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.
9. Opko Health Inc. (NASDAQ:OPK)
Share Price: $1.23
Stock Upside Potential: 143.90%
Number of Hedge Fund Holders: 15
Opko Health Inc. (NASDAQ:OPK) is one of the best high-return penny stocks to buy right now. On February 10, analysts at H.C. Wainwright reiterated a Buy rating on Opko Health Inc. (NASDAQ:OPK) and settled on a $3 price target. The positive stance underscores the research firm’s confidence amid progress in the company’s biological partnerships.
The company’s subsidiary, OPKO Health, has already expanded its collaboration with Entera Bio to accelerate the development of the first oral, long-acting parathyroid hormone analog for the treatment of hypoparathyroidism. The partnered program showed positive PK/PD results in December 2025, with an IND filing planned for late 2026. OPKO and Entera each hold 50% ownership.
Oral OXM and oral GLP-2 have both demonstrated robust PK profiles and bioavailability. Furthermore, preclinical data of oral LA-PTH suggests that this program holds the potential to transform the hypoparathyroidism landscape, said Miranda Toledano, Chief Executive Officer of Entera.
Under the terms of the strategic collaboration, OPKO and Entera are to hold a 50% pro rata ownership interest in the LA-PTH hypoparathyroidism. The company will also be responsible for 50% of the program’s development costs.
Opko Health Inc. (NASDAQ:OPK) is a diversified healthcare company that operates in two main segments: diagnostics and pharmaceuticals. It operates BioReference Laboratories, one of the nation’s largest clinical labs, and develops drugs for specialized conditions, including RAYALDEE for chronic kidney disease and NGENLA (somatrogon) for growth hormone deficiency.
8. Perspective Therapeutics, Inc. (NYSE:CATX)
Share Price: $4.70
Stock Upside Potential: 151.06%
Number of Hedge Fund Holders: 10
Perspective Therapeutics Inc. (NYSE:CATX) is one of the best high-return penny stocks to buy right now. On February 2, Perspective Therapeutics Inc. (NYSE:CATX) priced an underwritten offering of 39.57 million shares at $3.78 per share.
The company anticipates gross proceeds of $175 million from the offering. It plans to use the net proceeds from the offering to advance the clinical development of its product candidates. It also plans to invest in its manufacturing facilities and in working capital. A portion of the net proceeds could also be used to acquire, license, and invest in complementary products, technologies, and intellectual property.
The $175 million offering comes as the company continues to experience strong patient recruitment in the lead program, VMT-α-NET, for neuroendocrine tumors. The candidate drug remains well-tolerated and demonstrates durable disease control in clinical trials. Perspective Therapeutics will provide mid-year updates on the trials.
“We are making disciplined investments to continue to innovate both products and processes, which positions us to be a leading commercial radiopharmaceutical player. We expect to share maturing clinical data across all of our programs in 2026,” said Thijs Spoor, Perspective’s CEO.
On January 30, H.C. Wainwright raised its price target on Perspective Therapeutics to $12 from $10, keeping a Buy rating. The upgrade came after Sanofi dropped its competing SSTR2-targeted radioimmunotherapy agent, Alphamedix, leaving Perspective’s 212Pb‑VMT‑α‑NET as the only lead‑based option. Recent ASCO GU 2026 data showed strong results, with 76% of patients progression‑free and a 39% response rate in Cohort 2. Perspective is now testing higher doses in Cohort 3, which analysts expect could further improve outcomes.
Perspective Therapeutics, Inc. (NYSE:CATX) is a clinical-stage radiopharmaceutical company developing targeted alpha-particle therapies (TATs) for cancer using the isotope Pb-212. Its theranostic approach combines imaging (Pb-203) with therapy (Pb-212) to deliver targeted radiation directly to tumors, minimizing damage to healthy tissue, with active trials for neuroendocrine tumors and melanoma.
7. Gogo Inc. (NASDAQ:GOGO)
Share Price: $4.17
Stock Upside Potential: 151.80%
Number of Hedge Fund Holders: 28
Gogo Inc. (NASDAQ:GOGO) is one of the best high-return penny stocks to buy right now. On February 2, Gogo (NASDAQ:GOGO) confirmed its unit, SD Government SDG, has secured a T-1 certification from the US Air Force Air Mobility Command. The certification is for the company’s Roll-on/Roll-off Beyond Line of Sight communications capability for C-130 aircraft.
