In this article, we will look at the 11 Best American Penny Stocks to Buy According to Analysts.
On July 19, Bailard released its Q2 2025 Small Cap Value Strategy report. The report highlights that in early April, fears of trade wars pushed the US equity markets near bear market territory. However, these losses quickly reversed as concerns over tariffs faded. This shift led to a “risk-on” environment, where investors became more comfortable taking risks. As a result, lower-quality junk stocks rallied, gaining a surge from improved sentiment, despite their weak fundamentals.
The report suggests that in such risk-on markets, growth stocks tend to outperform value stocks. This is because investors pay less attention to immediate profitability and focus more on future growth potentials. The optimistic mood allows companies with unproven business models and high earnings uncertainty to gain investor interest and funding. Bailard highlighted that these market dynamics reversed earlier trends from the first quarter. As the growth stock indices, both large and small cap, outperformed value indices in the second quarter. Even the micro cap value stocks, which performed poorly in Q1, surged in Q2 as they were grouped with riskier stocks.
With that, let’s take a look at the 11 best American penny stocks to buy according to analysts.
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Our Methodology
To curate the list of 11 best American penny stocks to buy according to analysts, we used Finviz stock screener and CNN as our sources. Using the screener, we aggregated a list of penny stocks (trading below $5) with an upside potential of more than 30%. Next, we cross-checked the analyst upside potential from CNN and ranked the stocks in ascending order of this indicator. Moreover, we have also added the number of hedge funds holding each stock sourced from Insider Monkey’s Q1 2025 database.
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).
11 Best American Penny Stocks to Buy According to Analysts
11. Sabre Corporation (NASDAQ:SABR)
Price: $3.02
Number of Hedge Fund Holders: 32
Analyst Upside Potential: 32.45%
Sabre Corporation (NASDAQ:SABR) is one of the Best American Penny Stocks to Buy According to Analysts. On July 14, analyst Alex Irving from Bernstein raised the firm’s price target on Sabre Corporation (NASDAQ:SABR) from $3.50 to $4, while keeping a Market Perform rating on the stock.
The analyst noted that the early fears that airline profit warnings and tariffs would trigger an industry downturn did not occur. Airline traffic continues to grow and airlines are increasing capacity. However, intra-North American capacity is not showing significant year-over-year growth into summer. The firm believes that this is a sign of resilience in airline demand, supporting Sabre Corporation’s (NASDAQ:SABR) business.
The firm remains cautious due to challenges such as an underinvested IT suite and high debt levels, but optimistic about ongoing airline technology adoption.
Sabre Corporation (NASDAQ:SABR) is a global travel technology company that connects travel suppliers such as airlines, hotels, and rental car companies with travel sellers including agencies and corporations.
10. EVgo, Inc. (NASDAQ:EVGO)
Price: $3.77
Number of Hedge Fund Holders: 26
Analyst Upside Potential: 32.63%
EVgo, Inc. (NASDAQ:EVGO) is one of the Best American Penny Stocks to Buy According to Analysts. On July 15, Chris Dendrinos from RBC Capital maintained a Buy rating on EVgo, Inc. (NASDAQ:EVGO). The company is set to report its second quarter earnings on August 1, 2025.
The company beat expectations during its fiscal first quarter results. EVgo, Inc. (NASDAQ:EVGO) delivered revenue of $75.29 million, up 36.5% and ahead of expectations by $3.91 million. This was a record quarterly revenue driven by a 49% rise in Charging network revenue. Moreover, Network throughput reached 83GWh, marking a 60% jump year-over-year. Management noted that over 180 new charging stalls were added, ending the quarter with 4,240 stalls in operation. The company reaffirmed its FY2025 guidance and is expecting revenue between $340 million and $380 million.
EVgo, Inc. (NASDAQ:EVGO) operates one of the largest public fast charging networks for electric vehicles in the United States, with more than 1,100 charging stations across over 40 states.
9. Sana Biotechnology, Inc. (NASDAQ:SANA)
Price: $4.63
Number of Hedge Fund Holders: 13
Analyst Upside Potential: 51.19%
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the Best American Penny Stocks to Buy According to Analysts. On July 2, Citi analyst Samantha Semenkow maintained a Buy rating on Sana Biotechnology, Inc. (NASDAQ:SANA) with a price target of $15.
The analyst believes the company has the potential to address major market needs. One of the key factors is Sana Biotechnology, Inc.’s (NASDAQ:SANA) Type 1 Diabetes (T1D) program, which has delivered encouraging six-month data. The data shows successful graft survival and steady c-peptide production without requiring immunosuppression. The analyst noted that such consistency builds confidence in the company’s T1D asset, SC451, which could move toward an IND filing as early as 2026.
