Earlier on February 12 this year, Chief Investment Officer at Cetera Financial Group, Gene Goldman, discussed how he thinks small-caps are a good investment. Goldman thinks that the Fed is now a friend to the market instead of a foe, even if not the best of friends. This stance came from the anticipation that although the Fed might not lower rates this year, they’re not expected to raise them either. The Fed had projected four rate cuts in September last year, but this was later lowered to two in December. Goldman now thinks that market expectations now suggest just a zero to one rate cut in 2025, and the end-of-year interest rates are likely to be around 4%. According to him, higher inflation and the uncertainty because of tariffs are what’s causing the Fed’s cautious approach.
In this conversation, Goldman highlighted the healthcare sector with its advancements in biotech, personalized medicine, and health solutions. He also addressed concerns about AI investments and acknowledged that while AI has faced challenges this year, especially within the MAG7, AI’s long-term potential remains intact. This is especially fueled by the ongoing data revolution. Goldman recently started using an acronym for his new investment strategy, called SHAQ, to support 4 sectors — Small Caps, Healthcare, AI, and Quality investments. Goldman is enthusiastic about small caps due to their cheap valuations and improved business sentiment. Goldman thinks that small caps remain attractive even without rate reductions because of their valuation, although, of course, they could benefit from rate cuts as well. Goldman thinks that quality investments are crucial in this investment strategy as well.
With this acknowledgment, we’re here with a list of the 11 best penny stocks to invest in under $1.
A close-up of a portfolio of stocks, emphasizing the broad equity portfolio of the company.
Our Methodology
We used the Finviz stock screener to compile a list of the top penny stocks that were trading below $1 as of April 10. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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).
11 Best Penny Stocks to Invest in Under $1
11. Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK)
Share Price as of April 10: $0.91
Number of Hedge Fund Holders: 6
Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) explores mineral properties in the US. It explores for copper, gold, molybdenum, silver, and rhenium deposits. It holds 100% interest in the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project that comprises 1,840 mineral claims that cover an area of ~274 square miles in southwest Alaska in the US.
The company’s core business revolves around the Pebble project. This is a world-class, undeveloped copper deposit that Northern Dynasty Minerals Ltd. (NYSEAMERICAN:NAK) claims is among the world’s largest currently. It’s entirely held by the company’s subsidiary called the Pebble Partnership. It has 6.5 billion tonnes of measured and indicated resources, and 4.5 billion tonnes are still inferred.
However, this project involves disputes with the EPA and USACE concerning necessary permits. While these regulatory and legal challenges slow down the company a bit, it remains focused on advancing the Pebble Project with hopes that the new EPA administration will allow the project to proceed. Pebble Limited Partnership (PLP) recently agreed to a 90-day delay in the proceedings to give the new EPA admin time to review the case.
10. Senseonics Holdings Inc. (NYSEAMERICAN:SENS)
Share Price as of April 10: $0.6
Number of Hedge Fund Holders: 7
Senseonics Holdings Inc. (NYSEAMERICAN:SENS) is a commercial-stage medical technology company, that develops and manufactures continuous glucose monitoring (CGM) systems for people with diabetes. Its products include Eversense, Eversense XL, Eversense E3, and Eversense 365. These are once-yearly implantable CGM systems to measure glucose levels in people with diabetes.
In Q4 2024, the company made $8.3 million in revenue, whereas the full-year revenue stood at $22.5 million. This was driven by the success of recently launched Eversense 365 in the US. By December 2024, the company had achieved a record 600 new patient shipments, which increased the global patient base by 56% year-over-year. Total number of patients were then around 6,000. 81% of these patients switched from competitor CGM systems.
Now the company expects to make around $34 to $38 million in 2025 full-year revenue. Senseonics Holdings Inc. (NYSEAMERICAN:SENS) is now focused on its European expansion plans and has filed for CE mark approval for Eversense 365. It’s expected to launch in H2 2025.
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