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.
9. Kyverna Therapeutics, Inc. (NASDAQ:KYTX)
Share Price: $4.33
Number of Hedge Fund Holders: 10
Kyverna Therapeutics, Inc. (NASDAQ:KYTX) is one of the best new penny stocks to buy right now. On June 30, Kyverna Therapeutics, Inc. (NASDAQ:KYTX) announced that Marc Grasso, M.D. has been appointed as the company’s new Chief Financial Officer (CFO).
Before joining Kyverna Therapeutics, Inc. (NASDAQ:KYTX), Dr. Grasso was serving as CFO at Alector, Inc., a biotechnology company focused on neurodegenerative diseases. There, he oversaw financial planning, investor relations, accounting, IT, and facilities. Dr. Grasso earned his medical degree from Johns Hopkins University School of Medicine, where he also performed research in molecular oncology. He holds a Bachelor of Arts degree in molecular biology with honors from Princeton University.
Dr. Grasso has over 25 years of experience working with public companies, capital markets, and investment banking. He is taking over from Ryan Jones, MBA, who is moving to a strategic advisor role to help with a smooth transition.
The new CFO is expected to use his experience to help Kyverna Therapeutics, Inc. (NASDAQ:KYTX) bring the first CAR T-cell therapy for autoimmune diseases to the market while also guiding the company’s business and financial plans.
As Kyverna Therapeutics, Inc. (NASDAQ:KYTX) works to speed up its clinical development and commercialization efforts, Dr. Grasso’s leadership will play a crucial role in supporting the company’s next phase of growth.
Kyverna Therapeutics, Inc. (NASDAQ:KYTX) is a clinical-stage biopharmaceutical company committed to developing cell therapies for patients suffering from autoimmune diseases.
8. Metagenomi, Inc. (NASDAQ:MGX)
Share Price: $2.43
Number of Hedge Fund Holders: 10
Metagenomi, Inc. (NASDAQ:MGX) is one of the best new penny stocks to buy right now. On May 14, Metagenomi, Inc. (NASDAQ:MGX) announced that it is presenting three abstracts at the American Society of Gene & Cell Therapy (ASGCT) 28th Annual Meeting, held from May 13 to 17, 2025, in New Orleans, Louisiana.
These presentations highlighted Metagenomi, Inc.’s (NASDAQ:MGX) advancements in compact nucleases for extrahepatic gene editing and CAST (CRISPR-associated transposases) for site-specific integration of large therapeutic genes.
The company’s special metagenomics discovery platform can systematically identify and optimize novel gene editing systems through natural microbial evolution and AI-guided protein optimization.
At the meeting, Metagenomi, Inc. (NASDAQ:MGX) shared early proof-of-concept data across different types of gene-editing technologies. This included compact Type II and Type V nucleases for efficient in vivo editing and a programmable Type V-K CAST system capable of targeted integration of large DNA cargoes. The small nucleases can potentially improve delivery to hard-to-reach tissues, while CAST offers promising new tools for targeted and precise large gene integration, addressing one of the greatest challenges in gene editing.
Metagenomi, Inc.’s (NASDAQ:MGX) work shows promise in specifically integrating correct copies of complete genes, which could enable treatment for diseases caused by a loss-of-function mutation.
Metagenomi, Inc. (NASDAQ:MGX) is a precision gene editing company focused on developing curative therapeutics using its proprietary, metagenomics-derived genome editing toolbox.
7. Fractyl Health, Inc. (NASDAQ:GUTS)
Share Price: $1.92
Number of Hedge Fund Holders: 10
Fractyl Health, Inc. (NASDAQ:GUTS) is one of the best new penny stocks to buy right now. On July 18, Canaccord Genuity reiterated its “Buy” rating on Fractyl Health, Inc. (NASDAQ:GUTS) with a price target of $12.
This decision came after the company had shared new data from its Phase 3 trial of its lead product candidate, Revita.
Canaccord Genuity had follow-up discussions with several physicians following the data presented by Fractyl Health, Inc. (NASDAQ:GUTS) from the open-label group of its ongoing Phase 3 trial for Revita in weight maintenance at the American Diabetes Association meeting.
