In this piece, we discuss the 10 Stocks Under $1 That Will Explode.
U.S. equity markets are beginning their 2026 journey without taking a major break from existing trends, according to Morgan Stanley CIO and chief U.S. equity strategist Mike Wilson, who joined CNBC’s “Squawk Box” on January 8, 2026. He believes dynamics from the last year are still playing out, with fewer major headwinds weighing on investors.
One of the key positive drivers Wilson noted was the Federal Reserve’s highly proactive stance on liquidity, which includes renewed asset purchases to stabilize funding markets. The move has brought major ease to the market, reinforcing investor confidence that monetary policy is now supportive rather than restrictive.
While he acknowledged that policy changes and midterm election dynamics could cause periodic pullbacks, he believes they are unlikely to affect the broader trend. Accordingly, he suggests a 10% correction could occur. According to Wilson, economic growth is expected to remain stable, corporate earnings visibility remains relatively strong, and seemingly weak labor data may allow the Fed to cut rates further as we move into the year. At the same time, he dismissed short-term fears regarding an AI-driven bubble, as he believes current credit conditions and funding cycles do not indicate the caution seen ahead of past market excesses.
Amid this macro environment marked by improving liquidity, policy support, and selective optimism, we will turn our attention to interesting opportunities outlined in our list of the 10 Stocks Under $1 That Will Explode.
Phone with stocks chart
Our Methodology
To curate our list of the Stocks Under $1 That Will Explode, we relied on screeners to identify stocks currently trading under $1. Next, we filtered out stocks with meaningful analyst coverage, selecting those with at least 50% upside potential and ranking them accordingly. Furthermore, we used Insider Monkey’s database to assess hedge fund sentiment surrounding each stock. The database tracks 978 elite hedge fund managers as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: The analysis was run using data as of market close on January 8, 2026.
10. Kosmos Energy Ltd. (NYSE:KOS)
Share Price (As of January 8, 2026): $0.91
Upside Potential: 92.90%
Number of Hedge Fund Holders: 20
Kosmos Energy Ltd. (NYSE:KOS) is included in our list of stocks under $1 that will explode.
On January 5, 2026, Kosmos Energy Ltd. (NYSE:KOS) saw Bernstein reduce its price target from $1.70 to $0.80, while reiterating a ‘Market Perform’ rating. The update comes as the firm frames 2026 with a balanced oil outlook, expecting short-term price volatility. However, in the longer term, the investment bank projects strength.
Bernstein’s stance comes as the company looks to accelerate its operational momentum. On January 5, 2026, Kosmos Energy Ltd. (NYSE:KOS) shared a detailed operational and financial update, where it highlighted significant progress across its portfolio. Management discussed the second Jubilee producer well (J-74) in Ghana, which has been drilled and completed. The well hit approximately 50 meters of net pay (oil-bearing rock), which translates to a potential output of over 10,000 bopd. The discovery lifts gross Jubilee output to nearly 70,000 bopd at the start of 2026.
Additionally, management talked about license extensions for Jubilee and TEN oilfields to 2040, which were approved in late December. The company believes that extensions will support higher 2P reserves and up to 20 additional wells. On the other hand, management confirmed the GTA LNG project hit its nameplate capacity in December 2025, with cargo liftings expected to nearly double in 2026. At the same time, debt actions are expected to improve the company’s leverage.
Kosmos Energy Ltd. (NYSE:KOS), an independent oil and gas company, focuses on offshore exploration, development, and production. Its core assets are in Ghana, Mauritania/Senegal LNG, Equatorial Guinea, and the U.S. Gulf of Mexico.
9. Blink Charging Co. (NASDAQ:BLNK)
Share Price (As of January 8, 2026): $0.78
Upside Potential: 156.40%
Number of Hedge Fund Holders: 9
Blink Charging Co. (NASDAQ:BLNK) is one of the stocks under $1 that will explode.
