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.
8. Sana Biotechnology, Inc. (NASDAQ:SANA)
Stock Upside Potential as of July 30: 114.21%
Share Price as of July 30: $4.59
Number of Hedge Fund Holders: 13
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the penny stocks that will skyrocket. On June 24, analysts at Citizens JMP reiterated a ‘Market Outperform’ rating on the stock and a $5 price target. The positive stance follows the updating of clinical data from a diabetes program.
Clinical trial results presented at the American Diabetes Association conference from the UP421 cadaveric pancreatic islet cell program demonstrated that the treatment was safe and well-tolerated in patients with Type 1 diabetes.
According to Citizens JMP, six-month follow-up data from a modified pancreatic islet cell program should validate Sana’s HIP platform in Type 1 diabetes. The research firm is also optimistic about Sana Biotechnology’s SC291 program for autoimmune disease, which is expected to be available in 2025.
Sana Biotechnology, Inc. (NASDAQ:SANA) develops engineered cells as medicines for patients. It aims to repair and control genes, replace missing or damaged cells, and make therapies broadly accessible.
7. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Upside Potential as of July 30: 211.61%
Share Price as of July 30: $2.84
Number of Hedge Fund Holders: 20
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the penny stocks that will skyrocket. On July 11, BofA Securities initiated coverage of the stock with a “Buy” rating and an $8 price target. The positive stance comes as the research firm remains buoyed by the company’s Taysha gene therapy TSHA-102 under development for Rett Syndrome.
The research firm believes TSHA-102 has the potential to become the first approved disease-modifying treatment for the severe neurodevelopmental disease. Clinical trials have already demonstrated that the therapy has the potential to help patients regain or achieve developmental milestones.
Taysha Gene Therapies has already reached an alignment with the US Food and Drug Administration on a pivotal trial design for TSHA-102. The company plans to initiate a trial in the third quarter of 2023. BofA Securities views the candidate treatment as a commercially attractive opportunity.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes gene therapies for severe monogenic diseases of the central nervous system (CNS). It seeks to address unmet medical needs by developing transformative medicines for these diseases. Its approach centers on using adeno-associated virus (AAV)-based gene therapies.
6. LifeStance Health Group, Inc. (NASDAQ:LFST)
Stock Upside Potential as of July 30: 106.31%
Share Price as of July 30: $4.12
Number of Hedge Fund Holders: 24
LifeStance Health Group, Inc. (NASDAQ:LFST) is one of the penny stocks that will skyrocket. On July 25, BTIG initiated coverage of the stock with a “Buy” rating and an $8 price target. The bullish stance comes as the research firm maintains that the company is well-positioned to capitalize on its patients who are commercially insured.
As one of the nation’s largest outpatient mental health providers with 7,500 clinicians across 33 states, the company operates over 550 centers. Last year alone, the company provided care to over 940,000 patients, affirming a firm revenue base.
BTIG maintains that Lifestance Health is well-networked into the healthcare system. Therefore, the company remains well-positioned to capitalize on commercial insurance rates, which are typically higher than Medicare and Medicaid rates.
“We like how LFST provides both virtual (70%) and in-person (30%) care with an extensive range of services including the ability to prescribe medications, therapy, psycho-therapy, and advanced treatment options. In our view Lifestance is differentiated from peers because of this thorough, in-person and virtual care model, our channel checks indicate that the therapists usually face high demand, likely due to the referral relationships that LFST has built, and the overall business continues to grow,” BTIG in a research note.
LifeStance Health Group, Inc. (NASDAQ:LFST) is a national outpatient mental healthcare platform. It offers a range of services, including therapy, psychiatry, and psychological testing, both in-person and through telehealth.
5. OPKO Health, Inc. (NASDAQ:OPK)
Stock Upside Potential as of July 30: 155.92%
Share Price as of July 30: $1.36
Number of Hedge Fund Holders: 26
OPKO Health, Inc. (NASDAQ:OPK) is one of the penny stocks that will skyrocket. On July 8, the company confirmed that its oral GLP-2 tablet tailored for short bowel syndrome will be presented at the 47th European Society for Clinical Nutrition & Metabolism Congress in Prague.
The presentation is to be made on September 13, as part of an abstract titled “First-in-Class Oral GLP-2 Analog for Treatment of Short Bowel Syndrome.” OPKO Health is developing an oral GLP-2 tablet in combination with Entera while leveraging its long-acting GLP-2 agonist.
“Given the heterogeneity of patients with SBS and challenging compliance rates attributed to injectable GLP-2 therapy, we believe a daily tablet format may enable more personalized care of this peptide and individualize titration,” said Miranda Toledano, Entera’s Chief Executive Officer.
The oral GLP-2 tablet targets the short bowel syndrome, a rare malabsorptive condition caused by significant loss of functional or physical bowel mass. The condition is characterized by the body’s failure to absorb nutrients and fluids, therefore putting patients at risk of malnutrition and unintended weight loss.
OPKO Health, Inc. (NASDAQ:OPK) is a diversified healthcare company that develops and commercializes pharmaceutical and diagnostic products. It creates solutions for serious diseases, including cancer and infectious diseases, leveraging pharmaceutical and diagnostic expertise.
