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.
9. Integra Resources Corp. (NYSE:ITRG)
Number of Hedge Fund Holders: 10
Integra Resources Corp. (NYSE:ITRG) is one of the best strong buy penny stocks to invest in. On February 10, Stifel adjusted the price target on Integra Resources Corp. (NYSE:ITRG) to C$9 from C$8, maintaining a Buy rating on the shares. The same day, Raymond James also reiterated a Buy rating on the stock, setting a price target of C$9.00.
The bullish rating updates came after Integra Resources Corp. (NYSE:ITRG) announced on February 9 the completion of its previously announced bought deal public offering of 18,121,600 common shares of the company at a price of $3.40 per Common Share for aggregate gross proceeds of $61,613,440. This includes the full exercise of the overallotment option by the Underwriters.
Management reported that the offering was lead by Canaccord Genuity Corp. and Stifel Nicolaus Canada Inc. as co-lead underwriters and joint bookrunners, on behalf of a syndicate of underwriters including ATB Capital Markets Corp., Desjardins Securities Inc. and Raymond James Ltd. Integra Resources Corp. (NYSE:ITRG) plans to use the net proceeds for funding the pre-production capital expenditures at the DeLamar Project, which encompasses procurement work, early works, and land purchase.
Integra Resources Corp. (NYSE:ITRG) is a development-stage company involved in the acquisition, development, and exploration of mineral properties in the Americas.
8. Rezolve AI PLC (NASDAQ:RZLV)
Number of Hedge Fund Holders: 14
Rezolve AI PLC (NASDAQ:RZLV) is one of the best strong buy penny stocks to invest in. Alliance Global adjusted the price target on Rezolve AI PLC (NASDAQ:RZLV) to $13 from $14 on February 12 and maintained a Buy rating on the shares. The rating update came after the company’s recent announcement of the acquisition of Reward Loyalty UK for $230 million in cash. Alliance Global believes that the acquisition “completes the company’s technology stack,” but reduced the price target on the stock to take into account the lower cash balance, partially offset by higher predicted revenue.
Rezolve AI PLC (NASDAQ:RZLV) announced the acquisition of 100% of Reward Loyalty UK Limited for $230 million on February 10, payable entirely in cash from existing resources. Management reported that the acquisition bolstered the company’s core AI-commerce platform with profitable, self-financing growth at scale, supported by Reward’s live enterprise deployments across retail and banking. It added that the Reward transaction is fully non-dilutive, does not require equity issuance, seller paper, or financing, and is anticipated to be EBITDA-accretive, self-financing, and supportive of profitable top-line growth from completion when combined with Rezolve AI PLC’s (NASDAQ:RZLV) business.
Rezolve AI PLC (NASDAQ:RZLV) operates in the mobile commerce industry and develops AI-based mobile commerce and engagement solutions. The company has an innovative engagement platform powered by machine learning and AI. It allows brands, retailers, and manufacturers to develop connections with consumers across desktop and mobile devices.
7. Vizsla Silver Corp. (NYSE:VZLA)
Number of Hedge Fund Holders: 15
Vizsla Silver Corp. (NYSE:VZLA) is one of the best strong buy penny stocks to invest in. On February 12, Vizsla Silver Corp. (NYSE:VZLA) provided an update on the Concordia incident, reaffirming the company’s adherence to best practices in governance and safety in the long-term interest of the company and its stakeholders. It also confirmed that five colleagues remain unaccounted for.
On February 10, Vizsla Silver Corp. (NYSE:VZLA) was downgraded by National Bank to Sector Perform from Outperform, with the firm bringing the price target down to C$6.50 from C$10.50. It cited the anticipated delays at the company’s Panuco project in Mexico following worker deaths as the primary reason for the downgrade, and added that it sees the project being pushed out.
The rating update came after Vizsla Silver Corp. (NYSE:VZLA) reported on February 9 that it had been informed by a number of families that their relatives, who were taken from the company’s project site in Concordia, Mexico, had been found deceased. Vizsla Silver Corp. (NYSE:VZLA) added that it was awaiting confirmation from the Mexican authorities at the time.
Vizsla Silver Corp. (NYSE:VZLA) is a mineral exploration and development company that engages in the acquisition, exploration, and development of mineral resource properties, including a silver-gold project in Sinaloa, Mexico.