By market close on January 8, 2026, Blink Charging Co. (NASDAQ:BLNK) was seen gaining strong share price momentum, recording approximately a 17% return over the past five days.
This follows the company’s December 11 update, where it reported that Blink Charging Co. (NASDAQ:BLNK) priced a public offering of 26,666,666 shares at $0.75 per share. With this offering, the company raised roughly $20 million in gross proceeds before fees, providing incremental capital to fund capital expenditures related to its owned and operated DC fast-charging network expansion. Furthermore, it will also support the company’s working capital and general corporate needs.
Meanwhile, Blink Charging Co. (NASDAQ:BLNK) reported a strategic commercial win earlier in November, bagging a Sourcewell contract effective through September 18, 2029, with potential one-year extensions. This agreement will enable over 50,000 government, education, and nonprofit agencies to procure the company’s Level 2 and DC fast chargers, software, installation, and maintenance through a streamlined purchasing process. Looking ahead, the company stands well-positioned to pursue public-sector demand while scaling its fast-charging footprint nationwide.
Blink Charging Co. (NASDAQ:BLNK) focuses on operating and providing EV charging equipment and networked charging services. The company’s offerings include Level 2 and DC fast chargers, software, and support solutions to commercial, residential, and public-sector customers.
8. Canaan Inc. (NASDAQ:CAN)
Share Price (As of January 8, 2026): $0.81
Upside Potential: 270.10%
Number of Hedge Fund Holders: 10
Canaan Inc. (NASDAQ:CAN) is included in our list of the stocks under $1 that will explode.
On January 6, 2026, Canaan Inc. (NASDAQ:CAN) announced a 3.0 MW proof-of-concept (PoC) project with Bitforest Investment in Manitoba, Canada. The move is a strategic step to monetize waste heat from crypto mining through agricultural applications. The 24-month pilot will see the company deploy 360 Avalon A1566HA-460T liquid-cooled servers and four cooling modules. Meanwhile, recovered heat will be used to preheat water for greenhouse operations. According to management projections, approximately 90% of the electricity consumed by the computing servers could potentially be captured and reused, with a targeted 95% uptime.
The development bolsters the company’s growth narrative by helping Canaan Inc. (NASDAQ:CAN) reposition high-density computing as an energy-efficient infrastructure asset rather than a pure bitcoin-mining cost center. The project’s highlighted features include a low all-in power cost of $0.035 per kWh, elimination of the need for industrial cooling towers, and potential upside through shared economics if surplus power is sold back to the grid. Furthermore, the project could be extended in the long term by replicating it across colder regions facing carbon pricing pressures.
Canaan Inc. (NASDAQ:CAN) is focused on the development and sale of Bitcoin mining machines and related services.
7. Tenaya Therapeutics, Inc. (NASDAQ:TNYA)
Share Price (As of January 8, 2026): $0.77
Upside Potential: 288.60%
Number of Hedge Fund Holders: 17
Tenaya Therapeutics, Inc. (NASDAQ:TNYA) is one of the stocks under $1 that will explode.
On January 8, 2026, TheFly reported that Morgan Stanley reduced its price target on Tenaya Therapeutics, Inc. (NASDAQ:TNYA) from $5 to $2, while reiterating an ‘Overweight’ rating. The firm keeps its constructive stance on U.S. small- to mid-cap biotech in 2026, as it expects select companies to transition from capital consumers to capital producers. Meanwhile, large-cap biopharma is projected to face headwinds amid an approaching patent cliff.
Meanwhile, Morgan Stanley’s cautious outlook was preceded by encouraging clinical momentum reported earlier. On December 11, 2025, Tenaya Therapeutics, Inc. (NASDAQ:TNYA) released interim data from the RIDGE-1 Phase 1b/2 trial of TN-401, the company’s gene therapy for PKP2-associated ARVC. The therapy was well-tolerated among three patients dosed at 3E13 vg/kg, with no dose-limiting toxicities. Meanwhile, two patients reported increased PKP2 protein expression and clinically significant reductions in arrhythmia burden, including PVC declines of 46% and 89%. The company reported continued clinical progress, with enrollment at the higher 6E13 vg/kg dose marking completion, with no new treatment-related serious adverse events.