These physicians who were consulted by the investment firm were all from large academic hospitals in the US. The physicians had different opinions on the mechanism behind the Revita procedure and the potential market size. However, they all agreed that controlled data is needed to fully assess the clinical profile.
The physicians said the main concern is the durability of the effect. Canaccord pointed out that even conservative market share estimates from the physicians surpassed the firm’s current modeling expectations.
Canaccord Genuity expects Revita to reach 1% peak penetration in the weight maintenance population with a 60% probability of success. The investment firm projects that peak sales could reach $400 million in 2031.
Fractyl Health, Inc. (NASDAQ:GUTS) is a metabolic therapeutics company focused on pursuing therapies that target root causes of obesity and type 2 diabetes.
6. BioAge Labs, Inc. (NASDAQ:BIOA)
Share Price: $4.62
Number of Hedge Fund Holders: 12
BioAge Labs, Inc. (NASDAQ:BIOA) is one of the best new penny stocks to buy right now. On June 17, BioAge Labs, Inc. (NASDAQ:BIOA) announced a new initiative to profile and analyze samples from the HUNT Biobank in Norway.
The company will generate and analyze molecular profiles from more than 17,000 samples collected over decades of aging from more than 6,000 participants. BioAge Labs, Inc. (NASDAQ:BIOA) will use these samples to generate millions of molecular readouts.
By carefully analyzing this data along with the health records of the participants, BioAge Labs, Inc. (NASDAQ:BIOA) aims to expand the proprietary human aging data that supports the company’s drug-discovery platform. The company has exclusive rights to use this data for drug discovery.
This initiative builds on the company’s existing network of biobank partnerships. BioAge Labs, Inc. (NASDAQ:BIOA) expects this partnership to help accelerate its ability to find drug targets that maintain physiological resilience and help counter age-related disease.
BioAge Labs, Inc. (NASDAQ:BIOA) is a clinical-stage biopharmaceutical company focused on developing therapies to treat metabolic diseases by targeting the biology of human aging.
5. Anteris Technologies Global Corp. (NASDAQ:AVR)
Share Price: $3.25
Number of Hedge Fund Holders: 13
Anteris Technologies Global Corp. (NASDAQ:AVR) is one of the best new penny stocks to buy right now. On June 9, Anteris Technologies Global Corp. (NASDAQ:AVR) announced that two new members, Mr. David Roberts and Mr. Gregory Moss, have joined its Board of Directors.
Mr. Gregory Moss is the Chief Business and Legal Officer, Corporate Secretary and Chief Compliance Officer at Evommune, Inc. On the other hand, Mr. David Roberts has been the President of LeMaitre Vascular, Inc. since 2007.
The company welcomed Mr. Roberts and Mr. Moss as it prepares to start the pivotal clinical trial for the DurAVR THV global, called the PARADIGM Trial. The two new directors are highly accomplished healthcare executives based in the US, and they will help the company transition to its next phase of growth.
The PARADIGM study is scheduled for the third quarter of 2025. With the help of Mr. Roberts and Mr. Moss, Anteris Technologies Global Corp. (NASDAQ:AVR) aims to take this important step and move towards getting approval from the US and European regulators for the DurAVR THV for patients with aortic stenosis.
Anteris Technologies Global Corp. (NASDAQ:AVR) is a global structural heart company focused on designing, developing, and commercializing cutting-edge medical devices for cardiac care.
4. Neumora Therapeutics, Inc. (NASDAQ:NMRA)
Share Price: $2.35
Number of Hedge Fund Holders: 18
Neumora Therapeutics, Inc. (NASDAQ:NMRA) is one of the best new penny stocks to buy right now. On July 16, Mizuho increased its price target for Neumora Therapeutics, Inc. (NASDAQ:NMRA) from $4 to $5 and kept an “Outperform” rating.
This decision came after Neumora Therapeutics, Inc. (NASDAQ:NMRA) introduced NMRA-861, which is a strong and selective positive allosteric modulator (PAM) of the M4 muscarinic receptor. The company is developing NMRA-861 for the treatment of schizophrenia and other neuropsychiatric disorders.
Mizuho expects NMRA-861 to be launched in the US in 2034 with risk-unadjusted sales reaching $1.2 billion by 2037. This supports the firm’s decision to increase the price target.
