In this article, we will look at 10 penny stocks to buy in May.
Predicting the future might be a little far-fetched, but that does not mean you can’t apply some logical thinking and statistical analysis or even just keep up with the latest news to determine the potential outcomes of an event. Penny stocks have long been a favorite tool of investors to make fortunes by getting in on the scene when the company is severely undervalued. However, this goes both ways for penny stocks are highly volatile and risky investments, and companies have been shut down or gone bankrupt in the past instead of appreciating in value.
There was a time when some of the most prominent and renowned corporations were trading at less than $5 a share. It was only a matter of certain efforts made by company leaders, be it a successful IPO, securing governmental contracts, collaborating with an industrial giant on a project, or even something as trivial as a short-squeeze, that shot up those stocks and made them well-known leaders in the market. Spotting growth potential in a company and understanding its business model to gauge whether or not it will have relevance in the future is a skill only a few possess. Penny stocks are compelling investments for legendary investors because they come cheap, offer a high room for appreciation, and can prove to be highly lucrative if all goes well.
Some of the most famous companies that started off as penny stocks include Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD), Plug Power, Inc. (NASDAQ:PLUG), Ford Motor Company (NYSE:F), and GameStop Corp. (NYSE:GME). Continue reading the 10 penny stocks to buy in May to gain further perspective about companies that are exhibiting the potential to explode, leaving behind undervalued days.
Photo by Adam Nowakowski on Unsplash
Our Methodology
To devise this compilation of the 10 penny stocks to buy in May, we did a careful assessment of companies and startups coming from a range of industrial sectors including energy, healthcare, technology, manufacturing, mining, and entertainment among others. We then narrowed down our selection to stocks that had upcoming growth catalysts and ranked them in order of increasing number of hedge fund holders.
At Insider Monkey, we believe hedge fund sentiment to have critical ties to stock performance, and so we derived the investor sentiment for each stock from our Database, which tracks more than 900 elite hedge funds as of Q4 2021.
With this context in mind, let’s dive into the 10 penny stocks to buy in May.
10 Penny Stocks to Buy in May
10. Avalon GloboCare Corp. (NASDAQ:AVCO)
Number of Hedge Fund Holders: 1
Share Price as of May 6: 0.58
Avalon GloboCare Corp. (NASDAQ:AVCO) provides biotechnology development and healthcare services in the United States. The stock is experiencing momentum and bullish trading volumes ever since it expanded its IP portfolio by filing 16 new patent applications this April. The company has secured strategic partnerships with a top 5 U.S. university, a leading R&D facility in Europe, as well as a premier multi-national developer of cellular therapies in the field of oncology. The patents were jointly filed with the U.S. Patent and Trademark Office, the China National Intellectual Property Administration, and under the Patent Cooperation Treaty, and they span over 36 countries.
Moreover, this February, Avalon GloboCare Corp. (NASDAQ:AVCO) announced the expansion of its cellular immuno-oncology program with the addition of novel cell therapies. The company plans to expand its clinical program with its clinical trial partner, the Lu Daopei Hospital.
Avalon GloboCare Corp. (NASDAQ:AVCO) is making progress and gaining recognition in the biotechnology and healthcare industries. The stock exhibits massive growth potential, and as of May 6, post its patent filings, the stock has gained 11.24% in just 5 days, making it one of the best penny stocks to buy in May.
As of December 31, 2021, Millennium Management is the only stakeholder in Avalon GloboCare Corp. (NASDAQ:AVCO) having stakes of $54,000 in the company.
9. Mullen Automotive Inc. (NASDAQ:MULN)
Number of Hedge Fund Holders: 3
Share Price as of May 6: $1.20
Mullen Automotive, Inc. (NASDAQ:MULN) is an emerging California-based electric vehicle company that manufactures and distributes electric vehicles, and also operates CarHub, a digital platform that leverages the technological advancements in artificial intelligence to facilitate the buying and selling of cars. The company also provides battery technology and car diagnostics solutions.
This April, Mullen Automotive, Inc. (NASDAQ:MULN) announced plans to commence production of EV battery packs out of its high voltage battery facility in California. The company aims to support its fleet of EVs including the One EV Cargo Van, Five EV Crossover, and DragonFLY EV Sportscar directly and remove the need for third-party suppliers to mitigate risks related to supply constraints and material shortages while also reducing overheads. Moreover, On April 21, renowned electric-vehicle charging solutions provider EVgo (NASDAQ:EVGO) announced its plans to collaborate with Mullen Automotive, Inc. (NASDAQ:MULN) in a tweet.
Mullen Automotive, Inc. (NASDAQ:MULN) is making strides in the EV space and is gaining recognition from analysts and investors for its efforts. With the EV sector booming and investments being poured into battery technology. Mullen Automotive, Inc. (NASDAQ:MULN) presents a compelling opportunity for investors to take up stakes in the lucrative EV industry and is therefore ranked among the best penny stocks to buy in May.
