In this article, we will look at the 11 Best Strong Buy Penny Stocks to Invest In.
On February 12, Wolfe Research’s Chris Senyek joined CNBC’s ‘Power Lunch’ to discuss the state of equity markets. Senyek called it a “manic market”, stating that some of the price action right now does not make sense. He turned cautious a week ago when we saw that blow off top in silver and gold.
To him, based on the work he does and how the earnings season has fared, it is not, in most cases, driven by fundamentals. In fact, the most positive EPS revisions this earnings season have been in energy, communication services, tech, and financials. Some of the areas that are outperforming, like materials, industrials, staples, and even energy, are the ones people are chasing here.
READ ALSO: 10 Best Medical Research Stocks to Buy According to Hedge Funds and 13 Oversold NASDAQ Stocks to Invest In.
Tim Urbanowicz, Innovator Capital Management chief investment strategist, also appeared on CNBC’s ‘Power Lunch’ on February 11 to talk about the state of the economy. Talking about whether this is the most expensive stock market ever, he stated that there are definitely pockets of the market that are expensive, and that the rotation trade is only just getting started. If we take a look at the backdrop, things are going very well in the economy, with 175 basis points of Fed cuts that are just starting to make their way in, the average American getting a 30% boost in their tax refund, and PMIs kicking up. Such factors make for a very strong backdrop for growth, one that boosts confidence that the rotation trade is going to happen.
With these trends in view, let’s look at the best strong buy penny stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of penny stocks with a stock price under $5 and a consensus Strong Buy analyst rating. We then selected the top 11 stocks that were the most popular among elite hedge funds as of Q3 2025, sourcing the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 13.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Strong Buy Penny Stocks to Invest In
11. VinFast Auto Ltd (NASDAQ:VFS)
Number of Hedge Fund Holders: 7
VinFast Auto Ltd (NASDAQ:VFS) is one of the best strong buy penny stocks to invest in. VinFast Auto Ltd (NASDAQ:VFS) and Exposure SARL announced on February 10 the signing of a Memorandum of Understanding about the potential supply of electric vehicles for green taxi services in Kinshasa, Democratic Republic of the Congo. Management stated that the agreement marks a significant milestone in its international expansion strategy and proves to be a notable step forward in the promotion of the green transportation transition in the capital of the DRC.
The MOU entails discussions and coordination between the two parties for the development of a plan to supply the first batch of VinFast electric vehicles for Exposure to operate electric taxi services in Kinshasa. The batch is anticipated to include commercial-oriented Limo Green and Herio Green models, which are considered an initial foundation for an all-electric taxi model.
Management further added that Exposure expressed an intention to take on the role of a distributor of VinFast Auto Ltd (NASDAQ:VFS) vehicles in the Congolese market, and would jointly study a business plan suited to local conditions. The MOU between VinFast Auto Ltd (NASDAQ:VFS) and Exposure SARL initiates the implementation of the strategic cooperation framework established by Vingroup and the City of Kinshasa in 2025.
VinFast Auto Ltd (NASDAQ:VFS) is involved in the design and manufacture of electric vehicles. Its offerings include electric buses and electric scooters, along with an e-mobility ecosystem built around community, customers, and connectivity, as well as the rollout of new vehicles.
10. New Pacific Metals Corp. (NYSE:NEWP)
Number of Hedge Fund Holders: 8
New Pacific Metals Corp. (NYSE:NEWP) is one of the best strong buy penny stocks to invest in. New Pacific Metals Corp. (NYSE:NEWP) announced financial results for the three and six months ended December 31, 2025, on February 11, 2026, reporting that the net loss attributable to equity holders of the company for the three and six months was $1.58 million or $0.01 per share and $2.33 million or $0.01 per share, respectively.
New Pacific Metals Corp. (NYSE:NEWP) stated that its financial results were affected by several items, including working capital, operating expenses, and income from investments. As of December 31, 2025, the company had a working capital of $41 million, while the operating expenses for the three and six months ended December 31, 2025, were $1.47 million and $2.79 million, respectively.
Management further reported that the income from investments for the three and six months period reached $0.31 million and $0.42 million, respectively, compared to $0.19 million and $0.44 million in the three and six-month periods ended December 31, 2024.
New Pacific Metals Corp. (NYSE:NEWP) is involved in the development and exploration of mineral properties in Bolivia. The company’s operations are divided into the following segments: Corporate, Silver Sand, Carangas, and Silverstrike.
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