The certified Tactical Removable Airborne Satellite Communications (TRASC) system is designed to replace the existing C-130 forward escape hatch. Likewise, it can be installed in under 30 minutes, enabling rapid deployment of global broadband capability. The system is compatible with C-130 variants.
The certification paves the way for implementing the system in other military commands and with partner nations, thereby expanding the target market.
“This capability instantaneously brings all C-130 variants into the modern age of high-throughput Beyond-Line-of-Sight communications,” said Hayden Olson, Executive Vice President of SDG.
Meanwhile, on January 27, Moody’s Ratings downgraded Gogo’s rating to B2 from B1 due to competitive pressure in the jet connectivity market. The company is transitioning to a multi-orbit, multi-band connectivity provider following the acquisition of Satcom Direct.
Gogo Inc. (NASDAQ:GOGO) is a leading provider of broadband, in-flight connectivity, and wireless entertainment services for the business aviation market. It delivers high-speed internet, voice, and data services to private jets and corporate aircraft using a proprietary air-to-ground (ATG) network and satellite technologies.
6. Alight, Inc. (NYSE:ALIT)
Share Price: $1.30
Stock Upside Potential: 182.31%
Number of Hedge Fund Holders: 39
Alight, Inc. (NYSE:ALIT) is one of the best high-return penny stocks to buy right now. On February 10, DA Davidson reiterated a Buy rating on Alight, Inc. (NYSE:ALIT) but cut the price target to $5 from $6. The price target cut comes amid concerns that the company’s new senior management team will provide conservative guidance for 2026.
The concerns come against the backdrop of the company delivering disappointing results in 2025, which triggered a trimming of forecasts. The disappointing results were followed by a recommendation that the company consider terminating its dividend program. There is a push to redirect cash flows towards share repurchases and debt reduction. Amid the concerns, DA Davidson maintains a buy rating, affirming its confidence in the company’s long-term prospects.
Alight has already implemented significant leadership changes as it seeks to deliver a market-leading benefits experience for employers across its core solutions, Health navigation, and Wealth. Consequently, it has appointed Karen Frost as Senior Vice President, Health and Navigation Solution. Kevin Curry is to take over as Senior Vice President, Leaves Solution Leader. The two are tasked with aligning the company’s market strategies across Alight’s health, navigation, and leave solutions.
“Karen’s and Kevin’s knowledge and leadership capabilities in guiding organizations through growth and delivering solutions that simplify the complexity of health, navigation and absence management solutions will be instrumental as Alight continues to provide a leading benefits experience,” said Rohit Verma, Alight’s Chief Executive Officer.
Alight, Inc. (NYSE:ALIT) is a leading cloud-based provider of human capital and technology-enabled services, specializing in employee benefits administration, HR, and financial wellness. Alight utilizes its platform to help organizations manage health, wealth, payroll, and employee well-being for millions of users worldwide.
5. PowerFleet, Inc. (NASDAQ:AIOT)
Share Price: $3.89
Stock Upside Potential: 187.92%
Number of Hedge Fund Holders: 23
PowerFleet, Inc. (NASDAQ:AIOT) is one of the best high-return penny stocks to buy right now. On February 9, PowerFleet Inc. (NASDAQ:AIOT) delivered solid third-quarter fiscal 2026 results characterized by robust recurring revenue growth.
Total revenue increased 7% to a record $113.5 million compared to $106.4 million delivered in the same quarter last year. The increase was driven by an 11% increase in services revenue to $91.1 million, up from $81.7 million a year ago. The revenue increase was also driven by strong recurring revenue growth, reflecting an 11% increase in high-value services.
The company jumped to an Operating profit of $6.3 million, compared with an operating loss of $1.2 million in Q3 FY25. Net loss shrank to $3.4 million or $0.03 a share compared to a net loss of $14.3 million or $0.11 a share a year ago.
