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.
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.
8. B2Gold Corp. (NYSE:BTG)
Stock Price as of July 18: $3.33
Stock Upside Potential as of July 18: 44.28%
Number of Hedge Fund Holders: 23
B2Gold Corp. (NYSE:BTG) is one of the best high-return penny stocks to buy now. On July 11, BMO Capital Markets analysts reiterated a ‘Buy’ rating on the stock. The Buy rating is based on the Canadian gold miner’s series of positive updates.
The company has already announced a $740 million investment as it seeks to initiate its Gramalote gold project in Colombia. Once fully operational, the mine is expected to become a significant production asset yielding an average annual output of 177,000 ounces over 13-year mine life. It is also expected to average 227,000 ounces annually.
In addition, B2Gold achieved a significant milestone with the first gold pour at the Goose Mine in Nunavut, Canada. The mine is in the process of ramping up to full production and is poised to become operational, producing between 120,000 and 150,000 ounces of gold per year. Consequently, the company remains well-positioned to capitalize on soaring gold prices as it ramps up production.
B2Gold Corp. (NYSE:BTG) is involved in acquiring mineral properties, exploring, developing, and operating gold mines. The company extracts gold ore, processes it into gold doré bars, and sells them on the global market. It maintains operations in several countries, including Mali, Namibia, and the Philippines.
7. ProKidney Corp. (NASDAQ:PROK)
Stock Price as of July 18: $3.15
Stock Upside Potential as of July 18: 59.09%
Number of Hedge Fund Holders: 3
ProKidney Corp. (NASDAQ:PROK) is one of the best high-return penny stocks to buy now. On July 16, the company confirmed the completion of its corporate domestication from the Cayman Islands to the state of Delaware. The change of jurisdiction and related restructuring took effect on July 1, 2025.
Following the domestication, each of the outstanding Class A and Class B ordinary shares of ProKidney Cayman was converted to one share of Class A or Class B common stock of ProKidney Delaware. In addition, the company amended and restated several material agreements, including the Amended and Restated Tax Receivable Agreement, Lock-Up Agreement, and Exchange Agreement.
The domestication comes as the US Food and Drug Administration confirms the use of glomerular filtration rate (eGFR) slope, paving the way for the accelerated approval of the company’s kidney disease therapy, rilparencel. The agency also agreed that data from the Phase 3 PROACT 1 trial can be used for both accelerated and full approval pathways.
ProKidney Corp. (NASDAQ:PROK) is a late-stage biotechnology company focused on developing a cell therapy called rilparencel (also known as REACT) to treat chronic kidney disease (CKD). Their approach involves using a patient’s kidney cells to potentially preserve kidney function and delay or eliminate the need for dialysis.
6. DeFi Technologies Inc. (NASDAQ:DEFT)
Stock Price as of July 18: $3.27
Stock Upside Potential as of July 18: 93.10%
Number of Hedge Fund Holders: N/A
DeFi Technologies Inc. (NASDAQ:DEFT) is one of the best high-return penny stocks to buy now. On July 14, the company announced the opening of a branch in Dubai to meet the growing demand for digital assets in the region. The opening is part of the company’s effort to capitalize on growth opportunities in the Middle Eastern markets.
Consequently, the company has opened a dedicated trading desk within the Dubai Multi Commodities Center (DMCC) in the United Arab Emirates (UAE). The trading desks will allow DeFi Technologies to capitalize on surging institutional interest in digital assets across the Middle East.
“We believe the demand for digital asset ETPs will increase not only globally but in the GCC and Middle East. Investors, whether sovereign wealth funds, institutional investors, family offices, and even retail investors, are interested in crypto but require familiar and efficient vehicles to get exposure,” Fortson stated.
Similarly, DeFi Technologies has broadened its reach with the opening of operations in Turkey through collaboration with Misyon Bank and Misyon Kripto.
DeFi Technologies Inc. (NASDAQ:DEFT) is a financial services company focused on bridging the gap between traditional capital markets and decentralized finance (DeFi). It achieves this by offering regulated and secure access to digital assets and DeFi applications through various ventures, including Valour, Stillman Digital, Reflexivity Research, and Neuronomics.
5. Akebia Therapeutics, Inc. (NASDAQ:AKBA)
Stock Price as of July 18: $3.86
Stock Upside Potential as of July 18: 93.30%
Number of Hedge Fund Holders: 19
Akebia Therapeutics, Inc. (NASDAQ:AKBA) is one of the best high-return penny stocks to buy now. On July 14, 2025, Akebia shared key updates during the H.C. Wainwright Kidney Conference, emphasizing the rollout of its oral anemia treatment Vafseo, prescribed by over 640 physicians in Q1.
With initial pricing at $15,500 annually and post-TDAPA rates expected near $2,500, Akebia targets a $4–5 billion opportunity by expanding to non-dialysis CKD patients. A pilot launch with a major dialysis provider is set for Q3, covering 75–200 clinics, with broader availability expected in Q4 and a Phase 3 trial planned for later this year.
Akebia also reaffirmed strong sales momentum for Auryxia, its existing kidney treatment, despite generic competition. The company’s R&D pipeline includes AKB-909O for acute kidney injury and AKB-10108 for retinopathy of prematurity. Akebia aims to position Vafseo as the standard of care across CKD stages, supported by its ongoing VOICE trial targeting reduced hospitalizations. This strategic push underscores Akebia’s focus on delivering innovative solutions for chronic kidney care and expanding market reach amid competitive challenges.
Akebia Therapeutics, Inc. (NASDAQ:AKBA) is a biopharmaceutical company focused on developing and commercializing therapies for kidney disease. It has two FDA-approved products, Auryxia (ferric citrate) and Vafseo, both of which target complications of kidney disease, such as anemia and hyperphosphatemia.
