On July 28, the Opening Bid team at Yahoo Finance and Victoria Fernandez, chief market strategist at Crossmark Global Investments, discussed the rise in cheap stock trading and what it can mean for the broader market.
There has been an increase in the trading of cheap stocks this year. According to data from Jefferies, stocks priced under $5 make up more than 25% of all stock trades so far this year.
Victoria Fernandez explained that many of these cheap stocks are shorted and attract day traders instead of long-term investors. She noted that these are quick trades and they tend to be small amounts. Fernandez said this kind of trading could be driven by a “gambler’s addiction,” with people looking for quick market plays and not solid, long-term investments that she would suggest people to invest in.
Fernandez also highlighted that Goldman Sachs has seen a rise in speculative trading. Call options are increasing while the market’s volatility index is sitting at around 15. She explained that this means that investors are not fearful right now.
This low fear and high speculative trading, according to Fernandez, indicates a strong risk-on sentiment in the market. However, Wall Street has warned time and again that when the market looks like this, it can easily pull back or suddenly drop.
Given the current market conditions, investors need to be careful with penny stocks and focus on long-term potential rather than quick gains.
With this background in mind, let’s take a look at the 11 best new penny stocks to buy right now.
A trader at a stock exchange, vigorously watching the stocks’ trends in the stock market.
Our Methodology
To compile our list of the 11 best new penny stocks to buy right now, we used the Finviz stock screener to look for companies that went public in the last 2 years. We sorted our results based on market capitalization and picked the top 50 stocks with a share price of under $5 as of July 25, 2025. Next, we focused on the top 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 11 best new penny stocks to buy right now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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 New Penny Stocks to Buy Right Now
11. Richtech Robotics Inc. (NASDAQ:RR)
Share Price: $2.01
Number of Hedge Fund Holders: 7
Richtech Robotics Inc. (NASDAQ:RR) is one of the best new penny stocks to buy right now. On June 30, Richtech Robotics Inc. (NASDAQ:RR) announced that it has entered into a new sales deal with Beijing Tongchuang Technology Development Co., Ltd. through its Chinese joint venture, Boyu Artificial Intelligence Technology Co., Ltd.
The sales agreement, which has been valued at more than $4 million, includes the sale, service, and software licensing of three of Richtech Robotics Inc.’s (NASDAQ:RR) main products. These are ADAM, Scorpion, and Titan.
This deal helps Richtech Robotics Inc. (NASDAQ:RR) expand its footprint in China. The deal is also expected to potentially bring additional opportunities for the company across the Asian market.
Richtech Robotics Inc. (NASDAQ:RR) expects this agreement to increase its fourth quarter revenue and also drive recurring revenue in the future. This partnership supports the company’s plan to expand worldwide.
Richtech Robotics Inc. (NASDAQ:RR) is an automated solutions company that provides collaborative robotic solutions specializing in the service industry, such as the hospitality and healthcare sectors.
10. Alumis Inc. (NASDAQ:ALMS)
Share Price: $3.88
Number of Hedge Fund Holders: 9
Alumis Inc. (NASDAQ:ALMS) is one of the best new penny stocks to buy right now. On May 21, Alumis Inc. (NASDAQ:ALMS) reported that it has completed its merger with ACELYRIN, Inc.
As part of this transaction, each ACELYRIN shareholder will get 0.4814 shares of Alumis Inc. (NASDAQ:ALMS) common stock for every share of ACELYRIN they own. ACELYRIN has ceased trading.
Following this transaction, the company now has a much stronger balance sheet to support Alumis Inc. (NASDAQ:ALMS). This merger has created a leading clinical-stage immunology company with a diversified portfolio of product candidates.
Additionally, this merger allows Alumis Inc. (NASDAQ:ALMS) to move forward with its plans and advance its pipeline through planned key data readouts. The company now has a cash runway that extends into 2027.
Alumis Inc. (NASDAQ:ALMS) is a late-stage biopharma company focused on developing targeted therapies for a range of immune-mediated diseases.
