In this article, we explore the 10 Popular Penny Stocks on Robinhood to Buy.
Robinhood is a FINRA and SEC-regulated broker. It plays the role of a bridge that routes customer orders to market makers and exchanges. The firm was founded to “Democratize finance for all,” and has evolved from a commission-free trading pioneer into what analysts now describe as a diversified financial SuperApp. As of February 2026, the platform had a little over 27 million registered paying users and total platform assets of $314 billion. Robinhood lets customers trade stocks, options, futures, and crypto, and it also offers retirement accounts and professionally managed portfolios.
That democratizing impulse has been Robinhood’s most enduring achievement; it has expanded market participation to include opportunities across the full spectrum, including penny stocks. Investors often refer to shares trading below $5 as penny stocks. These companies also fall within the small-cap category.
Small caps kicked off this year with a bang. Between October 2025 and March 06, 2026, small caps returned 10% while the S&P 500 remained flat, a Barron’s analysis shows. The analysis added that trailing 12-month earnings for the S&P 600 small-cap index were up nearly 30% over the same period, which was a reversal after nearly three years of declines. According to CNBC, the reversal came on the back of fears of an energy price-driven inflation uptick, which caused traders to dial up expectations of a Federal Reserve rate rise.
The turbulence was set off by tensions in the Middle East, which spiked oil prices and stoked recession fears. A turnaround, however, may be in the offing. President Trump announced on March 23 that the US and Iran have held “productive” talks, a development that sparked optimism on Wall Street that the market-roiling conflict could be nearing an end, according to the Wall Street Journal. MarketWatch noted that small caps led the ensuing relief rally. To Tim Pagliara, investing chief at CapWealth, the “stock market can recover well before the conflict in Iran ends.” Interestingly, this is not an isolated sentiment because Jay Woods, chief market strategist at Freedom Capital Markets and a longtime NYSE insider, said the market will attempt to reclaim lost ground. And when it does, investors should watch small-cap stocks closely, Woods told CNBC.
Against this background, this article explores some of the popular penny stocks that Robinhood offers buying opportunities for.
Our Methodology
To compile our list of the 10 Popular Penny Stocks on Robinhood to Buy, we used the Finviz stock screener to build an initial pool of stocks trading below $5 with an analyst consensus upside potential of more than 50% as of March 25, 2026. We further filtered this pool for stocks with an average daily trading volume of more than 2 million shares over the most recent three-month period, which is a proxy for popularity, and confirmed that each stock is available for trading on Robinhood. We further validated each selection using hedge fund holdings data from Insider Monkey’s Q4 2025 13F database to assess institutional interest. The final list is ranked in ascending order based on average daily trading volume over the past three months.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Popular Penny Stocks on Robinhood to Buy
10. MannKind Corporation (NASDAQ:MNKD)
Average Daily Trading Volume: 5.69 million shares
Stock Price: $2.29
Stock Upside: 205.68%
Number of Hedge Fund Holding: 39
MannKind Corporation (NASDAQ:MNKD) is one of the popular penny stocks on Robinhood to buy. On March 11, MannKind Corporation (NASDAQ:MNKD) CEO Michael Castagna and CFO Chris Prentiss presented at the Barclays 28th Annual Global Healthcare Conference in Miami. The executives walked analysts through the company’s evolution from a single-revenue inhaled insulin business into a diversified, commercial-stage specialty pharma company. They also outlined what they expect to drive the next phase of growth.
According to the presentation, the most pressing near-term catalyst is the United Therapeutics, or UT, partnership, which had recently drawn market concern. Castagna addressed this directly, noting that following a meeting with UT, the company received reassurance that Tyvaso DPI remains central to UT’s future growth plans. The CEO added that MannKind has since learned it will be the primary, not backup, supplier for Tyvaso DPI. This means the minimum revenue floor under the supply agreement will be meaningfully higher than originally modeled.
Castagna also confirmed that MannKind and UT are collaborating on a second undisclosed compound. As part of the deal, MannKind will earn a 10% royalty on that product as well if and when it receives FDA approval.
The presentation detailed that MannKind completed its $360 million acquisition of scPharmaceuticals in October 2025. As such, FUROSCIX, a treatment for fluid overload in chronic heart failure and chronic kidney disease patients, is now part of the company’s products. This opens a new cardiometabolic business unit alongside MannKind’s existing orphan lung division, the CEO noted.
FUROSCIX generated $70 million in revenue in 2025, and management believes the $110-$120 million revenue target tied to the deal’s contingent value right is achievable in 2026. Analysts had previously modeled peak sales at $500 million, but Castagna called that figure a starting point, not a peak.
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes treatments for diabetes and lung diseases. Its main product is Afrezza, an inhaled insulin therapy for adults with type 1 and type 2 diabetes, and it also co-develops Tyvaso DPI for pulmonary arterial hypertension.
9. CytomX Therapeutics Inc. (NASDAQ:CTMX)
Average Daily Trading Volume: 6.26 million shares
Stock Price: $4.24
Stock Upside: 183.02%
Number of Hedge Fund Holding: 33
CytomX Therapeutics Inc. (NASDAQ:CTMX) is one of the popular penny stocks on Robinhood to buy. On March 23, Piper Sandler analyst Joseph Catanzaro raised his price target on CytomX Therapeutics Inc. (NASDAQ:CTMX) to $12 from $10, while maintaining an Overweight rating. This move followed encouraging Phase 1 clinical data from CytomX’s lead drug candidate, varsetatug maseatecan, or varseta-M.
Catanzaro noted that the data from CytomX’s lead drug candidate test showed dose-dependent efficacy. In particular, the 10mg/kg dose delivered a 32% objective response rate and an 84% disease control rate.
Building on those results, CytomX has launched a Phase Ib study combining varseta-M with Avastin, or bevacizumab, the analyst noted. The company is planning to start a separate Phase Ib/II trial combining Avastin with chemotherapy in earlier-line colorectal cancer patients. Catanzaro noted that this is a sign the company is moving the drug up the treatment ladder rather than keeping it confined to late-stage patients.
The analyst also noted that CytomX is preparing to present Phase 1 data on CX-801 combined with Merck’s KEYTRUDA in advanced melanoma patients by the end of 2026. This, said Catanzaro, adds a second clinical catalyst to the pipeline calendar.
Separately, on the balance sheet, CytomX ended 2025 with $137 million in cash. The company then raised an additional $250 million through a stock offering where it priced 47.2 million shares and pre-funded warrants at $5.30 per share. This brought pro forma cash to approximately $372 million and gave the company ample runway to fund its ongoing and planned trials.
CytomX Therapeutics Inc. (NASDAQ:CTMX) is a clinical-stage biopharmaceutical company that develops antibody-based therapies for cancer treatment. Its proprietary Probody technology is designed to localize therapeutic activity to tumor tissue while minimizing effects on healthy cells.
