In this article, we will look at the 11 Best Value Penny Stocks to Buy Now.
The Russell 2000 index has outperformed the S&P 500 on a year-to-date basis, with 6.24% returns compared to 0.68% returns for the S&P 500. On January 27, Matt Stucky from Northwestern Mutual, appeared on a CNBC Television interview to discuss his small and mid-cap outlook. The outperformance of the Russell 2000 has been driven by investors broadening out of the tech sector, valuation concerns, and expectations of potential rate cuts in 2026. Stucky told CNBC that the outperformance trend is expected to continue.
He noted that the small-cap performance has been long overdue, largely due to the narrowness of the market for the past few years. He noted that from 2022 to 2025, only around 20% to 30% of the S&P 500’s top constituents outperformed the average performance of the index.
Stucky highlighted that this is extremely narrow, considering the historic average has been in the mid to upper 40% range. He added that this is driven by the Federal Reserve cutting interest rates, which has helped cyclical sectors of the market, including small-cap companies. Stucky also told CNBC that the small-cap outperformance can continue if the Federal Reserve continues to cut interest rates and the gap between small and large cap valuations continues to compress.
With that, let’s take a look at the 11 Best Value Penny Stocks to Buy Now.
Our Methodology
We used screeners to identify penny stocks (priced below $5) that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 Value Penny Stocks to Buy Now
11. Wipro Limited (NYSE:WIT)
Wipro Limited (NYSE:WIT) is one of the Best Value Penny Stocks to Buy Now. Wall Street has maintained a cautious stance on Wipro Limited (NYSE:WIT) since the company’s fiscal Q3 2025 earnings. The company missed revenue estimates during the quarter.
Recently, on February 24, Akshat Agarwal from Jefferies maintained a Sell rating on Wipro Limited with a price target of INR180. Earlier on February 20, Geojit Research maintained a Hold rating on the stock with a price target of INR227.
During the fiscal third quarter, Wipro Limited (NYSE:WIT posted $2.62 billion in revenue, reflecting 0.6% year-over-year growth, but fell short of the expectations by $7.73 million. The EPS of $0.04 stayed in line with the consensus. Management noted that the quarterly performance was broad-based, with three of its top four markets posting gains, along with four of its top five sectors also posting growth.
During the quarter, Wipro’s Americas 1 delivered subsequent growth driven by strong performance in health care, consumer, and LATAM. However, Americas 2 witnessed a subsequent decline. On the bright side, Europe saw growth in the fiscal third quarter, led by a ramp-up from the company’s mega deal. Notably, the company closed $3.3 billion in total contract value and $871 million in large deal bookings.
Looking ahead, management expects fiscal Q4 2026 revenue in the range of $2.64 billion to $2.69 billion, representing 0% to 2.0% subsequent growth in constant currency terms.
Wipro Limited (NYSE:WIT) is a leading global information technology (IT), consulting, and business process services (BPS) company. It provides services such as cloud computing, artificial intelligence (AI), cybersecurity, data analytics, and digital transformation to clients across 65 countries.
10. Playtika Holding Corp. (NASDAQ:PLTK)
Playtika Holding Corp. (NASDAQ:PLTK) is one of the Best Value Penny Stocks to Buy Now. Playtika Holding Corp. (NASDAQ:PLTK) released its fiscal Q4 2025 earnings on February 26. The company posted GAAP EPS of negative $0.82, missing the estimates by $0.96, while the revenue of $678.8 million grew 4.44% year-over-year and topped the consensus by $16.9 million.
Management noted the quarterly performance to be strong, driven by momentum in “casual portfolio, record DTC contribution, and another outstanding quarter from SuperPlay.” During the quarter, the DTC platform revenue reached $250.1 million, reflecting 43.2% year-over-year growth.
Craig Abrahams, President and Chief Financial Officer, noted that the results highlight the strength of their strategy. He noted that during the fourth quarter, average daily paying users grew 5.3% year-over-year to 357 thousand. Moreover, average paying conversions also increased from 4.3% to 4.5% year-over-year.
Looking ahead, management expects fiscal 2026 revenue to be in the range of $2.70 billion – $2.80 billion, along with Adjusted EBITDA between $730 million – $770 million.
Playtika Holding Corp. (NASDAQ:PLTK) is a developer and publisher of free-to-play mobile games, known for titles such as Slotomania, Bingo Blitz, and June’s Journey. The company primarily generates revenue through in-app purchases of virtual items and digital currency within its games.