Moreover, Semenkow also highlighted the company’s progress in its allogeneic CAR-T platform. She expects forthcoming data on the hypoimmune-modified CAR-T assets to provide important insights, particularly those targeting autoimmune diseases and relapsed NHL.
Sana Biotechnology, Inc. (NASDAQ:SANA) develops engineered cell-based medicines to treat diseases with unmet needs. The company’s work focuses on therapies for type 1 diabetes, autoimmune diseases, and cancer.
8. Clover Health Investments, Corp. (NASDAQ:CLOV)
Price: $2.94
Number of Hedge Fund Holders: 33
Analyst Upside Potential: 53.06%
Clover Health Investments, Corp. (NASDAQ:CLOV) is one of the Best American Penny Stocks to Buy According to Analysts. On July 9, Clover Health Investments, Corp. (NASDAQ:CLOV) announced a new pharmacy pilot program in New Jersey. The new program is being launched in partnership with IPC Digital Health, which connects independent community pharmacies across the state.
The program is aimed at helping seniors. Management noted that local pharmacies in the iCare+ network will be the backbone of this initiative. As these pharmacies already know their communities and will use new technology and virtual services to assist patients, especially those with chronic health conditions.
A key part of the program is using real-time tools, powered by Clover Health Investments, Corp. (NASDAQ:CLOV)’s data and AI. These tools will monitor if prescriptions are filled and help spot when patients miss doses. Pharmacists will work closely with doctors and care teams to ensure seniors always get the right medicine at the right time, close to where they live.
Clover Health Investments, Corp. (NASDAQ:CLOV) is a technology company that helps improve healthcare for people on Medicare, especially seniors.
7. Bit Digital, Inc. (NASDAQ:BTBT)
Price: $3.84
Number of Hedge Fund Holders: 6
Analyst Upside Potential: 56.25%
Bit Digital, Inc. (NASDAQ:BTBT) is one of the Best American Penny Stocks to Buy According to Analysts. On July 16, Bit Digital, Inc. (NASDAQ:BTBT) announced that its subsidiary, WhiteFiber Inc., submitted a Form S-1 registration statement to the US Securities and Exchange Commission, as it prepares for launching an initial public offering.
The size and price range of the offering are still to be determined. The IPO will only proceed after the SEC reviews and approves the registration, and if market conditions are appropriate.
WhiteFiber aims to list its shares on the Nasdaq Capital Market, with the ticker symbol “WYFI.” Moreover, B. Riley Securities and Needham & Company will manage the IPO process as joint bookrunners.
Bit Digital, Inc. (NASDAQ:BTBT) provides high-performance computing infrastructure and digital asset services. Its subsidiary WhiteFiber offers GPU cloud services and operates HPC data centers that support demanding AI and machine learning workloads.
6. Stagwell Inc. (NASDAQ:STGW)
Price: $4.93
Number of Hedge Fund Holders: 19
Analyst Upside Potential: 77.48%
Stagwell Inc. (NASDAQ:STGW) is one of the Best American Penny Stocks to Buy According to Analysts. On June 13, Stagwell Inc. (NASDAQ:STGW) announced launching Stagwell News Network, a private marketplace linked to its Future of News initiative.
The network allows Stagwell Inc. (NASDAQ:STGW)’s clients to access premium inventory from leading news publishers. The launch partners include Newsweek, Nexstar, NPR, Ozone, RealClear Politics, The Associated Press, The Washington Post, and TIME. Moreover, the announcement comes as the company expands its involvement at the Cannes Lions International Festival of Creativity 2025. The company also revealed new research by HarrisX, surveying 7,126 U.S. adults, that shows why news advertising works.
Stagwell Inc. (NASDAQ:STGW) is a digital-first marketing company that combines creative expertise with advanced technology. It operates through three main segments including Integrated Agencies Network, Brand Performance Network, and Communications Network.
5. LifeStance Health Group, Inc. (NASDAQ:LFST)
Price: $4.22
Number of Hedge Fund Holders: 24
Analyst Upside Potential: 101.42%
LifeStance Health Group, Inc. (NASDAQ:LFST) is one of the Best American Penny Stocks to Buy According to Analysts. On May 14, LifeStance Health Group, Inc. (NASDAQ:LFST) announced appointing Vaughn Paunovich as Chief Technology Officer, effective June 9, 2025.
Paunovich will oversee all technology initiatives at LifeStance Health Group, Inc. (NASDAQ:LFST), while strengthening digital platforms for both patients and clinicians. Dave Bourdon, the CEO, praised Paunovich’s history of leading top technology teams. He brings over 25 years of experience in health care technology and has previously worked at Amwell as EVP of Enterprise Platforms and held senior technology roles at UnitedHealth Group and Optum Health.
LifeStance Health Group, Inc. (NASDAQ:LFST) provides virtual and in-person outpatient mental health care for children, adolescents, and adults.