4. Ardelyx Inc. (NASDAQ:ARDX)
Stock Upside Potential as of July 30: 148.24%
Share Price as of July 30: $4.34
Number of Hedge Fund Holders: 28
Ardelyx Inc. (NASDAQ:ARDX) is one of the penny stocks that will skyrocket. On July 7, analysts at Cantor Fitzgerald reiterated an ‘Overweight’ rating on the stock. The positive stance stems from expectations that the company is well-positioned for robust growth, backed by its flagship product, Ibsrela.
Cantor Fitzgerald expects Ibsrela to exceed consensus sales expectations in the second quarter. The research firm expects Ardelyx to deliver $64 million in sales, significantly higher than the $57 million consensus estimate. Amid the expected robust sales growth, the research firm views the 2025 Ibsrela guidance of $240-$250 million as conservative, given the strong prescription trends.
While Xphozah, another flagship product, is expected to miss sales estimates, Cantor Fitzgerald anticipates that it will have a limited impact on current valuation levels. Cantor Fitzgerald maintains that expectations for Xphozah are already lower than consensus.
Ardelyx Inc. (NASDAQ:ARDX) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative first-in-class medicines to address significant unmet medical needs, particularly in kidney and cardiovascular diseases.
3. MannKind Corporation (NASDAQ:MNKD)
Stock Upside Potential as of July 30: 122.78%
Share Price as of July 30: $3.97
Number of Hedge Fund Holders: 29
MannKind Corporation (NASDAQ:MNKD) is one of the penny stocks that will skyrocket. On July 16, H.C. Wainwright assumed coverage of the stock with a ‘Buy’ rating and a $9 price target. The bullish stance is based on the company’s demonstrated strong growth of 32.5% over the last 12 months.
The research firm expects Tyvaso DPI to be one of the key factors driving MannKind’s valuation in the near future. Nevertheless, it maintains a cautious outlook on the Afreezza product line, expected to generate $127 million in sales by 2030.
H.C. Wainwright’s Buy rating and $9 price target are also based on expectations that MannKind’s product pipeline, including MNKD-101 and MNKD-201, will achieve 40% and 30% probability of success, respectively.
MannKind Corporation (NASDAQ:MNKD) develops and commercializes inhaled therapeutic products and devices for patients with endocrine and orphan lung diseases. Its primary product is Afrezza, an inhaled ultra-rapid-acting insulin for diabetes.
2. Nuvation Bio Inc. (NYSE:NUVB)
Stock Upside Potential as of July 30: 200.81%
Share Price as of July 30: $2.47
Number of Hedge Fund Holders: 34
Nuvation Bio Inc. (NYSE:NUVB) is one of the penny stocks that will skyrocket. On June 24, the company confirmed the addition of its Taletrectinib (IBTROZI) treatment as a Preferred Agent in the National Comprehensive Cancer Network (NCCN) Clinical Practice Guidelines (NCCN Guidelines) for Non-Small Cell Lung Cancers (NSCLC).
With the addition, Taletrectinib (IBTROZI) is now considered a preferred agent for first-line and subsequent therapy for ROS1-positive NSCLC. It can also be used on brain metastases and resistance mutations.
“These updates address critical needs for patients across their treatment journeys, especially with the prevalence of CNS involvement for those living with ROS1+ NSCLC. Additionally, this version builds further upon a previous guideline update that importantly highlights preferred utilization of ROS1-targeted agents instead of immunotherapy and chemotherapy for these patients,” said David Hung, M.D., Founder, President, and Chief Executive Officer.
The approval comes on the heels of the US Food and Drug Administration’s approval of Taletrectinib (IBTROZI) as a treatment for adult patients with advanced or metastatic ROS1+ NSCLC in June.
Nuvation Bio Inc. (NYSE:NUVB) is a clinical-stage biotech firm focused on developing specialized cancer treatments for hard-to-treat tumors. Its lead candidate, IBTROZI, is at the forefront of its pipeline.
1. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Stock Upside Potential as of July 30: 241.45%
Share Price as of July 30: $2.73
Number of Hedge Fund Holders: 37
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the penny stocks that will skyrocket. On July 15, Citizens JMP analyst Reni J. Benjamin reiterated a ‘Market Perform’ rating. The positive stance stems from the company delivering positive results from its real-world applications of Amtagvi therapy.
The test results showed a higher response rate than those observed in the C-144-01 trial. The results triggered accelerated approval for Amtagvi for advanced melanoma patients in the post-PD-1 setting. According to JMP Securities, the results demonstrate “remarkable potential” for TIL therapy post checkpoint therapy.
However, the research firm believes Iovance Biotherapeutics will need a significant capital infusion in the next six months to continue its operations. That’s because it ended the first quarter with $366 million in cash and an expected cash burn of $300 million.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a biotechnology company focused on developing and commercializing novel cell therapies for the treatment of cancer. Its primary approach involves using tumor-infiltrating lymphocytes (TIL) therapy, which harnesses a patient’s immune cells to target and destroy cancer cells.
While we acknowledge the potential of IOVA 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 IOVA and that has 100x upside potential, check out our report about this cheapest AI stock.
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