“Operationally, we are continuing to see the benefits of disciplined execution and robust cost synergy realization. Adjusted EBITDA increased 26% year-over-year to $25.7 million; operating income improved to $6.3 million, and adjusted EBITDA margins expanded to 23% from 19% in the prior year period,” said Steve Towe, Chief Executive Officer.
PowerFleet has updated its full-year guidance and now expects revenue to range between $440 million and $445 million, up from the previous guidance of $435 million to $445 million.
PowerFleet, Inc. (NASDAQ:AIOT) is a global provider of Artificial Intelligence of Things (AIoT) software-as-a-service (SaaS) solutions designed to optimize the performance of mobile assets, such as vehicles, trailers, containers, and warehouse equipment.
4. The Real Brokerage Inc. (NASDAQ:REAX)
Share Price: $2.72
Stock Upside Potential: 201.89%
Number of Hedge Fund Holders: 24
The Real Brokerage Inc. (NASDAQ:REAX) is one of the best high-return penny stocks to buy right now. On January 27, The Real Brokerage Inc. (NASDAQ:REAX) received a significant boost in its bid to strengthen its presence throughout Texas. The boost came with the Houston Properties Team joining the company.
Houston Properties Team Joins Real Brokerage, having completed over $2 billion in sales since its inception 15 years ago . The company’s edge stems from its proprietary comparable analysis tools, data, and technology, as well as 60,000 monthly website visitors.
“Bob, Paige and the Houston Properties Team have built an extraordinary, data-driven business with a powerful brand and deep community influence,” said Tamir Poleg, Chairman and CEO of The Real Brokerage. “Their commitment to innovation, agent success and client outcomes aligns perfectly with Real’s mission, and we’re excited to support their next chapter of growth.”
Meanwhile, Real Brokerage has made significant strides in integrating AI and automating its operations. The company’s AI tools are designed to enhance agents’ capabilities in the race to leverage technology for real estate growth.
B.Riley expects Real Brokerage to sustain double-digit agent and transaction growth, with rising attach rates for high-margin services and stable costs. A housing market rebound could further boost transactions and profitability. The firm maintains a Buy rating and $8 target as of January 14.
The Real Brokerage Inc. (NASDAQ:REAX) is a real estate tech company in the U.S. and Canada. It offers brokerage, title, mortgage, and wallet services. Founded in 2014, it is based in Miami, Florida.
3. Iovance Biotherapeutics Inc. (NASDAQ:IOVA)
Share Price: $2.58
Stock Upside Potential: 224.52%
Number of Hedge Fund Holders: 27
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the best high-return penny stocks to buy right now. On February 5, Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) announced data affirming a best-in-class profile for commercial Amtagvi.
The company is developing Amtagvi as a novel T cell therapy for advanced melanoma patients receiving anti-PD-1 and targeted therapies. Trial results presented at the 2026 Tandem Meetings of the American Society for Transplantation and Cellular Therapy (ASTCT) showed a higher response rate with Amtagvi treatment following 2 or fewer lines of therapy than the objective response rate.
Lilit Karapetyan, MD, MS of H. Lee Moffitt Cancer Center & Research Institute stated, “The real-world response rate builds on existing clinical data and supports consideration of lifileucel as soon as possible after immune checkpoint inhibitor treatment.” An overall response rate of 44% was observed in the full cohort, with a 52% response rate among patients treated in earlier lines of therapy.
According to Daniel Kirby, Chief Commercial Officer of Iovance, the impressive response rates, paired with five-year durability and survival data, affirm a best-in-class profile and better outcomes with Amtagvi in patients. The impressive results position the company to capitalize on an unmet medical need, whereby more than 8,000 people die annually as a result of advanced melanoma.
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is a biotechnology company focused on developing and commercializing tumor-infiltrating lymphocyte (TIL) therapies to treat solid tumor cancers. By leveraging a patient’s own immune system, Iovance creates personalized cancer treatments—including FDA-approved Amtagvi for melanoma—that recognize and attack cancer cells.