6. Butterfly Network, Inc. (NYSE:BFLY)
Number of Hedge Fund Holders: 21
Butterfly Network, Inc. (NYSE:BFLY) is one of the best strong buy penny stocks to invest in. On February 10, Butterfly Network, Inc. (NYSE:BFLY) announced that its Butterfly iQ+/iQ3 and Compass AI™ ultrasound solution attained GovRAMP and TX-RAMP authorizations, with the certifications allowing the company to sell cloud services to all state and local government agencies, including in the state of Texas.
Management added that GovRAMP is a nationally recognized risk authorization management program, and attaining the GovRAMP Authorization exhibits the company’s dedication to meeting the highest compliance and security standards. Butterfly Network, Inc. (NYSE:BFLY) also secured TX-RAMP Certification for the state of Texas, which is the only domestic state requiring a standalone authorization.
In another development, Craig-Hallum lifted the price target on Butterfly Network, Inc. (NYSE:BFLY) to $5.25 from $3.25 on January 21 while maintaining a Buy rating on the shares. The rating update followed the release of the company’s latest announcements, which included at least 17% year-over-year Q4 revenue growth, implying $26.2 million compared to the Street’s estimate of $25.7 million and the full year landing at $92.3 million. The firm attributed the majority of the growth to the core business, adding that some Q4 revenue did come from the Midjourney partnership.
Butterfly Network (NYSE:BFLY) is a digital health company specializing in transforming care through intuitive software, semiconductor-based ultrasound technology, services, and educational offerings. The company has two portable ultrasound devices on the market: the third-generation Butterfly iQ3 and the second-generation Butterfly iQ+. The Ultrasound-on-Chip technology powers both technologies, allowing them to undertake whole-body imaging on a single handheld probe through digital semiconductor technology.
5. AtaiBeckley Inc. (NASDAQ:ATAI)
Number of Hedge Fund Holders: 21
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the best strong buy penny stocks to invest in. AtaiBeckley Inc. (NASDAQ:ATAI) has received several rating updates since the beginning of the year. H.C. Wainwright expressed bullish sentiments for AtaiBeckley Inc. (NASDAQ:ATAI) on January 28, maintaining a Buy rating on the stock with a $15 price target. In another development, AtaiBeckley Inc. (NASDAQ:ATAI) was initiated with a Buy rating at Guggenheim on January 20, with the firm setting an $11 price target.
Guggenheim based the rating on the company’s position as “a differentiated leader in next-generation psychiatry”, stating that the recent merger with Beckley Psytech allows complete ownership of BPL-003, the lead asset, which has exhibited “compelling” Phase IIIb efficacy and durability in treatment-resistant depression. The firm believes that BPL-003 is “uniquely positioned for rapid clinical adoption and commercial scale.”
AtaiBeckley Inc. (NASDAQ:ATAI) also received a rating update from JonesTrading on January 16, which reaffirmed a Buy rating on the stock and set a price target of $16, basing it on the company’s market opportunity and advancing clinical pipeline. It told investors that the company is positioned for a data-rich 2026, with pivotal Phase II results anticipated from all three of the company’s clinical programs in 2026. According to the firm, this holds the potential to considerably de-risk the story.
JonesTrading also considers the lead compounds BPL-003 and VLS-01 to be well-suited for treatment-resistant depression, primarily because of their short duration of action, supporting a clinic-based model similar to the commercial framework by esketamine.
Headquartered in Germany, AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
4. Gold Royalty Corp (NYSE:GROY)
Number of Hedge Fund Holders: 23
Gold Royalty Corp (NYSE:GROY) is one of the best strong buy penny stocks to invest in. Scotiabank lifted the price target on Gold Royalty Corp (NYSE:GROY) to $6 from $5 on January 26, maintaining an Outperform rating on the shares and telling investors that it is updating price targets for the Gold & Precious Minerals stocks under its coverage. Scotiabank added that it has raised both gold and silver forecasts, supported by factors such as geopolitical and economic uncertainty, along with strong central bank buying.
In another development, Maxim Group reiterated its Buy rating on Gold Royalty Corp (NYSE:GROY) on January 22, citing the recent strong year-over-year quarterly revenue growth by the company, supported by a sharp rise in gold prices. It added that the company’s recent royalty acquisitions in Brazil show that management is positioning the company’s portfolio for considerable production and revenue growth over the coming years.
