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.