2. Altimmune, Inc. (NASDAQ:ALT)
Share Price: $4.53
Stock Upside Potential: 228.54%
Number of Hedge Fund Holders: 18
Altimmune, Inc. (NASDAQ:ALT) is one of the best high-return penny stocks to buy right now. On February 13, Titan Partners initiated coverage of Altimmune, Inc. (NASDAQ:ALT) with a Buy rating and a $7 target. The analysts said pemvidutide’s Phase II results look promising and called Altimmune a high‑risk, high‑reward stock that could go above the target if Phase III data is strong.
On January 29, Altimmune Inc. closed a direct offering of 17.05 million shares of common stock. The company generated $75 million in gross proceeds from the offering. It plans to use net proceeds from the offering to fund an upcoming Phase 3 trial of pemvidutide, its candidate drug targeting metabolic dysfunction-associated steatohepatitis (MASH). The drug has already received Breakthrough Therapy Designation from the US Food and Drug Administration for MASH treatment.
“This investment is an important step in strengthening Altimmune’s balance sheet and increasing our operational and strategic flexibility as we move toward initiation of our Phase 3 trial,” said Jerry Durso, president and chief executive officer.
Earlier on January 27, Evercore ISI reiterated an Outperform rating on Altimmune and cut the price target to $22 from $25. Despite the price target cut, the research firm remains confident about the company’s long-term prospects, driven by candidate drug pemvidutide. According to the research firm, the candidate drug makes “complete sense” and has already received Breakthrough Therapy Designation from the FDA.
Altimmune, Inc. (NASDAQ:ALT) is a clinical-stage biopharmaceutical company focused on developing peptide-based therapeutics for obesity and liver diseases, primarily using its lead candidate, pemvidutide. Pemvidutide is a GLP-1/glucagon dual receptor agonist designed to treat obesity and metabolic dysfunction-associated steatohepatitis (MASH) by reducing liver fat and promoting weight loss.
1. Rezolve AI PLC (NASDAQ:RZLV)
Share Price: $2.27
Stock Upside Potential: 368.75%
Number of Hedge Fund Holders: 14
Rezolve AI PLC (NASDAQ:RZLV) is one of the best high-return penny stocks to buy right now. On February 11, H.C. Wainwright kept its Buy rating and $12 price target for Rezolve AI PLC (NASDAQ:RZLV). This came after Rezolve announced it is buying Reward Loyalty UK Limited for $230 million in cash. Reward Loyalty works in card-linked banking loyalty programs and data services across Europe, the Middle East, and Asia. Rezolve said this deal will help grow its AI shopping and payments platform. The company expects the deal to increase its earnings and fit its plan to buy older tech companies and offer them its AI and payment tools.
Reward Loyalty adds about $90 million in yearly revenue to Rezolve. H.C. Wainwright believes this could help Rezolve reach or even pass its $350 million revenue goal by 2026. Since December 2025, Rezolve has added around $160 million in yearly revenue from other deals. The firm thinks Rezolve could achieve very high profit margins in the future, although the company is still not profitable right now. The Reward Loyalty deal alone is expected to add about $90 million in revenue for 2025.
On January 29, Rezolve AI PLC reiterated that it is strategically positioned to benefit from emerging agentic commerce standards. Consumers are already engaging with agent-based shopping assistants as part of their purchasing behavior.
Rezolve AI has already unveiled Agentic Checkout, designed to support the transition to agentic commerce by enabling AI agents to execute purchases. The platform supports transactions in branded environments and in mobile Applications.
“Agentic commerce is shifting from experimentation to infrastructure,” said David Ingram, Chief Product Officer, and Rezolve Ai. “The emergence of shared protocols reinforces our belief that commerce will increasingly be executed by AI agents and that those transactions require a secure, standards-based checkout layer.”
The company sees the new standards as a major inflection point poised to accelerate trust, interoperability, and large-scale deployment of AI-initiated transactions. The adoption of AI-driven shopping agents is accelerating materially ahead of schedule and is expected to result in $1 trillion to $5 trillion in annual global transaction value by 2030.
Rezolve AI PLC (NASDAQ:RZLV) specializes in AI-powered commerce solutions designed to enhance customer engagement, increase sales conversion, and optimize operational efficiency for retailers and brands.
While we acknowledge the potential of RZLV 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 RZLV and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 High-Growth Low PE Stocks to Buy Now and Goldman Sachs Penny Stocks: Top 12 Stock Picks.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
