and Shutterstock is expected to close in the second half of the year, subject to regulatory approvals.

Getty Images Holdings, Inc. (NYSE:GETY) is a communication services company that provides creative and editorial visual content solutions. It offers creative content, including royalty-free photos, illustrations, vectors, videos, and generative AI services, as well as editorial content, which consists of photos and videos.

9. ImmunityBio, Inc. (NASDAQ:IBRX)

Stock Upside Potential as of July 30: 138.87%

Share Price as of July 30: $2.65

Number of Hedge Fund Holders: 10

ImmunityBio, Inc. (NASDAQ:IBRX) is one of the penny stocks that will skyrocket. On July 25, the company confirmed it is eyeing $80 million in gross proceeds on the execution of a securities purchase agreement as part of a registered direct offering. It also plans to issue common stock and warrants for the purchase of additional shares.

Once fully exercised, the warrants could yield up to $96 million in gross proceeds. Piper Sandler and Co. is acting as the placement agent of the registered direct offering. The net proceeds from the offering are expected to provide the company with much-needed working capital and support for its ongoing business operations.

The direct offering comes on the company’s ANKTIVA product, receiving FDA approval as an immunotherapy for non-muscle invasive bladder cancer. The flagship product is designated for FDA Breakthrough Therapy.

ImmunityBio, Inc. (NASDAQ:IBRX) is a biotechnology company focused on developing next-generation immunotherapies and vaccines that harness the power of the immune system to fight cancer and infectious diseases. It seeks to create durable and safe protection against diseases by developing innovative therapies and cell therapies that bolster the natural immune response.