The firm’s updated models now expect considerable growth in both earnings and revenue through 2027, shifting Gold Royalty Corp (NYSE:GROY) from an expected loss in 2025 to profitability in 2026 and beyond, thereby supporting the optimistic rating.
Gold Royalty Corp (NYSE:GROY) operates as a precious metals-focused royalty company offering financing solutions to the metals and mining industry.
3. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 25
Bitfarms Ltd. (NASDAQ:BITF) is one of the best strong buy penny stocks to invest in. Bitfarms Ltd. (NASDAQ:BITF) announced on February 6 that its Board of Directors approved a plan of arrangement under which it would redomicile from Canada to the United States, subject to receipt of shareholder, stock exchange, and court approvals.
Management reported that the arrangement marks the culmination of an elaborate strategic review process that the Board undertook for the past 12 months, along with the ongoing analysis of capital market trends and investor sentiment to identify opportunities to boost long-term shareholder value.
In another development, Bitfarms Ltd. (NASDAQ:BITF) was downgraded to Market Perform from Outperform on January 26 by Keefe Bruyette, with the firm lifting the price target to $3 from $2.50. It told investors that it does not anticipate the materialization of a leasing agreement for the company until H2 2026, and also voiced concerns regarding the company’s rising leverage and increasing capex. Keefe stated that it would adopt a more constructive outlook towards the shares with increased clarity on Bitfarms Ltd.’s (NASDAQ:BITF) liquidity and 2026 capex.
Bitfarms Ltd. (NASDAQ:BITF) is a vertically integrated Bitcoin mining company based in Canada. The company operates server farms that comprise computers (Miners) specifically designed to validate transactions on the Bitcoin Blockchain.
2. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 35
Denison Mines Corp. (NYSE:DNN) is one of the best strong buy penny stocks to invest in. On February 4, CIBC reiterated a Buy rating on Denison Mines Corp. (NYSE:DNN) with a price target of C$6.50. Denison Mines Corp. (NYSE:DNN) also received a rating update from Raymond James on January 14, with the price lifting the price target on the stock to C$5.05 from C$4.30 while maintaining an Outperform rating on the shares. The firm told investors that the price target update was a part of its mining update, adding that it continues to favor copper in the base metals complex as it anticipates growing deficits in the medium to long term.
In another development, Denison Mines Corp. (NYSE:DNN) announced on January 8 the availability of grid power supply from Saskatchewan Power Corporation at the site of the future Phoenix in-situ recovery uranium mine after the recent installation of a new 138kV transmission line. This availability marked a notable step in de-risking the execution of the Project, as the site’s electrification is on the critical path of activities planned for the first year of construction. It also supports the establishment of the freeze wall planned to surround the initial mining area.
Denison Mines Corp. (NYSE:DNN) is involved in the exploration and development of uranium. The company holds interests in the Athabasca Basin, Wheeler River, Midwest Project, McClean Lake, and Waterbury Lake.
1. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 59
Grab Holdings Limited (NASDAQ:GRAB) is one of the best strong buy penny stocks to invest in. Grab Holdings Limited (NASDAQ:GRAB) received a rating update from Bank of America Securities on February 12, with the firm maintaining a Buy rating on the stock with a price target of $6.20. The rating update came the same day Grab Holdings Limited (NASDAQ:GRAB) announced unaudited financial results for the fourth quarter ended December 31, 2025, reporting fiscal Q4 2025 revenue of $906 million, up 19% year-over-year.
On-demand GMV for the quarter rose 21% year-over-year to a record of $6.1 billion, while profit for the period reached $153 million, with adjusted EBITDA rising 54% year-over-year to $148 million. Management reported that fiscal Q4 2025 was a record quarter for Grab Holdings Limited (NASDAQ:GRAB), with it delivering its first full year of net profit and crossing 50 million Monthly Transacting Users.
Building on this solid foundation, Grab Holdings Limited (NASDAQ:GRAB) expressed an optimistic long-term financial outlook, stating that it expects to generate $1.5 billion in adjusted EBITDA with an adjusted free cash flow conversion of 80% by 2028.
Grab Holdings Limited (NASDAQ:GRAB) provides millions of consumers access to its merchant and driver partners for food delivery, ride or taxi hailing, package delivery, payment for online purchases, and services such as telemedicine, lending, and insurance through its application.
While we acknowledge the potential of GRAB 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 GRAB and that has 100x upside potential, check out our report about this cheapest AI stock.
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