Insider Monkey found that by the end of the fourth quarter of 2021, 3 hedge funds were bullish on Mullen Automotive, Inc. (NASDAQ:MULN) with stakes of $0.51 million in the company. This is compared to 2 positions in the previous quarter with stakes worth $0.31 million. The hedge fund sentiment for the stock is positive.
Penny stocks like Mullen Automotive, Inc. (NASDAQ:MULN) don’t get attention of mainstream investors like stocks like Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD), Plug Power, Inc. (NASDAQ:PLUG), Ford Motor Company (NYSE:F), and GameStop Corp. (NYSE:GME) do down the line finding small companies with huge potential is what makes people rich in the stock investing world.
8. NightHawk Biosciences, Inc. (NYSE:NHWK)
Number of Hedge Fund Holders: 3
Share Price as of May 6: $2.21
NightHawk Biosciences, Inc. (NYSE:NHWK) is an emerging biopharmaceutical company that engages in the development of immune therapies and vaccines. The company’s therapies are used to modulate the immune system against various diseases, including cancer and infectious diseases.
NightHawk Biosciences, Inc. (NYSE:NHWK) is rising to prominence in the pharmaceutical industry and is making huge strides. On April 18, NightHawk Biosciences, Inc. (NYSE:NHWK) announced its plans to further the development of a new biodefense-focused large molecule and biologics biomanufacturing facility in Kansas with the support of Scorpion Biological Services, the State of Kansas, and local and university affiliates. Shortly after, the company also announced the successful acquisition of Elusys Therapeutics, which was announced late last December. Elusys Therapeutics is a commercial-stage biodefense company. and the manufacturer of ANTHIM Injection, and as of now is a wholly-owned subsidiary of NightHawk Biosciences, Inc. (NYSE:NHWK). Moreover, the company also secured a CAD $7.9 million contract with the Canadian government for the supply of ANTHIM.
Even though B. Riley analyst Mayank Mamtani lowered his price target on NightHawk Biosciences, Inc. (NYSE:NHWK) to $8 from $10 this March, the analyst maintained a Buy rating on the shares, citing the company’s strong balance sheet which will drive the stock’s upside and support the company’s operations into 2024.
Investors are upping their stakes in NightHawk Biosciences, Inc. (NYSE:NHWK). At the close of Q4 2021, Insider Monkey found 3 hedge funds long NightHawk Biosciences, Inc. (NYSE:NHWK) with stakes of $0.79 million. This is compared to 3 positions in the prior quarter with stakes worth $0.68 million. The hedge fund sentiment for the stock is positive.
Renaissance Technologies is the most prominent investor in NightHawk Biosciences, Inc. (NYSE:NHWK) having stakes of $0.33 million in the company as of the end of last December.
7. Citius Pharmaceuticals, Inc. (NASDAQ:CTXR)
Number of Hedge Fund Holders: 3
Share Price as of May 6: $1.04
Citius Pharmaceuticals, Inc (NASDAQ:CTXR) operates as a specialty pharmaceutical company and is involved in the development and commercialization of critical care products focusing on anti-infective products in adjunct cancer care, prescription products, and mesenchymal stem cell therapy. The company is accomplishing its missions in 2022 and is setting new targets to achieve. 2022 seems to be a year of progression for Citius Pharmaceuticals, Inc. (NASDAQ:CTXR), positioning the stock for a takeoff. The stock is ranked among the best penny stocks to buy in May 2022.
This May, Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) provided a business update for the first quarter of 2022 and reported recent corporate developments and upcoming milestones. The company expects to win FDA approval for its treatment for cancer cells, I/ONTAK, in the second half of 2022. Topline data from its Phase 3 study of cancer immunotherapy I/ONTAK was consistent with the previously-approved formulation of denileukin diftitox, with no new safety signals spotted. The company’s treatment for hemorrhoids, the Halo-Lido Phase 2B trial commenced this April and is expected to achieve completion by the fourth quarter of 2022, and the company’s Phase 3 Mino-Lok study also anticipates last patient enrollment by the same time. Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) also announced the commencement of pre-clinical development for its Mino-Wrap and induced mesenchymal stem cell programs.
By the end of the fourth quarter of 2021, 3 hedge funds were bullish on Citius Pharmaceuticals, Inc. (NASDAQ:CTXR). The total stakes of these funds were valued at $0.33 million. Of these Citadel Investment Group was the most prominent shareholder in the company having stakes of $0.21 million, up 20% from the fund’s Q3 2021 stakes.