Tenaya Therapeutics, Inc. (NASDAQ:TNYA), a clinical-stage biopharma company, develops potentially curative therapies for cardiovascular disease. Its pipeline spans gene therapy and precision medicine programs targeting inherited and acquired heart conditions.
6. Mereo BioPharma Group plc (NASDAQ:MREO)
Share Price (As of January 8, 2026): $0.38
Upside Potential: 290.20%
Number of Hedge Fund Holders: 22
Mereo BioPharma Group plc (NASDAQ:MREO) is included in our list of the stocks under $1 that will explode.
On December 30, 2025, TheFly reported that Jefferies downgraded Mereo BioPharma Group plc (NASDAQ:MREO) from ‘Buy’ to ‘Hold’. The firm reduced its price target from $7.00 to $0.50, citing disappointing Phase 4 data for setrusumab. The antibody missed its primary endpoints in both the ORBIT and COSMIC trials, resulting in a sharp decline in the company’s and its partner Ultragenyx’s shares. The firm believes Mereo’s heavy reliance on a potential EUA path for setrusumab and its need to secure a partnership for alvelestat adds risk to the company’s outlook.
On the previous day, Baird also reduced its price target on Mereo BioPharma Group plc (NASDAQ:MREO) from $8 to $1, while maintaining an ‘Outperform’ rating. Removing its “Fresh Pick” designation, the firm sees a lower chance of success for setrusumab in Osteogenesis Imperfecta due to the lack of statistically significant fracture-rate reduction. The probability of success set by the firm is 5%.
On December 29, 2025, Mereo BioPharma Group plc (NASDAQ:MREO) announced that both ORBIT and COSMIC failed on primary fracture endpoints. Both reported statistically significant improvements in bone mineral density and an unchanged safety profile.
Mereo BioPharma Group plc (NASDAQ:MREO), a clinical-stage biopharma company, develops therapies for rare diseases and oncology. Its pipeline spans partnered and wholly owned programs across bone, respiratory, and reproductive indications.
5. Sangamo Therapeutics, Inc. (NASDAQ:SGMO)
Share Price (As of January 8, 2026): $0.45
Upside Potential: 344.20%
Number of Hedge Fund Holders: 15
Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is one of the stocks under $1 that will explode.
Sangamo Therapeutics, Inc.’s (NASDAQ:SGMO) share price has underperformed over the past year, down nearly 64%. However, by the time the market opened on January 9, 2026, the stock had recorded a 7.19% share price gain over the previous five sessions.
This recent stabilization in the stock is somewhat supported by a recent key pipeline update that refocused investor attention on the company’s lead gene therapy program.
On December 18, 2025, Sangamo Therapeutics, Inc. (NASDAQ:SGMO) announced the initiation of a rolling Biologics License Application (BLA) submission to the U.S. Food and Drug Administration. The company is seeking accelerated approval of isaralgagene civaparvovec (ST-920) for adults with Fabry disease, with the submission allowing completed modules to be reviewed on an ongoing basis. It will potentially shorten the regulatory timeline ahead of a full filing expected in Q2 2026.
The data from the registration STAAR study support the BLA, as it demonstrated ST-920’s potential as a one-time, durable gene therapy. Importantly, the FDA validated the claim that the mean annualized eGFR slope at 52 weeks can serve as the accelerated approval endpoint, as dosed patients showed a positive slope indicative of kidney function stabilization. The regulatory momentum is soaring high, with ST-920 also carrying Orphan Drug, Fast Track, and RMAT designations.
Sangamo Therapeutics, Inc. (NASDAQ:SGMO), a clinical-stage biotech company, develops genomic medicines across inherited metabolic, neurologic, and immune diseases. The company leverages gene therapy and genome engineering platforms to pursue durable, potentially curative treatments.