The research firm also noted that even though Neumora Therapeutics, Inc. (NASDAQ:NMRA) trades at a negative enterprise value because of negative Phase 3 data for navacaprant in depression earlier this year, the company’s pipeline is still very promising.
Mizuho identified four distinct clinical catalysts for Neumora Therapeutics, Inc. (NASDAQ:NMRA) expected over the next 12 months that could positively affect the stock price. The firm sees a good risk/reward balance for investing in the stock.
Neumora Therapeutics, Inc. (NASDAQ:NMRA) is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing novel therapies for brain diseases.
3. Alto Neuroscience, Inc. (NYSE:ANRO)
Share Price: $3.08
Number of Hedge Fund Holders: 19
Alto Neuroscience, Inc. (NYSE:ANRO) is one of the best new penny stocks to buy right now. On June 26, Stifel reiterated its “Buy” rating on Alto Neuroscience, Inc. (NYSE:ANRO) with a price target of $10.
This decision came after the company announced Phase 2 proof-of-concept results for its drug ALTO-203 in major depressive disorder (MDD) patients with elevated levels of anhedonia.
The trial showed mixed results. However, Stifel analysts noted that ALTO-203 showed significant positive effects in improving sustained attention and increased wakefulness. The strongest results were seen in patients with more abnormal theta/beta EEG ratios at baseline, which is a biomarker that can be used to help diagnose ADHD.
Stifel described the trial as exploratory with low expectations, noting that although this program keeps some options open for Alto Neuroscience, Inc. (NYSE:ANRO), it does not change the core investment view as the company prioritizes its late-stage pipeline. The next steps for ALTO-203 are yet to be determined.
Alto Neuroscience, Inc. (NYSE:ANRO) is a clinical-stage biopharmaceutical company focused on the development of treatment options for neuropsychiatric disorders.
2. CARGO Therapeutics, Inc. (NASDAQ:CRGX)
Share Price: $4.52
Number of Hedge Fund Holders: 20
CARGO Therapeutics, Inc. (NASDAQ:CRGX) is one of the best new penny stocks to buy right now. On July 8, Jefferies raised its price target for CARGO Therapeutics, Inc. (NASDAQ:CRGX) from $3.70 to $5.00 while keeping a “Hold” rating.
This decision came after the company announced that it has entered into a definitive merger agreement to be acquired by Concentra Biosciences, LLC.
Concentra Biosciences, LLC will acquire CARGO Therapeutics, Inc. (NASDAQ:CRGX) for $4.379 in cash per share.
The transaction is expected to close in August 2025. Jefferies projects that the total value for shareholders could reach up to $5 per share at closing, based on projected cash burn and potential asset sale proceeds.
CARGO Therapeutics, Inc. (NASDAQ:CRGX) is a biotechnology company focused on the development of CAR T-cell therapies for cancer patients.
1. Lexeo Therapeutics, Inc. (NASDAQ:LXEO)
Share Price: $4.13
Number of Hedge Fund Holders: 20
Lexeo Therapeutics, Inc. (NASDAQ:LXEO) is one of the best new penny stocks to buy right now. On July 7, Stifel reiterated its “Buy” rating for Lexeo Therapeutics, Inc. (NASDAQ:LXEO) with a price target of $21.
This decision came after the company announced that the FDA gave Breakthrough Therapy Designation to its treatment called LX2006.
The FDA granted Breakthrough Therapy Designation for LX2006 in both cardiac and neurologic measures of Friedreich ataxia (FA). Lexeo Therapeutics, Inc. (NASDAQ:LXEO) also shared that LX2006 has been selected to participate in the FDA Chemistry, Manufacturing, and Controls (CMC) Development and Readiness Pilot (CDRP) program, which is designed to expedite clinical development timelines.
Stifel sees the Breakthrough Therapy Designation as a good sign for Lexeo Therapeutics, Inc.’s (NASDAQ:LXEO) regulatory prospects. The firm noted that this designation suggests that the FDA may be more flexible for rare disease gene therapies.
Lexeo Therapeutics, Inc. (NASDAQ:LXEO) is a clinical-stage genetic medicine company focused on developing therapies for cardiovascular diseases.
While we acknowledge the potential of LXEO 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 LXEO and that has a 100x upside potential, check out our report about this cheapest AI stock.
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