6. American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT)
Number of Hedge Fund Holders: 4
Share Price as of May 6: $0.51
American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) provides cloud-based enterprise services and solutions worldwide. Over its years of operation, the company has acquired a strong clientele among which there are some of the biggest corporations in the world including Microsoft Corporation (NASDAQ:MSFT), AT&T Inc. (NYSE:T), and International Business Machines Corporation (NYSE:IBM).
On February 28, American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) announced a securities purchase agreement for the sale of equity securities to an institutional investor. The net proceeds are expected to amount to $15 million initially, plus another $5 million which is subject to certain compliance conditions and NASDAQ listing rules. The company believes that this will aid it in its transformation to a pure-play cloud communications and collaboration company and will pave the path to making American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) debt-free and therefore driving its performance in the years to come.
American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) is experiencing bullish trading volumes and is becoming popular among elite hedge funds. By the end of the fourth quarter of 2021, 4 hedge funds held long positions in the company, with stakes worth $4.4 million. This is compared to 2 positions in the previous quarter with stakes worth $0.79 million. The hedge fund sentiment for the stock is positive, making it one of the best penny stocks for May 2022.
Hudson Bay Capital Management initiated stakes in American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) last December, and rose to become the dominating stakeholder in the company with stakes worth $3.7 million.
American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) is rising to prominence and gaining notable recognition in the tech industry, exhibiting the potential to significantly appreciate in value any time soon. Other companies that have soared and proven to be lucrative investments for shareholders include Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD), Plug Power, Inc. (NASDAQ:PLUG), Ford Motor Company (NYSE:F), and GameStop Corp. (NYSE:GME).
5. KULR Technology Group Inc. (NYSE:KULR)
Number of Hedge Fund Holders: 4
Share Price as of May 6: $1.67
KULR Technology Group, Inc. (NYSE:KULR) develops and commercializes thermal management technologies for batteries, electronics, and other components applications in the United States. The company’s products have a variety of industrial applications including applications in lithium-ion battery energy storage, electric vehicles, 5G communication, and cloud-computing infrastructure among others.
KULR Technology Group, Inc. (NYSE:KULR) has been on investors’ radars for some time now and as of the end of Q4 2021, 4 hedge funds have stakes in the company worth $0.7 million. This is compared to 1 position in the previous quarter with stakes worth $94,000. The hedge fund sentiment for the stock is positive.
This March, KULR Technology Group, Inc. (NYSE:KULR) announced that it has won three additional contracts with the United States Department of Defense for the implementation of its carbon fiber cathode solution for high power magnetic and other covert pulse weaponry initiatives. Moreover, the company also announced scoring a battery safety contract with NASA to test its lithium-ion cells going into future battery packs designed for a series of US-led international human spaceflight programs. Rising demand for its products in 2022 is expected to drive shares of KULR Technology Group, Inc. (NYSE:KULR), making it a top-pick penny stock for May.
Citadel Investment Group upped its Q3 stakes in KULR Technology Group, Inc. (NYSE:KULR) by 133%, bringing its stakes to $0.29 million at the close of Q4 2021. Citadel Investment Group is the dominating shareholder in the company.
4. Biora Therapeutics Inc (NASDAQ:PROG)
Number of Hedge Fund Holders: 6
Share Price as of May 6: $0.88
Biora Therapeutics Inc (NASDAQ:PROG) operates as a biotechnology company and develops and commercializes molecular testing products in the United States. This March, the company announced the success of its clinical device performance study which was performed for the evaluation of its Drug Delivery System capsule. According to Bioara Therapeutics Inc (NASDAQ:PROG), the company’s DDS capsule was well-tolerated and achieved success in 10 out of 12 subjects. Moreover, the company reported a profitable fourth quarter in 2021 as presented in its earnings release on March 28, 2022. Biora Therapeuics Inc (NASDAQ:PROG) saw its quarterly revenues grow by 300% year over year which came in at $0.44 million.
Growing sales and successful projects are making Biora Therapeuics Inc (NASDAQ:PROG) gain bullish views from analysts and investors alike. This May, BTIG analyst Julian Harrison assumed coverage of Biora Therapeutics Inc (NASDAQ:PROG) with a Buy rating and a $4 price target. Harrison contends that the company transformed from primarily being a diagnostic and tools company to becoming a powerful research and development engine. The analyst views the stock to be undervalued and sees long-term upside potential for it. Biora Therapeuics Inc (NASDAQ:PROG) is one of the best penny stocks to buy in May.
By the end of the fourth quarter of 2021, Biora Therapeutics Inc (NASDAQ:PROG) was spotted on 6 hedge funds’ portfolios, which held stakes worth $4.78 million in the company. This is compared to 4 positions in the preceding quarter with stakes of $1.71 million. The hedge fund sentiment for the stock is positive.