4. Oncolytics Biotech Inc. (NASDAQ:ONCY)
Share Price (As of January 8, 2026): $0.99
Upside Potential: 424.50%
Number of Hedge Fund Holders: 3
Oncolytics Biotech Inc. (NASDAQ:ONCY) is included in our list of the stocks under $1 that will explode.
Oncolytics Biotech Inc. (NASDAQ:ONCY) shared a leadership update on January 7, 2026. With the appointment of Dr. Eileen O’Reilly of Memorial Sloan Kettering Cancer Center, Dr. Neil Segal of MSK, and Dr. Van Morris of MD Anderson Cancer Center, the company expanded its Gastrointestinal (GI) Tumor Scientific Advisory Board. The clinical and strategic oversight is strengthened with the move, as the company advances pelareorep toward registration-enabling trials in pancreatic, colorectal, and anal cancers. Furthermore, management said that the expanded board sharpens the late-stage development strategy for a GI-focused immunotherapy platform with large addressable markets.
This leadership expansion follows the company’s clinical and translational momentum announced earlier in December. Data in second-line KRAS-mutant, microsatellite-stable metastatic colorectal cancer, showed a 33% objective response rate compared to a historical 6-11%. Furthermore, it showed more than doubling of progression-free and overall survival versus standard therapy. On the translational analysis front, increased KRAS-specific T-cell responses were reported, which reinforces pelareorep’s mechanistic differentiation.
Oncolytics Biotech Inc. (NASDAQ:ONCY) is focused on developing pelareorep, an immune-oncolytic virus platform targeting solid tumors and hematologic malignancies. It leverages tumor-selective viral replication to stimulate innate and adaptive anti-cancer immune responses.
3. Immunic, Inc. (NASDAQ:IMUX)
Share Price (As of January 8, 2026): $0.66
Upside Potential: 503.60%
Number of Hedge Fund Holders: 12
Immunic, Inc. (NASDAQ:IMUX) is one of the stocks under $1 that will explode.
Immunic, Inc. (NASDAQ:IMUX) has recently demonstrated strong share price momentum, with its shares up 24.10% in the past five days as of the market open on January 9, 2026.
Amid the share price surge, the company’s management reviewed 2025 performance and outlined upcoming milestones, issuing a press release on January 7, 2026.
The company reflected on progress across both neurologic and gastrointestinal programs, with CEO Dr. Daniel Vitt emphasizing completion of enrollment in the twin Phase 3 ENSURE-1 and ENSURE-2 trials of vidofludimus calcium (IMU-838) in relapsing multiple sclerosis (RMS). Enrollment randomized 1,121 and 1,100 patients across more than 100 sites in 15 countries. Management highlighted a synchronized top-line readout to assess the therapy’s potential to modify disease progression by combining neuroprotective Nurr1 activation with selective DHODH inhibition. The readout is expected by the end of 2026.
Meanwhile, durable disability protection was confirmed by long-term Phase 2 EMPhASIS data in relapsing-remitting MS (RRMS). Over 92% of patients remained free of 24-week confirmed disability worsening after up to 5.5 years. A favorable safety profile was also reported.
On the other hand, data from the Phase 2 CALLIPER trial in progressive MS showed statistically significant reductions in 24-week confirmed disability worsening (24wCDW) and consistent trends across subtypes. The results support neuroprotective effects independent of inflammation.
Management also discussed IMU-856, an orally available and systemically acting small molecule modulator that targets Sirtuin 6 (SIRT6). The modulator showed promising early clinical and preclinical signals for gastrointestinal barrier restoration and weight management. With this, the company looks to expand its oral immunology portfolio on the back of strong financing in 2025, including a $65 million public offering, providing resources to advance these programs.