4. AbCellera Biologics Inc. (NASDAQ:ABCL)
Stock Price as of July 18: $4.48
Stock Upside Potential as of July 18: 96.67%
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the top high-return penny stocks to buy now. On July 7, Leerink Partners resumed coverage of the stock with an ‘Outperform’ rating and a $5 price target. The research firm remains confident about the company’s long-term prospects following its pivot from an antibody discovery platform to one that develops its internal pipeline.
Leerink Partners is especially bullish about the company’s upcoming programs ABCL575, an OX40L antagonist targeting atopic dermatitis, and ABCL635, an NK3R antagonist for vasomotor symptoms. The two programs are scheduled to enter Phase 1 clinical trials in the third quarter of 2025.
The research firm also pointed out that AbCellera’s existing antibody discovery collaborations are well-positioned to deliver long-term value. It expects the company to benefit from milestone payments and royalties as it leverages antibody capabilities towards a pipeline focused on validated targets.
AbCellera Biologics Inc. (NASDAQ:ABCL) is a biotechnology company that focuses on discovering and developing antibody-based medicines. It leverages a proprietary, AI-powered technology platform to search, decode, and analyze natural immune systems, identifying antibodies that can be developed into potential drugs.
3. GameSquare Holdings Inc (NASDAQ:GAME)
Stock Price as of July 18: $1.52
Stock Upside Potential as of July 18: 97.37%
Number of Hedge Fund Holders: 2
GameSquare Holdings Inc (NASDAQ:GAME) is one of the best high-return penny stocks to buy now. On July 17, the company completed a $70 million public offering to kick off its ambitious $100 million Ethereum-based treasury strategy.
Aimed at generating 8–14% annual yields—far above traditional ETH staking—this move positions GameSquare as one of the first public companies to execute a large-scale, on-chain treasury model. CEO Justin Kenna called the initiative a pivotal milestone in expanding their footprint across decentralized finance.
Partnering with crypto-native asset manager Dialectic, GameSquare will deploy capital across Ethereum yield avenues such as staking, lending, and liquidity provisioning via the Medici platform. The strategy incorporates machine learning and layered risk controls, and has board approval to scale gradually based on market conditions. Management sees this as a strategic way to optimize returns, diversify cash assets, and reinforce GameSquare’s role in digital innovation.
GameSquare Holdings Inc (NASDAQ:GAME) is a digital media and entertainment company focused on gaming and youth culture. Its platform includes esports talent (Code Red), digital media (GCN), lifestyle marketing (Zoned, FaZe), creative production (Fourth Frame Studios), merchandise (Mission Supply), programmatic ads (Frankly Media), live-stream analytics (Stream Hatchet), and influencer marketing (Sideqik). It also offers marketing services and advanced analytics solutions.
2. Aytu BioPharma, Inc. (NASDAQ:AYTU)
Stock Price as of July 18: $2.37
Stock Upside Potential as of July 18: 308.02%
Number of Hedge Fund Holders: 5
Aytu BioPharma, Inc. (NASDAQ:AYTU) is one of the best high-return penny stocks to buy now. On July 1, Lake Street Capital Markets initiated coverage on Aytu Biosciences (NASDAQ:AYTU) with a Buy rating and an $8.00 price target, citing strong prospects following its acquisition of EXXUA.
The antidepressant’s unique mechanism reportedly avoids two major side effects common in the category, giving it a competitive edge in a saturated yet underserved market. Lake Street expects EXXUA’s rollout to significantly boost Aytu’s revenue profile by FY 2027, and believes further stock gains are likely as generic concerns ease and product adoption grows.
Aytu BioPharma, Inc. (NASDAQ:AYTU) is a pharmaceutical company that develops and commercializes innovative therapies in the U.S. and globally. Its product lineup includes ADHD treatments like Adzenys XR-ODT and Cotempla XR-ODT, as well as pediatric medications such as Karbinal ER for allergies and fluoride-based multivitamins Poly-Vi-Flor and Tri-Vi-Flor for infants and children.
1. Compass Therapeutics, Inc. (NASDAQ:CMPX)
Stock Price as of July 18: $3.13
Stock Upside Potential as of July 18: 340%
Number of Hedge Fund Holders: 14
Compass Therapeutics, Inc. (NASDAQ:CMPX) is one of the top high-return penny stocks to buy now. On July 14, Stifel reiterated its Buy rating and $11.00 price target for CMPX. The firm views the extended timeline for topline data from the Phase 2/3 COMPANION-002 trial—now expected in Q4 2025—as a positive, given the 19-month follow-up in a cancer type with typically short survival rates.
Beyond COMPANION-002, Stifel highlighted two upcoming 2025 catalysts: Phase 1 results for CTX-8371, a PD-1xPD-L1 bispecific antibody, and preclinical data on CTX-10726 targeting PD-1 and VEGF-A. Interest is also growing around CTX-837’s unique multi-modal mechanism, reinforcing Compass’s innovation in immuno-oncology.
Compass Therapeutics, Inc. (NASDAQ:CMPX) is a clinical-stage biotech company developing antibody-based cancer treatments in the U.S. Its lead candidates include bispecific antibodies like tovecimig (targeting DLL4 and VEGF-A), CTX-471 (stimulating CD137 for immune activation), and CTX-8371 (blocking PD-1/PD-L1). The company also advances CTX-10726 and VEGF-focused bispecifics aimed at enhancing anti-tumor immunity and inhibiting angiogenesis.
While we acknowledge the potential of Compass Therapeutics, Inc. (NASDAQ:CMPX) as an investment, 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 CMPX and that has 100x upside potential, check out our report about this cheapest AI stock.
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