As of December 31, 2021, Sabby Capital is the leading stakeholder in Bioara Therapeutics Inc (NASDAQ:PROG) with stakes worth $2.26 million. The investment covers 0.33% of the hedge fund’s investment portfolio.
3. Vinco Ventures, Inc. (NASDAQ:BBIG)
Number of Hedge Fund Holders: 10
Share Price as of May 6: 3.29
Vinco Ventures, Inc. (NASDAQ:BBIG) develops and commercializes end-to-end consumer products in North America. Among the company’s product offerings we see a variety of kitchenware, small appliances, toys, pet care, baby products, health and beauty aids, entertainment venue merchandise, and houseware. Vinco Ventures, Inc. (NASDAQ:BBIG) also offers personal protective equipment to governmental agencies, hospitals, and distributors. The company also owns and operates various platforms for content creation and digital marketing.
This February, Vinco Ventures, Inc. (NASDAQ:BBIG) announced it has completed the acquisition of AdRizer with an all-cash transaction of $38 million. The company aims to make use of AdRizer’s platform to monetize content creation and streaming on its content creation app, Lomotif, through digital marketing.
Vinco Ventures, Inc. (NASDAQ:BBIG) is gaining momentum and investor retention. As of May 6, the stock has surged 34.84% over the past twelve months, making Vinco Ventures, Inc. (NASDAQ:BBIG) a high-momentum penny stock to buy in May. Moreover, Insider Monkey identified 10 hedge funds that were long Vinco Ventures, Inc. (NASDAQ:BBIG) at the end of the fourth quarter of 2021. The total stake of these funds amounted to $6.02 million. This is compared to 7 positions in the previous quarter.
2. Xos, Inc. (NASDAQ:XOS)
Number of Hedge Fund Holders: 16
Share Price as of May 6: $2.63
Xos, Inc. (NASDAQ:XOS) is an emerging electric vehicle company, pioneering the manufacturer of fully electric, zero-emission medium- and heavy-duty commercial vehicles, powertrain components, and charging infrastructure. At the close of Q4 2021, 16 hedge funds held stakes in Xos, Inc. (NASDAQ:XOS) worth $5.51 million.
On March 8, Xos, Inc. (NASDAQ:XOS) announced that it has successfully delivered three vehicles to UniFirst Corporation (NYSE:UNF), a leading uniform rental company. Moreover, this April, Xos, Inc. (NASDAQ:XOS) delivered 15 battery-electric vans to five different locations of FedEx Corporation (NYSE:FDX). The demand for Xos, Inc.’s (NASDAQ:XOS) fleet of commercial vehicles is surging and is further catalyzing the likelihood of the stock exploding in 2022, making it one of the best penny stocks to buy in May.
This May, Xos, Inc. (NASDAQ:XOS) reported earnings for the fiscal first quarter of 2022. The company generated revenues of $7.03 million and outperformed market consensus by $1.42 million.
As of December 31, 2021, Antara Capital is the most prominent shareholder in Xos, Inc. (NASDAQ:XOS) owning over 0.5 million shares of stock which equate to a stake of $1.57 million.
1. Clover Health Investments, Corp. (NASDAQ:CLOV)
Number of Hedge Fund Holders: 17
Share Price as of May 6: $2.69
Clover Health Investments, Corp (NASDAQ:CLOV) is an American healthcare company that provides Medicare Advantage insurance plans and operates as a direct contracting entity with the U.S. government. This January, Clover Health Investments, Corp (NASDAQ:CLOV) announced that the company saw a 25% growth in Medicare Advantage memberships in 2022, as compared to the same time in 2021, outpacing the overall industry median growth rate of 10% year-over-year. The stock is gaining the attention of expert analysts and elite hedge funds and is bound to explode any time in the near term, making it a must-buy penny stock in May.
On February 23, Clover Health Investments, Corp (NASDAQ:CLOV) released its earnings for the fiscal fourth quarter of 2021 in which it outperformed revenue estimates. The company saw its quarterly revenues surge more than 159% year over year, hitting $432.04 million and beating estimates by $23.90 million. Shortly after, Canaccord analyst Richard Close raised his price target on Clover Health Investments, Corp (NASDAQ:CLOV) to $7 from $6 and reiterated a Buy rating on the shares.
Insider Monkey found 17 hedge funds long Clover Health Investments, Corp (NASDAQ:CLOV) at the end of the fourth quarter of 2021, up from 12 positions in the preceding quarter. The total stakes of these funds were valued at $148.08 million. Of these Greenoaks Capital was the dominating stakeholder in the company having stakes worth $92.4 million.
You can also take a look at 10 Best Penny Stocks To Buy Now and 10 Popular Penny Stocks on Robinhood.
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Disclose. None. 10 Penny Stocks to Buy in May is originally published on Insider Monkey.