Immunic, Inc. (NASDAQ:IMUX) is focused on developing selective oral immunology therapies targeting chronic inflammatory and autoimmune diseases, including multiple sclerosis, ulcerative colitis, and Crohn’s disease.
2. Werewolf Therapeutics, Inc. (NASDAQ:HOWL)
Share Price (As of January 8, 2026): $0.63
Upside Potential: 534.60%
Number of Hedge Fund Holders: 11
Werewolf Therapeutics, Inc. (NASDAQ:HOWL) is included on our list of stocks under $1 that will explode.
On December 18, 2025, Werewolf Therapeutics, Inc. (NASDAQ:HOWL) shared a comprehensive pipeline update in which it highlighted clinical progress and 2026 priorities for its INDUKINE programs and next-generation INDUCER T cell engager platform. Management said they observed strong monotherapy and combination activity with WTX-124 in heavily pretreated melanoma, cutaneous squamous cell carcinoma, and gastroesophageal junction cancer, with objective response rates of 21-30% in select populations. Tumor regression in roughly 33% of lesions was reported, alongside a favorable tolerability profile, including no vascular leak syndrome and manageable grade 3-4 adverse events (27/106 and 2/106). Moreover, the FDA accepted 18mg as the recommended dose, providing guidance for a monotherapy registration path in relapsed/refractory melanoma.
At the same time, WTX-330 continues to demonstrate strong momentum, showing promising antitumor activity in difficult-to-treat cancers, along with an optimized manufacturing process that enhances safety, pharmacokinetics, and therapeutic index. A 45% reduction in tumor lesions was confirmed in one partial response in metastatic gall bladder cancer. Werewolf Therapeutics, Inc. (NASDAQ:HOWL) aims to mark the completion of Phase 1/1b WTX-124 and early Phase 1b/2 WTX-330 studies in the first half of 2026, while finalizing strategic partners to advance its INDUKINE programs.
Werewolf Therapeutics, Inc. (NASDAQ:HOWL) combines selective tumor targeting, masking, and validated linker technology with its INDUCER platform, minimizing off-tumor toxicity and potentially establishing itself as a leader in T-cell engager therapeutics.
Werewolf Therapeutics, Inc. (NASDAQ:HOWL) focuses on developing tumor-activated immunotherapies for cancer using its Predator and INDUVER platforms.
1. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH)
Share Price (As of January 8, 2026): $0.37
Upside Potential: 719.70%
Number of Hedge Fund Holders: 6
Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is one of the stocks under $1 that will explode.
As of the market open on January 9, 2026, Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) has surged roughly 37% in 2026 so far, showcasing a strong share price momentum.
However, at the same time, Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is facing near-term regulatory challenges amid this share momentum, with the FDA recommending a second Phase 3 trial for brilaroxazine in schizophrenia. On December 23, 2025, the company saw H.C. Wainwright reiterate a ‘Buy’ rating with a $4 price target. The firm described the FDA guidance as consistent with precedent in schizophrenia drug development, projecting regulatory submission in late 2027, with potential approval and launch in late 2028.
Meanwhile, Roth Capital revisited Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) the following day, reducing its price target to $1.50, while reiterating a ‘Buy’ rating, according to TheFly. The firm cited anticipated equity dilution required to fund the second Phase 3 study, estimated at $60-75 million. Roth Capital remains optimistic about brilaroxazine’s therapeutic potential and has adjusted expectations following the FDA decision.
Additionally, Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) shared a brief update on the publication of vocal biomarker findings from the RECOVER trial. The update reinforces brilaroxazine’s efficacy assessment for negative symptoms and the progress on ongoing clinical development.
Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is focused on developing CNS, respiratory, and metabolic therapies. Using a proprietary chemical genomics platform, the company is advancing its RP5063 (brilaroxazine) and RP1208 pipelines.
While we acknowledge the potential of RVPH 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 RVPH and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 Best Multibagger Stocks to Buy Heading into 2026 and 7 Best Rising Tech Stocks to Buy Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
