In this article, we will take a detailed look at the 11 Best High Return Penny Stocks to Buy Now.
US equity markets are back at all-time highs amid a muted response to new U.S. tariffs and the trade war. The Nasdaq Composite Index, performing relatively well among major U.S. indices, has resulted in valuation getting out of hand to historical highs. In such cases, penny stocks offer a way out, as most trade at discounted valuations while exhibiting growth potential and resilience amid economic fluctuations.
Penny stocks are proving to be stars in the equity market, whereby valuations are increasingly being brought into question. BTIG chief market technician Jonathan Krinksy has already reiterated that the summer is going to be about stocks with small market capitalization, as they have plenty of room to catch up to large-cap stocks.
Bank of America, on its part, expects short interest rates to decline significantly, and penny stocks are expected to be the biggest beneficiaries. Angelo Kourkafas, senior investment strategist at Edward Jones, expects interest rate cuts to be a major catalyst that will benefit stocks
“This year’s [earnings] estimates have been revised down, both for small and large caps, small to a greater extent, but 2026 estimates are holding pretty steady. So as we look at that rolling forward 12-months, it still looks pretty positive, and assuming [a] stable macroeconomic backdrop, we would expect small-cap earnings to outperform large-cap earnings,” Kourkafas said.
Penny stocks are starting to look attractive as more of the market moves on from trade headlines, and investors look forward instead to more constructive forces, such as interest rate cuts.
With that in mind, let’s look at the 10 Best High Return Penny Stocks to Buy Now.
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Our Methodology
To compile the list of 11 Best High Return Penny Stocks to Buy Now, we scanned US equity markets focusing on stocks trading for less than $5 a share across all industries. We focused on penny stocks with significant upside potential and that were popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on their upside potential.
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).
Best High Return Penny Stocks to Buy Now
11. Taseko Mines Limited (NYSE:TGB)
Stock Price as of July 18: $3.22
Stock Upside Potential as of July 18: 15.48%
Number of Hedge Fund Holders: 10
Taseko Mines Ltd. (NYSE:TGB) is one of the best high-return penny stocks to buy now. On July 16, analysts at TD Securities increased their price target for the stock to C$5 from C$3.50 but downgraded the rating to ‘Hold’ from ‘Buy’.
The adjustment came amid valuation concerns, as the stock was trading at 1.3 times net asset value and 5.7 times estimated 2026 EBITDA. According to the analyst Craig Hutchison, the stock is fully valued, even as they expect the stock price to increase.
In addition, analysts expect Taseko mine valuations to receive a significant boost if Section 232 tariffs take effect, given the potential positive impact on the Taseko Florence project.
Taseko Mines Ltd. (NYSE:TGB) is a North American mining company focused on the operation and development of copper mines. It owns and operates the Gibraltar Mine, a large copper and molybdenum mine located in British Columbia. It’s also developing the Florence Copper project in Arizona, which uses a unique in-situ recovery method.
10. Silvercorp Metals Inc. (NYSE:SVM)
Stock Price as of July 18: $4.44
Stock Upside Potential as of July 18: 27.71%
Number of Hedge Fund Holders: 15
Silvercorp Metals Inc. (NYSE:SVM) is one of the best high-return penny stocks to buy now. On July 15, the company delivered solid financial results for its first quarter ended June 30, 2025. Revenue in the quarter was up 13% year over year to $81.3 million.
The revenue increase was driven by a 6% increase in silver production to 2 million ounces, as Lead production increased 1% year over year to 15.7 million pounds. Nevertheless, zinc production fell 19% to 5.2 million pounds.
In Q1 Fiscal 2025, production totaled approximately 1.69 million ounces of silver, 2,050 ounces of gold (equating to 1.89 million ounces of silver equivalent), 14.6 million pounds of lead, and 1.85 million pounds of zinc. Compared to the previous quarter, output rose by 7% in silver, 79% in gold, 14% in silver equivalent, and 4% in lead, while zinc production declined by 25%.
Silvercorp Metals Inc. (NYSE:SVM) acquires, explores, develops, and mines mineral properties in China, with a focus on the Ying Mining District. It mines silver, lead, and zinc at its flagship projects. It also has development projects in Ecuador, including the El Domo copper-gold project.
9. Nokia Oyj (NYSE:NOK)
Stock Price as of July 18: $4.75
Stock Upside Potential as of July 18: 35.98%
Number of Hedge Fund Holders: 29
Nokia Oyj (NYSE:NOK) is one of the top high-return penny stocks to consider buying now. On July 16, the company secured a contract for the deployment of a private 5G wireless network for Memphis Light, Gas, and Water (MLGW), a utility provider.
Under the terms of the agreement, the company is to deploy a private 5G wireless network for three municipal utility providers. The deployment will allow Nokia to support MLGW’s multi-year modernization strategy across Memphis and Shelby County. The 5G network will also provide a foundation for connected mobility, voice, and video services.
In addition, MLGW will become the first municipal utility in the US to implement a full-scale, standalone 5G private wireless network, serving more than 420,000 customers. Nokia expects the 5G network to enhance data connectivity, resilience, and operational efficiency. To date, the Finnish provider has deployed a private wireless network for 890 customers. It has already ramped up the adoption of private 5G networks and neutral hosts across North America.
Nokia Oyj (NYSE:NOK) provides network infrastructure, software, and related services. It is a major player in the telecommunications industry, developing and selling equipment and solutions for mobile, fixed, and cloud networks.