In this article, we’ll look at the 11 Best High Return Penny Stocks to Buy Right Now.
Small-cap companies are in the spotlight amid market rotation away from technology heavyweights clobbered by premium valuation. The fact that 65% of Russell 2000 constituents exceeded fourth-quarter profit expectations underscores why they are in the spotlight in the equity markets.
For years, small caps have been hamstrung by high interest rates and sluggish economic growth, given their thin margins and relatively high debt loads. Fast forward, their outlook has improved significantly owing to the Federal Reserve cutting interest rates and the US avoiding recession.
According to Morgan Stanley strategists Michael Wilson, small-cap stocks are also enjoying their best revision breadth, given the number of analysts raising estimates on them.
“These developments are supportive of our small cap relative preference amid a return of positive operating leverage,” Wilson wrote in a note.
The Russell 2000 index, home to some of the smallest and riskiest stocks, is already beating the S&P 500 by more than 6% percentage points, signaling this year could be the strongest for small caps and penny stocks. According to RBC Capital Markets’ strategist Lori Calvasina, small companies are enjoying a higher rate of earnings revision, “indicating that the S&P 500 has lost dominance from this perspective.”
“This channel of strong enough growth – but not too strong – and lower or declining rates are two big macro forces that can push small caps higher,” said Sebastien Page, chief investment officer at T Rowe Price, which manages nearly $1.8 trillion. “We think this can continue for six months.”
Similarly, Dennis DeBusschere, president and chief market strategist at 22V Research, insists small caps have a macro and fundamental tailwind. The analysts expect small caps to be the biggest beneficiaries of artificial intelligence, as it proves to be a productivity booster.
Our Methodology
To compile the list of the Best High Return Penny Stocks to Buy Now, we scanned Finviz screener focusing on stocks trading for less than $5 a share across all industries. We focused on penny stocks with significant upside potential of more than 100%, and that were popular among elite hedge funds in the third quarter of 2025. Finally, we ranked the stocks in ascending order based on their upside potential.
Note: The share price and upside potential data is of February 15.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best High Return Penny Stocks to Buy Right Now
11. Fubotv Inc. (NYSE:FUBO)
Share Price: $1.34
Stock Upside Potential: 112.75%
Number of Hedge Fund Holders: 11
Fubotv Inc. (NYSE:FUBO) is one of the best high-return penny stocks to buy right now. On February 5, analysts at Seaport Global Securities upgraded Fubotv Inc. (NYSE:FUBO) to a Buy from Neutral and reiterated a $3 price target.
The positive stance is in response to the company’s post-merger deal with Disney’s Hulu Live. However, the stock has come under pressure amid concerns of a potential business model shift following the merger. A lack of guidance and the announcement of a reverse stock split have also rattled sentiment on Wall Street.
Seaport Global views the recent stock pullback as an interesting opportunity despite the ongoing market uncertainty. Likewise, the research firm has dispelled concerns about the potential loss of NBCU content, insisting it will not occur, as some FuboTV customers are poised to migrate to Hulu Live, which still carries the content.
On February 6, Hulu LLC provided written consent to amend FuboTV’s certificate of incorporation, paving the way for a reverse stock split of the company’s Class A and Class B common stock. The stock split ranges from 1 for 8 to 1 for 12.
Fubotv Inc. (NYSE:FUBO) is a sports-first, live TV streaming service that functions as a cable TV alternative. It allows users to stream content via smart TVs, mobile devices, and computers without a contract. The platform emphasizes a personalized, interactive viewing experience, featuring 4K streaming and cloud DVR.
10. indie Semiconductor, Inc. (NASDAQ:INDI)
Share Price: $3.75
Stock Upside Potential: 113.33%
Number of Hedge Fund Holders: 17
Indie Semiconductor Inc. (NASDAQ:INDI) is one of the best high-return penny stocks to buy right now. On February 4, Mahindra & Mahindra Limited selected Indie Semiconductor Inc. (NASDAQ:INDI) to provide driver and occupant monitoring system technology for its vehicles.
Indie Semiconductor is to integrate its CABIN EYE perception software in Mahindra’s Electric Origin SUVs XEV 9e and BE 6. The monitoring system is designed to detect driver drowsiness, responsiveness, and occupant presence. The CABIN EYE software minimizes the need for resource-intensive per-vehicle optimization because perception algorithms are insensitive to it.
“Our mission has always been to deliver intelligent software solutions that improve road safety and elevate the driving experience. With Mahindra’s visionary approach to electric vehicles and indie’s cutting-edge technology, we are setting new standards for in-cabin monitoring systems across the automotive industry,” said Florian Seitner, VP & GM Perception Software at indie.
Indie Semiconductor Inc. (NASDAQ:INDI) is a fabless automotive technology company that designs and develops specialized mixed-signal semiconductors, sensors, and software for advanced driver assistance systems (ADAS), user experience, and electrification. It specializes in edge sensors (LiDAR, radar, ultrasound, computer vision) to enable vehicle safety, automation, and in-cabin connectivity for top-tier automotive suppliers.