4. OPKO Health, Inc. (NASDAQ:OPK)
Price: $1.35
Number of Hedge Fund Holders: 26
Analyst Upside Potential: 122.22%
OPKO Health, Inc. (NASDAQ:OPK) is one of the Best American Penny Stocks to Buy According to Analysts. On July 8, OPKO Health, Inc. (NASDAQ:OPK) in collaboration with Entera Bio Ltd. (NASDAQ: ENTX) announced the selection of their Oral GLP-2 Analog for a poster presentation at the 47th European Society for Clinical Nutrition & Metabolism Congress.
This new therapy is a first in class and combines OPKO Health, Inc.’s (NASDAQ:OPK) long-acting GLP-2 agonist with Entera’s N-Tab technology. The display will be in the Forum Hall Foyer 3, focusing on liver and gastrointestinal tract topics. The therapy treats short bowel syndrome, which is a condition where patients struggle to absorb nutrients due to a damaged or shortened intestine. Currently, the only approved treatment is GATTEX, which requires patients to inject themselves once a day. The oral GLP-2 tablet could change this. It aims to provide the same benefits without painful injections. This format may improve patient compliance and comfort.
OPKO Health, Inc. (NASDAQ:OPK) is an international biopharmaceutical company that develops and sells medicines, including human growth hormone and treatments for kidney disease.
3. Ardelyx, Inc. (NASDAQ:ARDX)
Price: $4.41
Number of Hedge Fund Holders: 28
Analyst Upside Potential: 126.76%
Ardelyx, Inc. (NASDAQ:ARDX) is one of the Best American Penny Stocks to Buy According to Analysts. On May 6, Ardelyx, Inc. (NASDAQ:ARDX) announced new data for IBSRELA at the Digestive Disease Week 2025 Conference.
IBSRELA is FDA-approved treatment for adults with irritable bowel syndrome with constipation. Management highlighted results from the IBS in America 2024 survey. The findings show that people with more severe IBS-C symptoms often face greater financial stress. This was measured using FACIT-COST and PROMIS-GI tools. Moreover, people with worse symptoms reported higher financial hardship.
The company also presented new data from a Phase 3 pediatric study, where IBSRELA was tested in patients aged 12 to under 18 with IBS-C. The results show that the medicine was well-tolerated, with the only side effect being diarrhea.
Ardelyx, Inc. (NASDAQ:ARDX) is a biopharmaceutical company that discovers, develops, and commercializes first-in-class medicines.
2. MannKind Corporation (NASDAQ:MNKD)
Price: $3.76
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 139.36%
MannKind Corporation (NASDAQ:MNKD) is one of the Best American Penny Stocks to Buy According to Analysts. MannKind Corporation (NASDAQ:MNKD) presented inhaled insulin therapy at the American Diabetes Association’s 85th Scientific Sessions in Chicago, which was held from June 20 to June 23, 2025.
Dr. Michael J. Haller of the University of Florida presented key results from the INHALE-1 Phase 3 clinical trial. This trial tested Afrezza, the company’s inhaled insulin, in children and teens aged 4-17 with diabetes. The company highlighted several new studies at the meeting, including updates on inhaled insulin’s benefits for children and adults with both type 1 and type 2 diabetes. Moreover, two other presentations discussed patient experiences and compared Afrezza to placebo in adults with type 2 diabetes.
Looking ahead, MannKind Corporation (NASDAQ:MNKD) plans to release full pediatric safety and efficacy data in the second quarter of 2025. The company aims to apply to expand Afrezza’s use in children later in the year.
MannKind Corporation (NASDAQ:MNKD) develops and sells inhaled therapies and delivery devices for serious endocrine and lung diseases.
1. ImmunityBio, Inc. (NASDAQ:IBRX)
Price: $2.75
Number of Hedge Fund Holders: 10
Analyst Upside Potential: 190.91%
ImmunityBio, Inc. (NASDAQ:IBRX) is one of the Best American Penny Stocks to Buy According to Analysts. On July 8, ImmunityBio, Inc. (NASDAQ:IBRX) announced that the UK’s Medicines and Healthcare products Regulatory Agency has approved ANKTIVA with Bacillus Calmette-Guérin for treating certain bladder cancer patients.
This is significant as it marks the first approval for the company outside of the United States of America. Moreover, the drug is a first-in-class IL-15 agonist, which works by activating and multiplying immune cells, specifically NK cells and T cells that help the body fight cancer.
In addition, clinical studies have shown strong results as some patients maintained a complete response for over 47 months at the last review.
ImmunityBio, Inc. (NASDAQ:IBRX) is a biopharmaceutical company that develops therapies and vaccines that boost the immune system to fight cancer and infectious diseases.
While we acknowledge the potential of IBRX 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 IBRX and that has 100x upside potential, check out our report about this cheapest AI stock.
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